[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3193 Received in Senate (RDS)]

113th CONGRESS
  2d Session
                                H. R. 3193


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2014

                                Received

_______________________________________________________________________

                                 AN ACT


 
 To amend the Consumer Financial Protection Act of 2010 to strengthen 
 the review authority of the Financial Stability Oversight Council of 
regulations issued by the Bureau of Consumer Financial Protection, 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 ``Consumer Financial Freedom and 
Washington Accountability Act''.

SEC. 2. FINANCIAL PRODUCT SAFETY COMMISSION.

    (a) Establishment.--Section 1011 of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5491) is amended to read as follows:

``SEC. 1011. ESTABLISHMENT OF THE FINANCIAL PRODUCT SAFETY COMMISSION.

    ``(a) Establishment.--There is established an independent 
commission to be known as the `Financial Product Safety Commission' 
(hereinafter referred to in this section as the `Commission'), which 
shall regulate the offering and provision of consumer financial 
products or services under the Federal consumer financial laws. The 
Commission shall be considered an Executive agency, as defined in 
section 105 of title 5, United States Code. Except as otherwise 
provided expressly by law, all Federal laws dealing with public or 
Federal contracts, property, works, officers, employees, budgets, or 
funds, including the provisions of chapters 5 and 7 of title 5, shall 
apply to the exercise of the powers of the Commission.
    ``(b) Authority To Prescribe Regulations.--The Commission may 
prescribe such regulations and issue such orders in accordance with 
this title as the Commission may determine to be necessary for carrying 
out this title and all other laws within the Commission's jurisdiction 
and shall exercise any authorities granted under this title and all 
other laws within the Commission's jurisdiction.
    ``(c) Composition of the Commission.--
            ``(1) In general.--The Commission shall be composed of the 
        Vice Chairman for Supervision of the Federal Reserve System and 
        4 additional members who shall be appointed by the President, 
        by and with the advice and consent of the Senate, from among 
        individuals who--
                    ``(A) are citizens of the United States; and
                    ``(B) have strong competencies and experiences 
                related to consumer financial protection.
            ``(2) Staggering.--The members of the Commission appointed 
        under paragraph (1) shall serve staggered terms, which 
        initially shall be established by the President for terms of 1, 
        2, 4, and 5 years, respectively.
            ``(3) Terms.--
                    ``(A) In general.--Each member of the Commission 
                appointed under paragraph (1), including the Chair, 
                shall serve for a term of 5 years.
                    ``(B) Removal.--The President may remove any member 
                of the Commission appointed under paragraph (1).
                    ``(C) Vacancies.--Any member of the Commission 
                appointed under paragraph (1) appointed to fill a 
                vacancy occurring before the expiration of the term to 
                which that member's predecessor was appointed 
                (including the Chair) shall be appointed only for the 
                remainder of the term.
                    ``(D) Continuation of service.--Each member of the 
                Commission appointed under paragraph (1) may continue 
                to serve after the expiration of the term of office to 
                which that member was appointed until a successor has 
                been appointed by the President and confirmed by the 
                Senate, except that a member may not continue to serve 
                more than 1 year after the date on which that member's 
                term would otherwise expire.
                    ``(E) Other employment prohibited.--No member of 
                the Commission appointed under paragraph (1) shall 
                engage in any other business, vocation, or employment.
    ``(d) Affiliation.--With respect to members appointed pursuant to 
subsection (c)(1), not more than 2 shall be members of any one 
political party.
    ``(e) Chair of the Commission.--
            ``(1) Appointment.--The Chair of the Commission shall be 
        appointed by the President from among the members of the 
        Commission appointed under subsection (c)(1).
            ``(2) Authority.--The Chair shall be the principal 
        executive officer of the Commission, and shall exercise all of 
        the executive and administrative functions of the Commission, 
        including with respect to--
                    ``(A) the appointment and supervision of personnel 
                employed under the Commission (other than personnel 
                employed regularly and full time in the immediate 
                offices of members of the Commission other than the 
                Chair);
                    ``(B) the distribution of business among personnel 
                appointed and supervised by the Chair and among 
                administrative units of the Commission; and
                    ``(C) the use and expenditure of funds.
            ``(3) Limitation.--In carrying out any of the Chair's 
        functions under the provisions of this subsection the Chair 
        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.
            ``(4) Requests or estimates related to appropriations.--
        Requests or estimates for regular, supplemental, or deficiency 
        appropriations on behalf of the Commission may not be submitted 
        by the Chair without the prior approval of the Commission.
    ``(f) No Impairment by Reason of Vacancies.--No vacancy in the 
members of the Commission shall impair the right of the remaining 
members of the Commission to exercise all the powers of the Commission. 
Three members of the Commission shall constitute a quorum for the 
transaction of business, except that if there are only 3 members 
serving on the Commission because of vacancies in the Commission, 2 
members of the Commission shall constitute a quorum for the transaction 
