[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 566 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 566

 To create a Financial Product Safety Commission, to provide consumers 
  with stronger protections and better information in connection with 
    consumer financial products, and to give providers of consumer 
             financial products more regulatory certainty.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 2009

 Mr. Durbin (for himself, Mr. Schumer, and Mr. Kennedy) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To create a Financial Product Safety Commission, to provide consumers 
  with stronger protections and better information in connection with 
    consumer financial products, and to give providers of consumer 
             financial products more regulatory certainty.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Financial Product 
Safety Commission Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Establishment of Commission.
Sec. 5. Objectives and responsibilities.
Sec. 6. Coordination of enforcement.
Sec. 7. Authorities.
Sec. 8. Collaboration with Federal and State entities.
Sec. 9. Prohibited acts.
Sec. 10. Enforcement.
Sec. 11. Reports.
Sec. 12. Authorization of appropriations.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the Nation's multiagency financial services regulatory 
        structure has created a dispersion of regulatory 
        responsibility, which in turn has led to an inadequate focus on 
        protecting consumers from inappropriate consumer financial 
        products and practices;
            (2) the absence of appropriate oversight has allowed 
        excessively costly or predatory consumer financial products and 
        practices to flourish; and
            (3) the creation of a regulator whose sole focus is the 
        safety of consumer financial products would help address this 
        lack of consumer protection.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) the terms ``Commission'', ``Chairperson'', and 
        ``Commissioner'' mean the Financial Product Safety Commission 
        established under this Act and the Chairperson and any 
        Commissioner thereof, respectively;
            (2) the term ``consumer financial product'' includes--
                    (A) any extension of credit, deposit account, 
                payment mechanism, or other product or service within 
                the scope of--
                            (i) the Truth in Savings Act (12 U.S.C. 
                        4301 et seq.);
                            (ii) the Consumer Credit Protection Act (15 
                        U.S.C. 1601 et seq.); or
                            (iii) article 3 (relating to negotiable 
                        instruments) or article 4 (relating to bank 
                        deposits) of the Uniform Commercial Code, as in 
                        effect in any State;
                    (B) any other extension of credit, deposit account, 
                or payment mechanism; and
                    (C) any ancillary product, practice, or 
                transaction;
            (3) the term ``appropriate committees of Congress'' means 
        the Committee on Banking, Housing, and Urban Affairs and the 
        Subcommittee on Financial Services and General Government of 
        the Committee on Appropriations of the Senate, and the 
        Committee on Financial Services and the Subcommittee on 
        Financial Services and General Government of the Committee on 
        Appropriations of the House of Representatives, and any 
        successor committees, as may be constituted;
            (4) the term ``consumer'' means any natural person and any 
        small business concern, as defined in section 3 of the Small 
        Business Act (15 U.S.C. 632); and
            (5) the term ``credit'' has the same meaning as in section 
        103 of the Truth in Lending Act (15 U.S.C. 1602).

SEC. 4. ESTABLISHMENT OF COMMISSION.

