CFPB Transparency and Accountability Reform Act

IB Union Calendar No. 241 118TH CONGRESS 1ST SESSION H. R. 2798 [Report No. 118–297, Part I] To make reforms to the Bureau of Consumer Financial Protection, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 24, 2023 Mr. BARR introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Accountability, the Judiciary, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee con- cerned DECEMBER 4, 2023 Additional sponsors: Mrs. HOUCHIN and Mr. HUNT DECEMBER 4, 2023 Reported from the Committee on Financial Services with an amendment [Strike out all after the enacting clause and insert the part printed in italic] DECEMBER 4, 2023 Committees on Oversight and Accountability, the Judiciary, and Small Busi- ness discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed [For text of introduced bill, see copy of bill as introduced on April 24, 2023] VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H2798.RH H2798 2 •HR 2798 RH A BILL To make reforms to the Bureau of Consumer Financial Protection, and for other purposes. VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H2798.RH H2798 3 •HR 2798 RH 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘CFPB Transparency and Accountability Reform Act’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; table of contents. TITLE I—COMMISSION OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION ACT Sec. 101. Short title. Sec. 102. Making the Bureau an independent agency led by a commission. Sec. 103. Deeming of name. Sec. 104. Conforming amendments. TITLE II—TABS ACT OF 2023 Sec. 201. Short title. Sec. 202. Bringing the Bureau into the regular appropriations process. TITLE III—CFPB–IG REFORM ACT OF 2023 Sec. 301. Short title. Sec. 302. Appointment of Inspector General. Sec. 303. Requirements for the Inspector General for the Bureau of Consumer Fi- nancial Protection. Sec. 304. Effective date. TITLE IV—CFPB DUAL MANDATE AND ECONOMIC ANALYSIS ACT Sec. 401. Short title. Sec. 402. Purpose. Sec. 403. Office of Economic Analysis. TITLE V—TRANSPARENCY IN CFPB COST-BENEFIT ANALYSIS ACT Sec. 501. Short title. Sec. 502. Transparency in cost-benefit analysis. TITLE VI—MAKING THE CFPB ACCOUNTABLE TO SMALL BUSINESSES ACT OF 2023 Sec. 601. Short title. Sec. 602. Rulemaking under Dodd-Frank Wall Street Reform and Consumer Pro- tection Act. Sec. 603. Initial regulatory flexibility analysis. Sec. 604. Final regulatory flexibility analysis. VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6213 E:\BILLS\H2798.RH H2798 4 •HR 2798 RH TITLE VII—CFPB WHISTLEBLOWER INCENTIVES AND PROTECTION ACT Sec. 701. Short title. Sec. 702. Bureau whistleblower incentives and protection. Sec. 703. Amendment to the Consumer Financial Civil Penalty Fund. TITLE I—COMMISSION OF THE 1 BUREAU OF CONSUMER FI- 2 NANCIAL PROTECTION ACT 3 SEC. 101. SHORT TITLE. 4 This Act may be cited as the ‘‘Commission of the Bu- 5 reau of Consumer Financial Protection Act’’ 6 SEC. 102. MAKING THE BUREAU AN INDEPENDENT AGENCY 7 LED BY A COMMISSION. 8 The Consumer Financial Protection Act of 2010 (12 9 U.S.C. 5481 et seq.) is amended— 10 (1) in section 1011— 11 (A) in subsection (a)— 12 (i) by striking ‘‘in the Federal Reserve 13 System,’’; and 14 (ii) by striking ‘‘independent bureau’’ 15 and inserting ‘‘independent agency’’; 16 (B) by striking subsections (b), (c), and (d); 17 (C) by redesignating subsection (e) as sub- 18 section (j); 19 (D) in subsection (j), as so redesignated, by 20 striking ‘‘, including in cities in which the Fed- 21 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 5 •HR 2798 RH eral reserve banks, or branches of such banks, are 1 located,’’; and 2 (E) by inserting after subsection (a) the fol- 3 lowing new subsections: 4 ‘‘(b) AUTHORITY TO PRESCRIBE REGULATIONS.—The 5 commission of the Bureau may prescribe such regulations 6 and issue such orders in accordance with this title as the 7 Bureau may determine to be necessary for carrying out this 8 title and all other laws within the Bureau’s jurisdiction and 9 shall exercise any authorities granted under this title and 10 all other laws within the Bureau’s jurisdiction. 11 ‘‘(c) COMPOSITION OF THE COMMISSION.— 12 ‘‘(1) IN GENERAL.—The management of the Bu- 13 reau shall be vested in a commission, which shall be 14 composed of 5 members who shall be appointed by the 15 President, by and with the advice and consent of the 16 Senate, and at least 2 of whom shall have private sec- 17 tor experience in the provision of consumer financial 18 products and services. 19 ‘‘(2) STAGGERING.