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114th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {      114-473

======================================================================



 
            FINANCIAL STABILITY OVERSIGHT COUNCIL REFORM ACT

                                _______
                                

 March 23, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3340]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3340) to place the Financial Stability Oversight 
Council and the Office of Financial Research under the regular 
appropriations process, to provide for certain quarterly 
reporting and public notice and comment requirements for the 
Office of Financial Research, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Financial Stability Oversight Council 
Reform Act''.

SEC. 2. FUNDING.

  (a) In General.--Section 155 of the Financial Stability Act of 2010 
(12 U.S.C. 5345) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), by striking ``be immediately 
                available to the Office'' and inserting ``be available 
                to the Office, as provided for in appropriation Acts'';
                  (B) by striking paragraph (2); and
                  (C) by redesignating paragraph (3) as paragraph (2); 
                and
          (2) in subsection (d), by amending the heading to read as 
        follows: ``Assessment Schedule.--''.
  (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2016.

SEC. 3. QUARTERLY REPORTING.

  Section 153 of the Financial Stability Act of 2010 (12 U.S.C. 5343) 
is amended by adding at the end the following:
  ``(g) Quarterly Reporting.--
          ``(1) In general.--Not later than 60 days after the end of 
        each quarter, the Office shall submit reports on the Office's 
        activities to the Committees on Appropriations of the House of 
        Representatives and the Senate, the Committee on Financial 
        Services of the House of Representatives, and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.
          ``(2) Contents.--The reports required under paragraph (1) 
        shall include--
                  ``(A) the obligations made during the previous 
                quarter by object class, office, and activity;
                  ``(B) the estimated obligations for the remainder of 
                the fiscal year by object class, office, and activity;
                  ``(C) the number of full-time equivalents within the 
                Office during the previous quarter;
                  ``(D) the estimated number of full-time equivalents 
                within each office for the remainder of the fiscal 
                year; and
                  ``(E) actions taken to achieve the goals, objectives, 
                and performance measures of the Office.
          ``(3) Testimony.--At the request of any committee specified 
        under paragraph (1), the Office shall make officials available 
        to testify on the contents of the reports required under 
        paragraph (1).''.

SEC. 4. PUBLIC NOTICE AND COMMENT PERIOD.

  Section 153(c) of the Financial Stability Act of 2010 (12 U.S.C. 
5343(c)) is amended by adding at the end the following:
          ``(3) Public notice and comment period.--The Office shall 
        provide for a public notice and comment period of not less than 
        90 days before issuing any proposed report, rule, or 
        regulation.
          ``(4) Additional report requirements.--
                  ``(A) In general.--Except as provided under paragraph 
                (3), the requirements under section 553 of title 5, 
                United States Code, shall apply to a proposed report of 
                the Office to the same extent as such requirements 
                apply to a proposed rule of the Office.
                  ``(B) Exception for certain reports.--This paragraph 
                and paragraph (3) shall not apply to a report required 
                under subsection (g)(1) or section 154(d)(1).''.

                          Purpose and Summary

    On July 29, 2015, Representative Tom Emmer introduced H.R. 
3340, the ``Financial Stability Council Reform Act,'' which 
amends the Financial Stability Act of 2010 to provide funding 
for the Financial Stability Oversight Council (FSOC) and the 
Office of Financial Research (OFR) through appropriations acts. 
H.R. 3340 also requires the OFR to submit quarterly reports to 
Congress regarding its activities and to provide a public 
notice and comment period of at least 90 days before issuing 
any report, rule, or regulation.

