[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2798 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2798
To make reforms to the Bureau of Consumer Financial Protection, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 24, 2023
Mr. Barr introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committees on
Oversight and Accountability, the Judiciary, and Small Business, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To make reforms to 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``CFPB Transparency
and Accountability Reform Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--COMMISSION OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION ACT
Sec. 101. Short title.
Sec. 102. Making the Bureau an independent agency led by a commission.
Sec. 103. Deeming of name.
Sec. 104. Conforming amendments.
TITLE II--TABS ACT OF 2023
Sec. 201. Short title.
Sec. 202. Bringing the Bureau into the regular appropriations process.
TITLE III--CFPB-IG REFORM ACT OF 2023
Sec. 301. Short title.
Sec. 302. Appointment of Inspector General.
Sec. 303. Requirements for the Inspector General for the Bureau of
Consumer Financial Protection.
Sec. 304. Effective date.
TITLE IV--CFPB DUAL MANDATE AND ECONOMIC ANALYSIS ACT
Sec. 401. Short title.
Sec. 402. Purpose.
Sec. 403. Office of Economic Analysis.
TITLE V--TRANSPARENCY IN CFPB COST-BENEFIT ANALYSIS ACT
Sec. 501. Short title.
Sec. 502. Transparency in cost-benefit analysis.
TITLE VI--MAKING THE CFPB ACCOUNTABLE TO SMALL BUSINESSES ACT OF 2023
Sec. 601. Short title.
Sec. 602. Rulemaking under Dodd-Frank Wall Street Reform and Consumer
Protection Act.
Sec. 603. Initial regulatory flexibility analysis.
Sec. 604. Final regulatory flexibility analysis.
TITLE VII--CFPB WHISTLEBLOWER INCENTIVES AND PROTECTION ACT
Sec. 701. Short title.
Sec. 702. Bureau whistleblower incentives and protection.
Sec. 703. Amendment to the Consumer Financial Civil Penalty Fund.
TITLE I--COMMISSION OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION ACT
SEC. 101. SHORT TITLE.
This Act may be cited as the ``Commission of the Bureau of Consumer
Financial Protection Act''
SEC. 102. MAKING THE BUREAU AN INDEPENDENT AGENCY LED BY A COMMISSION.
The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et
seq.) is amended--
(1) in section 1011--
(A) in subsection (a)--
(i) by striking ``in the Federal Reserve
System,''; and
(ii) by striking ``independent bureau'' and
inserting ``independent agency'';
(B) by striking subsections (b), (c), and (d);
(C) by redesignating subsection (e) as subsection
(j);
(D) in subsection (j), as so redesignated, by
striking ``, including in cities in which the Federal
reserve banks, or branches of such banks, are
located,''; and
(E) by inserting after subsection (a) the following
new subsections:
``(b) Authority To Prescribe Regulations.--The commission of the
Bureau may prescribe such regulations and issue such orders in
accordance with this title as the Bureau may determine to be necessary
for carrying out this title and all other laws within the Bureau's
jurisdiction and shall exercise any authorities granted under this
title and all other laws within the Bureau's jurisdiction.
``(c) Composition of the Commission.--
``(1) In general.--The management of the Bureau shall be
vested in a commission, which shall be composed of 5 members
who shall be appointed by the President, by and with the advice
and consent of the Senate, and at least 2 of whom shall have
private sector experience in the provision of consumer
financial products and services.
``(2) Staggering.--The members of the commission shall
serve staggered terms, which initially shall be established by
the President for terms of 1, 2, 3, 4, and 5 years,
respectively.
``(3) Terms.--
``(A) In general.--Except with respect to the
initial staggered terms described under paragraph (2),
each member of the commission, including the Chair,
shall serve for a term of 5 years.
``(B) Removal.--The President may remove any member
of the commission for inefficiency, neglect of duty, or
malfeasance in office.