of business. If there are only 2 members serving on the Commission 
because of vacancies in the Commission, 2 members shall constitute a 
quorum for the 6-month period beginning on the date of the vacancy 
which caused the number of Commission members to decline to 2.
    ``(g) Seal.--The Commission shall have an official seal.
    ``(h) Compensation.--
            ``(1) Chair.--The Chair shall receive compensation at the 
        rate prescribed for level I of the Executive Schedule under 
        section 5313 of title 5, United States Code.
            ``(2) Other members of the commission.--The 3 other members 
        of the Commission appointed under subsection (c)(1) shall each 
        receive compensation at the rate prescribed for level II of the 
        Executive Schedule under section 5314 of title 5, United States 
        Code.
    ``(i) Initial Quorum Established.--During any time period prior to 
the confirmation of at least two members of the Commission, one member 
of the Commission shall constitute a quorum for the transaction of 
business. Following the confirmation of at least 2 additional 
commissioners, the quorum requirements of subsection (f) shall apply.
    ``(j) Offices.--The principal office of the Commission shall be in 
the District of Columbia. The Commission may establish regional offices 
of the Commission in order to carry out the responsibilities assigned 
to the Commission under the Federal consumer financial laws.''.
    (b) Bringing the Commission Into the Regular Appropriations 
Process.--Section 1017 of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5497) is amended--
            (1) in subsection (a)--
                    (A) by amending the heading of such subsection to 
                read as follows: ``Budget, Financial Management, and 
                Audit.--'';
                    (B) by striking paragraphs (1), (2), and (3);
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (1) and (2), respectively; and
                    (D) by striking subparagraphs (E) and (F) of 
                paragraph (1), as so redesignated;
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) and (e) as subsections 
        (b) and (c), respectively; and
            (4) in subsection (c), as so redesignated--
                    (A) by striking paragraphs (1), (2), and (3) and 
                inserting the following:
            ``(1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this title $300,000,000 for 
        each of fiscal years 2014 and 2015.''; and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).
    (c) Ensuring the Independence of the Commission.--The Consumer 
Financial Protection Act of 2010 is amended--
            (1) in section 1012(c) (12 U.S.C. 5492(c)), by striking 
        paragraphs (2), (3), (4), and (5); and
            (2) in section 1014(b) (12 U.S.C. 5494(b)), by striking 
        ``Not fewer than 6 members shall be appointed upon the 
        recommendation of the regional Federal Reserve Bank Presidents, 
        on a rotating basis.''.
    (d) Conforming Amendments.--
            (1) Consumer financial protection act of 2010.--
                    (A) In general.--Except as provided under 
                subparagraph (B), the Consumer Financial Protection Act 
                of 2010 (12 U.S.C. 5481 et seq.) is amended--
                            (i) by striking ``Director of the'' each 
                        place such term appears, other than where such 
                        term is used to refer to a Director other than 
                        the Director of the Bureau of Consumer 
                        Financial Protection;
                            (ii) by striking ``Director'' each place 
                        such term appears and inserting ``Financial 
                        Product Safety Commission'', other than where 
                        such term is used to refer to a Director other 
                        than the Director of the Bureau of Consumer 
                        Financial Protection; and
                            (iii) in section 1002 (12 U.S.C. 5481), by 
                        striking paragraph (10).
                    (B) Exceptions.--The Consumer Financial Protection 
                Act of 2010 is amended--
                            (i) in section 1012(c)(4) (12 U.S.C. 
                        5492(c)(4)), by striking ``Director'' each 
                        place such term appears and inserting 
                        ``Financial Product Safety Commission'';
                            (ii) in section 1013(c)(3) (12 U.S.C. 
                        5493(c)(3))--
                                    (I) by striking ``Assistant 
                                Director of the Bureau for'' and 
                                inserting ``Head of the Office of''; 
                                and
                                    (II) in subparagraph (B), by 
                                striking ``Assistant Director'' and 
                                inserting ``Head of the Office'';
                            (iii) in section 1013(g)(2) (12 U.S.C. 
                        5493(g)(2))--
                                    (I) by striking ``Assistant 
                                director'' and inserting ``Head of the 
                                office''; and
                                    (II) by striking ``an assistant 
                                director'' and inserting ``a Head of 
                                the Office of Financial Protection for 
                                Older Americans'';
                            (iv) in section 1016(a) (12 U.S.C. 
                        5496(a)), by striking ``Director of the 
                        Bureau'' and inserting ``Chair of the 
                        Commission''; and
                            (v) in section 1066(a) (12 U.S.C. 5586(a)), 
                        by striking ``Director of the Bureau is'' and 
                        inserting ``first member of the Commission 
                        is''.
            (2) Dodd-frank wall street reform and consumer protection 
        act.--The Dodd-Frank Wall Street Reform and Consumer Protection 
        Act (12 U.S.C. 5301 et seq.) is amended--
                    (A) in the table of contents for such Act by 
                amending the item relating to section 1011 to read as 
                follows:

``Sec. 1011. Establishment of the Financial Product Safety 
                            Commission.'';
                    (B) in section 111(b)(1)(D) (12 U.S.C. 
                5321(b)(1)(D)), by striking ``Director'' and inserting 
                ``Chair of the Financial Product Safety Commission''; 
                and
                    (C) in section 1447 (12 U.S.C. 1701p-2), by 
                striking ``Director of the Bureau'' each place such 
                term appears and inserting ``Financial Product Safety 
                Commission''.
            (3) Electronic fund transfer act.--Section 920(a)(4)(C) of 
        the Electronic Fund Transfer Act (15 U.S.C. 1693o-2(a)(4)(C)), 
        as added by section 1075(a)(2) of the Consumer Financial 
        Protection Act of 2010, is amended by striking ``Director of 
        the Bureau of Consumer Financial Protection'' and inserting 
        ``Financial Product Safety Commission''.
            (4) Expedited funds availability act.--The Expedited Funds 
        Availability Act (12 U.S.C. 4001 et seq.), as amended by 
        section 1086 of the Consumer Financial Protection Act of 2010, 
        is amended by striking ``Director of the Bureau'' each place 
        such term appears and inserting ``Financial Product Safety 
        Commission''.
            (5) Federal deposit insurance act.--Section 2 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1812), as amended by 
        section 336(a) of the Dodd-Frank Wall Street Reform and 
        Consumer Protection Act, is amended by striking ``Director of 
        the Consumer Financial Protection Bureau'' each place such term 
        appears and inserting ``Chair of the Financial Product Safety 
        Commission''.
            (6) Federal financial institutions examination council act 
        of 1978.--Section 1004(a)(4) of the Federal Financial 
        Institutions Examination Council Act of 1978 (12 U.S.C. 
        3303(a)(4)), as amended by section 1091 of the Consumer 
        Financial Protection Act of 2010, is amended by striking 
        ``Director of the Consumer Financial Protection Bureau'' and 
        inserting ``Chair of the Financial Product Safety Commission''.
            (7) Financial literacy and education improvement act.--
        Section 513 of the Financial Literacy and Education Improvement 
        Act (20 U.S.C. 9702), as amended by section 1013(d)(5) of the 
        Consumer Financial Protection Act of 2010, is amended by 
        striking ``Director'' each place such term appears and 
        inserting ``Chair of the Commission''.
            (8) Home mortgage disclosure act of 1975.--Section 307 of 
        the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2806), as 
        amended by section 1094(6) of the Consumer Financial Protection 
        Act of 2010, is amended by striking ``Director of the Bureau of 
        Consumer Financial Protection'' each place such term appears 
        and inserting ``Financial Product Safety Commission''.
            (9) Interstate land sales full disclosure act.--The 
        Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701 et 
        seq.), as amended by section 1098A of the Consumer Financial 
        Protection Act of 2010, is amended--
                    (A) by amending section 1402(1) (15 U.S.C. 1701(1)) 
                to read as follows:
                    ``(1) `Chair' means the Chair of the Financial 
                Product Safety Commission;''; and
                    (B) in section 1416(a) (15 U.S.C. 1715(a)), by 
                striking ``Director of the Bureau of Consumer Financial 
                Protection'' and inserting ``Chair''.
            (10) Real estate settlement procedures act of 1974.--
        Section 5 of the Real Estate Settlement Procedures Act of 1974 
        (12 U.S.C. 2604), as amended by section 1450 of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act, is amended--
                    (A) by striking ``The Director of the Bureau of 
                Consumer Financial Protection (hereafter in this 
                section referred to as the `Director')'' and inserting 
                ``The Financial Product Safety Commission''; and
                    (B) by striking ``Director'' each place such term 
                appears and inserting ``Financial Product Safety 
                Commission''.
            (11) S.A.F.E. mortgage licensing act of 2008.--The S.A.F.E. 
        Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.), as 
        amended by section 1100 of the Consumer Financial Protection 
        Act of 2010, is amended--
                    (A) by striking ``Director'' each place such term 
                appears in headings and text, other than where such 
                term is used in the context of the Director of the 
                Office of Thrift Supervision, and inserting ``Financial 
                Product Safety Commission''; and
                    (B) in section 1503 (12 U.S.C. 5102), by striking 
                paragraph (10).
            (12) Title 44, united states code.--Section 3513(c) of 
        title 44, United States Code, as amended by section 1100D(b) of 
        the Consumer Financial Protection Act of 2010, is amended by 
        striking ``Director of the Bureau'' and inserting ``Financial 
        Product Safety Commission''.
    (e) Deeming of Names.--
            (1) Bureau of consumer financial protection.--Any reference 
        in a law, regulation, document, paper, or other record of the 
        United States to the Bureau of Consumer Financial Protection 
        shall be deemed a reference to the Financial Product Safety 
        Commission.
            (2) Director.--Any reference in a law, regulation, 
        document, paper, or other record of the United States to the 
        Director of the Bureau of Consumer Financial Protection shall 
        be deemed a reference to the Chair of the Financial Product 
        Safety Commission.