                  Background and Need for Legislation

    The Dodd-Frank Wall Street Reform and Consumer Protection 
Act created the FSOC and charged it with identifying risks to 
the financial stability of the United States, promoting market 
discipline by eliminating the expectation of government 
bailouts, and responding to emerging threats to the U.S. 
financial system. The Dodd-Frank Act also created the OFR as an 
office within the Treasury Department charged with collecting 
and analyzing financial transaction and position data in 
support of the FSOC. The Dodd-Frank Act grants the OFR broad 
powers to compel the production of vast amounts of information 
and data from financial market participants. The OFR has the 
authority to demand ``all data necessary'' from financial 
companies, including banks, hedge funds, private equity firms, 
and brokerages. The OFR can compel financial companies to 
produce sensitive, non-public information such as the 
identities of counterparties to credit default swaps, as well 
as information about individual loans, such as interest rate 
and maturity. To compel the production of information, the 
director of the OFR may issue subpoenas.
    The OFR sets its own budget and funds itself outside of the 
Congressional appropriations process. Moreover, under Section 
118 of the Dodd-Frank Act, any expenses of the FSOC are treated 
as expenses of, and paid by, the OFR, placing FSOC outside the 
appropriations process as well. Section 155 of the Dodd-Frank 
Act authorizes the OFR to fund itself and the FSOC through an 
assessment schedule applicable to bank holding companies with 
over $50 billion in total consolidated assets, and nonbank 
financial companies designated by the FSOC for enhanced 
supervision by the Federal Reserve Board of Governors.
    Because the OFR funds itself through the assessments it 
levies on financial institutions, Congress's oversight over it 
is significantly limited; the Dodd-Frank Act only requires that 
the Director report to and testify annually before Congress. 
Additionally, the OFR determines the size of its staff with no 
direction from Congress, and the salaries that the OFR pays its 
employees are not subject to the limitations that govern the 
salaries of other government employees. At the end of FY 2015, 
OFR had 201 employees, more than six times the number of people 
it employed in FY 2011. In FY 2015, the OFR spent about $85 
million; its estimated budget for FY 2016 is $99 million, a 16% 
increase.

                                Hearings

    The Committee on Financial Services' Subcommittee on 
Financial Institutions and Consumer Credit held a hearing 
examining matters relating to H.R. 3340 on October 21, 2015.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
November 3, 2015, and adopted an amendment to H.R. 3340 offered 
by Representative Emmer by voice vote. The Committee ordered 
H.R. 3340 to be reported favorably to the House as amended by a 
recorded vote of 33 yeas to 24 nays (recorded vote no. FC-69), 
a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole record vote in committee was a motion by Chairman 
Hensarling to report the bill favorably to the House as 
amended. The motion was agreed to by a recorded vote of 33 yeas 
to 24 nays (record vote no. FC-69), a quorum being present.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 3340 
will provide for greater transparency and accountability in the 
operations of the FSOC and OFR by subjecting both agencies to 
the congressional appropriations process, and by requiring the 
OFR to submit quarterly reports to Congress and to provide 
public notice and comment before the issuance of any rule, 
regulation, or report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 1, 2015.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3340, the 
Financial Stability Oversight Council Reform Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
    Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 3340--Financial Stability Oversight Council Reform Act

    Summary: Under current law, the Financial Research Fund 
(FRF) is permanently authorized to pay, without further 
appropriation, the operating costs of the Financial Stability 
Oversight Council (FSOC), the Office of Financial Research 
(OFR), as well as certain expenses of the Federal Deposit 
Insurance Corporation from assessments on certain bank holding 
companies and nonbank financial companies. H.R. 3340 would 
change the law so that spending from the FRF would be subject 
to the annual appropriations process. The bill also would 
direct FSOC to prepare financial reports that would be 
submitted to the Congress each quarter and allow the public to 
comment on FSOC's proposed rules and reports.
    CBO estimates that enacting H.R. 3340 would reduce direct 
spending by $1.3 billion over the 2016-2025 period; therefore 
pay-as-you-go procedures apply. (Enacting the bill would not 
affect revenues.) CBO estimates that implementing the bill 
would cost the same amount over that period, assuming 
appropriation of the necessary amounts.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits in any of 
the four consecutive 10-year periods beginning in 2026.
    H.R. 3340 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 3340 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2016    2017     2018     2019     2020     2021     2022     2023     2024     2025   2016-2020  2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority................      0     -133     -130     -134     -138     -142     -146     -150     -154     -158       -535     -1,285
Estimated Outlays.........................      0     -111     -132     -133     -137     -141     -145     -149     -153     -157       -513     -1,258
                                                      CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level.............      0      133      130      134      138      142      146      150      154      158        535      1,285
Estimated Outlays.........................      0      111      132      133      137      141      145      149      153      157        513      1,258
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted early in calendar year 2016, the necessary 
amounts will be appropriated each year, and spending will 
follow historical patterns for operations of the FRF.
    The Dodd-Frank Wall Street Reform and Consumer Financial 
Protection Act established the Financial Research Fund to pay 
the expenses of the OFR, and provided that the operating costs 
of FSOC should be considered expenses of the OFR. Further, the 
act provided that certain expenses of the Federal Deposit 
Insurance Corporation also be treated as expenses of FSOC. All 
of those costs are recorded in the budget as direct spending, 
and are offset by assessments on certain bank holding companies 
and nonbank financial companies. Those assessments are recorded 
in the budget as revenues. Enacting the bill would not affect 
the collection of those assessments.