—The members of the commis- 20 sion shall serve staggered terms, which initially shall 21 be established by the President for terms of 1, 2, 3, 22 4, and 5 years, respectively. 23 ‘‘(3) TERMS.— 24 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 6 •HR 2798 RH ‘‘(A) IN GENERAL.—Except with respect to 1 the initial staggered terms described under para- 2 graph (2), each member of the commission, in- 3 cluding the Chair, shall serve for a term of 5 4 years. 5 ‘‘(B) REMOVAL.—The President may re- 6 move any member of the commission for ineffi- 7 ciency, neglect of duty, or malfeasance in office. 8 ‘‘(C) VACANCIES.—Any member of the com- 9 mission appointed to fill a vacancy occurring be- 10 fore the expiration of the term to which that 11 member’s predecessor was appointed (including 12 the Chair) shall be appointed only for the re- 13 mainder of the term. 14 ‘‘(D) CONTINUATION OF SERVICE.—Each 15 member of the commission may continue to serve 16 after the expiration of the term of office to which 17 that member was appointed until a successor has 18 been appointed by the President and confirmed 19 by the Senate, except that a member may not 20 continue to serve more than 1 year after the date 21 on which that member’s term would otherwise ex- 22 pire. 23 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 7 •HR 2798 RH ‘‘(E) OTHER EMPLOYMENT PROHIBITED.— 1 No member of the commission shall engage in 2 any other business, vocation, or employment. 3 ‘‘(d) AFFILIATION.—Not more than 3 members of the 4 commission shall be members of any one political party. 5 ‘‘(e) CHAIR OF THE COMMISSION.— 6 ‘‘(1) INITIAL CHAIR.—The first member and 7 Chair of the commission shall be the individual serv- 8 ing as Director of the Bureau of Consumer Financial 9 Protection on the day before the date of the enactment 10 of this subsection. Such individual shall serve until 11 the President has appointed all 5 members of the com- 12 mission in accordance with subsection (c). 13 ‘‘(2) SUBSEQUENT CHAIR.—Of the 5 members 14 appointed in accordance with subsection (c), the 15 President shall appoint 1 member to serve as the sub- 16 sequent Chair of the commission. 17 ‘‘(3) AUTHORITY.—The Chair shall be the prin- 18 cipal executive officer of the commission, and shall ex- 19 ercise all of the executive and administrative func- 20 tions of the commission, including with respect to— 21 ‘‘(A) the appointment and supervision of 22 personnel employed under the commission (other 23 than personnel employed regularly and full time 24 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 8 •HR 2798 RH in the immediate offices of members of the com- 1 mission other than the Chair); 2 ‘‘(B) the distribution of business among per- 3 sonnel appointed and supervised by the Chair 4 and among administrative units of the commis- 5 sion; and 6 ‘‘(C) the use and expenditure of funds. 7 ‘‘(4) LIMITATION.—In carrying out any of the 8 Chair’s functions under the provisions of this sub- 9 section, the Chair shall be governed by general policies 10 of the commission and by such regulatory decisions, 11 findings, and determinations as the commission may 12 by law be authorized to make. 13 ‘‘(5) REQUESTS OR ESTIMATES RELATED TO AP- 14 PROPRIATIONS.—Requests or estimates for regular, 15 supplemental, or deficiency appropriations on behalf 16 of the commission may not be submitted by the Chair 17 without the prior approval of the commission. 18 ‘‘(6) DESIGNATION.—The Chair shall be known 19 as both the ‘Chair of the commission’ of the Bureau 20 and the ‘Chair of the Bureau’. 21 ‘‘(f) INITIAL QUORUM ESTABLISHED.—For the 6 22 month period beginning on the date of enactment of this 23 subsection, the first member and Chair of the commission 24 described under subsection (e)(1) shall constitute a quorum 25 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 9 •HR 2798 RH for the transaction of business until the President has ap- 1 pointed all 5 members of the commission in accordance with 2 subsection (c). Following such appointment of 5 members, 3 the quorum requirements of subsection (g) shall apply. 4 ‘‘(g) NO IMPAIRMENT BY REASON OF VACANCIES.—No 5 vacancy in the members of the commission after the estab- 6 lishment of an initial quorum under subsection (f) shall im- 7 pair the right of the remaining members of the commission 8 to exercise all the powers of the commission. Three members 9 of the commission shall constitute a quorum for the trans- 10 action of business, except that if there are only 3 members 11 serving on the commission because of vacancies in the com- 12 mission, 2 members of the commission shall constitute a 13 quorum for the transaction of business. If there are only 14 2 members serving on the commission because of vacancies 15 in the commission, 2 members shall constitute a quorum 16 for the 6-month period beginning on the date of the vacancy 17 which caused the number of commission members to decline 18 to 2. 