[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6667 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6667

To establish the Financial Consumers Association to advance the rights 
and remedies available to consumers with respect to financial services 
                 transactions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 13, 2012

 Mr. Kucinich introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To establish the Financial Consumers Association to advance the rights 
and remedies available to consumers with respect to financial services 
                 transactions, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Consumers Association Act 
of 2012''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) financial services consumers and depositors are an 
        integral part of the financial system and are affected by the 
        safety and soundness of the financial industry;
            (2) deceptive, illegal, and speculative financial practices 
        have harmed public confidence in the integrity and fairness of 
        many United States financial institutions, and threaten the 
        basic strengths of the United States economic system;
            (3) contributing to the loss of public confidence are 
        perceptions of inadequate oversight and insufficient 
        independence between financial institutions and their 
        regulators;
            (4) major factors contributing to the recent financial 
        crisis include regulatory failures to adequately police the 
        financial services markets for crime, unfair or deceptive 
        practices, fraud, lack of transparency, and mismanagement;
            (5) the financial industry has enjoyed virtually unlimited 
        access to represent its interest before Congress, the courts, 
        and State and Federal regulators, while financial services 
        consumers have had limited representation before Congress and 
        financial regulatory entities;
            (6) the resources available for organized representation of 
        consumers in the financial industry need to be expanded so 
        citizens can better monitor the performance of State and 
        Federal agencies that regulate their financial institutions and 
        participate in public policy debates regarding the oversight of 
        these financial institutions;
            (7) the creation of a public purpose, democratically 
        controlled, self-funded, nationwide membership association of 
        financial services consumers is an effective way to enhance the 
        representation of consumers in the financial services industry 
        and to meet the expanding information needs of consumers in the 
        financial services market;
            (8) the requirement that informational and statutory 
        inserts be included in the paper mailings and email 
        correspondence, digital or other electronic means, of covered 
        persons is essential to the creation, maintenance, and funding 
        of such an association;
            (9) the Federal Government has a substantial interest in 
        the creation of a public purpose, democratically controlled, 
        self-funded, nationwide membership association of financial 
        services consumers to enhance their representation and to 
        effectively combat unsound financial practices;
            (10) the creation of such an Association is not meant to 
        substitute for, but augment, the activities of existing or 
        future regulatory bodies whose sole or partial focus is the 
        protection of financial services consumers; and
            (11) consumers have more complex financial choices today 
        than ever before, but not enough information with which to make 
        those choices.
    (b) Purposes.--The purposes of this Act are--
            (1) to establish a public purpose, nonprofit, 
        democratically controlled, membership association of financial 
        services consumers;
            (2) to give the Association a mandate to inform and 
        represent financial services consumers, and to further the 
        effective and vigorous oversight of covered persons;
            (3) to establish democratic rules of governance for the 
        Association; and
            (4) to require any covered person to periodically include 
        inserts concerning the Association within their statements and 
        billing statements to financial services consumers.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Association.--The term ``Association'' means the 
        Financial Consumers Association established in accordance with 
        this Act.
            (2) Association director.--The terms ``Association 
        director'' and ``director'' mean any person duly elected or 
        appointed to the Association board of directors pursuant to 
        this Act, except as the context otherwise requires.
            (3) Insert carrier.--The term ``insert carrier'' includes 
        any email, digital, or other electronic notice or paper deposit 
        account statement which--
                    (A) indicates the balance on a deposit account; or
                    (B) involves an outstanding deposit account 
                contract or agreement between an insured depository 
                institution and a customer of such institution.
            (4) Member.--The term ``member'' means any person who meets 
        the requirements for membership in the Association, as set 
        forth in this Act.
            (5) Regulatory agency.--The term ``regulatory agency'' 
        means any governmental office, agency, department, or 
        commission of the Federal Government, that regulates, monitors, 
        directs, or governs publicly traded corporations, financial 
        services, or consumer transactions.
            (6) Regulatory proceeding.--The term ``regulatory 
        proceeding'' means any rulemaking, adjudication, or ancillary 
        proceeding conducted by any governmental office, agency, 
        department, or commission at the Federal, State, or local 
        level, that affects any covered person.
            (7) Statutory insert.--The term ``statutory insert'' means 
        any digital or printed statement, card, or envelope and 
        statement combination, or a statement, application, and pre-
        addressed business reply envelope used by the Association to 
        solicit information and contributions or membership fees from 
        consumers, financial services customers, and to explain the 
        purpose, history, nature, activities, achievements, and 
        membership criteria of the Association.
            (8) Appropriate committees of congress.--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.
            (9) Campaign contribution.--The term ``campaign 
        contribution'' means any money, good, service, credit, or other 
        benefit provided or promised for the purpose of electing an 
        Association Director.
            (10) Campaign expenditure.--The term ``campaign 
        expenditure'' means any payment, use, distribution, or gift of 
        money or anything of value made or promised for the purpose of 
        electing an Association Director.
            (11) Immediate family.--The term ``immediate family'' means 
        a person's spouse and legal dependents.

SEC. 4. ESTABLISHMENT OF THE ASSOCIATION.

