,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #abcf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #cj1 #bjai,mr4  
,k5n$y introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,securities ,ex*ange 
,act ( #aicd to cl>ify ! composition ( !
 memb]%ip ( ! ,municipal ,securities    
,rulemak+ ,bo>d1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,municipal ,securities ,rulemak+ ,bo>d  
,re=m ,act ( #bjai4  #b4 ,! ,municipal  
,securities ,rulemak+ ,bo>d  7a7 ,9     
g5]al ,section #ae;,b ( ! ,securities   
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gho-#d7 is am5d$-- 7#a7 by /rik+       
subsection 7b7 & ins]t+ ! foll[+3  7b7  
,municipal ,securities ,rulemak+ ,bo>d  
7#a7 ,memb]%ip  7,a7 ,def9itions ,= !   
purposes ( ?is p>agraph1 a p]son is     
associat$ )-- 7i7 a municipal securities
 brok] if t p]son is--  7,i7 a p>tn]1   
(fic]1 director1 or bran* manag] ( a    
municipal securities brok]2  7,,ii7 a   

p]son occupy+ a simil> /atus z1 or p]=m+
 simil> functions z1 a p]son describ$ 9 
subclause 7,i72  7,,iii7 any o!r        
employee ( a municipal securities brok] 
:o is engag$ 9 ! managem5t1 direction1  
sup]vision1 or p]=mance ( any activities
 relat+ to ! bus9ess ( effect+          
transactions 9 municipal securities = ! 
acc\nt ( o!rs2 or  7,,iv7 a p]son       
directly or indirectly controll+1       
controll$ by1 or "u common control ) a  
municipal securities brok]2  7ii7 a     
municipal securities deal] if ! p]son is
 a p]son associat$ ) a municipal        
securities deal]2 &  7iii7 a municipal  
advisor if ! p]son is a p]son associat$ 
) a municipal advisor4  7,b7            
,composition ( ,bo>d  7i7 ,9 g5]al ,!   
,municipal ,securities ,rulemak+ ,bo>d  
7ref]r$ to 9 ?is section z ! ,bo>d7 %all
 be compos$ ( #ae memb]s1 or su* o!r    
numb] ( memb]s z specifi$ by !          
,commission "u clause 7ii71 :o %all be--
  7,i7 appo9t$ f among prom95t          
individuals ( integrity & reputation2 & 

7,,ii7 kn[l$geable ( matt]s relat+ to ! 
municipal securities m>kets4  7ii7      
,commission alt]ations ,! ,commission   
may alt] ! numb] ( memb]s t con/itute ! 
,bo>d if t numb] is an odd numb]4  7,c7 
,public repres5tatives & regulat$       
repres5tatives  7i7 ,public             
repres5tatives ,a majority ( ! memb]%ip 
( ! ,bo>d %all be individuals :o 7 n    
associat$ ) a municipal securities      
brok]1 municipal securities deal]1 or   
municipal advisor dur+ ! #e-ye> p]iod   
prec$+ ! date on :i* ^? individuals are 
appo9t$ to ! ,bo>d 7ref]r$ to 9 ?is     
subsection z public repres5tatives7--   
7,i7 n less ?an #a ( :om %all be        
repres5tative ( in/itutional or reta9   
inve/ors 9 municipal securities2  7,,ii7
 n less ?an #a ( :om %all be            
repres5tative ( municipal entities2 &   
7,,iii7 n less ?an #a ( :om %all be a   
memb] ( ! public ) k or exp]i5ce 9 !    
municipal indu/ry4  7ii7 ,regulat$      
repres5tatives ,o!r ?an public          
repres5tatives1 ! memb]s ( ! ,bo>d %all 

be individuals :o are associat$ ) a     
brok]1 deal]1 municipal securities      
deal]1 or municipal advisor 7ref]r$ to 9
 ?is subsection z regulat$              
repres5tatives7--  7,i7 n less ?an #a ( 
:om %all be associat$ ) & repres5tative 
( brok]s1 deal]s1 or municipal          
securities deal]s t are n banks or      
subsidi>ies1 dep>tm5ts1 or divisions (  
banks 7ref]r$ to 9 ?is subsection z     
brok]-deal] repres5tatives72  7,,ii7 n  
less ?an #a ( :om %all be associat$ ) & 
repres5tative ( municipal securities    
deal]s t are banks or subsidi>ies1      
dep>tm5ts1 or divisions ( banks 7ref]r$ 
to 9 ?is subsection z bank              
repres5tatives72 &  7,,iii7 n less ?an  
#a ( :om %all be associat$ ) a municipal
 advisor 7ref]r$ to 9 ?is subsection z  
advisor repres5tatives74  7,d7          
,limitation ,! memb]%ip ( ! ,bo>d %all1 
at all times1 be z ev5ly divid$ z       
possible betwe5 ! numb] ( public        
repres5tatives & regulat$               
repres5tatives1 tak+ into acc\nt !      

