House passes bill to extend term of independent member on Financial Stability Oversight Council

A bill introduced by U.S. Reps. Randy Hultgren (R-IL) and Maxine Waters (D-CA) that permits the independent member with insurance expertise to continue serving on the Financial Stability Oversight Council (FSOC) was passed by the House this week.

The legislation — the Financial Stability Oversight Council Insurance Member Continuity Act (HR 3110) — is a technical correction to the Dodd-Frank Act. Under current law, it is unclear if someone can serve in this position as an acting official once the term of the FSOC independent member with insurance expertise expires. The term of the individual currently serving in this position expires on September 30th of this year. The legislation allows the FSOC independent member with insurance expertise to remain past his or her term for the earlier of either: 18 months or when a successor is confirmed. It passed 407-1.

“My legislation ensures that the FSOC is able to benefit from the perspective of a voting member with insurance expertise without any unnecessary lapses. The Independent Member is the only member appointed by the President to specifically serve on the council, and is the only voting member which is expected to have insurance expertise,” Hultgren said. “Absent the appointment and confirmation of a successor, the expiration of the independent member’s term would leave the council without a voting member who has insurance expertise because Dodd-Frank did not make clear if the position can be filled by an acting official.”

Waters said this legislation is timely given that the term of the individual currently in this position, Roy Woodall, ends on Sept. 30.

“Since President Trump has yet to announce a successor, and the Senate will not likely have sufficient time to react between now and [Sept. 30], we must have this legislation signed into law without further delay,” Hultgren said.