    (a) Establishment; Chairperson.--
            (1) Establishment.--There is established the ``Financial 
        Product Safety Commission'' which shall be an independent 
        establishment, as defined in section 104(1) of title 5, United 
        States Code.
            (2) Membership.--
                    (A) In general.--The Commission shall be comprised 
                of 5 commissioners, appointed by the President, by and 
                with the advice and consent of the Senate.
                    (B) Considerations.--In making appointments to the 
                Commission, the President shall consider individuals 
                who, by reason of their background and expertise in 
                areas related to consumer financial product safety, are 
                qualified to serve as members of the Commission.
            (3) Chairperson.--The Chairperson of the Commission shall 
        be appointed by the President, by and with the advice and 
        consent of the Senate, from among the members of the 
        Commission.
            (4) Removal.--Any Commissioner may be removed by the 
        President for neglect of duty or malfeasance in office, but for 
        no other cause.
    (b) Term; Vacancies.--
            (1) In general.--Except as provided in paragraph (2)--
                    (A) the Commissioners first appointed under this 
                section shall be appointed for terms ending 3, 4, 5, 6, 
                and 7 years, respectively, after the date of enactment 
                of this Act, the term of each to be designated by the 
                President at the time of nomination; and
                    (B) each of their successors shall be appointed for 
                a term of 5 years from the date of the expiration of 
                the term for which the predecessor was appointed.
            (2) Limitations.--Any Commissioner appointed to fill a 
        vacancy occurring prior to the expiration of the term for which 
        the predecessor thereof was appointed shall be appointed only 
        for the remainder of such term. A Commissioner may continue to 
        serve after the expiration of such term until a successor has 
        taken office, except that such Commissioner may not continue to 
        serve more than 1 year after the date on which the term of that 
        Commissioner would otherwise expire under this subsection.
    (c) Restrictions on Outside Activities.--
            (1) Political affiliation.--Not more than 3 Commissioners 
        may be affiliated with the same political party.
            (2) Conflicts of interest.--No individual may serve as a 
        Commissioner if that individual--
                    (A) is in the employ of, holding any official 
                relation to, or married to any person engaged in 
                selling or devising consumer financial products;
                    (B) owns stock or bonds of substantial value in a 
                person so engaged;
                    (C) is in any other manner pecuniarily interested 
                in a person so engaged; or
                    (D) engages in any other business, vocation, or 
                employment.
    (d) Vacancies; Quorum; Seal; Vice Chairperson.--
            (1) Vacancies.--No vacancy on the Commission shall impair 
        the right of the remaining Commissioners to exercise all the 
        powers of the Commission.
            (2) Quorum.--Three members of the Commission shall 
        constitute a quorum for the transaction of business, except 
        that--
                    (A) if there are only 3 members serving on the 
                Commission because of vacancies on the Commission, 2 
                members of the Commission shall constitute a quorum for 
                the transaction of business; and
                    (B) if there are only 2 members serving on the 
                Commission because of vacancies on the Commission, 2 
                members shall constitute a quorum for the 6-month 
                period (or the 1-year period, if the 2 members are not 
                affiliated with the same political party) beginning on 
                the date of the vacancy which caused the number of 
                Commissioners to decline to 2.
            (3) Seal.--The Commission shall have an official seal, of 
        which judicial notice shall be taken.
            (4) Vice chairperson.--The Commission shall annually elect 
        a Vice Chairperson to act in the absence or disability of the 
        Chairperson or in case of a vacancy in the office of the 
        Chairperson.
    (e) Offices.--The Commission shall maintain a principal office and 
such field offices as it determines necessary, and may meet and 
exercise any of its powers at any other place.
    (f) Functions of Chairperson; Request for Appropriations.--
            (1) Duties.--The Chairperson shall be the principal 
        executive officer of the Commission, and shall exercise all of 
        the executive and administrative functions of the Commission, 
        including functions of the Commission with respect to--
                    (A) the appointment and supervision of personnel 
                employed by the Commission (and the Commission shall 
                fix their compensation at a level comparable to that 
                for employees of the Securities and Exchange 
                Commission);
                    (B) the distribution of business among personnel 
                appointed and supervised by the Chairperson and among 
                administrative units of the Commission; and
                    (C) the use and expenditure of funds.
            (2) Governance.--In carrying out any of the functions of 
        the Chairperson under this subsection, the Chairperson shall be 
        governed by general policies of the Commission and by such 
        regulatory decisions, findings, and determinations as the 
        Commission may, by law, be authorized to make.
            (3) Requests for appropriations.--Requests or estimates for 
        regular, supplemental, or deficiency appropriations on behalf 
        of the Commission may not be submitted by the Chairperson 
        without the prior approval of a majority vote of the 
        Commission.
    (g) Agenda and Priorities; Establishment and Comments.--Not later 
than 30 days before the beginning of each fiscal year, the Commission 
shall establish an agenda for Commission action under its jurisdiction 
and, to the extent feasible, shall establish priorities for such 
actions. Before establishing such agenda and priorities, the Commission 
shall conduct a public hearing on the agenda and priorities, and shall 
provide reasonable opportunity for the submission of comments.

SEC. 5. OBJECTIVES AND RESPONSIBILITIES.