requirem5t "u subp>agraph 7,c77i7 t !   
majority ( ! memb]%ip ( ! ,bo>d %all be 
public repres5tatives4  7,e7 ,appo9tm5t 
( ,bo>d memb]s  7i7 ,initial ,bo>d ,n   
lat] ?an #ahj days aft] ! date (        
enactm5t ( ! ,municipal ,securities     
,rulemak+ ,bo>d ,re=m ,act ( #bjai1 !   
,commission %all1 subject to clause     
7ii7-- 7,i7 appo9t a ,*airp]son ( !     
,bo>d & all o!r initial memb]s ( !      
,bo>d2 &  7,,ii7 designate a t]m (      
s]vice = ea* memb] appo9t$ "u subclause 
7,i74  7ii7 ,int]im ,bo>d  7,i7 ,9 g5]al
 ,be=e appo9t+ ! initial memb]s ( !     
,bo>d "u clause 7i71 ! ,commission may1 
)\t reg>d to ! limitations 9 subp>agraph
 7,c71 appo9t n m ?an #c individuals to 
s]ve z int]im memb]s ( ! ,bo>d :o %all  
be responsible = ensur+ ! cont9uity ( ! 
op]ations ( ! ,bo>d until ! ,commission 
appo9ts ^? initial memb]s4  7,,ii7      
,memb]%ip ,9 mak+ an appo9tm5t "u       
subclause 7,i71 ! ,commission %all      
select f among individuals ( integrity &
 reputation & :o are kn[l$geable (      

matt]s relat+ to ! municipal securities 
m>kets4  7,,iii7 ,au?ority ,! memb]s ( !
 int]im ,bo>d appo9t$ "u ?is subp>agraph
 may ex]cise all ( ! au?ority ( ! ,bo>d 
"u ?is section4  7,f7 ,vacancies ,a     
vacancy on ! ,bo>d-- 7i7 %all n affect !
 au?ority ( ! ,bo>d "u ?is section2 &   
7ii7 %all be fill$ by ! ,commission4    
7,g7 ,t]m ( s]vice ,! t]m ( s]vice = ea*
 ,bo>d memb] %all be #c ye>s1 plus !    
am\nt ( "t necess>y = ! appo9tm5t ( a   
successor1 except t--  7i7 ! t]m (      
s]vice = a memb] appo9t$ "u subp>agraph 
7,e77i71 o!r ?an ! ,*airp]son ( ! ,bo>d1
 %all expire 9 increm5ts1 )--  7,i7     
#a_/c ( ! t]ms ( ! memb]s s appo9t$     
expir+ on ! date t is #a ye> aft] ! date
 on :i* ^? memb]s are appo9t$2  7,,ii7  
#a_/c ( ! t]ms ( ! memb]s s appo9t$     
expir+ on ! date t is #b ye>s aft] !    
date on :i* ^? memb]s are appo9t$2 &    
7,,iii7 #a_/c ( ! t]ms ( ! memb]s s     
appo9t$ expir+ on ! date t is #c ye>s   
aft] ! date on :i* ^? memb]s are        
appo9t$2  7ii7 ! t]m ( s]vice = a memb] 

appo9t$ "u subp>agraph 7,e77ii7 %all be 
n m ?an #ahj days2 &  7iii7 any ,bo>d   
memb] appo9t$ to fill a vacancy on !    
,bo>d be=e ! expiration ( ! t]m )       
respect to t vacancy %all be appo9t$    
only = ! rema9d] ( t t]m4  7,h7 ,removal
 ,a memb] ( ! ,bo>d %all be removable at
 w by ! ,commission4  7#b7 ,rules ,!    
,bo>d %all propose & adopt rules to     
effect ! purposes ( ?is title ) respect 
to transactions 9 municipal securities  
effect$ by brok]s1 deal]s1 & municipal  
securities deal]s & advice provid$ to or
 on behalf ( municipal entities or      
obligat$ p]sons by brok]s1 deal]s1      
municipal securities deal]s1 & municipal
 advisors ) respect to municipal        
f9ancial products1 ! issuance (         
municipal securities1 & solicitations ( 
municipal entities or obligat$ p]sons   
und]tak5 by brok]s1 deal]s1 municipal   
securities deal]s1 & municipal advisors 
& t1 at a m9imum1 %all--  7,a7 provide t
 no municipal securities brok] or       
municipal securities deal] %all effect  