    (a) Charter.--There is authorized to be established a nonprofit 
corporation by the interim board of directors to be known as the 
``Financial Consumers Association''. The Association shall be subject 
to the provisions of this Act, and, to the extent consistent with this 
Act, to the District of Columbia Nonprofit Corporations Act. The main 
office of the Association shall be located in Washington, DC.
    (b) Nongovernmental Status.--The Association shall be a private 
corporation and shall not, for any purpose, be considered to be a 
department, agency, or instrumentality of the United States Government. 
An officer or employee of the corporation shall not, for any purpose, 
be considered to be an officer or employee of the Federal Government.
    (c) Regional and Local Offices.--The Association may establish 
regional offices as needed, in any of the several States.
    (d) Bylaws.--Except as provided in this Act and in the District of 
Columbia Nonprofit Corporations Act, the affairs of the Association 
shall be regulated as determined in the bylaws of the Association.
    (e) Nonprofit, Nonstock Status.--The Association chartered under 
this section--
            (1) shall be a nonprofit corporation; and
            (2) may not issue any shares of stock or other securities 
        or pay any dividends.
    (f) Membership.--The membership of the Association shall consist 
solely of individuals who--
            (1) are 16 years of age or older; and
            (2) have contributed the required annual membership fee to 
        the Association.
    (g) Membership Fee.--
            (1) Initial fee.--Until the end of the 180-day period 
        beginning on the date of the first election of directors, the 
        annual membership fee of the Association shall be $10.
            (2) Permanent membership fees determined by board of 
        directors.--After the end of the 180-day period referred to in 
        this subsection, the Association may, by vote of the board of 
        directors, alter the annual membership fee. The board of 
        directors shall adopt a reduced fee structure, offering 
        reduced-cost membership fees for low-income populations and 
        senior citizens.
    (h) Political Contributions Prohibited.--The Association shall not 
make any contributions to any political candidate or party, or to any 
national or State political committee, as defined in the Federal 
Election Campaign Act of 1971, or participate in or intervene in any 
political campaign on behalf of, or in opposition to, any candidate for 
public office.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS AND ALLOTMENTS OF GRANTS.

    There is authorized to be appropriated to the Bureau, for the 
purpose of establishing the Association, $5,000,000 for the fiscal year 
ending 1 year after the date of enactment of this Act.

SEC. 6. MISSION, DUTIES, AND POWERS OF THE ASSOCIATION.

    (a) Mission.--The Association shall advance the rights and remedies 
available to consumers with respect to financial services, by 
developing initiatives to reduce the use of dangerous features in 
financial products and services, and to improve the flow of accurate 
information from covered persons to consumers.
    (b) Duties.--The duties of the Association shall be--
            (1) to inform, educate, and advise consumers about the 
        actions of covered persons;
            (2) to represent and promote the interests of consumers in 
        financial services, collectively, and, when necessary, to 
        negotiate on behalf of financial services consumers, 
        individually, with respect to covered persons;
            (3) to take affirmative measures to encourage membership by 
        low- and moderate-income and minority consumers, and to 
        disseminate information and advice to consumers;
            (4) to inform, insofar as possible, consumers about the 
        mission of the Association, including the procedures for 
        obtaining membership in the Association;
            (5) to provide consumers with information about how 
        initiatives of covered person will affect consumers;
            (6) to monitor the availability and quality of financial 
        services to low- and moderate-income constituencies and the 
        elderly; and
            (7) to develop data to assist financial services consumers 
        in making informed decisions in the marketplace.
    (c) Powers.--In addition to the rights and powers provided by other 
provisions of this Act, the Association shall--
            (1) represent the interests of consumers in general before 
        Federal regulatory agencies, legislative bodies, the courts, 
        and in other public forums;
            (2) initiate, intervene as a party, or otherwise 
        participate on behalf of consumers in any regulatory proceeding 
        that the Association reasonably determines may affect the 
        interests of consumers;
            (3) conduct, support, and assist research, surveys, and 
        investigations in financial services consumer matters;
            (4) maintain up-to-date membership rolls, and to keep them 
        in confidence to the extent required by the provisions of this 
        Act;
            (5) contract for services which cannot reasonably be 
        performed by its employees; and
            (6) solicit and accept gifts, loans, grants, or other aid 
        in order to support activities concerning the interests of 
        financial services consumers, except that the Association may 
        not accept gifts, loans, or other aid from any financial 
        services providers or from any director, employee, agent, or 
        member of the immediate family of a director, employee, or 
        agent of any covered person.

SEC. 7. INSERT AND NOTICE PROVISIONS.

