A key lawmaker on the House Financial Services Committee has a proposal that would clarify, and potentially expand, the powers of the government to break up financial companies deemed too risky to the overall economy.

Paul E. Kanjorski , D-Pa., chairman of the Capital Markets Subcommittee, released legislation Wednesday that he said would allow federal regulators to dismantle a firm deemed too large or interconnected to other market players, even if it otherwise appeared financially healthy.

Kanjorski planned to offer the language as an amendment to a bill being marked up in the committee Wednesday that aims to eliminate so-called systemic risks to the economy. Companies deemed so large or interconnected that their failure could threaten the broader economy are generally considered systemically risky.

The underlying bill would create a new council of federal regulators that could designate a company as a systemic risk and, with the Federal Reserve acting as an executor, impose tough new standards on the company and even break up the firm.

Kanjorski’s amendment would remove some of the Fed’s executive power and give it to the council. Under the new language, the council would have very broad authority to break up a company that it deemed too interconnected or risky. It also would set “clear and objective standards for regulators to examine financial companies and reduce the level of risk their activities pose to our financial stability and our economy,” according to Kanjorski’s office.