[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1848 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1848

    To amend the Federal Reserve Act to improve the functioning and 
 transparency of the Board of Governors of the Federal Reserve System 
     and the Federal Open Market Committee, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2015

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

_______________________________________________________________________

                                 A BILL


 
    To amend the Federal Reserve Act to improve the functioning and 
 transparency of the Board of Governors of the Federal Reserve System 
     and the Federal Open Market Committee, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Sound Dollar Act 
of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
            TITLE I--SINGLE MANDATE FOR PRICE STABILITY ACT

Sec. 101. Findings.
Sec. 102. Price stability mandate.
     TITLE II--FINANCIAL STABILITY AND MORAL HAZARD MITIGATION ACT

Sec. 201. Findings.
Sec. 202. Lender of last resort policy.
TITLE III--DIVERSIFYING THE FEDERAL OPEN MARKET COMMITTEE TO REFLECT A 
                        21ST CENTURY ECONOMY ACT

Sec. 301. Findings.
Sec. 302. Federal Open Market Committee membership.
       TITLE IV--DEMYSTIFICATION OF MONETARY POLICY DECISIONS ACT

Sec. 401. Findings.
Sec. 402. Release of transcripts.
               TITLE V--EXCHANGE RATE RESPONSIBILITY ACT

Sec. 501. Findings.
Sec. 502. Report on the effect of exchange rate policy.
Sec. 503. Renaming of Exchange Stabilization Fund.
Sec. 504. Conversion to all-SDR Fund.
               TITLE VI--CREDIT ALLOCATION NEUTRALITY ACT

Sec. 601. Findings.
Sec. 602. Limitation on certain non-emergency security purchases.
     TITLE VII--BUREAU OF CONSUMER FINANCIAL PROTECTION FUNDING ACT

Sec. 701. Findings.
Sec. 702. Bureau of Consumer Financial Protection Funding.

            TITLE I--SINGLE MANDATE FOR PRICE STABILITY ACT

SEC. 101. FINDINGS.

    Congress finds that--
            (1) monetary policy can only affect the level of employment 
        in the short term because nonmonetary factors determine the 
        level of employment in the long term;
            (2) at best, the Federal Reserve may temporarily increase 
        the level of employment through monetary policy, but such 
        efforts risk price inflation and increased business cycle 
        volatility in the future;
            (3) the Federal Reserve can achieve price stability in the 
        long term through monetary policy;
            (4) price stability is desirable because both price 
        inflation and price deflation damage the United States economy;
            (5) to maximize long-term economic growth and achieve the 
        highest sustainable level of real output and employment, price 
        stability should be the objective of monetary policy;
            (6) countries whose central bank has a single mandate for 
        price stability generally have a better record of achieving 
        stable prices than countries whose central bank has a mandate 
        that gives equal weight to other objectives such as maximum 
        employment or low interest rates;
            (7) while, in general, an overly accommodative monetary 
        policy inflates both asset prices and prices for goods and 
        services, an overly accommodative monetary policy may sometimes 
        cause a misallocation of capital that inflates asset prices 
        disproportionately, creating unsustainable bubbles in asset 
        prices, while price indices for goods and services do not 
        register significant price inflation;
            (8) if asset bubbles burst, many investments must be 
        liquidated at considerable cost to the United States economy in 
        terms of lower real output and employment;
            (9) price stability cannot always be measured solely 
        through price indices for goods and services since such indices 
        exclude changes in asset prices; and
            (10) the Federal Reserve should monitor--
                    (A) the prices of, and the expected returns from, 
                major asset classes (including equities, residential 
                real estate, commercial and industrial real estate, 
                agricultural real estate, gold and other commodities, 
                corporate bonds, United States Government bonds, State 
                and local government bonds, and other securities);
                    (B) the value of the United States dollar relative 
                to other currencies; and
                    (C) the value of the United States dollar relative 
                to gold, as metrics to determine whether the Federal 
                Reserve's monetary policy is consistent with long-term 
                price stability.

SEC. 102. PRICE STABILITY MANDATE.