    (a) Objectives.--The objectives of the Commission are--
            (1) to minimize unreasonable consumer risk associated with 
        buying and using consumer financial products;
            (2) to prevent and eliminate practices that lead consumers 
        to incur unreasonable, inappropriate, or excessive debt, or 
        make it difficult for consumers to repay existing debt, 
        including practices or product features that are abusive, 
        fraudulent, unfair, deceptive, predatory, anticompetitive, or 
        otherwise inconsistent with consumer protection;
            (3) to promote practices that assist and encourage 
        consumers to use credit and consumer financial products 
        responsibly, avoid excessive debt, and avoid unnecessary or 
        excessive charges derived from or associated with consumer 
        financial products;
            (4) to ensure that providers of consumer financial products 
        provide credit based on the ability of the consumer to repay 
        the debt incurred;
            (5) to ensure that consumer credit history is maintained, 
        reported, and used fairly and accurately;
            (6) to maintain strong privacy protections for consumer 
        transactions, credit history, and other personal information 
        associated with the use of consumer financial products;
            (7) to collect, investigate, resolve, and inform the public 
        about consumer complaints regarding consumer financial 
        products;
            (8) to ensure a fair resolution of consumer disputes 
        regarding consumer financial products; and
            (9) to take such other steps as are reasonable to protect 
        users of consumer financial products.
    (b) Responsibilities.--The Commission shall--
            (1) promulgate consumer financial product safety rules 
        that--
                    (A) ban abusive, fraudulent, unfair, deceptive, 
                predatory, anticompetitive, or otherwise anticonsumer 
                practices, products, or product features;
                    (B) place reasonable restrictions on consumer 
                financial products, practices, or product features to 
                reduce the likelihood that they may be provided in a 
                manner that is inconsistent with the objectives 
                specified in subsection (a); and
                    (C) establish requirements for such clear and 
                adequate warnings or other information, and the form 
                and manner of delivery of such warnings or other 
                information, as may be appropriate to advance the 
                objectives specified in subsection (a);
            (2) establish and maintain a best practices guide for all 
        providers of consumer financial products;
            (3) conduct such continuing studies and investigations of 
        consumer financial products industry practices as it determines 
        necessary;
            (4) award grants or enter into contracts for the conduct of 
        such studies and investigations with any person (including a 
        governmental entity), as necessary to advance the objectives 
        specified in subsection (a);
            (5) following publication of a rule, assist public and 
        private organizations or groups of consumer financial product 
        providers, administratively and technically, in the development 
        of safety standards or guidelines that would assist such 
        providers in complying with such rule;
            (6) comment on selected rulemakings of agencies designated 
        in section 6(d) affecting consumer financial products; and
            (7) establish and operate a consumer financial product 
        customer hotline which consumers can call to register 
        complaints and receive information on how to combat 
        anticonsumer products or practices.

SEC. 6. COORDINATION OF ENFORCEMENT.

    (a) In General.--Notwithstanding any concurrent or similar 
authority of any other agency, the Commission shall enforce the 
requirements of this Act.
    (b) Rule of Construction.--The authority granted to the Commission 
to make and enforce rules under this Act shall not be construed to 
impair the authority of any other Federal department or agency to make 
and enforce rules under any other provision of law, provided that any 
portion of any rule promulgated by any other such department or agency 
that conflicts with a rule promulgated by the Commission and that is 
less protective of consumers than the rule promulgated by the 
Commission shall be superseded by the rule promulgated by the 
Commission, to the extent of the conflict. Any portion of any rule 
promulgated by any other such department or agency that is not 
superseded by a rule promulgated by the Commission shall remain in 
force without regard to this Act.
    (c) Agency Authority.--Any department or agency designated in 
subsection (d) may exercise, for the purpose of enforcing compliance 
with any requirement imposed under this Act, any authority conferred on 
such department or agency by any other Act.
    (d) Designated Departments and Agencies.--The departments and 
agencies designated in this subsection are--
            (1) the Board of Governors of the Federal Reserve System;
            (2) the Federal Deposit Insurance Corporation;
            (3) the Office of the Comptroller of the Currency;
            (4) the Office of Thrift Supervision;
            (5) the National Credit Union Administration;
            (6) the Federal Housing Finance Authority;
            (7) the Federal Housing Administration;
            (8) the Department of Housing and Urban Development;
            (9) the Federal Home Loan Bank Board;
            (10) the Federal Trade Commission; and
            (11) any successor to the agencies, referred to in 
        paragraphs (1) through (10), as may be constituted.
    (e) Coordination of Rulemaking.--Any department or agency 
designated in subsection (d) that engages in a rulemaking affecting 
consumer financial products shall consult with the Commission in the 
promulgation of such rules.