``(C) Vacancies.--Any member of the commission
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 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 shall engage in any other business,
vocation, or employment.
``(d) Affiliation.--Not more than 3 members of the commission shall
be members of any one political party.
``(e) Chair of the Commission.--
``(1) Initial chair.--The first member and Chair of the
commission shall be the individual serving as Director of the
Bureau of Consumer Financial Protection on the day before the
date of the enactment of this subsection. Such individual shall
serve until the President has appointed all 5 members of the
commission in accordance with subsection (c).
``(2) Subsequent chair.--Of the 5 members appointed in
accordance with subsection (c), the President shall appoint 1
member to serve as the subsequent Chair of the commission.
``(3) 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.
``(4) 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.
``(5) 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.
``(6) Designation.--The Chair shall be known as both the
`Chair of the commission' of the Bureau and the `Chair of the
Bureau'.
``(f) Initial Quorum Established.--For the 6 month period beginning
on the date of enactment of this subsection, the first member and Chair
of the commission described under subsection (e)(1) shall constitute a
quorum for the transaction of business until the President has
appointed all 5 members of the commission in accordance with subsection
(c). Following such appointment of 5 members, the quorum requirements
of subsection (g) shall apply.
``(g) No Impairment by Reason of Vacancies.--No vacancy in the
members of the commission after the establishment of an initial quorum
under subsection (f) 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.
``(h) Seal.--The Bureau shall have an official seal.
``(i) 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 4 other members
of the commission shall each receive compensation at the rate
prescribed for level II of the Executive Schedule under section
5314 of title 5, United States Code.'';
(2) in section 1012(c), by striking paragraphs (2), (3),
(4), and (5); and
(3) in section 1014(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.'' and inserting ``Not fewer than half of all members
shall have private sector experience in the provision of
consumer financial products and services.''.
SEC. 103. DEEMING OF NAME.
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, except in subsection (e)(1) of section 1011 of
the Consumer Financial Protection Act of 2010 (12 U.S.C. 5491), as
added by this Act, shall be deemed a reference to the commission
leading and governing the Bureau of Consumer Financial Protection, as
described under section 1011 of the Consumer Financial Protection Act
of 2010.
SEC. 104. CONFORMING AMENDMENTS.
(a) Consumer Financial Protection Act of 2010.--
(1) In general.--Except as provided under paragraph (2),
the Consumer Financial Protection of 2010 (12 U.S.C. 5481 et
seq.) is amended--
(A) by striking ``Director of the Bureau'' 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, and
inserting ``Bureau'';
(B) by striking ``Director'' each place such term
appears and inserting ``Bureau'', other than where such
term is used to refer to a Director other than the
Director of the Bureau of Consumer Financial
Protection; and
(C) in section 1002, by striking paragraph (10).
(2) Exceptions.--
(A) In general.--The Consumer Financial Protection
Act of 2010 (12 U.S.C. 5481 et seq.) is amended--
(i) in section 1013(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'';
(ii) in section 1013(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'';
(iii) in section 1016(a), by striking
``Director of the Bureau'' and inserting
``Chair of the Bureau''; and
(iv) by striking section 1066.
(B) Clerical amendment.--The table of contents for
the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by striking the item relating
to section 1066.
(b) 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--
(1) in section 111(b)(1)(D), by striking ``Director'' and
inserting ``Chair''; and
(2) in section 1447, by striking ``Director of the Bureau''
each place such term appears and inserting ``Chair of the
Bureau''.
(c) 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 ``Chair of the Bureau of Consumer Financial
Protection''.
(d) 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 ``Bureau''.
(e) 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
Bureau of Consumer Financial Protection''.
(f) 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 Bureau of Consumer Financial
Protection''.
(g) 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''.
(h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2806 et seq), 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 ``Bureau of
Consumer Financial Protection''.
