Section 1 Short title
This Act may be cited as the “Democratizing the Federal Reserve System Act of 2013”.
Democratizing the Federal Reserve System Act of 2013
A BILL
To amend the Federal Reserve Act to alter the terms and conditions applicable to members of the Board of Governors of the Federal Reserve System, and for other purposes.
Sec. 2 Amendments to Federal Reserve Act
Reduction in length of terms—
The first sentence of the first undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 241) is amended by striking “fourteen years” and inserting “7 years”.
The 2nd sentence of the 2nd undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 242) is amended by striking “fourteen years” the 2nd place such term appears and inserting “7 years”.
The ultimate sentence of the 2nd undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 242) is amended by striking “fourteen years” and inserting “7 years”.
Increase in post-Service restriction— The first sentence of the 2nd undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 242) is amended by striking “two years” and inserting “4 years”.
Ongoing service on Board requirement for Chairman and Vice Chairman—
Chairman— The 3rd sentence of the 2nd undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 242) is amended by striking “1 shall be designated” and inserting “a member who is currently serving on the Board and has already served at least 2 consecutive years on the Board shall be designated”.
Vice Chairman— The 3rd sentence of the 2nd undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 242) is amended by striking “2 shall be designated” and inserting “2 members who are currently serving on the Board and have already served at least 1 year on the Board, shall be designated”.
Limitation on continuing vacancies— The 4th undesignated paragraph of section 10 of the Federal Reserve Act (12 U.S.C. 244) is amended—
in the ultimate sentence, by inserting “, before the end of the 90-day period beginning on the date such vacancy occurs, ” after “shall be appointed”; and
by adding at the end the following new sentences: “If, as of 30 days after the end of such 90-day period, no nomination has been made by the President, the chairperson and ranking Member of the Committees of the House of Representatives and the Senate which have jurisdiction over this Act, under the rules of the respective House, the Speaker and the minority leader of the House of Representatives, and the majority leader and minority leader of the Senate shall jointly create a list of 5 candidates in rank order to present to the President for consideration for the vacancy. Not later than 30 days after the transmittal of such list to the President, the President shall nominate a person, whether from such list or another person, to fill the vacancy.”.
Amendments relating to federal open market committee—
Increase in federal reserve bank representation— The 1st sentence of section 12A(a) of the Federal Reserve Act (12 U.S.C. 263) is amended by striking “five” and inserting “6”.
Distribution of federal reserve bank membership— Section 12A(a) of the Federal Reserve Act (12 U.S.C. 263) is amended by striking the 2nd sentence and inserting the following: “Such representatives shall be presidents or first vice presidents of Federal reserve banks and shall be elected annually as follows: In even numbered calendar years, from among the presidents and first vice presidents of the Federal Reserve Banks of Boston, Kansas City, Philadelphia, San Francisco, Richmond, and St. Louis and in odd numbered calendar years from among the presidents and first vice presidents of the Federal Reserve Banks of New York, Dallas, Chicago, Cleveland, Atlanta, and Minneapolis.”.