HR 6554 — Community Bank Representation Act

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 italics, and existing law in which no 
change is proposed is shown in roman):

 FEDERAL RESERVE ACT

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 board of governors of the federal reserve system

 Sec. 10. The Board of Governors of the Federal Reserve System 
(hereinafter referred to as the ``Board'') shall be composed of 
seven members, to be appointed by the President, by and with 
the advice and consent of the Senate, after the date of 
enactment of the Banking Act of 1935, for terms of fourteen 
years except as hereinafter provided, but each appointive 
member of the Federal Reserve Board in office on such date 
shall continue to serve as a member of the Board until February 
1, 1936, and the Secretary of the Treasury and the Comptroller 
of the Currency shall continue to serve as members of the Board 
until February 1, 1936. In selecting the members of the Board, 
not more than one of whom shall be selected from any one 
Federal Reserve district, the President shall have due regard 
to a fair representation of the financial, agricultural, 
industrial, and commercial interests, and geographical 
divisions of the country. In selecting members of the Board, 
the President shall appoint at least 1 member with demonstrated 
primary experience working in or supervising community banks 
[having less than $10,000,000,000 in total assets]. The members 
of the Board shall devote their entire time to the business of 
the Board and shall each receive an annual salary of $15,000, 
payable monthly, together with actual necessary traveling 
expenses.
 The members of the Board shall be ineligible during the time 
they are in office and for two years thereafter to hold any 
office, position, or employment in any member bank, except that 
this restriction shall not apply to a member who has served the 
full term for which he was appointed. Upon the expiration of 
the term of any appointive member of the Federal Reserve Board 
in office on the date of enactment of the Banking Act of 1935, 
the President shall fix the term of the successor to such 
member at not to exceed fourteen years, as designated by the 
President at the time of nomination, but in such manner as to 
provide for the expiration of the term of not more than one 
member in any two-year period, and thereafter each member shall 
hold office for a term of fourteen years from the expiration of 
the term of his predecessor, unless sooner removed for cause by 
the President. Of the persons thus appointed, 1 shall be 
designated by the President, by and with the advice and consent 
of the Senate, to serve as Chairman of the Board for a term of 
4 years, and 2 shall be designated by the President, by and 
with the advice and consent of the Senate, to serve as Vice 
Chairmen of the Board, each for a term of 4 years, 1 of whom 
shall serve in the absence of the Chairman, as provided in the 
fourth undesignated paragraph of this section, and 1 of whom 
shall be designated Vice Chairman for Supervision. The Vice 
Chairman for Supervision shall develop policy recommendations 
for the Board regarding supervision and regulation of 
depository institution holding companies and other financial 
firms supervised by the Board, and shall oversee the 
supervision and regulation of such firms. The Chairman shall 
select one member of the Board with demonstrated primary 
experience working in or supervising community banks to, in 
consultation with the Vice Chairman for Supervision and any 
other member of the Board with demonstrated primary experience 
working in or supervising community banks, develop policy 
recommendations for the Board regarding supervision and 
regulation of banking organizations supervised by the Board 
having less than $17,000,000,000 in total assets, and to 
oversee the supervision and regulation of such banking 
organizations in consultation with the Vice Chairman for 
Supervision and any other member of the Board with demonstrated 
primary experience working in or supervising community banks. 
The chairman of the Board, subject to its supervision, shall be 
its active executive officer. Each member of the Board shall 
within fifteen days after notice of appointment make and 
subscribe to the oath of office. Upon the expiration of their 
terms of office, members of the Board shall continue to serve 
until their successors are appointed and have qualified. Any 
person appointed as a member of the Board after the date of 
enactment of the Banking Act of 1935 shall not be eligible for 
reappointment as such member after he shall have served a full 
term of fourteen years.
 The Board of Governors of the Federal Reserve System shall 
have power to levy semiannually upon the Federal reserve banks, 
in proportion to their capital stock and surplus, an assessment 
sufficient to pay its estimated expenses and the salaries of 
its members and employees for the half year succeeding the 
levying of such assessment, together with any deficit carried 
forward from the preceding half year, and such assessments may 
include amounts sufficient to provide for the acquisition by 
the Board in its own name of such site or building in the 
District of Columbia as in its judgment alone shall be 
necessary for the purpose of providing suitable and adequate 
quarters for the performance of its functions. After September 
1, 2000, the Board may also use such assessments to acquire, in 
its own name, a site or building (in addition to the facilities 
existing on such date) to provide for the performance of the 
functions of the Board. After approving such plans, estimates, 
and specifications as it shall have caused to be prepared, the 
Board may, notwithstanding any other provision of law, cause to 
be constructed on any site so acquired by it a building or 
buildings suitable and adequate in its judgment for its 
purposes and proceed to take all such steps as it may deem 
necessary or appropriate in connection with the construction, 
equipment, and furnishing of such building or buildings. The 
Board may maintain, enlarge, or remodel any building or 
buildings so acquired or constructed and shall have sole 
control of such building or buildings and space therein.
 The principal offices of the Board shall be in the District 
of Columbia. At meetings of the Board the chairman shall 
preside, and, in his absence, the vice chairman shall preside. 
In the absence of the chairman and the vice chairman, the Board 
