Consumer Financial Protection Commission Act

I 116TH CONGRESS 2D SESSION H. R. 6116 To amend the Consumer Financial Protection Act of 2010 to make the Bureau of Consumer Financial Protection an independent Consumer Financial Protection Commission, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 5, 2020 Mr. LUETKEMEYER (for himself, Mr. MCHENRY, Mr. LUCAS, Mr. POSEY, Mr. HUIZENGA, Mr. STIVERS, Mrs. WAGNER, Mr. BARR, Mr. ZELDIN, Mr. MOONEY of West Virginia, Mr. TIPTON, Mr. TIMMONS, Mr. KUSTOFF of Tennessee, Mr. BUDD, Mr. LOUDERMILK, Mr. EMMER, Mr. GOODEN, Mr. HOLLINGSWORTH, Mr. GONZALEZ of Ohio, Mr. JOHN W. ROSE of Ten- nessee, Mr. STEIL, Mr. RIGGLEMAN, Mr. DAVIDSON of Ohio, Mr. TAY- LOR, Mr. HILL of Arkansas, and Mr. WILLIAMS) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Consumer Financial Protection Act of 2010 to make the Bureau of Consumer Financial Protection an independent Consumer Financial Protection Commis- sion, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Consumer Financial 4 Protection Commission Act’’. 5 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6116 IH SEC. 2. MAKING THE BUREAU AN INDEPENDENT CON- 1 SUMER FINANCIAL PROTECTION COMMIS- 2 SION. 3 The Consumer Financial Protection Act of 2010 (12 4 U.S.C. 5481 et seq.) is amended— 5 (1) in section 1011— 6 (A) in the heading of such section, by 7 striking ‘‘BUREAU OF CONSUMER FINAN- 8 CIAL PROTECTION’’ and inserting ‘‘CON- 9 SUMER FINANCIAL PROTECTION COMMIS- 10 SION’’; 11 (B) in subsection (a)— 12 (i) in the heading of such subsection, 13 by striking ‘‘BUREAU’’ and inserting 14 ‘‘COMMISSION’’; 15 (ii) by striking ‘‘in the Federal Re- 16 serve System,’’; 17 (iii) by striking ‘‘independent bureau’’ 18 and inserting ‘‘independent commission’’; 19 (iv) by striking ‘‘Bureau of Consumer 20 Financial Protection’’ and inserting ‘‘Con- 21 sumer Financial Protection Commission 22 (hereinafter in this section referred to as 23 the ‘Commission’)’’; and 24 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6116 IH (v) by striking ‘‘Bureau’’ each place 1 such term appears and inserting ‘‘Commis- 2 sion’’; 3 (C) by striking subsections (b), (c), and 4 (d); 5 (D) by redesignating subsection (e) as sub- 6 section (j); 7 (E) in subsection (j), as so redesignated— 8 (i) by striking ‘‘, including in cities in 9 which the Federal reserve banks, or 10 branches of such banks, are located,’’; and 11 (ii) by striking ‘‘Bureau’’ each place 12 such term appears and inserting ‘‘Commis- 13 sion’’; and 14 (F) by inserting after subsection (a) the 15 following new subsections: 16 ‘‘(b) AUTHORITY TO PRESCRIBE REGULATIONS.— 17 The Commission may prescribe such regulations and issue 18 such orders in accordance with this title as the Commis- 19 sion may determine to be necessary for carrying out this 20 title and all other laws within the Commission’s jurisdic- 21 tion and shall exercise any authorities granted under this 22 title and all other laws within the Commission’s jurisdic- 23 tion. 24 ‘‘(c) COMPOSITION OF THE COMMISSION.— 25 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6116 IH ‘‘(1) IN GENERAL.—The Commission shall be 1 composed of 5 members who shall be appointed by 2 the President, by and with the advice and consent 3 of the Senate. 4 ‘‘(2) STAGGERING.—The members of the Com- 5 mission shall serve staggered terms, which initially 6 shall be established by the President for terms of 1, 7 2, 3, 4, and 5 years, respectively. 8 ‘‘(3) TERMS.— 9 ‘‘(A) IN GENERAL.—Each member of the 10 Commission, including the Chair, shall serve for 11 a term of 5 years. 12 ‘‘(B) REMOVAL.—The President may re- 13 move any member of the Commission for ineffi- 14 ciency, neglect of duty, or malfeasance in office. 15 ‘‘(C) VACANCIES.—Any member of the 16 Commission appointed to fill a vacancy occur- 17 ring before the expiration of the term to which 18 that member’s predecessor was appointed (in- 19 cluding the Chair) shall be appointed only for 20 the remainder of the term. 21 ‘‘(D) CONTINUATION OF SERVICE.—Each 22 member of the Commission may continue to 23 serve after the expiration of the term of office 24 to which that member was appointed until a 25 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6116 IH successor has been appointed by the President 1 and confirmed by the Senate, except that a 2 member may not continue to serve more than 1 3 year after the date on which that member’s 4 term would otherwise expire. 5 ‘‘(E) OTHER EMPLOYMENT PROHIBITED.