This bill significantly amends the Securities Exchange Act of 1934 to reform the structure and operations of the Municipal Securities Rulemaking Board (MSRB). It establishes a new framework for the MSRB's membership, requiring a board of 15 members, or another odd number as determined by the Securities and Exchange Commission (SEC), who possess integrity and experience in municipal securities markets. A key provision dictates that a majority of the board must be regulated representatives, including specific numbers of broker-dealer, bank, and municipal advisor representatives. The remaining members must be public representatives, who have not been associated with the industry for five years prior, and must include investor, municipal entity, and general public representatives. The bill emphasizes that the board should be as evenly divided as possible between public and regulated members, while maintaining the regulated majority.

The SEC is tasked with appointing the initial MSRB members and a Chairperson within 180 days of the act's enactment, and may also appoint interim members to ensure operational continuity. All board members will serve three-year terms, which are staggered for the initial appointees, and are removable at will by the Commission. The legislation also expands and clarifies the MSRB's rulemaking authority, enabling it to establish standards for operational capability, training, and competence for municipal securities professionals. These rules are designed to prevent fraudulent practices, promote fair trade, and protect investors, municipal entities, and the public interest.

Furthermore, the MSRB is authorized to establish information systems and assess reasonable fees for their use, with specific exemptions to prevent charging municipal entities for submissions or the public for accessing documents. The bill mandates regular meetings, at least twice annually, between the MSRB, the SEC, and registered securities associations to foster coordination and information sharing regarding rule interpretation and enforcement. The SEC is also directed to adopt data standards for information submitted to the MSRB, ensuring consistency with existing financial stability regulations. Finally, the SEC is required to issue a rule setting the maximum compensation for MSRB members, and the MSRB must propose rule changes to align with these amendments within 60 days of its initial members' appointment.