shall elect a member to act as chairman pro tempore. The Board 
shall determine and prescribe the manner in which its 
obligations shall be incurred and its disbursements and 
expenses allowed and paid, and may leave on deposit in the 
Federal Reserve banks the proceeds of assessments levied upon 
them to defray its estimated expenses and the salaries of its 
members and employees, whose employment, compensation, leave, 
and expenses shall be governed solely by the provisions of this 
Act, specific amendments thereof, and rules and regulations of 
the Board not inconsistent therewith; and funds derived from 
such assessments shall not be construed to be Government funds 
or appropriated moneys. No member of the Board of Governors of 
the Federal Reserve System shall be an officer or director of 
any bank, banking institution, trust company, or Federal 
Reserve bank or hold stock in any bank, banking institution, or 
trust company; and before entering upon his duties as a member 
of the Board of Governors of the Federal Reserve System he 
shall certify under oath that he has complied with this 
requirement, and such certification shall be filed with the 
secretary of the Board. Whenever a vacancy shall occur, other 
than by expiration of term, among the six members of the Board 
of Governors of the Federal Reserve System appointed by the 
President as above provided, a successor shall be appointed by 
the President, by and with the advice and consent of the 
Senate, to fill such vacancy, and when appointed he shall hold 
office for the unexpired term of his predecessor.
 The President shall have power to fill all vacancies that 
may happen on the Board of Governors of the Federal Reserve 
System during the recess of the Senate by granting commissions 
which shall expire with the next session of the Senate.
 Nothing in this Act contained shall be construed as taking 
away any powers heretofore vested by law in the Secretary of 
the Treasury which relate to the supervision, management, and 
control of the Treasury Department and bureaus under such 
department, and wherever any power vested by this Act in the 
Board of Governors of the Federal Reserve System or the Federal 
reserve agent appears to conflict with the powers of the 
Secretary of the Treasury, such powers shall be exercised 
subject to the supervision and control of the Secretary.
 The Board of Governors of the Federal Reserve System shall 
annually make a full report of its operations to the Speaker of 
the House of Representatives, who shall cause the same to be 
printed for the information of the Congress. The report 
required under this paragraph shall include the reports 
required under section 707 of the Equal Credit Opportunity Act, 
section 18(f)(7) of the Federal Trade Commission Act, section 
114 of the Truth in Lending Act, and the tenth undesignated 
paragraph of this section.
 No Federal Reserve bank may authorize the acquisition or 
construction of any branch building, or enter into any contract 
or other obligation for the acquisition or construction of any 
branch building, without the approval of the Board.
 The Board of Governors of the Federal Reserve System shall 
keep a complete record of the action taken by the Board and by 
the Federal Open Market Committee upon all questions of policy 
relating to open-market operations and shall record therein the 
votes taken in connection with the determination of open-market 
policies and the reasons underlying the action of the Board and 
the Committee in each instance. The Board shall keep a similar 
record with respect to all questions of policy determined by 
the Board, and shall include in its annual report to the 
Congress a full account of the action so taken during the 
preceding year with respect to open-market policies and 
operations and with respect to the policies determined by it 
and shall include in such report a copy of the records required 
to be kept under the provisions of this paragraph.
 (12) Appearances before congress.--[The Vice Chairman 
 for Supervision]
 (A) Vice chairman for supervision._The Vice 
 Chairman for Supervision shall appear before 
 the Committee on Banking, Housing, and Urban 
 Affairs of the Senate and the Committee on 
 Financial Services of the House of 
 Representatives [and at] at semi-annual 
 hearings regarding the efforts, activities, 
 objectives, and plans of the Board with respect 
 to the conduct of supervision and regulation of 
 depository institution holding companies and 
 other financial firms supervised by the Board.
 (B) Community bank member.--The member of the 
 Board with demonstrated primary experience 
 working in or supervising community banks 
 selected by the Chairman to develop policy 
 recommendations for the Board regarding 
 supervision and regulation of banking 
 organizations supervised by the Board having 
 less than $17,000,000,000 in total assets, and 
 to oversee the supervision and regulation of 
 such banking organizations, if different than 
 the Vice Chairman for Supervision, shall appear 
 before the Committee on Banking, Housing, and 
 Urban Affairs of the Senate and the Committee 
 on Financial Services of the House of 
 Representatives at semi-annual hearings 
 regarding the efforts, activities, objectives, 
 and plans of the Board with respect to the 
 conduct of supervision and regulation of 
 banking organizations supervised by the Board 
 having less than $17,000,000,000 in total 
 assets.
 (13) Member of the board for community banks annual 
 threshold adjustment.--
 (A) In general.--At the end of each year for 
 which the nominal gross domestic product of the 
 United States increases (a ``covered year''), 
 the Board shall adjust each dollar figure 
 described in the second undesignated paragraph 
 of this section, paragraph (12)(B) of this 
 section, and section 1004(a)(3) of the Federal 
 Financial Institutions Examination Council Act 
 of 1978 by a percentage equal to the percentage 
 increase (if any) between--
 (i) the nominal gross domestic 
 product of the United States for the 
 year, during the preceding 5 years, 
 with respect to which the nominal gross 
 domestic product of the United States 
 was the highest; and
 (ii) the nominal gross domestic 
 product of the United States for the 
 covered year.
 (B) Determination of gdp.--In this paragraph, 
 the Board shall use nominal gross domestic 
 product statistics determined by the Bureau of 
 Economic Analysis.