    (a) In General.--Section 2A of the Federal Reserve Act (12 U.S.C. 
225a) is amended--
            (1) by striking ``The Board of Governors'' and inserting 
        the following:
    ``(a) In General.--The Board of Governors'';
            (2) by striking ``maintain long run growth of the monetary 
        and credit aggregates commensurate with the economy's long run 
        potential to increase production, so as to promote effectively 
        the goals of maximum employment, stable prices, and moderate 
        long-term interest rates'' and inserting ``pursue the goal of 
        long-term price stability, to achieve the maximum sustainable 
        rate of output growth and the maximum level of employment 
        through time''; and
            (3) by adding at the end the following:
    ``(b) Price Stability Metrics.--
            ``(1) In general.--The Board of Governors of the Federal 
        Reserve System and the Federal Open Market Committee shall--
                    ``(A) define the term `long-term price stability' 
                for purposes of subsection (a); and
                    ``(B) establish metrics that the Board and the 
                Committee will use to evaluate whether long-term price 
                stability is being achieved.
            ``(2) Establishment of metrics.--In establishing the 
        metrics described under paragraph (1)(B), the Board and 
        Committee shall--
                    ``(A) consider price indices of goods and services; 
                and
                    ``(B) evaluate, on an ongoing basis--
                            ``(i) whether such metrics are 
                        comprehensively reflecting price movements in 
                        the economy; and
                            ``(ii) whether any price movements not 
                        captured by the price indices of goods and 
                        services are causing a significant 
                        misallocation of capital in the United States 
                        economy.
            ``(3) Metric evaluation.--With respect to the evaluation 
        process required under paragraph (2)(B), the Board and 
        Committee shall monitor--
                    ``(A) the prices of, and the expected returns from, 
                major asset classes (including equities, residential 
                real estate, commercial and industrial real estate, 
                agricultural real estate, gold and other commodities, 
                corporate bonds, United States Government bonds, State 
                and local government bonds, and other securities) and 
                the allocation of capital in financial markets and the 
                broader economy;
                    ``(B) the value of the United States dollar 
                relative to other currencies; and
                    ``(C) the value of the United States dollar 
                relative to gold.
            ``(4) Public disclosure; report to congress.--With respect 
        to the definition of long-term price stability and the 
        establishment of metrics required under paragraph (1), the 
        Board and the Committee shall--
                    ``(A) make such definition and metrics available to 
                the public on a website maintained by the Board or the 
                Committee; and
                    ``(B) submit to Congress a report that includes the 
                changed definition and metrics each time such 
                definition and metrics are set or revised.''.
    (b) Additional Evaluations and Determinations Included in Semi-
Annual Report to Congress.--Section 2B(b) of the Federal Reserve Act 
(12 U.S.C. 225b(b)) is amended--
            (1) by striking ``containing a discussion'' and inserting 
        the following:
``containing--
            ``(1) a discussion'';
            (2) by striking the period and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(2) the results of the evaluation conducted under section 
        2A(b)(2)(B);
            ``(3) a determination of whether the goal of long-term 
        price stability is being met and, if such goal is not being 
        met, an explanation of--
                    ``(A) why the goal is not being met; and
                    ``(B) the steps that the Board and the Federal Open 
                Market Committee will take to ensure that the goal is 
                met in the future; and
            ``(4) a description of--
                    ``(A) the main monetary policy instruments used by 
                the Board and the Federal Open Market Committee; and
                    ``(B) the strategy of the Board and the Committee 
                with respect to using such instruments to achieve the 
                goal of long-term price stability.''.

     TITLE II--FINANCIAL STABILITY AND MORAL HAZARD MITIGATION ACT

SEC. 201. FINDINGS.