any transaction 91 or induce or attempt 
to induce ! pur*ase or sale (1 any      
municipal security1 & no brok]1 deal]1  
municipal securities deal]1 or municipal
 advisor %all provide advice to or on   
behalf ( a municipal entity or obligat$ 
p]son ) respect to municipal f9ancial   
products or ! issuance ( municipal      
securities1 unless su* municipal        
securities brok] or municipal securities
 deal] meets su* /&>ds ( op]ational     
capability & su* municipal securities   
brok] or municipal securities deal] & e 
natural p]son associat$ ) su* municipal 
securities brok] or municipal securities
 deal] meets su* /&>ds ( tra9+1         
exp]i5ce1 compet5ce1 & su* o!r          
qualifications z ! ,bo>d f9ds necess>y  
or appropriate 9 ! public int]e/ or = ! 
protection ( inve/ors & municipal       
entities or obligat$ p]sons4 ,9         
connection ) ! def9ition & application (
 su* /&>ds ! ,bo>d may--  7i7           
appropriately classify municipal        
securities brok]s1 municipal securities 

deal]s1 & municipal advisors 7tak+ into 
acc\nt relevant matt]s1 includ+ types ( 
bus9ess done1 nature ( securities o!r   
?an municipal securities sold1 & "* (   
bus9ess organization71 & p]sons         
associat$ ) municipal securities brok]s1
 municipal securities deal]s1 &         
municipal advisors2  7ii7 specify t all 
or any portion ( su* /&>ds %all be      
applicable to any su* class2 &  7iii7   
require p]sons 9 any su* class to pass  
te/s adm9i/]$ 9 accordance ) subsection 
7c77#g72  7,b7 be design$ to prev5t     
fraudul5t & manipulative acts &         
practices1 to promote j & equitable     
pr9ciples ( trade1 to fo/] coop]ation & 
coord9ation ) p]sons engag$ 9 regulat+1 
cle>+1 settl+1 process+ in=mation )     
respect to1 & facilitat+ transactions 9 
municipal securities & municipal        
f9ancial products1 to remove imp$im5ts  
to & p]fect ! me*anism ( a free & op5   
m>ket 9 municipal securities & municipal
 f9ancial products1 &1 9 g5]al1 to      
protect inve/ors1 municipal entities1   

obligat$ p]sons1 & ! public int]e/2 & n 
be design$ to p]mit unfair discrim9ation
 among cu/om]s1 municipal entities1     
obligat$ p]sons1 municipal securities   
brok]s1 municipal securities deal]s1 or 
municipal advisors1 to fix m9imum       
pr(its1 to impose any s*$ule or fix     
rates ( commissions1 all[ances1         
disc\nts1 or o!r fees to be *>g$ by     
municipal securities brok]s1 municipal  
securities deal]s1 or municipal         
advisors1 to regulate by virtue ( any   
au?ority conf]r$ by ?is title matt]s n  
relat$ to ! purpose ( ?is title or !    
adm9i/ration ( ! ,bo>d1 or to impose any
 burd5 on competition n necess>y or     
appropriate 9 fur!rance ( ! purposes (  
?is title2  7,c7 if ! ,bo>d deems       
appropriate1 provide = ! arbitration (  
claims1 disputes1 & controv]sies relat+ 
to transactions 9 municipal securities &
 advice conc]n+ municipal f9ancial      
products1 except t no p]son o!r ?an a   
municipal securities brok]1 municipal   
securities deal]1 municipal advisor1 or 

p]son associat$ ) su* a municipal       
securities brok]1 municipal securities  
deal]1 or municipal advisor may be      
compell$ to submit to su* arbitration   
except at 8 in/ance & 9 accordance )    
section #bi2  7,d7 provide = ! p]iodic  
exam9ation 9 accordance ) subsection    
7c77#g7 ( municipal securities brok]s1  
municipal securities deal]s1 & municipal
 advisors to det]m9e compliance )       
applicable provisions ( ?is title1 !    
rules & regulations !reund]1 & ! rules (
 ! ,bo>d4 ,su* rules %all specify !     
m9imum scope & frequ5cy ( su*           
exam9ations & %all be design$ to avoid  
unnecess>y regulatory duplication or    
undue regulatory burd5s = any su*       
municipal securities brok]1 municipal   
securities deal]1 or municipal advisor2 
7,e7 include provisions gov]n+ ! =m &   
cont5t ( quotations relat+ to municipal 
securities :i* may be di/ribut$ or      
publi%$ by any municipal securities     
brok]1 municipal securities deal]1 or   
p]son associat$ ) su* a municipal       