    (a) Inclusion in Statements of Covered Persons.--
            (1) In general.--Each covered person shall include, or 
        cause its agent to prominently include, a statutory insert or 
        an Association insert in quarterly mailings to its customers 
        each year.
            (2) Statutory insert.--The Association shall have the right 
        to have statutory inserts prominently included in the paper 
        mailings to the customers of each covered person once each 
        calendar quarter. The Association shall also have the right to 
        have covered persons send the information contained in the 
        statutory insert to financial services consumers once each 
        calendar quarter via email, digital or other electronic means. 
        The Association shall only pay the reasonable incremental costs 
        of the email, digital, or electronic distribution of such 
        information.
            (3) Association inserts.--
                    (A) In general.--In addition, the Association shall 
                have the right to include in the mailings and via 
                email, digital or other electronic means, referred to 
                in paragraph (2) once each calendar quarter, an insert 
                that it prepares and furnishes to any institution 
                required to carry a statutory insert.
                    (B) Limitation.--An insert furnished by the 
                Association shall be limited to--
                            (i) soliciting information and 
                        contributions or membership fees from financial 
                        services consumers; and
                            (ii) explaining--
                                    (I) the purpose, history, nature, 
                                activities, and achievements of the 
                                Association;
                                    (II) that the Association 
                                membership is open to any resident of 
                                the United States who is 16 years of 
                                age or older;
                                    (III) that the Association is not 
                                connected to any covered person;
                                    (IV) that the Association is a 
                                nonprofit association directed by its 
                                financial services consumer members;
                                    (V) the procedure for contributing 
                                to or becoming a member of the 
                                Association; and
                                    (VI) the yearly membership fee.
    (b) Federal Trade Commission Oversight.--Any covered person may, if 
it believes that the contents of an insert are false or misleading, 
submit the insert to the Federal Trade Commission for review. The 
Federal Trade Commission shall review the insert and make a 
determination promptly, but in no event later than 21 calendar days 
after receipt of the insert. The Federal Trade Commission may 
disapprove the insert for mailing if it finds that the insert is false 
or misleading, or contains information not permitted by this section.
    (c) Content of Statutory Inserts.--Each statutory insert required 
by this Act shall contain--
            (1) a written statement of the following information:
                    ``(A) The Financial Consumers Association is a 
                financial services consumer membership organization 
                established under Federal law to inform and represent 
                financial services consumers.
                    ``(B) The Association will work on behalf of 
                financial services consumers to prevent corporate 
                fraud, deceptive and criminal business practices, and 
                to ensure the protection of retirement funds and 
                investments.
                    ``(C) The Association provides financial services 
                consumers with information and advice on a range of 
                consumer issues.
                    ``(D) The Association also represents financial 
                services consumers before regulatory agencies and 
                legislative bodies.
                    ``(E) The Association is a democratically 
                controlled consumer membership organization.
                    ``(F) Although the Association has been established 
                under Federal law, as a consumer membership 
                organization, the Association is primarily supported by 
                membership fees, not public funds. Thus the Financial 
                Consumers Association depends on its membership base 
                for funding to undertake its information and 
                representation activities.
                    ``(G) Anyone who is 16 years of age or older may 
                become a member of the Association by paying the annual 
                membership fee. The amount of the annual membership fee 
                shall be determined annually by the Association.
                    ``(H) You may become a member simply by filling out 
                the attached application and mailing it and the 
                membership fee to the Financial Consumers Association 
                in the attached pre-addressed envelope.'';
            (2) an application for Association membership, which 
        requests the name and address of the applicant, and indicates 
        the annual membership fee; and
            (3) a pre-addressed business reply envelope for mailing the 
        application and membership fee to the Association.
    (d) Other Requirements Applicable to Statutory Inserts.--With 
respect to a statutory insert required by this Act--
            (1) the statement, application, and pre-addressed business 
        reply envelope specified in this Act shall be presented to the 
        customer as a single document (except that the document may be 
        separable into different parts by tearing along perforated 
        lines);
            (2) the statement and application shall be printed in at 
        least 10-point type; and
            (3) the Association shall pay the cost of printing and 
        placement of the statutory insert in all appropriate mailings, 
        but shall not pay any postage costs if the insert weighs less 
        than 0.35 ounces.

SEC. 8. INTERIM BOARD.