(i) 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--
(1) in section 1402--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (12) as
paragraphs (1) through (11), respectively;
(2) in section 1403(c)--
(A) by striking ``him'' and inserting ``the
Bureau''; and
(B) by striking ``he'' and inserting ``the
Bureau'';
(3) in section 1407--
(A) in subsection (c), by striking ``he'' and
inserting ``the Bureau''; and
(B) in subsection (e), by striking ``Director or
anyone designated by him'' and inserting ``Bureau'';
(4) in section 1411(a)--
(A) by striking ``his findings'' and inserting
``the findings of the Bureau''; and
(B) by striking ``his recommendation'' and
inserting ``the recommendation of the Bureau'';
(5) in section 1415--
(A) in subsection (a), by striking ``he may, in his
discretion,'' and inserting ``the Bureau may, in the
discretion of the Bureau,'';
(B) in subsection (b)--
(i) by striking ``in his discretion'' each
place such term appears and inserting ``in the
discretion of the Bureau'';
(ii) by striking ``he deems'' and inserting
``the Bureau determines''; and
(iii) by striking ``he may deem'' and
inserting ``the Bureau may determine''; and
(C) in subsection (c), by striking ``the Director,
or any officer designated by him,'' and inserting ``the
Bureau'';
(6) in section 1416(a)--
(A) by striking ``Director of the Bureau of
Consumer Financial Protection who may delegate any of
his'' and inserting ``Bureau of Consumer Financial
Protection, which may delegate any'';
(B) by striking ``his administrative'' and
inserting ``administrative''; and
(C) by striking ``himself'' and inserting ``the
commission of the Bureau'';
(7) in section 1418a(b)(4), by striking ``Secretary's
determination'' and inserting ``determination of the Bureau'';
and
(8) by striking ``Director'' each place such term appears
and inserting ``Bureau''.
(j) 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--
(1) by striking ``The Director of the Bureau of Consumer
Financial Protection (hereafter in this section referred to as
the `Director')'' and inserting ``The Bureau of Consumer
Financial Protection (hereafter in this section referred to as
the `Bureau')''; and
(2) by striking ``Director'' each place such term appears
and inserting ``Bureau''.
(k) 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--
(1) by striking ``Director'' each place such term appears
in headings and text and inserting ``Bureau of Consumer
Financial Protection''; and
(2) in section 1503, by striking paragraph (10).
(l) 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 ``Bureau of Consumer Financial Protection''.
TITLE II--TABS ACT OF 2023
SEC. 201. SHORT TITLE.
This title may be cited as the ``Taking Account of Bureaucrats'
Spending Act of 2023'' or the ``TABS Act of 2023''.
SEC. 202. BRINGING THE BUREAU 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 the Bureau from unobligated amounts
contained in the Consumer Financial Civil Penalty Fund
$650,000,000 for fiscal year 2024 to carry out the authorities
of the Bureau.''; and
(B) by redesignating paragraph (4) as paragraph
(2).
TITLE III--CFPB-IG REFORM ACT OF 2023
SEC. 301. SHORT TITLE.
This title may be cited as the ``Bureau of Consumer Financial
Protection-Inspector General Reform Act of 2023'' or the ``CFPB-IG
Reform Act of 2023''.
SEC. 302. APPOINTMENT OF INSPECTOR GENERAL.
Chapter 4 of title 5, United States Code, is amended--
(1) in section 401--
(A) in paragraph (1), by inserting ``the Bureau of
Consumer Financial Protection,'' after ``the Export-
Import Bank of the United States,''; and
(B) in paragraph (3), by inserting ``the Chair of
the Bureau of Consumer Financial Protection;'' after
``the President of the Export-Import Bank of the United
States;''; and
(2) in section 415--
(A) in subsection (a)(1)(A), by striking ``and the
Bureau of Consumer Financial Protection'';
(B) in subsection (c), by striking ``For purposes
of implementing this section, the Chairman of the Board
of Governors of the Federal Reserve System shall
appoint the Inspector General of the Board of Governors
of the Federal Reserve System and the Bureau of
Consumer Financial Protection. The Inspector General of
the Board of Governors of the Federal Reserve System
and the Bureau of Consumer Financial Protection shall
have all of the authorities and responsibilities
provided by this Act with respect to the Bureau of
Consumer Financial Protection, as if the Bureau were
part of the Board of Governors of the Federal Reserve
System.''; and
(C) in subsection (g)(3), by striking ``and the
Bureau of Consumer Financial Protection''.