SEC. 7. AUTHORITIES.

    (a) Authority To Conduct Hearings or Other Inquiries.--
            (1) In general.--The Commission may, by one or more of its 
        members, or by such agents or agency as it may designate, 
        conduct any hearing or other inquiry necessary or appropriate 
        to its functions anywhere in the United States.
            (2) Member participation.--A Commissioner who participates 
        in a hearing, or other inquiry described in paragraph (1), 
        shall not be disqualified solely by reason of such 
        participation from subsequently participating in a decision of 
        the Commission in the same matter.
            (3) Notice required.--The Commission shall publish notice 
        of any proposed hearing in the Federal Register, and shall 
        afford a reasonable opportunity for interested persons to 
        present relevant testimony and data.
    (b) Commission Powers; Orders.--The Commission shall have the 
power--
            (1) to require, by special or general orders, any person to 
        submit in writing such reports and answers to questions as the 
        Commission may prescribe to carry out a specific regulatory or 
        enforcement function of the Commission, and such submission 
        shall be made within such reasonable period and under oath or 
        otherwise as the Commission may determine, and such order shall 
        contain a complete statement of the reasons that the Commission 
        requires the report or answers specified in the order to carry 
        out a specific regulatory or enforcement function of the 
        Commission;
            (2) to administer oaths;
            (3) to require by subpoena the attendance and testimony of 
        witnesses and the production of all documentary evidence 
        relating to the execution of its duties;
            (4) in any proceeding or investigation to order testimony 
        to be taken by deposition before any person who is designated 
        by the Commission and has the power to administer oaths and, in 
        such instances, to compel testimony and the production of 
        evidence in the same manner as authorized under paragraph (3);
            (5) to pay witnesses the same fees and mileage costs as are 
        paid in like circumstances in the courts of the United States;
            (6) to accept voluntary and uncompensated services relevant 
        to the performance of the duties of the Commission, 
        notwithstanding the provisions of section 1342 of title 31, 
        United States Code, and to accept voluntary and uncompensated 
        services (but not gifts) relevant to the performance of the 
        duties of the Commission provided that any such services shall 
        not be from parties that have or are likely to have business 
        before the Commission;
            (7) to--
                    (A) issue an order requiring compliance with 
                applicable legal requirements;
                    (B) issue a civil penalty order in accordance with 
                section 10(b);
                    (C) initiate, prosecute, defend, intervene in, or 
                appeal (other than to the Supreme Court of the United 
                States), through its own legal representative and in 
                the name of the Commission, any civil action, if the 
                Commission makes a written request to the Attorney 
                General of the United States for representation in such 
                civil action and the Attorney General does not, within 
                the 45-day period beginning on the date on which such 
                request was made, notify the Commission in writing that 
                the Attorney General will represent the Commission in 
                such civil action; and
                    (D) whenever the Commission obtains evidence that 
                any person has engaged in conduct that may constitute a 
                violation of Federal criminal law, including a 
                violation of section 9, transmit such evidence to the 
                Attorney General of the United States; and
            (8) to delegate any of its functions or powers, other than 
        the power to issue subpoenas under paragraph (3), to any 
        officer or employee of the Commission.
    (c) Noncompliance With Subpoena or Commission Order.--If a person 
refuses to obey a subpoena or order of the Commission issued under 
subsection (b), the Commission (subject to subsection (b)(7)) or the 
Attorney General of the United States may bring an action in the United 
States district court for the district and division in which the 
inquiry is carried out or any other appropriate United States district 
court seeking an order requiring compliance with the subpoena or order.
    (d) Disclosure of Information.--No person shall be subject to civil 
liability to any person (other than the Commission or the United 
States) for disclosing information to the Commission.
    (e) Customer and Revenue Data.--The Commission may, by rule, 
require any provider of consumer financial products to provide to the 
Commission such customer and revenue data as may be required to carry 
out this Act.
    (f) Purchase of Consumer Financial Products by Commission.--For 
purposes of carrying out this Act, the Commission may purchase any 
consumer financial product and it may require any provider of consumer 
financial products to sell the product to the Commission at cost.
    (g) Contract Authority.--The Commission is authorized to enter into 
contracts with governmental entities, private organizations, or 
individuals for the conduct of activities authorized by this Act.
    (h) Budget Estimates and Requests; Legislative Recommendations; 
Testimony; Comments on Legislation.--
            (1) Budget copies to congress.--Whenever the Commission 
        submits any budget estimate or request to the President or the 
        Office of Management and Budget, it shall concurrently transmit 
        a copy of that estimate or request to the appropriate 
        committees of Congress.
            (2) Legislative recommendation.--Whenever the Commission 
        submits any legislative recommendations, testimony, or comments 
        on legislation to the President or the Office of Management and 
        Budget, it shall concurrently transmit a copy thereof to the 
        appropriate committees of Congress. No officer or agency of the 
        United States shall have any authority to require the 
        Commission to submit its legislative recommendations, 
        testimony, or comments on legislation, to any officer or agency 
        of the United States for approval, comments, or review, prior 
        to the submission of such recommendations, testimony, or 
        comments to the appropriate committees of Congress.