Direct spending

    H.R. 3340 would terminate the permanent spending authority 
of the FRF, starting in fiscal year 2017, by requiring 
expenditures from the FRF to be provided through the annual 
appropriations process. Based on information from the agency, 
CBO estimates that enacting this change to the method of 
funding the FRF would reduce direct spending by about $1.3 
billion over the 2016-2025 period. Because the bill would not 
change the underlying responsibilities of the fund, CBO expects 
that the operating costs of the FRF would remain the same.

Spending subject to appropriation

    Because CBO expects that the operating expenses of the FRF 
would remain the same under the bill, CBO estimates that 
implementing the change in the method of funding the FRF would 
cost $513 million over the 2016-2020 period, assuming 
appropriation of the estimated amounts.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The changes in outlays that are subject to those pay-
as-you-go procedures are shown in the following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3340, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON NOVEMBER 4, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2016    2017     2018     2019     2020     2021     2022     2023     2024     2025   2016-2020  2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET DECREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Effect............      0     -111     -132     -133     -137     -141     -145     -149     -153     -157       -513     -1,258
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2026.
    Intergovernmental and private-sector impact: H.R. 3340 
contains no intergovernmental or private-sector mandates as 
defined UMRA and would not affect the budgets of state, local, 
or tribal governments.
    Estimate prepared by: Federal Costs: Susan Willie; Impact 
on State, Local, and Tribal Governments: Melissa Merrell; 
Impact on the Private Sector: Logan Smith.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 3340 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee states that no provision of H.R. 3340 establishes 
or reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee states that H.R. 3340 contains no directed 
rulemaking.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 3340 as the ``Financial Stability 
Oversight Council Reform Act.''

Section 2. Funding

    This section amends Section 155 of the Financial Stability 
Act of 2010 to provide that funds in the Financial Research 
Fund shall be available for the expenses of the FSOC and OFR as 
provided for in appropriation Acts.

Section 3. Quarterly reporting

    This section amends Section 153 of the Financial Stability 
Act to require that the OFR report to Congress on a quarterly 
basis about the status of its finances and workforce, as well 
as actions taken to achieve the OFR's goals, objectives, and 
performance measures.

Section 4. Public notice and comment period

    This section amends Section 153(c) of the Financial 
Stability Act of 2010 to require OFR to provide for a public 
notice and comment period of not less than 90 days before 
issuing any proposed report, rule, or regulation.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                    FINANCIAL STABILITY ACT OF 2010

                      TITLE I--FINANCIAL STABILITY

SEC. 101. SHORT TITLE.

  This title may be cited as the ``Financial Stability Act of 
2010''.

           *       *       *       *       *       *       *


Subtitle B--Office of Financial Research

           *       *       *       *       *       *       *


SEC. 153. PURPOSE AND DUTIES OF THE OFFICE.