    (a) Establishment of Interim Board.--Members of the interim board 
of directors of the Association shall be appointed not later than 6 
months after the date of enactment of this Act, as follows:
            (1) 3 members shall be appointed by the President of the 
        United States.
            (2) 3 members shall be appointed by the Speaker of the 
        House of Representatives.
            (3) 3 members shall be appointed by the President Pro 
        Tempore of the Senate.
            (4) 1 member shall be appointed by the Minority Leader of 
        the House of Representatives.
            (5) 1 member shall be appointed by the Minority Leader of 
        the Senate.
    (b) Member Criteria.--Individuals considered for appointment to the 
interim board shall, to the extent possible, represent different 
regions of the United States, and represent categories of citizens' 
organizations including--
            (1) consumer groups;
            (2) organizations representing low-income persons;
            (3) labor unions;
            (4) civil rights groups;
            (5) neighborhood groups; and
            (6) elderly groups.
    (c) Eligibility.--To qualify for nomination or appointment as an 
interim director of the Association representing a designated category 
of citizens' organizations, an individual shall be an active officer, 
employee, or member of a citizens' organization within such category or 
previously have been an officer or employee of 1 or more such citizens' 
organizations within such category for a cumulative period of at least 
2 years.
    (d) Duties of Interim Board.--The interim board of directors of the 
Association shall--
            (1) not later than 60 days after the date of appointment of 
        all members, incorporate the Association under the laws of the 
        District of Columbia, subject to the provisions and limitations 
        of this Act;
            (2) manage the affairs of the Association until the first 
        elected board of directors takes office;
            (3) inform the public of the existence, nature, and purpose 
        of the Association, and encourage such persons to join the 
        Association, participate in its activities, and contribute to 
        the Association;
            (4) adopt procedures and standards, consistent with the 
        requirements of this Act, for the nomination and election of 
        the first elected board of directors of the Association;
            (5) make all necessary preparations for the first election 
        of the board of directors of the Association, oversee the 
        election campaign, and tally the votes;
            (6) conduct meetings of the interim board of directors at 
        least once every 3 months;
            (7) keep minutes, financial books, and records which shall 
        reflect the acts and transactions of the interim board of 
        directors; and
            (8) employ such interim staff as the interim board of 
        directors deem necessary to carry out their responsibilities 
        under this Act.
    (e) Applicability of Certain Other Provisions of This Act.--Members 
of the interim board of directors shall be subject to the requirements 
of the applicable provisions of this Act.
    (f) Limitation on Authority To Appear Before Other Bodies.--The 
interim board of directors shall not engage in representation or 
intervention on behalf of financial services consumers, except to the 
extent necessary to maintain or exercise the powers granted and the 
duties imposed upon interim directors by this Act.
    (g) Conduct First General Election.--
            (1) In general.--Once the membership of the Association 
        reaches 50,000, or within 18 months of the date of the 
        appointment of the last interim director, whichever occurs 
        first, the interim board of directors shall set a date for the 
        first general election of the board of directors, and shall 
        promptly notify each member of the Association.
            (2) Timely election requirement.--The date set for the 
        election shall be not more than 90 days after notification as 
        provided in this Act.
            (3) Exception.--Notwithstanding the provisions of this Act, 
        no election shall be held in an election district unless there 
        are at least 500 residents of any such district who are 
        Association members.

SEC. 9. DELEGATES.

    (a) In General.--Members of the Association shall have duly elected 
representatives who shall be elected in accordance with the provisions 
of this Act.
    (b) One Delegate To Be Elected From Each District.--1 delegate 
shall be elected by the Association members from each Association 
election district, except that an election shall not take place in an 
election district if there is no candidate who has satisfied the 
qualification requirements of this Act.
    (c) Election Districts.--
            (1) In general.--Each State of the United States shall be 
        considered an Association election district. The District of 
        Columbia shall also be considered an Association election 
        district.

SEC. 10. ELECTIONS OF DELEGATES.