    Congress finds that--
            (1) the Federal Reserve performs an essential function for 
        financial stability by serving as lender of last resort to--
                    (A) prevent the unnecessary failures of otherwise 
                solvent United States banks and other financial 
                institutions;
                    (B) reduce the likelihood of financial contagion 
                and disruptions in United States financial markets; and
                    (C) minimize any adverse effects on real output and 
                employment in the United States economy;
            (2) in acting as the lender of last resort, the Federal 
        Reserve may--
                    (A) buy debt securities at fair market value; or
                    (B) provide short-term credit, secured by 
                appropriate collateral in proper margin, to otherwise 
                solvent banks and other financial institutions that 
                encounter funding difficulties during a financial 
                crisis;
            (3) in its nearly 100-year history, the Federal Reserve has 
        never clearly articulated its lender of last resort policy;
            (4) the absence of an official lender of last resort policy 
        has led to--
                    (A) increased economic uncertainty because it is 
                unknown how the Federal Reserve may behave;
                    (B) financially distressed firms seeking political 
                solutions through encouraging Congress or the 
                Administration to place pressure on the Federal Reserve 
                to act to save the firms; and
                    (C) a moral hazard problem from financial 
                institutions taking greater risks and increasing 
                leverage based upon assumptions of how the Federal 
                Reserve will act, though there is no formal statement 
                assuring how the Federal Reserve will act;
            (5) by establishing a formal lender of last resort policy, 
        the Federal Reserve would decrease uncertainty in the market 
        during times of financial crisis and mitigate the moral hazards 
        created by recent bailouts;
            (6) an official lender of last resort policy should provide 
        that once a financial crisis has dissipated, the Federal 
        Reserve should, in an orderly way, sell any debt securities 
        that the Federal Reserve--
                    (A) acquired while acting as lender of last resort; 
                and
                    (B) does not normally own for its system account; 
                and
            (7) to reduce moral hazard, the lender of last resort 
        policy of the Federal Reserve should make clear that credit in 
        any form will not be provided to any insolvent bank or other 
        financial institution.

SEC. 202. LENDER OF LAST RESORT POLICY.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Board of Governors of the Federal Reserve 
System shall clearly articulate the lender of last resort policy of the 
Board and shall make such policy available to the public on a website 
maintained by the Board or the Committee.
    (b) Consultation.--In developing the policy required under 
subsection (a), the Board of Governors shall consult with--
            (1) the Federal Reserve bank presidents;
            (2) the Comptroller of the Currency;
            (3) the Chairperson of the Federal Deposit Insurance 
        Corporation;
            (4) the Securities and Exchange Commission;
            (5) the Commodity Futures Trading Commission; and
            (6) other persons with expertise in financial services 
        regulation and monetary policy as the Board of Governors may 
        determine appropriate.

TITLE III--DIVERSIFYING THE FEDERAL OPEN MARKET COMMITTEE TO REFLECT A 
                        21ST CENTURY ECONOMY ACT

SEC. 301. FINDINGS.

    Congress finds that--
            (1) the Federal Reserve Act (12 U.S.C. 221 et seq.) 
        delineates specific requirements for the 7 governors charged 
        with oversight of the Federal Reserve System;
            (2) in a reflection of the decentralized structure of the 
        Federal Reserve System that broadly distributes power and 
        responsibility across the United States, the Federal Reserve 
        Act (12 U.S.C. 221 et seq.) mandates that the presidentially 
        appointed governors come from a wide range of geographic 
        locations and professional backgrounds, as described in the 
        first undesignated paragraph under section 10 of the Federal 
        Reserve Act (12 U.S.C. 241), which states ``In selecting the 
        members of the Board, not more than one of whom shall be 
        selected from any one Federal Reserve district, the President 
        shall have due regard to a fair representation of the 
        financial, agricultural, industrial, and commercial interests, 
        and geographical divisions of the country.'';
            (3) the Federal Open Monetary Committee consists of members 
        of the Board of Governors and the President or Vice President 
        of the Federal Reserve Bank of New York on a permanent basis 
        and rotates voting membership among the remaining regional 
        reserve banks;
            (4) the existing structure of the Federal Open Market 
        Committee places too much authority in the hands of Washington 
        and New York at the expense of the remainder of the United 
        States; and
            (5) monetary policy should be conducted in the interest of 
        all people of the United States, a policy goal that is best 
        achieved--
                    (A) by a Federal Open Market Committee that 
                provides greater representation and voice in policy 
                decisions to all people of the United States as 
                represented by the regional reserve banks; and
                    (B) by reforming the voting membership of the 
                Federal Open Market Committee to include all regional 
                reserve banks on a permanent basis.

SEC. 302. FEDERAL OPEN MARKET COMMITTEE MEMBERSHIP.