SEC. 3. RATE OF PAY FOR EMPLOYEES OF THE FINANCIAL PRODUCT SAFETY 
              COMMISSION.

    (a) In General.--Section 1013(a)(2) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5493(a)(2)) is amended to 
read as follows:
            ``(2) Compensation.--The rates of basic pay for all 
        employees of the Financial Product Safety Commission shall be 
        set and adjusted in accordance with the General Schedule set 
        forth in section 5332 of title 5, United States Code.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to service by an employee of the Financial Product Safety 
Commission following the 90-day period beginning on the date of 
enactment of this Act.

SEC. 4. CONSUMER RIGHT TO FINANCIAL PRIVACY.

    (a) Requirement of the Financial Product Safety Commission To 
Obtain Permission Before Collecting Nonpublic Personal Information.--
            (1) Required notification and permission.--Section 
        1022(c)(9)(A) of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (12 U.S.C. 5512(c)(9)(A)) is amended--
                    (A) by striking ``may not obtain from a covered 
                person or service provider'' and inserting ``may not 
                request, obtain, access, collect, use, retain, or 
                disclose'';
                    (B) by striking ``personally identifiable 
                financial'' and inserting ``nonpublic personal''; and
                    (C) by striking ``from the financial records'' and 
                all that follows through the period at the end and 
                inserting ``unless--
                            ``(i) the Financial Product Safety 
                        Commission clearly and conspicuously discloses 
                        to the consumer, in writing or in an electronic 
                        form, what information will be requested, 
                        obtained, accessed, collected, used, retained, 
                        or disclosed; and
                            ``(ii) before such information is 
                        requested, obtained, accessed, collected, used, 
                        retained, or disclosed, the consumer informs 
                        the Financial Product Safety Commission that 
                        such information may be requested, obtained, 
                        accessed, collected, used, retained, or 
                        disclosed.''.
            (2) Application of requirement to contractors of the 
        financial product safety commission.--Section 1022(c)(9)(B) of 
        such Act (12 U.S.C. 5512(c)(9)(B)) is amended to read as 
        follows:
                    ``(B) Application of requirement to contractors of 
                the financial product safety commission.--Subparagraph 
                (A) shall apply to any person directed or engaged by 
                the Financial Product Safety Commission to collect 
                information to the extent such information is being 
                collected on behalf of the Financial Product Safety 
                Commission.''.
            (3) Definition of nonpublic personal information.--Section 
        1022(c)(9) of such Act (12 U.S.C. 5512(c)(9)) is amended by 
        adding at the end the following:
                    ``(C) Definition of nonpublic personal 
                information.--In this paragraph, the term `nonpublic 
                personal information' has the meaning given the term in 
                section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 
                6809).''.
    (b) Removal of Exemption for the Financial Product Safety 
Commission From the Right to Financial Privacy Act.--Section 1113 of 
the Right to Financial Privacy Act of 1978 (12 U.S.C. 3413) is amended 
by striking subsection (r).