    (a) Voting Standard.--Each member of the Association shall be 
entitled to cast 1 vote for a candidate for a delegate to represent 
such member's district. Voting shall be by secret mail ballot.
    (b) Eligibility Standards for Nomination as a Delegate.--To qualify 
for nomination as a candidate for election as a delegate of the 
Association, an individual shall--
            (1) be a member of the Association and a resident of the 
        election district that such individual seeks to represent;
            (2) submit to the Association, not less than 60 days and 
        not more than 120 days before the election, a nomination 
        petition signed by at least 25 Association members from the 
        election district that such individual seeks to represent;
            (3) submit to the Association the statements required by 
        this Act; and
            (4) satisfy all other requirements of this Act and any 
        applicable bylaws of the Association.
    (c) Distribution of Election Material.--
            (1) In general.--The Association shall mail to each member 
        the following documents concerning duly nominated candidates 
        for election as a delegate:
                    (A) An official ballot listing all such candidates 
                from the member's election district.
                    (B) The candidate's statement required by this Act 
                for each such candidate from the member's election 
                district.
            (2) Summary and costs.--The delegate summaries shall have a 
        uniform format and shall provide information on the same 
        characteristics for each candidate. The costs for all mailings 
        described in this Act shall be borne by the Association.
    (d) Limitation on Campaign Expenditures.--No candidate for election 
as a delegate or director shall incur campaign expenditures for any 
such election in an amount greater than the amount determined by 
multiplying the number of members in the candidate's election district 
by 150 percent of the cost of postage for a 1-ounce 1st class mailing.
    (e) Limitation on Use of Campaign Contributions.--No candidate for 
election as a delegate or to the board of directors may use any 
campaign contribution for any purpose other than campaign expenditures. 
Any unused contributions shall be donated to the Association not later 
than 60 days after the election.
    (f) Limitation on Amount of Campaign Contributions.--No candidate 
for election as a delegate shall accept more than $250 in campaign 
contributions from any one contributor in any election.
    (g) Prohibition on Acceptance of Certain Contributions.--A 
candidate for election as a delegate may not accept political action 
committee contributions or other campaign contributions the board of 
directors determines to be unacceptable.
    (h) Duties and Powers of Delegates.--Each delegate shall have the 
following duties and powers:
            (1) Annual survey.--To survey Association members in the 
        delegate's election district at least 1 time each year to 
        ascertain members' concerns using written surveys provided by 
        the Association up to 50 percent of the survey questions in 
        which may be provided by the delegate.
            (2) Liaison.--To act as a liaison between the board of 
        directors and the members in the delegate's election district, 
        including transmitting any comments, writings, and suggestions 
        concerning the Association from members in the delegate's 
        election district to the board of directors and informing such 
        members of the board's response to their statements.
            (3) Office planning.--To develop plans for the organization 
        of regional and local offices.
            (4) Voting on changes in articles of incorporation, bylaws, 
        and major policies.--To vote at the annual meeting of delegates 
        and at special meetings of delegates called by the board of 
        directors on amendments to the bylaws or the articles of 
        incorporation or on matters involving changes in major policies 
        or operations of the Association.
            (5) Approval of rules.--To approve rules proposed by the 
        board of directors for the nomination and election of the 
        directors.
            (6) Voting at annual and special meetings.--To vote on 
        other items submitted to delegates by the board of directors at 
        annual and special meetings.
            (7) Other duties and powers.--To carry out all other duties 
        and exercise all other powers accorded to delegates under this 
        Act.
    (i) Annual Meetings.--
            (1) Time and place.--An annual meeting of delegates shall 
        be held in the month of July on a date and in a manner 
        determined by the board of directors at least 6 months in 
        advance of the meeting.
            (2) Procedures.--
                    (A) Voting.--All delegates shall be eligible to 
                attend, participate in, and vote in the annual meeting 
                of delegates.
                    (B) Quorum.--A majority of the delegates shall 
                constitute a quorum.
                    (C) One person; one vote.--Each delegate shall have 
                1 vote at such meetings.
                    (D) Majority vote.--A majority vote of the 
                delegates shall indicate approval by the delegates of 
                any items submitted for the consideration of the 
                delegates.
                    (E) Absentee voting.--The first elected board of 
                directors shall establish procedures for absentee 
                voting.
            (3) Agenda.--Items may be placed on the meeting's agenda by 
        any of the following methods:
                    (A) By request of any director or delegate not less 
                than 5 days and not more than 4 months in advance of 
                the date of such meeting.
                    (B) By petition which--
                            (i) contains the valid signatures of at 
                        least 5 percent of the members in any 
                        delegate's election district or at least 1 
                        percent of the total membership; and
                            (ii) was filed with the board of directors 
                        not less than 5 days and not more than 4 months 
                        in advance of the date of such meeting.
            (4) Form of meeting.--The form of the annual meeting of 
        delegates shall be as provided in the laws of the District of 
        Columbia regarding nonprofit corporations.
            (5) Open meetings.--
                    (A) Meetings open to public.--The annual meeting of 
                delegates shall be open to the public.
                    (B) Members opportunity to be heard.--Members shall 
                be given a reasonable opportunity at any annual meeting 
                to present any comment, criticism, or suggestion 
                concerning the Association, but members may not vote at 
                such meetings.
            (6) Minutes.--Complete minutes of each annual meeting shall 
        be kept and shall be distributed to 1 Federal depository 
        library in each election district.
    (j) Terms and Conditions of Office.--
            (1) In general.--The term of office for any delegate shall 
        be 3 years.
            (2) Maximum number of terms.--No delegate shall serve more 
        than 2 terms.
            (3) Service without pay other than reimbursement for 
        expenses.--Delegates of the Association shall serve without 
        compensation, except that delegates may be reimbursed for 
        actual expenses incurred by them in the performance of their 
        duties.
    (k) Vacancy.--
            (1) In general.--If a vacancy occurs in any position of 
        delegate, the board of directors shall appoint, as the 
        successor for the balance of the term, the person who--
                    (A) meets the requirements specified in this Act; 
                and
                    (B) had the highest vote total in the most recent 
                delegate election from the district in which such 
                vacancy occurred of all candidates (who meet the 
                requirements specified in this Act) other than the 
                candidate whose failure to continue to serve as 
                delegate created the vacancy.
            (2) Alternative method of appointment.--If any vacancy 
        referred to in paragraph (1) cannot be filled in the manner 
        described in such paragraph, the board of directors, by vote of 
        not less than \2/3\ of all directors, shall appoint within 60 
        days of the occurrence of the vacancy a successor from the same 
        election district for the remainder of the current term. The 
        person appointed by the board of directors shall meet the 
        qualifications for delegate.
    (l) Recall.--Any delegate shall be removed from office by the board 
of directors if not less than 40 percent of the members from the 
delegate's election district who voted in the last election have signed 
a petition for recall.

SEC. 11. BOARD OF DIRECTORS.