— 6 No member of the Commission shall engage in 7 any other business, vocation, or employment. 8 ‘‘(d) AFFILIATION.—Not more than 3 members of 9 the Commission shall be members of any one political 10 party. 11 ‘‘(e) CHAIR OF THE COMMISSION.— 12 ‘‘(1) INITIAL CHAIR.—The first member and 13 Chair of the Commission shall be the individual serv- 14 ing as Director of the Bureau of Consumer Finan- 15 cial Protection on the day before the date of the en- 16 actment of this subsection. Such individual shall 17 serve until the President has appointed all 5 mem- 18 bers of the Commission in accordance with sub- 19 section (c). 20 ‘‘(2) SUBSEQUENT CHAIR.—Of the 5 members 21 appointed in accordance with subsection (c), the 22 President shall appoint 1 member to serve as the 23 subsequent Chair of the Commission. 24 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 6116 IH ‘‘(3) AUTHORITY.—The Chair shall be the prin- 1 cipal executive officer of the Commission, and shall 2 exercise all of the executive and administrative func- 3 tions of the Commission, including with respect to— 4 ‘‘(A) the appointment and supervision of 5 personnel employed under the Commission 6 (other than personnel employed regularly and 7 full time in the immediate offices of members of 8 the Commission other than the Chair); 9 ‘‘(B) the distribution of business among 10 personnel appointed and supervised by the 11 Chair and among administrative units of the 12 Commission; and 13 ‘‘(C) the use and expenditure of funds. 14 ‘‘(4) LIMITATION.—In carrying out any of the 15 Chair’s functions under the provisions of this sub- 16 section the Chair shall be governed by general poli- 17 cies of the Commission and by such regulatory deci- 18 sions, findings, and determinations as the Commis- 19 sion may by law be authorized to make. 20 ‘‘(5) REQUESTS OR ESTIMATES RELATED TO 21 APPROPRIATIONS.—Requests or estimates for reg- 22 ular, supplemental, or deficiency appropriations on 23 behalf of the Commission may not be submitted by 24 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 6116 IH the Chair without the prior approval of the Commis- 1 sion. 2 ‘‘(f) INITIAL QUORUM ESTABLISHED.—The first 3 member and Chair of the Commission described under 4 subsection (e)(1) shall constitute a quorum for the trans- 5 action of business until the President has appointed all 6 5 members of the Commission in accordance with sub- 7 section (c). Following such appointment of 5 members, the 8 quorum requirements of subsection (g) shall apply. 9 ‘‘(g) NO IMPAIRMENT BY REASON OF VACANCIES.— 10 No vacancy in the members of the Commission after the 11 establishment of an initial quorum under subsection (f) 12 shall impair the right of the remaining members of the 13 Commission to exercise all the powers of the Commission. 14 Three members of the Commission shall constitute a 15 quorum for the transaction of business, except that if 16 there are only 3 members serving on the Commission be- 17 cause of vacancies in the Commission, 2 members of the 18 Commission shall constitute a quorum for the transaction 19 of business. If there are only 2 members serving on the 20 Commission because of vacancies in the Commission, 2 21 members shall constitute a quorum for the 6-month period 22 beginning on the date of the vacancy which caused the 23 number of Commission members to decline to 2. 24 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 6116 IH ‘‘(h) SEAL.—The Commission shall have an official 1 seal. 2 ‘‘(i) COMPENSATION.— 3 ‘‘(1) CHAIR.—The Chair shall receive com- 4 pensation at the rate prescribed for level I of the 5 Executive Schedule under section 5313 of title 5, 6 United States Code. 7 ‘‘(2) OTHER MEMBERS OF THE COMMISSION.— 8 The 4 other members of the Commission shall each 9 receive compensation at the rate prescribed for level 10 II of the Executive Schedule under section 5314 of 11 title 5, United States Code.’’; 12 (2) in section 1012(c), by striking paragraphs 13 (2), (3), (4), and (5); and 14 (3) in section 1014(b), by striking ‘‘Not fewer 15 than 6 members shall be appointed upon the rec- 16 ommendation of the regional Federal Reserve Bank 17 Presidents, on a rotating basis.’’. 18 SEC. 3. DEEMING OF NAME. 19 Any reference in a law, regulation, document, paper, 20 or other record of the United States to the Bureau of Con- 21 sumer Financial Protection, except in subsection (e)(1) of 22 section 1011 of the Consumer Financial Protection Act 23 of 2010 (12 U.S.C. 5491), as added by this Act, shall be 24 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 6116 IH deemed a reference to the Consumer Financial Protection 1 Commission. 