  (a) Purpose and Duties.--The purpose of the Office is to 
support the Council in fulfilling the purposes and duties of 
the Council, as set forth in subtitle A, and to support member 
agencies, by--
          (1) collecting data on behalf of the Council, and 
        providing such data to the Council and member agencies;
          (2) standardizing the types and formats of data 
        reported and collected;
          (3) performing applied research and essential long-
        term research;
          (4) developing tools for risk measurement and 
        monitoring;
          (5) performing other related services;
          (6) making the results of the activities of the 
        Office available to financial regulatory agencies; and
          (7) assisting such member agencies in determining the 
        types and formats of data authorized by this Act to be 
        collected by such member agencies.
  (b) Administrative Authority.--The Office may--
          (1) share data and information, including software 
        developed by the Office, with the Council, member 
        agencies, and the Bureau of Economic Analysis, which 
        shared data, information, and software--
                  (A) shall be maintained with at least the 
                same level of security as is used by the 
                Office; and
                  (B) may not be shared with any individual or 
                entity without the permission of the Council;
          (2) sponsor and conduct research projects; and
          (3) assist, on a reimbursable basis, with financial 
        analyses undertaken at the request of other Federal 
        agencies that are not member agencies.
  (c) Rulemaking Authority.--
          (1) Scope.--The Office, in consultation with the 
        Chairperson, shall issue rules, regulations, and orders 
        only to the extent necessary to carry out the purposes 
        and duties described in paragraphs (1), (2), and (7) of 
        subsection (a).
          (2) Standardization.--Member agencies, in 
        consultation with the Office, shall implement 
        regulations promulgated by the Office under paragraph 
        (1) to standardize the types and formats of data 
        reported and collected on behalf of the Council, as 
        described in subsection (a)(2). If a member agency 
        fails to implement such regulations prior to the 
        expiration of the 3-year period following the date of 
        publication of final regulations, the Office, in 
        consultation with the Chairperson, may implement such 
        regulations with respect to the financial entities 
        under the jurisdiction of the member agency. This 
        paragraph shall not supersede or interfere with the 
        independent authority of a member agency under other 
        law to collect data, in such format and manner as the 
        member agency requires.
          (3) Public notice and comment period.--The Office 
        shall provide for a public notice and comment period of 
        not less than 90 days before issuing any proposed 
        report, rule, or regulation.
          (4) Additional report requirements.--
                  (A) In general.--Except as provided under 
                paragraph (3), the requirements under section 
                553 of title 5, United States Code, shall apply 
                to a proposed report of the Office to the same 
                extent as such requirements apply to a proposed 
                rule of the Office.
                  (B) Exception for certain reports.--This 
                paragraph and paragraph (3) shall not apply to 
                a report required under subsection (g)(1) or 
                section 154(d)(1).
  (d) Testimony.--
          (1) In general.--The Director of the Office shall 
        report to and testify before the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of 
        Representatives annually on the activities of the 
        Office, including the work of the Data Center and the 
        Research and Analysis Center, and the assessment of the 
        Office of significant financial market developments and 
        potential emerging threats to the financial stability 
        of the United States.
          (2) No prior review.--No officer or agency of the 
        United States shall have any authority to require the 
        Director to submit the testimony required under 
        paragraph (1) or other congressional testimony to any 
        officer or agency of the United States for approval, 
        comment, or review prior to the submission of such 
        testimony. Any such testimony to Congress shall include 
        a statement that the views expressed therein are those 
        of the Director and do not necessarily represent the 
        views of the President.
  (e) Additional Reports.--The Director may provide additional 
reports to Congress concerning the financial stability of the 
United States. The Director shall notify the Council of any 
such additional reports provided to Congress.
  (f) Subpoena.--
          (1) In general.--The Director may require from a 
        financial company, by subpoena, the production of the 
        data requested under subsection (a)(1) and section 
        154(b)(1), but only upon a written finding by the 
        Director that--
                  (A) such data is required to carry out the 
                functions described under this subtitle; and
                  (B) the Office has coordinated with the 
                relevant primary financial regulatory agency, 
                as required under section 154(b)(1)(B)(ii).
          (2) Format.--Subpoenas under paragraph (1) shall bear 
        the signature of the Director, and shall be served by 
        any person or class of persons designated by the 
        Director for that purpose.
          (3) Enforcement.--In the case of contumacy or failure 
        to obey a subpoena, the subpoena shall be enforceable 
        by order of any appropriate district court of the 
        United States. Any failure to obey the order of the 
        court may be punished by the court as a contempt of 
        court.
  (g) Quarterly Reporting.--
          (1) In general.--Not later than 60 days after the end 
        of each quarter, the Office shall submit reports on the 
        Office's activities to the Committees on Appropriations 
        of the House of Representatives and the Senate, the 
        Committee on Financial Services of the House of 
        Representatives, and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate.
          (2) Contents.--The reports required under paragraph 
        (1) shall include--
                  (A) the obligations made during the previous 
                quarter by object class, office, and activity;
                  (B) the estimated obligations for the 
                remainder of the fiscal year by object class, 
                office, and activity;
                  (C) the number of full-time equivalents 
                within the Office during the previous quarter;
                  (D) the estimated number of full-time 
                equivalents within each office for the 
                remainder of the fiscal year; and
                  (E) actions taken to achieve the goals, 
                objectives, and performance measures of the 
                Office.
          (3) Testimony.--At the request of any committee 
        specified under paragraph (1), the Office shall make 
        officials available to testify on the contents of the 
        reports required under paragraph (1).

           *       *       *       *       *       *       *


SEC. 155. FUNDING.