    (a) Management of Association.--The affairs of the Association 
shall be managed by a board of directors, which shall be elected by the 
delegates of the Association in accordance with the provisions of this 
Act. The board of directors shall consist of 17 members. Twelve 
directors shall constitute a quorum.
    (b) One Person; One Vote.--Each director shall have one vote on the 
board of directors.
    (c) Terms of Office.--The term of office for a director shall be 3 
years, except as provided otherwise in this Act, and no director shall 
serve more than 2 consecutive terms.
    (d) Powers and Duties of Board.--The board of directors, shall, in 
addition to its other responsibilities under this Act--
            (1) conduct meetings of the board of directors at least 
        once every 6 months, which shall be open to the public, unless 
        the board of directors by a majority votes to adjourn into 
        executive session;
            (2) conduct an annual delegate meeting;
            (3) limit matters discussed in executive session only to 
        personnel actions, potential or pending civil or criminal 
        proceedings involving the Association, and material which would 
        result in an unwarranted invasion of personal privacy if 
        discussed in open sessions;
            (4) keep minutes, financial records, and other records 
        which shall reflect the acts and transactions of the board of 
        directors;
            (5) cause the financial books of the Association to be 
        audited by a qualified certified public accountant at least 
        once each fiscal year;
            (6) prepare quarterly statements and an annual report 
        indicating the substantive activities and financial operations 
        of the Association;
            (7) approve the bylaws of the Association, consistent with 
        the requirements of this Act;
            (8) make available to the public and include on the 
        Association's web page, documents prepared by or filed with the 
        Association within the preceding 5 years, including--
                    (A) minutes of the board of directors meeting;
                    (B) director's or executive director's financial 
                statements;
                    (C) candidates' financial statements; and
                    (D) candidates' personal statements; and
            (9) conduct 4 mailings each year to the membership of the 
        Association, to inform the membership about the work of the 
        Association and to conduct the business of the Association.
    (e) Election of Officers.--At the first regular meeting of the 
board of directors at which a majority of its members are present, 
subsequent to the installation of new directors following each annual 
election, the board shall elect by majority vote of directors present 
and voting, and from among the directors, a president, a vice 
president, a secretary, and a treasurer. The board may also elect a 
comptroller and such other officers as it deems necessary.
    (f) Executive Director of Association.--
            (1) In general.--The board of directors shall hire and 
        supervise an executive director for the Association.
            (2) Duties of executive director.--The executive director 
        shall implement the policies established by the board of 
        directors, employ and discharge Association employees, and 
        manage the offices, facilities, and employees of the 
        Association.
            (3) Eligibility standards.--Any applicant for the position 
        of executive director, and each executive director, shall 
        satisfy the requirements for director eligibility established 
        by this Act.
            (4) Term limit.--The executive director shall only be 
        eligible to serve as an employee of the Association for 6 
        consecutive years. After such 6-year term, the executive 
        director shall be prohibited from serving as an agent, 
        consultant, attorney, accountant, or subcontractor for the 
        Association, and shall be ineligible to receive any monetary 
        compensation from the Association.
    (g) No Compensation for Association Directors.--A member of the 
board of directors of the Association may not receive any compensation 
for his or her services as a director, but shall be reimbursed for 
wages actually lost in an amount not to exceed $160 per day, and for 
necessary expenses including travel expenses incurred in the discharge 
of Association duties.
    (h) Bonding Requirement for Staff.--Any director or staff of the 
Association eligible to receive, handle, or disburse funds on behalf of 
the Association shall be bonded. The cost of such bonds shall be paid 
for by the Association.
    (i) Annual Financial Statements of Directors.--Each director and 
the executive director of the Association shall file annually with the 
board of directors a director's financial statement, which shall 
include the same information required by this Act for members seeking 
election as delegates or directors of the Association.
    (j) Annual Meetings.--
            (1) In general.--An annual meeting of members of the 
        Association shall be held in the month of July, on a date and 
        at a place within the United States to be determined by the 
        board of directors at least 6 months in advance of the meeting.
            (2) Agenda.--Items may be placed on the annual meeting 
        agenda--
                    (A) by request of any director, not less than 10 
                days and not more than 4 months in advance of the date 
                of such meeting; and
                    (B) by petition containing the valid signatures of 
                at least 500 members of the Association, which petition 
                shall be filed with the board of directors not less 
                than 10 days and not more than 4 months in advance of 
                the date of such meeting.
            (3) Notice of agenda.--The executive director shall present 
        proposed agenda items to the membership through its regular 
        mailings.
            (4) Public meetings.--The annual meeting of Association 
        members shall be open to the public, except that seating 
        preference shall be given to Association members. Association 
        members shall be given a reasonable opportunity at such 
        meetings to present comments, criticisms, and suggestions 
        concerning the Association.
            (5) Minutes.--Complete minutes of the annual meetings shall 
        be kept and distributed to all depository libraries in the 
        United States and placed on the Association's webpage.
    (k) Vacancy.--In the event that a board member position becomes 
vacant, the board of directors shall install the person having the 
highest vote total in the last election who was not elected to the 
board. If this is impossible, the board of directors, by vote of not 
less than \2/3\ of all directors, shall appoint a successor within 60 
days for the remainder of the current term. The person appointed by the 
board of directors shall meet all qualifications for board members.
    (l) Recall.--
            (1) In general.--Any director shall be removed from the 
        board of directors by the board of directors if not fewer than 
        40 percent of the delegates or members of a director's election 
        district who voted in the last election have signed a petition 
        for recall.
            (2) Limitations.--No petition to recall a director under 
        paragraph (1) may be filed within 6 months of his or her 
        election. An election pursuant to the filing of a recall 
        petition shall be conducted in accordance with the provisions 
        of this Act. A director recalled may become a candidate in the 
        election triggered by the filing of the recall petition. The 
        director recalled shall continue to serve until the installment 
        in office of his or her successor, or until his or her 
        reelection. The election triggered by the filing of a recall 
        petition shall be conducted via one of the Association's 
        quarterly mailings.