SEC. 303. REQUIREMENTS FOR THE INSPECTOR GENERAL FOR THE BUREAU OF
CONSUMER FINANCIAL PROTECTION.
(a) Establishment.--Section 1011 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5491), as amended by
section 102(1), is further amended by adding at the end the following:
``(k) Inspector General.--There is established the position of the
Inspector General.''.
(b) Hearings.--Section 1016 of such Act is amended by inserting
after subsection (c) the following:
``(d) Additional Requirement for Inspector General.--On a separate
occasion from that described in subsection (a), the Inspector General
of the Bureau shall appear before the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial Services
of the House of Representatives at semiannual hearings regarding the
reports required under subsection (b) and the reports required under
section 405 of title 5, United States Code.''.
(c) Participation in the Council of Inspectors General on Financial
Oversight.--Section 989E(a)(1) of such Act is amended by adding at the
end the following:
``(J) The Bureau of Consumer Financial
Protection.''.
(d) Deadline for Appointment.--Not later than 60 days after the
date of the enactment of this Act, the President shall appoint an
Inspector General for the Bureau of Consumer Financial Protection in
accordance with section 403 of title 5, United States Code.
SEC. 304. EFFECTIVE DATE.
(a) In General.--The amendments made by this title shall take
effect on the date on which the first Inspector General of the Bureau
of Consumer Financial Protection is confirmed by the Senate.
(b) Appointment.--The President may appoint, and the Senate may
confirm, an Inspector General of the Bureau of Consumer Financial
Protection before the amendments made by this title take effect.
(c) Transition.--The Inspector General of the Board of Governors of
the Federal Reserve System and the Bureau of Consumer Financial
Protection shall, upon the date on which the first Inspector General of
the Bureau of Consumer Financial Protection is confirmed by the Senate,
become the Inspector General of the Board of Governors of the Federal
Reserve System.
TITLE IV--CFPB DUAL MANDATE AND ECONOMIC ANALYSIS ACT
SEC. 401. SHORT TITLE.
This title may be cited as the ``CFPB Dual Mandate and Economic
Analysis Act''.
SEC. 402. PURPOSE.
Section 1021(a) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5511(a)) is amended--
(1) by striking ``fair, transparent, and competitive'' and
inserting: ``fair and transparent''; and
(2) by adding at the end the following: ``In addition, the
Bureau shall seek to implement and, where applicable, enforce
Federal consumer financial law consistently for the purpose of
strengthening private sector participation in markets, without
Government interference or subsidies, to increase competition
and enhance consumer choice.''.
SEC. 403. OFFICE OF ECONOMIC ANALYSIS.
(a) In General.--Section 1013 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5493) is amended by adding at the end the
following:
``(i) Office of Economic Analysis.--
``(1) Establishment.--The Bureau shall establish an Office
of Economic Analysis.
``(2) Review and assessment of proposed guidance, orders,
rules, and regulations.--The Office of Economic Analysis
shall--
``(A) review all proposed guidance, orders, rules,
and regulations of the Bureau, including carrying out
the determinations and assessments with respect to
notices of proposed rulemaking described under section
1022(b)(7);
``(B) assess the impact of such guidance, orders,
rules, and regulations on consumer choice, price, and
access to credit products; and
``(C) publish a report on such reviews and
assessments in the Federal Register.