    Section 12A(a) of the Federal Reserve Act (12 U.S.C. 263(a)) is 
amended--
            (1) by striking ``five representatives of the Federal 
        Reserve banks to be selected as hereinafter provided.'' and 
        inserting ``1 representative from each of the Federal Reserve 
        banks.''; and
            (2) by striking ``and, beginning with the election for the 
        term commencing March 1, 1943,'' and all that follows through 
        ``from time to time.'' and inserting ``and shall be elected by 
        the board of directors of the Federal Reserve bank that they 
        are to represent.''.

       TITLE IV--DEMYSTIFICATION OF MONETARY POLICY DECISIONS ACT

SEC. 401. FINDINGS.

    Congress finds that--
            (1) a more efficient release of transcripts from the 
        Federal Reserve would result in better guidance for market 
        participants and more economically efficient decisionmaking;
            (2) according to Federal Reserve Chairman, Ben Bernanke, 
        ``when the monetary policy committee regularly provides 
        information about its objectives, economic outlook, and policy 
        plans, two benefits result. First, with more complete 
        information available, markets will price financial assets more 
        efficiently. Second, the policymakers will usually find that 
        they have achieved a closer alignment between market 
        participants' expectations about the course of future short-
        term rates and their own views''; and
            (3) the Federal Reserve is able to release transcripts more 
        efficiently without compromising its decisionmaking process.

SEC. 402. RELEASE OF TRANSCRIPTS.

    Section 12A of the Federal Reserve Act (12 U.S.C. 263) is amended 
by adding at the end the following:
    ``(d) Release of Transcripts.--The Committee shall release meeting 
transcripts to the public not later than 3 years after each meeting.''.

               TITLE V--EXCHANGE RATE RESPONSIBILITY ACT

SEC. 501. FINDINGS.

    Congress finds that--
            (1) the Board of Governors of the Federal Reserve System 
        and the Federal Open Market Committee exercise control over the 
        supply of United States dollars, which is a major factor 
        affecting the foreign exchange rate value of the United States 
        dollar;
            (2) the Board of Governors and Federal Open Market 
        Committee should report to Congress on the impact of monetary 
        policy on the foreign exchange rate value of the United States 
        dollar;
            (3) over the last several decades, secretaries of the 
        Treasury have repeatedly used the Exchange Stabilization Fund 
        for purposes that were not envisioned by Congress;
            (4) to prevent further abuses, the Exchange Stabilization 
        Fund should be renamed as the Special Drawing Rights Fund; and
            (5) the Special Drawing Rights Fund should hold the Special 
        Drawing Rights that the International Monetary Fund provided to 
        the United States, and any other assets currently in the 
        Exchange Stabilization Fund should be liquidated, with the 
        proceeds used to reduce the public debt.

SEC. 502. REPORT ON THE EFFECT OF EXCHANGE RATE POLICY.

    Section 2B(b) of the Federal Reserve Act (12 U.S.C. 225b), as 
amended by section 102(b), is further amended--
     (a) in paragraph (3)(b), by striking the ``and'' at the end;
    (b) in paragraph (4)(b), by striking the period at the end and 
inserting ``; and''; and
    (c) by adding at the end the following:
            ``(5) an analysis of how the policies of the Board and the 
        Federal Open Market Committee are affecting the foreign 
        exchange rate value of the United States dollar.''.

SEC. 503. RENAMING OF EXCHANGE STABILIZATION FUND.