SEC. 12. ELECTION OF DIRECTORS.

    (a) Election of the Board of Directors.--
            (1) Regular election procedures.--
                    (A) One delegate; one vote.--Each delegate shall 
                cast 1 vote for 1 candidate for the board of directors.
                    (B) Top 17 candidates become directors.--The 17 
                candidates receiving the largest number of votes shall 
                become the directors.
            (2) Runoff election.--
                    (A) In general.--In the event of a tie involving 
                the 17th position on the board of directors, a runoff 
                election shall be conducted.
                    (B) Voting and candidate eligibility.--Any delegate 
                may vote for 1 candidate in the runoff election, and 
                only those nominees involved in the tie that included 
                the 17th position shall be eligible for the runoff 
                election.
            (3) Applicability to all board elections.--The requirements 
        of this section shall apply to the first election of directors 
        conducted by the interim board of directors pursuant to this 
        Act, as well as to all subsequent elections.

SEC. 13. QUALIFICATIONS.

    (a) Candidate's Statement.--Any person seeking nomination as a 
candidate for election to the board of directors of the Association 
shall file a candidate statement with the Association, not less than 60 
days and not more than 120 days prior to the election. The contents of 
a candidate statement may not contain false statements, and the 
Association may, by bylaw or interim board of directors' procedure, 
impose a uniform limitation on the length of all candidate statements.
    (b) Financial Statement.--Any person seeking nomination as a 
candidate for election to the board of directors shall file with the 
Association, not less than 60 days and not more than 120 days prior to 
the election. Each candidate's financial statement shall include the 
following information for the candidate and the immediate family of the 
candidate:
            (1) Preceding 5 years' business and financial 
        relationships.--A detailed list of any business or financial 
        relationships during the preceding 5 years with any covered 
        person or organization of covered persons, including any 
        attorney, legislative agent, officer, or director relationship.
            (2) Current and preceding 5 years' corporate positions.--A 
        list of all corporate and organizational directorships or other 
        offices and all fiduciary relationships currently held or held 
        at any time during the preceding 5 years.
            (3) Investments of $1,000 or more in any financial services 
        corporation.--A list of all financial services corporations in 
        which the candidate holds securities worth $1,000 or more at 
        current market value and the dollar value of each such holding.
            (4) Other information.--Such other information as the board 
        of directors may require by bylaw.
    (c) Affirmation of Truth of Statements.--Each candidate for 
election as a delegate or director shall affirm in writing, that the 
information in such candidate's financial statement is true and 
complete and that the candidate has complied with all the campaign 
contribution and campaign expenditure requirements of this Act and any 
such bylaws of the Association. Each candidate shall furnish the board 
of directors with such information regarding campaign contributions and 
expenditures as the board may request.
    (d) Ineligibility of Interim Directors and Staff During First 
Election.--No interim director shall be eligible for election as a 
delegate or director during the first election. The executive director 
and other Association staff persons, including interim staff persons, 
shall not be eligible for election as a delegate or director while 
serving as executive director or staff person, or for 1 year after such 
service is terminated.
    (e) Ineligibility of Delegates and Directors To Hold Other Public 
Office.--No delegate or director shall hold any elective Federal, 
State, or local office or be a candidate for such office, or be 
appointed to hold such office, unless such appointee receives no 
compensation other than reimbursement of expenses.
    (f) Ineligibility of Officers, Directors, Employees, and 
Shareholders of Covered Persons.--Any director, officer, or employee of 
a covered person, any person who owns common stock or other securities 
of covered persons in an aggregate amount in excess of $10,000, any 
agent, consultant, attorney, or accountant for a covered person, and 
any member of the immediate family of any such person shall be 
ineligible to be a delegate or a director.
    (g) Ineligibility of Officers and Employees of Federal or State 
Depository Institution Regulatory Agencies.--No officer or employee of 
any State or Federal agency that regulates depository institutions or 
any member of the immediate family of any such officer or employee 
shall be eligible to be a delegate or a director.
    (h) Ineligibility of Officers and Employees of Agencies.--No 
officer or employee of any Federal, State, or local agency that 
regulates any covered person shall be eligible to be a director of the 
Association.

SEC. 14. BALLOT ISSUES.