SEC. 5. CONSUMER FINANCIAL PROTECTION SAFETY AND SOUNDNESS 
              IMPROVEMENTS.

    (a) Council Voting Procedure.--Section 1023(c)(3)(A) of the 
Consumer Financial Protection Act of 2010 (12 U.S.C. 5513(c)(3)(A)) is 
amended--
            (1) by striking ``\2/3\'' and inserting ``a majority''; and
            (2) by inserting before the period the following: ``, 
        excluding the Chair of the Financial Product Safety 
        Commission''.
    (b) Review Authority of the Council.--Section 1023 of the Consumer 
Financial Protection Act of 2010 (12 U.S.C. 5513) is amended--
            (1) in subsection (a)--
                    (A) by striking ``may'' and inserting ``shall''; 
                and
                    (B) by striking ``regulation or provision would put 
                the safety and soundness of the United States banking 
                system or the stability of the financial system of the 
                United States at risk'' and inserting ``regulation 
                which is the subject of the petition is inconsistent 
                with the safe and sound operations of United States 
                financial institutions''; and
            (2) in subsection (c)--
                    (A) in paragraph (3)(B)(ii), by striking ``would 
                put the safety and soundness of the United States 
                banking system or the stability of the financial system 
                of the United States at risk'' and inserting ``is 
                inconsistent with the safe and sound operations of 
                United States financial institutions'';
                    (B) in paragraph (4)--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B);
                    (C) by striking paragraph (5); and
                    (D) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (5), (6), and (7), respectively.
    (c) Safety and Soundness Check.--Section 1022(b)(2)(A) of the 
Consumer Financial Protection Act of 2010 (12 U.S.C. 5512(b)(2)(A)) is 
amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by adding ``and'' at the end; and
            (3) by adding at the end the following:
                            ``(iii) the impact of such rule on the 
                        financial safety or soundness of an insured 
                        depository institution;''.

SEC. 6. ANALYSIS OF REGULATIONS.

    Section 1022 of the Consumer Financial Protection Act of 2010 (12 
U.S.C. 5512) is amended by adding at the end the following new 
subsection:
    ``(e) Analysis of Regulations.--
            ``(1) In general.--Each time the Commission proposes a new 
        rule or regulation, the Commission shall--
                    ``(A) carry out an initial regulatory flexibility 
                analysis for such proposed rule or regulation, which 
                shall be carried out as closely as possible to those 
                initial regulatory flexibility analyses required under 
                section 603 of title 5, United States Code, but which 
                shall analyze the financial impact of the proposed rule 
                or regulation on covered persons, regardless of size; 
                and
                    ``(B) carry out an analysis of whether the proposed 
                rule or regulation will impair the ability of 
                individuals and small businesses to have access to 
                credit.
            ``(2) Report.--The Commission shall issue a report to the 
        Council on each analysis carried out under paragraph (1), and 
        make such analysis available to the public.
            ``(3) Use of existing resources.--The Commission shall use 
        existing resources to carry out the requirements of this 
        subsection.''.

SEC. 7. REPEAL OF EXCLUSIVE RULEMAKING AUTHORITY.

    Section 1022(b) of the Consumer Financial Protection Act of 2010 
(12 U.S.C. 5512(b)) is amended by striking paragraph (4).

            Passed the House of Representatives February 27, 2014.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.