2 SEC. 4. CONFORMING AMENDMENTS. 3 (a) CONSUMER FINANCIAL PROTECTION ACT OF 4 2010.— 5 (1) IN GENERAL.—Except as provided under 6 paragraph (2), the Consumer Financial Protection 7 of 2010 (12 U.S.C. 5481 et seq.) is amended— 8 (A) by striking ‘‘Director of the Bureau’’ 9 each place such term appears, other than where 10 such term is used to refer to a Director other 11 than the Director of the Bureau of Consumer 12 Financial Protection, and inserting ‘‘Consumer 13 Financial Protection Commission’’; 14 (B) by striking ‘‘Director’’ each place such 15 term appears and inserting ‘‘Consumer Finan- 16 cial Protection Commission’’, other than where 17 such term is used to refer to a Director other 18 than the Director of the Bureau of Consumer 19 Financial Protection; and 20 (C) in section 1002, by striking paragraph 21 (10). 22 (2) EXCEPTIONS.—The Consumer Financial 23 Protection Act of 2010 (12 U.S.C. 5481 et seq.) is 24 amended— 25 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 6116 IH (A) in section 1013(c)(3)— 1 (i) by striking ‘‘Assistant Director of 2 the Bureau for’’ and inserting ‘‘Head of 3 the Office of’’; and 4 (ii) in subparagraph (B), by striking 5 ‘‘Assistant Director’’ and inserting ‘‘Head 6 of the Office’’; 7 (B) in section 1013(g)(2)— 8 (i) by striking ‘‘ASSISTANT DIREC- 9 TOR’’ and inserting ‘‘HEAD OF THE OF- 10 FICE’’; and 11 (ii) by striking ‘‘an assistant director’’ 12 and inserting ‘‘a Head of the Office of Fi- 13 nancial Protection for Older Americans’’; 14 (C) in section 1016(a), by striking ‘‘Direc- 15 tor of the Bureau’’ and inserting ‘‘Chair of the 16 Consumer Financial Protection Commission’’; 17 and 18 (D) in section 1066(a), by striking ‘‘Direc- 19 tor of the Bureau is’’ and inserting ‘‘first mem- 20 ber of the Commission is’’. 21 (b) DODD-FRANK WALL STREET REFORM AND CON- 22 SUMER PROTECTION ACT.—The Dodd-Frank Wall Street 23 Reform and Consumer Protection Act (12 U.S.C. 5301 24 et seq.) is amended— 25 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 6116 IH (1) in section 111(b)(1)(D), by striking ‘‘Direc- 1 tor’’ and inserting ‘‘Chair of the Consumer Finan- 2 cial Protection Commission’’; and 3 (2) in section 1447, by striking ‘‘Director of the 4 Bureau’’ each place such term appears and inserting 5 ‘‘Consumer Financial Protection Commission’’. 6 (c) ELECTRONIC FUND TRANSFER ACT.—Section 7 920(a)(4)(C) of the Electronic Fund Transfer Act (15 8 U.S.C. 1693o–2(a)(4)(C)), as added by section 1075(a)(2) 9 of the Consumer Financial Protection Act of 2010, is 10 amended by striking ‘‘Director of the Bureau of Consumer 11 Financial Protection’’ and inserting ‘‘Consumer Financial 12 Protection Commission’’. 13 (d) EXPEDITED FUNDS AVAILABILITY ACT.—The 14 Expedited Funds Availability Act (12 U.S.C. 4001 et 15 seq.), as amended by section 1086 of the Consumer Finan- 16 cial Protection Act of 2010, is amended by striking ‘‘Di- 17 rector of the Bureau’’ each place such term appears and 18 inserting ‘‘Consumer Financial Protection Commission’’. 19 (e) FEDERAL DEPOSIT INSURANCE ACT.—Section 2 20 of the Federal Deposit Insurance Act (12 U.S.C. 1812), 21 as amended by section 336(a) of the Dodd-Frank Wall 22 Street Reform and Consumer Protection Act, is amended 23 by striking ‘‘Director of the Consumer Financial Protec- 24 tion Bureau’’ each place such term appears and inserting 25 VerDate Sep 11 2014 21:30 Mar 11, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H6116.IH H6116 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 6116 IH ‘‘Chair of the Consumer Financial Protection Commis- 1 sion’’. 2 (f) FEDERAL FINANCIAL INSTITUTIONS EXAMINA- 3 TION COUNCIL ACT OF 1978.—Section 1004(a)(4) of the 4 Federal Financial Institutions Examination Council Act of 5 1978 (12 U.S.C. 3303(a)(4)), as amended by section 1091 6 of the Consumer Financial Protection Act of 2010, is 7 amended by striking ‘‘Director of the Consumer Financial 8 Protection Bureau’’ and inserting ‘‘Chair of the Consumer 9 Financial Protection Commission’’. 10 (g) FINANCIAL LITERACY AND EDUCATION IM- 11 PROVEMENT ACT.—Section 513 of the Financial Literacy 12 and Education Improvement Act (20 U.S.C. 9702), as 13 amended by section 1013(d)(5) of the Consumer Financial 14 Protection Act of 2010, is amended by striking ‘‘Director’’ 15 each place such term appears and inserting ‘‘Chair of the 16 Consumer Financial Prote [Text truncated for display. Full text available on Congress.gov.]