SEC. 8. COLLABORATION WITH FEDERAL AND STATE ENTITIES.

    (a) Preemption.--Nothing in this Act or any rule promulgated under 
this Act may be construed to annul, alter, affect, or exempt any person 
from complying with the laws of any State, except to the extent that 
those laws are inconsistent with a consumer financial product safety 
rule promulgated by the Commission, and then only to the extent of the 
inconsistency. For purposes of this section, a State law is not 
inconsistent with this Act or a consumer financial product safety rule, 
or the purposes of the Act or rule, if the protection afforded by such 
State law to any consumer is greater than the protection provided by 
the consumer financial product safety rule or this Act. Nothing in this 
Act or any rule promulgated under this Act precludes any remedy under 
State law to or on behalf of a consumer.
    (b) Programs To Promote Federal-State Cooperation.--
            (1) In general.--The Commission shall establish a program 
        to promote cooperation between the Federal Government and State 
        governments for purposes of carrying out this Act.
            (2) Authorities.--In implementing the program under 
        paragraph (1), the Commission may--
                    (A) accept from any State or local authority 
                engaged in activities relating to consumer protection 
                assistance in such functions as data collection, 
                investigation, and educational programs, as well as 
                other assistance in the administration and enforcement 
                of this Act which such States or local governments may 
                be able and willing to provide and, if so agreed, may 
                pay in advance or otherwise for the reasonable cost of 
                such assistance; and
                    (B) commission any qualified officer or employee of 
                any State or local government agency as an officer of 
                the Commission for the purpose of conducting 
                investigations.
    (c) Cooperation of Federal Departments and Agencies.--The 
Commission may obtain from any Federal department or agency such 
statistics, data, program reports, and other materials as it may 
determine necessary to carry out its functions under this Act. Each 
such department or agency shall cooperate with the Commission and, to 
the extent permitted by law, furnish such materials to the Commission. 
The Commission and the heads of other departments and agencies engaged 
in administering programs relating to consumer financial product safety 
shall, to the maximum extent practicable, cooperate and consult in 
order to ensure fully coordinated efforts.

SEC. 9. PROHIBITED ACTS.

    It shall be unlawful for any person--
            (1) to advertise, offer, or attempt to enforce any 
        agreement, term, change in term, fee, or charge in connection 
        with any consumer financial product, or engage in any practice, 
        that is not in conformity with this Act or an applicable 
        consumer financial product safety rule under this Act; or
            (2) to fail or refuse to permit access to or copying of 
        records, or fail or refuse to establish or maintain records, or 
        fail or refuse to make reports or provide information to the 
        Commission, as required under this Act or any rule under this 
        Act.

SEC. 10. ENFORCEMENT.