``(3) Measuring existing guidance, orders, rules, and
regulations.--The Office of Economic Analysis shall--
``(A) review each guidance, order, rule, and
regulation issued by the Bureau after 1, 2, 5, and 10
years;
``(B) measure each such guidance, order, rule, or
regulation's success in solving the problem that the
guidance, order, rule, or regulation was intended to
solve when issued; and
``(C) publish a report on such review and
measurement in the Federal Register.''.
(b) Consideration of Review and Assessment; Rulemaking
Requirements.--Section 1022(b) of the Consumer Financial Protection Act
of 2010 (12 U.S.C. 5512(b)) is amended by adding at the end the
following:
``(5) Consideration of review and assessment by the office
of economic analysis.--
``(A) In general.--Before issuing any guidance,
order, rule, or regulation, the commissioners of the
Bureau shall consider the review and assessment of such
guidance, order, rule, or regulation carried out by the
Office of Economic Analysis.
``(B) Notice of disagreement.--If any commissioner
of the Bureau disagrees with any part of a review and
assessment described under subparagraph (A) with
respect to any guidance, order, rule, or regulation,
the commissioner shall accompany any such guidance,
order, rule, or regulation with a statement explaining
why the commissioner so disagrees.
``(6) Identification of problems and metrics for judging
success.--
``(A) In general.--The Bureau shall, in each
proposed rulemaking of the Bureau--
``(i) identify the problem that the
particular rule or regulations is seeking to
solve; and
``(ii) specify the metrics by which the
Bureau will measure the success of the rule or
regulation in solving such problem.
``(B) Required metrics.--The metrics specified
under subparagraph (A)(ii) shall include a measurement
of changes to consumer access to, and cost of, consumer
financial products and services.''.
TITLE V--TRANSPARENCY IN CFPB COST-BENEFIT ANALYSIS ACT
SEC. 501. SHORT TITLE.
This title may be cited as the ``Transparency in CFPB Cost-Benefit
Analysis Act''.
SEC. 502. TRANSPARENCY IN COST-BENEFIT ANALYSIS.
Section 1022(b) of the Consumer Financial Protection Act of 2010
(12 U.S.C. 5512(b)), as amended by section 403, is further amended by
adding at the end the following:
``(7) Additional rulemaking requirements.--
``(A) In general.--Each notice of proposed
rulemaking issued by the Bureau shall be published in
its entirety in the Federal Register and shall
include--
``(i) a statement of the need for the
proposed regulation;
``(ii) an examination of why the Bureau
must undertake the proposed regulation and why
the private market, State, local, or tribal
authorities cannot adequately address the
problem;
``(iii) an examination by the Office of
Economic Analysis of whether the proposed
regulation is duplicative, inconsistent, or
incompatible with other Federal regulations and
orders;
``(iv) if the proposed regulation is found
by the Office of Economic Analysis to be
duplicative, inconsistent, or incompatible with
other Federal regulations and orders, a
discussion of--
``(I) why the proposed regulation
is justified;
``(II) how the proposed regulation
can coexist with the existing
regulations; and
``(III) how the Bureau plans to
reduce the regulatory burden associated
with the duplicative, inconsistent, or
incompatible proposed regulation;
``(v) a quantitative and qualitative
assessment by the Office of Economic Analysis
of all anticipated direct and indirect costs
and benefits of the proposed regulation,
including--
``(I) compliance costs for all
regulated entities, including small
businesses;
``(II) effects on economic
activity, efficiency, competition, and
capital formation;
``(III) regulatory and
administrative costs of implementation;
and
``(IV) costs imposed on State,
local, and tribal entities;
``(vi) an identification of reasonable
alternatives to the regulation, including
modification of an existing regulation;
``(vii) an analysis by the Office of
Economic Analysis of the costs and benefits,
both quantitative and qualitative, of any
alternative identified pursuant to clause (vi);
``(viii) if the Office of Economic Analysis
determines the proposed regulation would
increase costs for small businesses, then the
Bureau shall consult the Office of Advocacy
within the Small Business Administration to
determine ways to minimize the effect of direct
and indirect costs imposed on small businesses
by the proposed regulation;
``(ix) if the Office of Economic Analysis
determines that quantified net benefits of the
proposed action do not outweigh the quantified
net benefits of the alternatives, a
justification of the regulation;
``(x) if quantified benefits identified
pursuant to clause (v) by the Office of
Economic Analysis do not outweigh the
quantified costs of the regulation, a
justification of the regulation;
``(xi) an assessment by the Office of
Economic Analysis of how the burden imposed by
the regulation will be distributed, including
whether consumers or small businesses will be
disproportionately burdened; and
``(xii) when feasible, and using
appropriate statistical techniques, a
probability distribution prepared by the Office
of Economic Analysis of the relevant outcomes
of the proposed regulation.