    (a) Procedure for Obtaining Membership Vote on Issues.--Issues may 
be placed on a ballot for vote by the general membership if--
            (1) a majority of the board of directors votes to place an 
        issue before the membership for vote;
            (2) a petition is received by the board of directors 
        which--
                    (A) contains the valid signatures of at least 1,000 
                members in any district or at least 1 percent of the 
                total membership; and
                    (B) requests that an issue be placed on a ballot is 
                received by the board of directors; or
            (3) a majority of the delegates vote to place an issue 
        before the membership for a vote.
    (b) Procedures for Conducting Vote on Issues.--
            (1) Time for election.--Upon certification of a vote of the 
        directors or delegates which meets the requirements of 
        paragraph (1) or (3) of subsection (a) or the receipt of a 
        petition which meets the requirement of subsection (a)(2), the 
        board of directors shall place the issue on a special ballot 
        and schedule a date for a vote on the issue to be held within 2 
        months after receipt of the certification or petition.
            (2) Mail ballot.--The board of directors shall send or have 
        sent by mail to each member, not later than 30 days after 
        receipt of a petition or certification pursuant to this 
        section, an official ballot containing the issue for membership 
        vote.
            (3) Vote cast by return mail.--Each member may cast a vote 
        regarding the ballot issue by returning the ballot, properly 
        marked, to the head office of the Association by the date and 
        time fixed for the balloting pursuant to this subsection.
            (4) Secret ballot.--Voting shall be by secret ballot.
            (5) Vote tally.--The board of directors shall tally votes 
        with all reasonable speed and inform the membership and 
        delegates promptly of the outcome of the vote.

SEC. 15. ACCESS TO MEMBER MAILINGS.

    No person may use any list of members of the Association, or any 
part of such list, for purposes other than the conduct of the business 
of the Association, as prescribed in this Act. The board of directors 
shall, however, develop criteria for providing Association member 
access through Association mailings to the Association's membership for 
Association purposes only. No person shall disclose any such list or 
part thereof to another person, unless there is substantial reason to 
believe that such list or part thereof is intended to be used for the 
lawful purposes described in this Act.

SEC. 16. PROHIBITED ACTS.

    (a) Covered Persons.--No covered person or officer, employee, or 
agent of any covered person may interfere or threaten to interfere with 
or cause any interference with the provision of financial services of, 
or penalize or threaten to penalize or cause to be penalized, any 
person who contributes to the Association or participates in any of its 
activities, in retribution for such contribution or participation.
    (b) General Prohibition.--No person may act with intent to prevent, 
interfere with, or hinder the activities permitted under this Act.

SEC. 17. PENALTIES.

    A violation of any provision of this Act by a covered person or 
officer, employee, or agent thereof or of the Association shall be 
subject to a civil penalty of not more than $10,000 for each violation, 
to be levied by the Federal Trade Commission.

SEC. 18. ADMINISTRATIVE ENFORCEMENT.

    Compliance with the provisions of this Act shall be enforced by the 
Federal Trade Commission in the same manner and with the same power and 
authority as the Federal Trade Commission has under the Federal Trade 
Commission Act (15 U.S.C. 41 et seq.).

SEC. 19. DISSOLUTION OF THE ASSOCIATION.

    If, after the end of the 3-year period beginning on the date on 
which the Association is incorporated, the Association's membership 
remains below 25,000 members during any 1-year period, the board of 
directors of the Association shall dissolve the Association. Upon the 
termination, dissolution, or winding up of the Association in any 
manner or for any reason, voluntary or involuntary, its assets, if any, 
remaining after the payment or provision for payment of all liabilities 
of the Association shall be distributed to, and only to, 1 or more 
charitable organizations. No part of the income or assets of the 
Association shall inure to any of its members, directors, or officers, 
or be distributed to any such person during the life of the Association 
or upon its dissolution, except in payment of a legal obligation owed 
to such person. At the time of dissolution, any unexpended funds 
appropriated by Congress for the establishment of the Association shall 
be returned to the United States Treasury.

SEC. 20. REPORTS.

    (a) Report to the President and Congress.--
            (1) In general.--The Association shall prepare and submit 
        to the President and the appropriate committees of Congress, at 
        the beginning of each regular session of Congress, a report on 
        the Association's activities for the preceding fiscal year.
            (2) Report content.--The reports required by this 
        subsection shall include--
                    (A) an appraisal of the performance of Federal 
                financial regulatory agencies, including reports on the 
                compliance of Federal financial regulatory agencies 
                with their legal missions and mandates;
                    (B) the extent to which regulatory agencies should 
                disseminate specified information to the research and 
                consumer communities and consumer information to the 
                public;
                    (C) an appraisal of significant actions of State 
                and local governments relating to the protection of 
                financial consumers;
                    (D) recommendations for financial consumer 
                protection legislation; and
                    (E) an overview of covered persons' compliance with 
                the law.

SEC. 21. RELATIONSHIP TO EXISTING LAW.

    Nothing in this Act shall be construed to limit the right of any 
individual or group of individuals to initiate, intervene in, or 
otherwise participate in any proceeding before a regulatory agency or 
court, nor to relieve any regulatory agency, court, or other public 
body of any obligation, or affect its discretion to permit intervention 
or participation by a consumer or group or class of consumers or 
citizens in any proceeding or activity.

SEC. 22. CONSTRUCTION.

    The provisions of this Act shall be construed in such a manner as 
best to enable the Association to effectively represent and protect the 
interests of financial services consumers.

SEC. 23. SEVERABILITY.

    If any provision of this Act shall be declared invalid, the other 
provisions of this Act shall remain in effect.
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