securities brok] or municipal securities
 deal]1 & ! p]sons to :om su* quotations
 may be suppli$4 ,su* rules relat+ to   
quotations %all be design$ to produce   
fair & in=mative quotations1 to prev5t  
fictiti\s or mislead+ quotations1 & to  
promote ord]ly proc$ures = collect+1    
di/ribut+1 & publi%+ quotations2  7,f7  
prescribe records to be made & kept by  
municipal securities brok]s1 municipal  
securities deal]s1 & municipal advisors 
& ! p]iods = :i* su* records %all be    
pres]v$2  7,g7 def9e ! t]m sep>ately    
id5tifiable dep>tm5t or division1 z t   
t]m is us$ 9 section #c7;a77#cj71 9     
accordance ) specifi$ & appropriate     
/&>ds to assure t a bank is n deem$ to  
be engag$ 9 ! bus9ess ( buy+ & sell+    
municipal securities ?r\gh a sep>ately  
id5tifiable dep>tm5t or division unless 
su* dep>tm5t or division is organiz$ &  
adm9i/]$ s z to p]mit indep5d5t         
exam9ation & en=cem5t ( applicable      
provisions ( ?is title1 ! rules &       
regulations !reund]1 & ! rules ( ! ,bo>d

 & s t a sep>ately id5tifiable dep>tm5t 
or division ( a bank may be engag$ 9    
activities o!r ?an ^? relat+ to         
municipal securities2  7,h7 provide = ! 
op]ation & adm9i/ration ( ! ,bo>d1 !    
comp5sation ( ! memb]s ( ! ,bo>d        
7subject to ! rule issu$ by !           
,commission "u section #b7;b77#a77;,b7 (
 ! ,municipal ,securities ,rulemak+     
,bo>d ,re=m ,act ( #bjai71 & ! appo9tm5t
 & comp5sation ( su* employees1         
attorneys1 & consultants z may be       
necess>y or appropriate to c>ry out !   
functions ( ! ,bo>d "u ?is section2     
7,i7 provide t ea* municipal securities 
brok]1 municipal securities deal]1 &    
municipal advisor %all pay to ! ,bo>d   
su* reasonable fees & *>ges z may be    
necess>y or appropriate to defray ! co/s
 & exp5ses ( op]at+ & adm9i/]+ ! ,bo>d1 
:i* %all specify ! am\nt ( su* fees &   
*>ges1 :i* may include *>ges = failure  
to submit to ! ,bo>d1 or to any         
in=mation sy/em op]at$ by ! ,bo>d1 )9 ! 
prescrib$ timeframes1 any items (       

in=mation or docum5ts requir$ to be     
submitt$ "u any rule issu$ by ! ,bo>d2  
7,j7 e/abli% ! t]ms & conditions "u :i* 
any brok]1 deal]1 or municipal          
securities deal] may sell1 or prohibit  
any brok]1 deal]1 or municipal          
securities deal] f sell+1 any "p ( a new
 issue ( municipal securities to a      
relat$ acc\nt ( a brok]1 deal]1 or      
municipal securities deal] dur+ !       
und]writ+ p]iod2 &  7,k7 ) respect to   
municipal advisors-- 7i7 prescribe means
 reasonably design$ to prev5t acts1     
practices1 & c\rses ( bus9ess z are n   
consi/5t ) a municipal advisor's        
fiduci>y duty to its cli5ts2  7ii7      
provide cont9u+ education requirem5ts = 
municipal advisors2  7iii7 provide      
pr(essional /&>ds2 &  7iv7 n impose a   
regulatory burd5 on small municipal     
advisors t is n necess>y or appropriate 
9 ! public int]e/ & = ! protection (    
inve/ors1 municipal entities1 & obligat$
 p]sons1 provid$ t !re is robu/         
protection ( inve/ors aga9/ fraud4  7#c7