``(B) Assumptions and studies used.--With respect
to the information required to be included under
subparagraph (A) in a notice of proposed rulemaking,
the Bureau shall include in such notice--
``(i) a discussion of underlying
assumptions used as a basis for such
information; and
``(ii) a description of any studies or data
used in preparing such information, and whether
such studies were peer-reviewed.''.
TITLE VI--MAKING THE CFPB ACCOUNTABLE TO SMALL BUSINESSES ACT OF 2023
SEC. 601. SHORT TITLE.
This title may be cited as the ``Making the CFPB Accountable to
Small Businesses Act of 2023''.
SEC. 602. RULEMAKING UNDER DODD-FRANK WALL STREET REFORM AND CONSUMER
PROTECTION ACT.
Section 1022(b)(2)(A) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (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 striking the semicolon at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(iii) the impact of proposed rules on
small entities, in accordance with section 609
of title 5, United States Code;''.
SEC. 603. INITIAL REGULATORY FLEXIBILITY ANALYSIS.
Section 603(d)(1) of title 5, United States Code, is amended--
(1) in subparagraph (B), by striking ``and'' at the end;
(2) in subparagraph (C), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(D) with respect to the Bureau of Consumer
Financial Protection, if the Bureau does not adopt any
alternatives described in paragraphs (1) through (4) of
subsection (c), a detailed justification of the
Bureau's determination that the relative size and
resources of small entities should have no bearing on
the rule, supported by factual, policy and legal
reasons.''.
SEC. 604. FINAL REGULATORY FLEXIBILITY ANALYSIS.
Section 604(a) of title 5, United States Code, is amended by
amending the second paragraph (6) to read as follows:
``(7) with respect to the Bureau of Consumer Financial
Protection, a description of the steps the Bureau has taken to
minimize any additional cost of credit for small entities and,
where no significant alternatives for small entities was
adopted, a detailed justification of the Bureau's determination
that the relative size and resources of small entities should
have no bearing on the rule, supported by factual, policy and
legal reasons.''.
TITLE VII--CFPB WHISTLEBLOWER INCENTIVES AND PROTECTION ACT
SEC. 701. SHORT TITLE.
This title may be cited as the ``CFPB Whistleblower Incentives and
Protection Act''.
SEC. 702. BUREAU WHISTLEBLOWER INCENTIVES AND PROTECTION.
(a) In General.--The Consumer Financial Protection Act of 2010 (12
U.S.C. 5481 et seq.) is amended by inserting after section 1017 the
following:
``SEC. 1017A. WHISTLEBLOWER INCENTIVES AND PROTECTION.
``(a) Definitions.--In this section:
``(1) Administrative proceeding or court action.--The term
`administrative proceeding or court action' means any judicial
or administrative action brought by the Bureau that results in
monetary sanctions exceeding $1,000,000.
``(2) Fund.--The term `Fund' means the `Consumer Financial
Civil Penalty Fund' established under section 1017(b)(1).