    (a) In General.--Section 5302 of title 31, United States Code, is 
amended by striking ``stabilization fund'' each place such term appears 
and inserting ``Special Drawing Rights Fund''.
    (b) Conforming Amendments.--
            (1) Balanced budget and emergency deficit control act of 
        1985.--Section 255(g)(1)(A) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) 
        is amended by striking ``Exchange Stabilization Fund'' and 
        inserting ``Special Drawing Rights Fund''.
            (2) Emergency economic stabilization act of 2008.--The 
        Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et 
        seq.) is amended--
                    (A) in section 131, by striking ``Exchange 
                Stabilization Fund'' each place such term appears in 
                headings and text and inserting ``Special Drawing 
                Rights Fund''; and
                    (B) in the item relating to section 131 in the 
                table of contents of such Act, by striking ``Exchange 
                Stabilization Fund'' and inserting ``Special Drawing 
                Rights Fund''.
            (3) International financial institutions act.--Section 1704 
        of the International Financial Institutions Act (22 U.S.C. 
        262r-3) is amended--
                    (A) in the section heading, by striking ``exchange 
                stabilization fund'' and inserting ``special drawing 
                rights fund''; and
                    (B) by striking ``stabilization fund'' each place 
                such term appears and inserting ``Special Drawing 
                Rights Fund''.
            (4) Special drawing rights act.--The Special Drawing Rights 
        Act (22 U.S.C. 286n et seq.) is amended by striking ``Exchange 
        Stabilization Fund'' each place such term appears in headings 
        and text and inserting ``Special Drawing Rights Fund''.
            (5) Stabilizing exchange rates and arrangements.--Section 
        5302 of title 31, United States Code, is amended by striking 
        ``Exchange Stabilization Fund'' each place such term appears 
        and inserting ``Special Drawing Rights Fund''.
    (c) References.--Any reference in a law, regulation, document, 
paper, or other record of the United States to the ``Exchange 
Stabilization Fund'' shall be deemed a reference to the ``Special 
Drawing Rights Fund''.

SEC. 504. CONVERSION TO ALL-SDR FUND.

    (a) Funds Used To Reduce the Debt.--The Secretary of the Treasury 
shall liquidate all property in the Special Drawing Rights Fund (as so 
renamed under section 503), other than Special Drawing Rights, and use 
all such amounts to reduce the public debt.
    (b) Limitation on Fund.--Section 5302 of title 31, United States 
Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``is available to carry out'' and 
                inserting ``is only available to carry out''; and
                    (B) by striking ``, and for'' and all that follows 
                through the period at the end; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Fund Only To Hold Special Drawing Rights.--Notwithstanding 
any other provision of law, only Special Drawing Rights may be 
deposited into the Special Drawing Rights Fund.''.
    (c) Conforming Amendments.--
            (1) Bretton woods agreements act.--Section 18 of the 
        Bretton Woods Agreements Act (22 U.S.C. 286e-3) is repealed.
            (2) Support for east european democracy (seed) act of 
        1989.--The Support for East European Democracy (SEED) Act of 
        1989 (22 U.S.C. 5401 et seq.) is amended--
                    (A) in section 101(b)(1), by striking ``such as--'' 
                and all that follows through the end of the paragraph 
                and inserting ``such as the authority provided in 
                section 102(c) of this Act.''; and
                    (B) in section 102(a), by striking ``section 
                101(b)--'' and all that follows through the end of the 
                subsection and inserting ``section 101(b), should work 
                closely with the European Community and international 
                financial institutions to determine the extent of 
                emergency assistance required by Poland for the fourth 
                quarter of 1989.''.
    (d) Treatment of Certain Funds.--Funds that would otherwise have 
been deposited into the Special Drawing Rights Fund (as so renamed 
under subsection (a)), but for the amendments made by this section, 
shall instead be paid to the Secretary of the Treasury, and the 
Secretary of the Treasury shall use such funds to reduce the public 
debt.
    (e) Wind Down Period for Certain Transactions.--Notwithstanding any 
other provision of this section, during the 3-year period beginning on 
the date of the enactment of this Act, property other than Special 
Drawing Rights may be deposited and maintained in the Special Drawing 
Rights Fund as needed to fulfill any outstanding obligations on the 
Fund.

               TITLE VI--CREDIT ALLOCATION NEUTRALITY ACT

SEC. 601. FINDINGS.

    Congress finds that--
            (1) in conducting open market operations, the Federal Open 
        Market Committee should not allocate credit among households, 
        firms, and sectors of the United States economy; and
            (2) to assure the credit allocation neutrality of open 
        market operations among households, firms, and sectors of the 
        United States economy, the Federal Open Market Committee should 
        conduct open market operations in United States Government 
        securities, and repurchase and reverse repurchase agreements 
        that have a term of 1 year or less, except in unusual and 
        exigent circumstances.

SEC. 602. LIMITATION ON CERTAIN NON-EMERGENCY SECURITY PURCHASES.

