[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5664 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5664

    To amend the Consumer Credit Protection Act to strengthen debt 
   collection exemptions to protect debtors and their families from 
             poverty or bankruptcy, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 7, 2016

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

_______________________________________________________________________

                                 A BILL


 
    To amend the Consumer Credit Protection Act to strengthen debt 
   collection exemptions to protect debtors and their families from 
             poverty or bankruptcy, 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 ``Wage and Garnishment Equity Act of 
2016'' or the ``WAGE Act.''

SEC. 2. ASSIGNMENT OF EARNINGS DEFINED.

    Section 302 of the Consumer Credit Protection Act (15 U.S.C. 1672) 
is amended by adding at the end the following new subsection:
    ``(d) Assignment.--The term `assignment'--
            ``(1) means a contractual agreement that constitutes or 
        contains an assignment (as described under section 444.2(a)(3) 
        of title 16, Code of Federal Regulations), including an 
        assignment that is revocable at the will of the individual; and
            ``(2) does not include includes an assignment described in 
        paragraph (ii) or (iii) of section 444.2(a)(3) of title 16, 
        Code of Federal Regulations.''.

SEC. 3. ADJUSTMENT TO RESTRICTIONS ON GARNISHMENT.

    Section 303(a) of the Consumer Credit Protection Act (15 U.S.C. 
1673) is amended--
            (1) by striking paragraph (1);
            (2) by striking ``whichever is less.'';
            (3) by striking ``garnishment may not exceed'' and 
        inserting ``garnishment or assignment may not exceed the lesser 
        of--
            ``(1) for an individual earning--
                    ``(A) less than or equal to $1,200 (as adjusted for 
                inflation every 3 years, by notice, to reflect the 
                change in the Consumer Price Index for All Urban 
                Consumers published by the Bureau of Labor Statistics) 
                a workweek, 10 percent of the individual's disposable 
                earnings for that workweek; or
                    ``(B) more than $1,200 (as adjusted for inflation 
                every 3 years, by notice, to reflect the change in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics) a workweek, 15 
                percent of the individual's disposable earnings for 
                that workweek; or''; and
            (4) in paragraph (2)--
                    (A) by striking ``thirty'' and inserting ``80''; 
                and
                    (B) by striking the comma at the end and inserting 
                a period.

SEC. 4. RESTRICTION ON ADVERSE EMPLOYMENT ACTION BECAUSE OF 
              GARNISHMENT.

    (a) In General.--Section 304 of the Consumer Credit Protection Act 
(15 U.S.C. 1674) is amended--
            (1) by amending the section heading to read as follows: 
        ``restriction on adverse employment action''; and
            (2) by amending subsection (a) to read as follows:
    ``(a) In General.--No employer may take any adverse employment 
action against an employee because the employee's earnings have been 
subjected to garnishment or assignment.''.
    (b) Table of Contents Amendment.--The table of contents in title 
III of the Consumer Credit Protection Act (15 U.S.C. 1671 et seq.) is 
amended by amending the item relating to section 304 to read as 
follows:

``304. Restriction on adverse employment action.''.

SEC. 5. STATE LAW WITH RESPECT TO ASSIGNMENTS.

    (a) Exemption for State-Regulated Assignments.--
            (1) In general.--Section 305 of the Consumer Credit 
        Protection Act (15 U.S.C. 1675) is amended--
                    (A) in the section heading, by inserting ``or 
                assignments'' after ``garnishments'';
                    (B) by inserting ``or assignments'' after 
                ``garnishments''; and
                    (C) by inserting ``or assignment'' after 
                ``garnishment''.
            (2) Table of contents amendment.--The table of contents in 
        title III of the Consumer Credit Protection Act (15 U.S.C. 1671 
        et seq.) is amended by amending the item relating to section 
        305 to read as follows:

``305. Exemption for State-regulated garnishments or assignments.''.
    (b) Effect on State Laws.--Section 307 of such Act (15 U.S.C. 1676) 
is amended--
            (1) by striking ``State'' and inserting ``State--'';
            (2) in paragraph (1), by striking ``garnishments'' each 
        place such term appears and inserting ``garnishments or 
        assignments''; and
            (3) in paragraph (2), by striking ``garnishment'' and 
        inserting ``garnishment or assignment''.

SEC. 6. EMPLOYER LIABILITY FOR FAILURE TO GARNISH.

    (a) In General.--Title III of the Consumer Credit Protection Act 
(15 U.S.C. 1671 et seq.) is amended by adding at the end the following 
new section:
``Sec. 308. Delay of garnishment; employer liability
    ``(a) Delay of Garnishment.--A garnishment order directed at an 
employer with fewer than 50 employees may not require such employer to 
garnish the earnings of the individual who is the subject of the order 
earlier than the later of the following:
            ``(1) 15 business days after such employer receives the 
        order.
            ``(2) 5 business days after the date on which the 
        individual is regularly scheduled to receive earnings.
            ``(3) As would otherwise be required by State law or 
        regulation.
    ``(b) Employer Liability.--No employer with fewer than 50 employees 
shall be liable for failing to respond to a garnishment order unless 
such employer--
            ``(1) has been given written notice that specifies the 
        nature of the employer's failure to comply with the 
        requirements of this title; and
            ``(2) does not correct the failure described in paragraph 
        (1) within 15 days of receipt of such notice.''.
    (b) Table of Contents Amendment.--The table of contents in title 
III of the Consumer Credit Protection Act (15 U.S.C. 1671 et seq.) is 
amended by adding at the end the following new item:

``308. Delay of garnishment; employer liability.''.

SEC. 7. EXEMPTION FOR AMOUNTS IN DEPOSIT ACCOUNTS.

    (a) In General.--Of the aggregate amount of funds of an individual 
in deposit accounts, an amount equal to the poverty guideline 
applicable to a 1-person household contained in the income poverty 
guidelines prescribed by the Office of Management and Budget (as such 
amount is annually adjusted by the Secretary of Health and Human 
Services) shall be exempt and immune from attachment or seizure with 
respect to any judgment related to a debt.
    (b) Inclusion of Accounts.--In this subsection, the term ``deposit 
accounts'' shall include any account, as such term is defined in 
section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a).
    (c) Rulemaking.--The Bureau of Consumer Financial Protection shall 
issue such regulations as may be necessary to carry out this section.
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