``(3) Monetary sanctions.--The term `monetary sanctions',
when used with respect to any administrative proceeding or
court action means any monies, including penalties,
disgorgement, restitution, or interest, ordered to be paid or
other amounts of relief obtained under section 1055(a)(2).
``(4) Original information.--The term `original
information' means information that--
``(A) is derived from the independent knowledge or
analysis of a whistleblower;
``(B) is not known to the Bureau from any other
source, unless the whistleblower is the original source
of the information;
``(C) is not exclusively derived from an allegation
made in a judicial or administrative hearing, in a
governmental report, hearing, or from the news media,
unless the whistleblower is a source of the
information; and
``(D) is not exclusively derived from an allegation
made in an audit, examination, or investigation.
``(5) Successful enforcement.--The term `successful
enforcement', when used with respect to any administrative
proceeding or court action, includes any settlement of such
action.
``(6) Whistleblower.--The term `whistleblower' means any
individual, or 2 or more individuals acting jointly, who
provides original information relating to a violation of
Federal consumer financial law, consistent with any rule issued
by the Bureau under this section.
``(b) Awards.--
``(1) In general.--In any administrative proceeding or
court action the Bureau, subject to rules prescribed by the
Bureau and subject to subsection (c), shall pay an award or
awards to 1 or more whistleblowers who voluntarily provided
original information that led to the successful enforcement of
the administrative proceeding or court action in an aggregate
amount equal to--
``(A) not less than the greater of--
``(i) 10 percent, in total, of monetary
sanctions imposed and collected in the
administrative proceeding or court action; or
``(ii) $50,000; and
``(B) not more than 30 percent, in total, of such
monetary sanctions.
``(2) Payment of awards.--Any amount paid under paragraph
(1) shall be paid from the Fund.
``(3) Award maximum.--Notwithstanding any other provision
in this section, the maximum award to any single whistleblower
is limited to $5,000,000.
``(c) Determination of Amount of Award; Denial of Award.--
``(1) Determination of amount of award.--
``(A) Discretion.--The determination of the
percentage amount of an award made under subsection (b)
shall be in the discretion of the Bureau.
``(B) Criteria.--In determining the percentage
amount of an award made under subsection (b), the
Bureau shall take into consideration--
``(i) the significance of the information
provided by the whistleblower to the successful
enforcement of the administrative proceeding or
court action;
``(ii) the degree of assistance provided by
the whistleblower and any legal representative
of the whistleblower in an administrative
proceeding or court action;
``(iii) the programmatic interest of the
Bureau in deterring violations of Federal
consumer financial law (including applicable
rules) by making awards to whistleblowers who
provide information that leads to the
successful enforcement of such laws; and
``(iv) such additional relevant factors as
the Bureau may establish by rule.
``(2) Denial of award.--No award under subsection (b) may
be made--
``(A) to any whistleblower who is, or was at the
time the whistleblower acquired the original
information submitted to the Bureau, a member, officer,
or employee of an entity described in subclauses (I)
through (V) of subsection (h)(1)(C)(i);
``(B) to any whistleblower who is convicted of a
criminal violation related to the administrative
proceeding or court action for which the whistleblower
otherwise could receive an award under this section;
``(C) to any whistleblower who is found to be
liable for the conduct in the administrative proceeding
or court action, or a related action, for which the
whistleblower otherwise could receive an award under
this section;
``(D) to any whistleblower who planned and
initiated the conduct at issue in the administrative
proceeding or court action for which the whistleblower
otherwise could receive an award under this section;
``(E) to any whistleblower who submits information
to the Bureau that is based on the facts underlying the
administrative proceeding or court action previously
submitted by another whistleblower;
``(F) to any whistleblower who knowingly and
willfully makes any false, fictitious, or fraudulent
statement or representation, or who makes or uses any
false writing or document knowing the same to contain
any false, fictitious, or fraudulent statement or
entry; and
``(G) to any whistleblower who fails to submit
information to the Bureau in such form as the Bureau
may, by rule, require.