    (a) Criminal Penalties.--
            (1) Knowing and willful violations.--Any person who 
        knowingly and willfully violates section 9 shall be fined not 
        more than $500,000, imprisoned not more than 1 year, or both 
        for each such violation.
            (2) Executives and agents.--Any individual director, 
        officer, or agent of a business entity who knowingly and 
        willfully authorizes, orders, or performs any of the acts or 
        practices constituting in whole or in part a violation of 
        section 9 shall be subject to penalties under this section, 
        without regard to any penalties to which that person may be 
        otherwise subject.
    (b) Civil Penalties.--
            (1) In general.--Any person who violates section 9 shall be 
        subject to a civil penalty in an amount established under 
        paragraph (2). A violation of section 9 shall constitute a 
        separate civil offense with respect to each consumer financial 
        product transaction involved.
            (2) Publication of schedule of penalties.--Not later than 
        December 1, 2009, and December 1 of each fifth year thereafter, 
        the Commission shall prescribe and publish in the Federal 
        Register a schedule of the maximum authorized civil penalty 
        that shall apply for any violation of section 9 that occurs on 
        or after January 1 of the year immediately following the date 
        of such publication.
            (3) Relevant factors in determining amount of penalty.--In 
        determining the amount of any civil penalty in an action for a 
        violation of section 9, the Commission--
                    (A) shall consider--
                            (i) the nature of the consumer financial 
                        product;
                            (ii) the severity of the unreasonable risk 
                        to the consumer;
                            (iii) the number of products or services 
                        sold or distributed;
                            (iv) the occurrence or absence of consumer 
                        injury; and
                            (v) the appropriateness of such penalty in 
                        relation to the size of the business of the 
                        person charged; and
                    (B) shall ensure that penalties in each case are 
                sufficient to induce compliance by all regulated 
                entities.
            (4) Compromise of penalty; deductions from penalty.--
                    (A) In general.--Any civil penalty under this 
                section may be compromised by the Commission.
                    (B) Considerations.--In determining the amount of 
                such penalty or whether it should be remitted or 
                mitigated and in what amount, the Commission--
                            (i) shall consider--
                                    (I) the nature of the consumer 
                                financial product;
                                    (II) the severity of the 
                                unreasonable risk to the consumer;
                                    (III) the number of offending 
                                products or services sold;
                                    (IV) the occurrence or absence of 
                                consumer injury; and
                                    (V) the appropriateness of such 
                                penalty to the size of the business of 
                                the person charged; and
                            (ii) shall ensure that compromise penalties 
                        remain sufficient to induce compliance by all 
                        regulated entities.
                    (C) Amount.--The amount of a penalty compromised 
                under this paragraph, when finally determined, or the 
                amount agreed on compromise, may be deducted from any 
                sums owing by the United States to the person charged.
    (c) Collection and Use of Penalties.--
            (1) Establishment of fund.--There is established within the 
        Treasury of the United States a fund, into which shall be 
        deposited all criminal and civil penalties collected under this 
        section.
            (2) Use of fund.--The fund established under this 
        subsection shall be used to defray the costs of the operations 
        of the Commission or, where appropriate, provide restitution to 
        harmed consumers.
    (d) Private Enforcement.--
            (1) In general.--A person may bring a civil action for a 
        violation of section 9 for equitable relief and other charges 
        and costs in an amount equal to the sum of--
                    (A) any actual damages sustained by such person as 
                a result of such violation, if actual damages resulted;
                    (B) twice the amount of any finance charge in 
                connection with the transaction, except that such 
                liability shall not be less than $1,000, such minimum 
                to be adjusted on an annual basis by the Commission 
                based upon the consumer price index; and
                    (C) reasonable attorney fees and costs.
    (e) Jurisdiction.--
            (1) In general.--Any action under this Act may be brought 
        in any appropriate United States district court, or in any 
        other court of competent jurisdiction, not later than 2 years 
        after the date of the discovery of the violation.
            (2) Rules of construction.--This section does not bar a 
        person from asserting a violation of this Act in an action to 
        collect a debt, or if foreclosure has been initiated, as a 
        matter of defense by recoupment or set-off. An action under 
        this Act shall not be the basis for removal of an action to a 
        United States district court. Neither this section nor any 
        other section of this Act preempts or otherwise displaces 
        claims and remedies available under State law, except as 
        otherwise specifically provided in this Act.
    (f) State Actions for Violations.--
            (1) Authority of states.--In addition to such other 
        remedies as are provided under State law, if the chief law 
        enforcement officer of a State, or an official or agency 
        designated by a State, has reason to believe that any person 
        has violated or is violating section 9, the State--
                    (A) may bring an action to enjoin such violation in 
                any appropriate United States district court or in any 
                other court of competent jurisdiction;
                    (B) may bring an action on behalf of the residents 
                of the State to recover--
                            (i) damages for which the person is liable 
                        to such residents under subsection (d) as a 
                        result of the violation; and
                            (ii) civil penalties, as established under 
                        subsection (b); and
                    (C) in the case of any successful action under 
                subparagraph (A) or (B), shall be awarded the costs of 
                the action and reasonable attorney fees, as determined 
                by the court.
            (2) Rights of federal regulators.--
                    (A) Notice of state action.--A State shall serve 
                prior written notice of any action under paragraph (1) 
                upon the Commission and provide the Commission with a 
                copy of its complaint, except in any case in which such 
                prior notice is not feasible, in which case the State 
                shall serve such notice immediately upon instituting 
                such action.
                    (B) Commission authorization.--Upon notice of an 
                action under subparagraph (A), the Commission shall 
                have the right--
                            (i) to intervene in the action;
                            (ii) upon so intervening, to be heard on 
                        all matters arising therein;
                            (iii) to remove the action to the 
                        appropriate United States district court; and
                            (iv) to file petitions for appeal.
            (3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, nothing in this subsection or in 
        any other provision of Federal law shall prevent the chief law 
        enforcement officer of a State, or an official or agency 
        designated by a State, from exercising the powers conferred on 
        the chief law enforcement officer or such official by the laws 
        of such State to conduct investigations or to administer oaths 
        or affirmations or to compel the attendance of witnesses or the 
        production of documentary and other evidence.
            (4) Limitation on state action while federal action 
        pending.--If the Commission has instituted a civil action or an 
        administrative action for a violation of section 9, a State may 
        not, during the pendency of such action, bring an action under 
        this section against any defendant named in the complaint of 
        the Commission for any violation of section 9 that is alleged 
        in that complaint.