    (a) In General.--The Federal Reserve Act (12 U.S.C. 221 et seq.) is 
amended--
            (1) in section 12A, by adding at the end the following:
    ``(d) Emergency Purchasing Authority.--
            ``(1) In general.--In unusual and exigent circumstances, 
        the Committee, by the affirmative vote of at least \2/3\ of the 
        members of the Committee, may authorize any Federal Reserve 
        bank, during such period as the Committee may determine--
                    ``(A) to buy and sell, at home or abroad, bills, 
                notes, revenue bonds, and warrants--
                            ``(i) with a maturity from the date of 
                        purchase not exceeding 6 months; and
                            ``(ii) that were issued in anticipation of 
                        the collection of taxes or in anticipation of 
                        the receipt of assured revenues by any State, 
                        county, district, political subdivision, or 
                        municipality in the continental United States, 
                        including irrigation, drainage and reclamation 
                        districts, and obligations of, or fully 
                        guaranteed as to principal and interest by, a 
                        foreign government or agency; and
                    ``(B) to buy and sell in the open market, under the 
                direction and regulations of the Committee, any 
                obligation which is a direct obligation of, or fully 
                guaranteed as to principal and interest by, any agency 
                of the United States.
            ``(2) Maximum holding period.--Any bond, bill, note, 
        revenue bond, warrant, or other obligation purchased by a 
        Federal Reserve bank under paragraph (1) shall be disposed of 
        before the end of the 5-year period beginning on the end of the 
        period determined by the Committee under paragraph (1).
            ``(3) Report.--Not later than 7 days after the Committee 
        makes an authorization under this subsection, the Committee 
        shall provide to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report that includes--
                    ``(A) the justification for providing emergency 
                purchasing authority;
                    ``(B) the identity of the person to or from whom 
                purchases or sales were made;
                    ``(C) the date and amount of the purchases or 
                sales; and
                    ``(D) the material terms of the purchases or 
                sales.''; and
            (2) in section 14(b) (12 U.S.C. 355(b))--
                    (A) in paragraph (1), by striking ``bonds'' and all 
                that follows through ``thereof,'' and inserting 
                ``with''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
    ``(2) To enter into security repurchase agreements and reverse 
repurchase agreements that have a term of 1 year or less, in accordance 
with rules and regulations prescribed by the Board of Governors of the 
Federal Reserve System.''.
    (b) Transition Provision.--Each Federal Reserve bank that holds 
bonds, bills, notes, revenue bonds, warrants, or other obligations 
purchased under the authority granted by a provision struck under 
subsection (a)(2) shall dispose of such obligations not later than the 
end of the 5-year period beginning on the date of the enactment of this 
Act.

     TITLE VII--BUREAU OF CONSUMER FINANCIAL PROTECTION FUNDING ACT

SEC. 701. FINDINGS.

    Congress finds that--
            (1) as the central bank of the United States, the Federal 
        Reserve conducts United States monetary policy and necessarily 
        exercises broad oversight responsibility to ensure the safety, 
        soundness, and smooth functioning of the banking and payments 
        systems of the United States;
            (2) there exists a broad consensus among policymakers, 
        academics, and most informed commentators that central bank 
        independence is necessary to the proper and effective conduct 
        of monetary policy and those regulatory activities necessary 
        for the implementation of such monetary policy;
            (3) to preserve the independence of its activities, the 
        Federal Reserve should remain operationally and financially 
        autonomous within the United States Government;
            (4) those activities that do not relate to the functions 
        listed in paragraph (1) should not occur outside of the 
        constitutionally granted authority of Congress to authorize and 
        oversee the expenditure of public funds; and
            (5) the Bureau of Consumer Financial Protection should be 
        subject to the Federal appropriations process to ensure 
        effective Congressional oversight over its activities and use 
        of public funds.

SEC. 702. BUREAU OF CONSUMER FINANCIAL PROTECTION FUNDING.

    (a) In General.--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) in paragraph (1), as so redesignated--
                            (i) by striking subparagraph (E); and
                            (ii) by redesignating subparagraph (F) as 
                        subparagraph (E);
            (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 such funds as may be necessary to carry out 
        this title.''; and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2015.
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