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 FEDERAL FINANCIAL INSTITUTIONS EXAMINATION 
 COUNCIL ACT OF 1978 

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 TITLE X--FEDERAL FINANCIAL INSTITUTIONS 
 EXAMINATION COUNCIL 

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 establishment of the council

 Sec. 1004. (a) There is established the Financial 
Institutions Examination Council which shall consist of--
 (1) the Comptroller of the Currency,
 (2) the Chairman of the Board of Directors of the 
 Federal Deposit Insurance Corporation,
 (3) a Governor of the Board of Governors of the 
 Federal Reserve System designated by the Chairman of 
 the Board, and such Governor shall consult with the 
 Governor with demonstrated primary experience working 
 in or supervising community banks selected by the 
 Chairman of the Board to develop policy recommendations 
 for the Board regarding supervision and regulation of 
 banking organizations supervised by the Board having 
 less than $17,000,000,000 in total assets, and to 
 oversee the supervision and regulation of such banking 
 organizations,
 (4) the Director of the Consumer Financial Protection 
 Bureau,
 (5) the Chairman of the National Credit Union 
 Administration Board, and
 (6) the Chairman of the State Liaison Committee.
 (b) The members of the Council shall select the first 
chairman of the Council. Thereafter the chairmanship shall 
rotate among the members of the Council.
 (c) The term of the Chairman of the Council shall be two 
years.
 (d) The members of the Council may, from time to time, 
designate other officers or employees of their respective 
agencies to carry out their duties on the Council.
 (e) Each member of the Council shall serve without additional 
compensation but shall be entitled to reasonable expenses 
incurred in carrying out his official duties a such a member.

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