  (a) Financial Research Fund.--
          (1) Fund established.--There is established in the 
        Treasury of the United States a separate fund to be 
        known as the ``Financial Research Fund''.
          (2) Fund receipts.--All amounts provided to the 
        Office under subsection (c), and all assessments that 
        the Office receives under subsection (d) shall be 
        deposited into the Financial Research Fund.
          (3) Investments authorized.--
                  (A) Amounts in fund may be invested.--The 
                Director may request the Secretary to invest 
                the portion of the Financial Research Fund that 
                is not, in the judgment of the Director, 
                required to meet the needs of the Office.
                  (B) Eligible investments.--Investments shall 
                be made by the Secretary in obligations of the 
                United States or obligations that are 
                guaranteed as to principal and interest by the 
                United States, with maturities suitable to the 
                needs of the Financial Research Fund, as 
                determined by the Director.
          (4) Interest and proceeds credited.--The interest on, 
        and the proceeds from the sale or redemption of, any 
        obligations held in the Financial Research Fund shall 
        be credited to and form a part of the Financial 
        Research Fund.
  (b) Use of Funds.--
          (1) In general.--Funds obtained by, transferred to, 
        or credited to the Financial Research Fund shall [be 
        immediately available to the Office] be available to 
        the Office, as provided for in appropriation Acts, and 
        shall remain available until expended, to pay the 
        expenses of the Office in carrying out the duties and 
        responsibilities of the Office.
          [(2) Fees, assessments, and other funds not 
        government funds.--Funds obtained by, transferred to, 
        or credited to the Financial Research Fund shall not be 
        construed to be Government funds or appropriated 
        moneys.]
          [(3)] (2) Amounts not subject to apportionment.--
        Notwithstanding any other provision of law, amounts in 
        the Financial Research Fund shall not be subject to 
        apportionment for purposes of chapter 15 of title 31, 
        United States Code, or under any other authority, or 
        for any other purpose.
  (c) Interim Funding.--During the 2-year period following the 
date of enactment of this Act, the Board of Governors shall 
provide to the Office an amount sufficient to cover the 
expenses of the Office.
  (d)  [Permanent Self-funding] Assessment Schedule.--Beginning 
2 years after the date of enactment of this Act, the Secretary 
shall establish, by regulation, and with the approval of the 
Council, an assessment schedule, including the assessment base 
and rates, applicable to bank holding companies with total 
consolidated assets of 50,000,000,000 or greater and nonbank 
financial companies supervised by the Board of Governors, that 
takes into account differences among such companies, based on 
the considerations for establishing the prudential standards 
under section 115, to collect assessments equal to the total 
expenses of the Office.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 3340 whittles away at the protections of the Dodd-
Frank Wall Street Reform and Consumer Protection Act. 
Specifically, this bill would subject the Financial Stability 
Oversight Council (the Council) and the Office of Financial 
Research (OFR) to the Congressional appropriations process, and 
require the OFR to solicit public comment prior to issuing any 
report unlike any other federal agency.
    The financial crisis of 2008 left millions homeless and 
unemployed as a result of financial firms circumventing our 
financial system's silos of regulation. Democrats created a 
framework to detect, prevent and mitigate systemic risk. Title 
I of the Dodd-Frank Act created the FSOC and the OFR to look 
across those silos into all corners of the financial system for 
systemic risk. The FSOC oversees and deters threats to the U.S. 
financial markets, and the OFR supports the FSOC with 
analytical research to better understand trends and 
developments related to financial stability.
    Both the OFR and the FSOC set their own budgets outside of 
the appropriations process, and offset any spending by imposing 
a fee on bank holding companies with more than $50 billion in 
consolidated assets and nonbank financial companies supervised 
by the Federal Reserve. This funding arrangement is similar to 
how the bank regulators (Fed, OCC, FDIC, and NCUA) set and fund 
their budgets. H.R. 3340 eliminates the independent budget 
setting authority of the OFR and FSOC by requiring Congress to 
first appropriate funds, but the b ill does not eliminate the 
fee on financial institutions. As a result, if enacted, the OFR 
and FSOC would be funded in a manner similar to the SEC. This 
politicizes the FSOC and OFR and subjects them to the 
micromanagement of Congress, when it is important to have just 
the opposite--an assessment system that is impartial.
    H.R. 3340 also requires the OFR to solicit public comment 
for a period of at least 90 days prior to issuing a proposed 
report, rule or regulation. Although this provision appears to 
be a response to industry criticism to the OFR's publication of 
a report examining the assessment management industry, the 
requirement would essentially corrupt all of OFR's research by 
requiring it to first tell the industry about what it is 
considering studying. Congress should be doing whatever it can 
to help OFR identify risks to our economy, and not stand in its 
way.
    For these reasons, we oppose H.R. 3340.

                                   Maxine Waters.
                                   Wm. Lacy Clay.
                                   Carolyn B. Maloney.
                                   Gwen Moore,
                                   Ruben Hinojosa.
                                   Gregory W. Meeks.
                                   Juan Vargas.
                                   Keith Ellison.
                                   John C. Carney.
                                   Joyce Beatty.
                                   Bill Foster.

                                  [all]