19 ‘‘(h) SEAL.—The Bureau shall have an official seal. 20 ‘‘(i) COMPENSATION.— 21 ‘‘(1) CHAIR.—The Chair shall receive compensa- 22 tion at the rate prescribed for level I of the Executive 23 Schedule under section 5313 of title 5, United States 24 Code. 25 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 10 •HR 2798 RH ‘‘(2) OTHER MEMBERS OF THE COMMISSION.— 1 The 4 other members of the commission shall each re- 2 ceive compensation at the rate prescribed for level II 3 of the Executive Schedule under section 5314 of title 4 5, United States Code.’’; 5 (2) in section 1012(c)— 6 (A) in the heading, by striking ‘‘AUTONOMY 7 OF THE BUREAU’’ and inserting ‘‘COORDINATION 8 WITH THE BOARD OF GOVERNORS’’; 9 (B) by striking ‘‘(1) COORDINATION WITH 10 THE BOARD OF GOVERNORS.—’’; and 11 (C) by striking paragraphs (2), (3), (4), 12 and (5); and 13 (3) in section 1014(b), by striking ‘‘Not fewer 14 than 6 members shall be appointed upon the rec- 15 ommendation of the regional Federal Reserve Bank 16 Presidents, on a rotating basis.’’ and inserting ‘‘Not 17 fewer than half of all members shall have private sec- 18 tor experience in the provision of consumer financial 19 products and services.’’. 20 SEC. 103. DEEMING OF NAME. 21 Any reference in a law, regulation, document, paper, 22 or other record of the United States to the Director of the 23 Bureau of Consumer Financial Protection, except in sub- 24 section (e)(1) of section 1011 of the Consumer Financial 25 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 11 •HR 2798 RH Protection Act of 2010 (12 U.S.C. 5491), as added by this 1 Act, shall be deemed a reference to the commission leading 2 and governing the Bureau of Consumer Financial Protec- 3 tion, as described under section 1011 of the Consumer Fi- 4 nancial Protection Act of 2010. 5 SEC. 104. CONFORMING AMENDMENTS. 6 (a) CONSUMER FINANCIAL PROTECTION ACT OF 7 2010.— 8 (1) IN GENERAL.—Except as provided under 9 paragraph (2), the Consumer Financial Protection of 10 2010 (12 U.S.C. 5481 et seq.) is amended— 11 (A) by striking ‘‘Director of the Bureau’’ 12 each place such term appears, other than where 13 such term is used to refer to a Director other 14 than the Director of the Bureau of Consumer Fi- 15 nancial Protection, and inserting ‘‘Bureau’’; 16 (B) by striking ‘‘Director’’ each place such 17 term appears and inserting ‘‘Bureau’’, other 18 than where such term is used to refer to a Direc- 19 tor other than the Director of the Bureau of Con- 20 sumer Financial Protection; and 21 (C) in section 1002, by striking paragraph 22 (10). 23 (2) EXCEPTIONS.— 24 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 12 •HR 2798 RH (A) IN GENERAL.—The Consumer Financial 1 Protection Act of 2010 (12 U.S.C. 5481 et seq.) 2 is amended— 3 (i) in section 1013(c)(3)— 4 (I) by striking ‘‘Assistant Director 5 of the Bureau for’’ and inserting 6 ‘‘Head of the Office of’’; and 7 (II) in subparagraph (B), by 8 striking ‘‘Assistant Director’’ and in- 9 serting ‘‘Head of the Office’’; 10 (ii) in section 1013(g)(2)— 11 (I) by striking ‘‘ASSISTANT DI- 12 RECTOR’’ and inserting ‘‘HEAD OF 13 THE OFFICE’’; and 14 (II) by striking ‘‘an assistant di- 15 rector’’ and inserting ‘‘a Head of the 16 Office of Financial Protection for 17 Older Americans’’; 18 (iii) in section 1016(a), by striking 19 ‘‘Director of the Bureau’’ and inserting 20 ‘‘Chair of the Bureau’’; and 21 (iv) by striking section 1066. 22 (B) CLERICAL AMENDMENT.—The table of 23 contents for the Dodd-Frank Wall Street Reform 24 VerDate Sep 11 2014 23:47 Dec 04, 2023 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H2798.RH H2798 13 •HR 2798 RH and Consumer Protection Act is amended by 1 striking the item relating to section 1066. 2 (b) DODD-FRANK WALL STREET REFORM AND CON- 3 SUMER PROTECTION ACT.—The Dodd-Frank Wall Street 4 Reform and Consumer Protection Act (12 U.S.C. 5301 et 5 seq.) is amended— 6 (1) in section 111(b)(1)(D), by striking ‘‘Direc- 7 tor’’ and inserting ‘‘Chair’’; and 8 (2) in section 1447, by striking ‘‘Director of the 9 Bureau’’ each place such term appears and inserting 10 ‘‘Chair of the Bureau’’. 11 (c) ELECTRONIC FUND TRANSFER ACT.—Section [Text truncated for display. 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