 ,bo>d au?ority ,! ,bo>d1 9 conjunction 
) or on behalf ( any ,f$]al f9ancial    
regulator or self-regulatory            
organization1 may--  7,a7 e/abli%       
in=mation sy/ems2 &  7,b7 assess su*    
reasonable fees & *>ges = ! submission (
 in=mation to1 or ! receipt ( in=mation 
f1 su* sy/ems f any p]sons :i* sy/ems   
may be develop$ = ! purposes ( s]v+ z a 
repository ( in=mation f municipal m>ket
 p>ticipants or o!rwise 9 fur!rance ( ! 
purposes ( ! ,bo>d1 a ,f$]al f9ancial   
regulator1 or a self-regulatory         
organization1 except t ! ,bo>d--  7i7   
may n *>ge a fee to municipal entities  
or obligat$ p]sons to submit docum5ts or
 o!r in=mation to ! ,bo>d or *>ge a fee 
to any p]son to obta91 directly f !     
,int]net site ( ! ,bo>d1 docum5ts or    
in=mation submitt$ by municipal         
entities1 obligat$ p]sons1 brok]s1      
deal]s1 municipal securities deal]s1 or 
municipal advisors1 includ+ docum5ts    
submitt$ "u ! rules ( ! ,bo>d or !      
,commission2 &  7ii7 %all n be prohibit$

 f *>g+ comm]cially reasonable fees =   
automat$ subscription-bas$ fe$s or      
simil> s]vices1 or = *>g+ = o!r data or 
docum5t-bas$ s]vices cu/omiz$ ^u reque/ 
( any p]son1 made available to comm]cial
 ent]prises1 municipal securities m>ket 
pr(essionals1 or ! g5]al public1 :e!r   
deliv]$ ?r\gh ! ,int]net or any o!r     
means1 t conta9 all or "p ( ! docum5ts  
or in=mation1 subject to approval ( !   
fees by ! ,commission "u section        
#ai7;b74  7#d7 ,guidance ,! ,bo>d may   
provide guidance & assi/ance 9 !        
en=cem5t (1 & exam9ation =1 compliance )
 ! rules ( ! ,bo>d to ! ,commission1 a  
regi/]$ securities association "u       
section #ae;,a1 or any o!r appropriate  
regulatory ag5cy1 z applicable4  7#e7   
,meet+s ,! ,bo>d1 ! ,commission1 & a    
regi/]$ securities association "u       
section #ae;,a1 or ! designees ( !      
,bo>d1 ! ,commission1 or su*            
association1 %all meet n less frequ5tly 
?an #b times a ye>--  7,a7 to describe !
 "w ( ! ,bo>d1 ! ,commission1 & !       

regi/]$ securities association involv+ !
 regulation ( municipal securities2 &   
7,b7 to %>e in=mation ab\t-- 7i7 !      
int]pretation ( ! ,bo>d1 ! ,commission1 
& ! regi/]$ securities association (    
,bo>d rules2 &  7ii7 exam9ation &       
en=cem5t ( compliance ) ,bo>d rules4    
7#f7 ,rule ( con/ruction ,no?+ 9 ?is    
section %all be con/ru$ to impair or    
limit ! p[] ( ! ,commission "u ?is      
title4  2 &  7#b7 9 subsection 7c77#g7--
 7,a7 9 subp>agraph 7,a71 9 ! matt]     
prec$+ clause 7i71 by /rik+ 7b77#b77;,e7
 & ins]t+ 7b77#b77;,d72 &  7,b7 9       
subp>agraph 7,b71 9 ! fir/ s5t5ce1 by   
/rik+ 7b77#b77;,e7 & ins]t+             
7b77#b77;,d74  7b7 ,rulemak+s  7#a7     
,securities & ,ex*ange ,commission ,!   
,securities & ,ex*ange ,commission--    
7,a7 may issue any rules to c>ry out ?is
 ,act t may be necess>y or appropriate 9
 ! public int]e/ or = ! protection (    
inve/ors2 &  7,b7 %all issue a f9al rule
 t provides ! maximum comp5sation = a   
memb] ( ! ,municipal ,securities        

,rulemak+ ,bo>d4  7#b7 ,municipal       
,securities ,rulemak+ ,bo>d ,n lat] ?an 
#fj days aft] ! date on :i* !           
,securities & ,ex*ange ,commission has  
complet$ ! appo9tm5t ( ! initial memb]s 
( ! ,municipal ,securities ,rulemak+    
,bo>d "u section #ae;,b7b77#a77;,e7 ( ! 
,securities ,ex*ange ,act ( #aicd1 z    
add$ by subsection 7a71 ! ,municipal    
,securities ,rulemak+ ,bo>d %all submit 
to ! ,commission any notice ( a propos$ 
*ange to ! rules ( ! ,bo>d t is requir$ 
z a result ( ! am5dm5ts made by         
subsection 7a74