SEC. 11. REPORTS.

    (a) Reports to the Public.--The Commission shall determine what 
reports should be produced and distributed to the public on a recurring 
and ad hoc basis, and shall prepare and publish such reports on a 
website that provides free access to the general public.
    (b) Report to the President and Congress.--
            (1) In general.--The Commission shall prepare and submit to 
        the President and the appropriate committees of Congress, at 
        the beginning of each regular session of Congress, a 
        comprehensive report on the administration of this Act for the 
        preceding fiscal year.
            (2) Report content.--The reports required by this 
        subsection shall include--
                    (A) a thorough appraisal, including statistical 
                analyses, estimates, and long-term projections, of the 
                incidence and effects of practices associated with the 
                provision of consumer financial products that are 
                inconsistent with the objectives specified in section 
                5(a), with a breakdown, insofar as practicable, among 
                the various sources of injury, as the Commission finds 
                appropriate;
                    (B) a list of consumer financial product safety 
                rules prescribed or in effect during such year;
                    (C) an evaluation of the degree of observance of 
                consumer financial product safety rules, including a 
                list of enforcement actions, court decisions, and 
                compromises of civil penalties, by location and company 
                name;
                    (D) a summary of outstanding problems confronting 
                the administration of this Act in order of priority;
                    (E) an analysis and evaluation of public and 
                private consumer financial product safety research 
                activities;
                    (F) a list, with a brief statement of the issues, 
                of completed or pending judicial actions under this 
                Act;
                    (G) the extent to which technical information was 
                disseminated to the research and consumer communities 
                and consumer information was made available to the 
                public;
                    (H) the extent of cooperation between Commission 
                officials, representatives of the consumer financial 
                products industry, and other interested parties in the 
                implementation of this Act, including a log or summary 
                of meetings held between Commission officials and 
                representatives of industry and other interested 
                parties;
                    (I) an appraisal of significant actions of State 
                and local governments relating to the responsibilities 
                of the Commission;
                    (J) such recommendations for additional legislation 
                as the Commission deems necessary to carry out the 
                purposes of this Act; and
                    (K) the extent of cooperation with, and the joint 
                efforts undertaken by, the Commission in conjunction 
                with other regulators with whom the Commission shares 
                responsibilities for consumer financial product safety.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission for 
purposes of carrying out this Act such sums as may be necessary.
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