``(d) Representation.--
``(1) Permitted representation.--Any whistleblower who
makes a claim for an award under subsection (b) may be
represented by counsel.
``(2) Required representation.--
``(A) In general.--Any whistleblower who
anonymously makes a claim for an award under subsection
(b) shall be represented by counsel if the
whistleblower submits the information upon which the
claim is based.
``(B) Disclosure of identity.--Prior to the payment
of an award, a whistleblower shall disclose the
identity of the whistleblower and provide such other
information as the Bureau may require, directly or
through counsel of the whistleblower.
``(e) No Contract Necessary.--No contract or other agreement with
the Bureau is necessary for any whistleblower to receive an award under
subsection (b), unless otherwise required by the Bureau by rule.
``(f) Appeals.--Any determination made under this section,
including whether, to whom, or in what amount to make awards, shall be
in the discretion of the Bureau. Any such determination, except the
determination of the amount of an award if the award was made in
accordance with subsection (b), may be appealed to the appropriate
court of appeals of the United States not more than 30 days after the
determination is issued by the Bureau. The court shall review the
determination made by the Bureau in accordance with section 706 of
title 5, United States Code.
``(g) Reports to Congress.--Not later than October 30 of each year,
the Bureau shall transmit to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report on the Bureau's whistleblower
award program under this section, including a description of the number
of awards granted and the types of cases in which awards were granted
during the preceding fiscal year.
``(h) Protection of Whistleblowers.--
``(1) Confidentiality.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), the Bureau and any officer
or employee of the Bureau, may not disclose any
information, including information provided by a
whistleblower to the Bureau, which could reasonably be
expected to reveal the identity of a whistleblower,
except in accordance with the provisions of section
552a of title 5, United States Code, unless and until
required to be disclosed to a defendant or respondent
in connection with a public proceeding instituted by
the Bureau or any entity described in subparagraph (C).
For purposes of section 552 of title 5, United States
Code, this paragraph shall be considered a statute
described in subsection (b)(3)(B) of such section 552.
``(B) Effect.--Nothing in this paragraph is
intended to limit the ability of the Attorney General
to present such evidence to a grand jury or to share
such evidence with potential witnesses or defendants in
the course of an ongoing criminal investigation.
``(C) Availability to government agencies.--
``(i) In general.--Without the loss of its
status as confidential in the hands of the
Bureau, all information referred to in
subparagraph (A) may, in the discretion of the
Bureau, when determined by the Bureau to be
necessary or appropriate, be made available
to--
``(I) the Department of Justice;
``(II) an appropriate department or
agency of the Federal Government,
acting within the scope of its
jurisdiction;
``(III) a State attorney general in
connection with any criminal
investigation;
``(IV) an appropriate department or
agency of any State, acting within the
scope of its jurisdiction; and
``(V) a foreign regulatory
authority.
``(ii) Maintenance of information.--Each of
the entities, agencies, or persons described in
clause (i) shall maintain information described
in that clause as confidential, in accordance
with the requirements in subparagraph (A).
``(2) Rights retained.--Nothing in this section shall be
deemed to diminish the rights, privileges, or remedies of any
whistleblower under section 1057, any other Federal or State
law, or under any collective bargaining agreement.
``(i) Rulemaking Authority.--The Bureau shall have the authority to
issue such rules as may be necessary or appropriate to implement the
provisions of this section.
``(j) Original Information.--Information submitted to the Bureau by
a whistleblower in accordance with rules implementing this section
shall not lose its status as original information solely because the
whistleblower submitted such information prior to the effective date of
such rules, provided such information was submitted after the date of
enactment of this section.''.
(b) Clerical Amendment.--The table of contents under section 1(b)
of the Dodd-Frank Wall Street Reform and Consumer Protection Act is
amended by inserting after the item relating to section 1017 the
following:
``Sec. 1017A. Whistleblower incentives and protection.''.
SEC. 703. AMENDMENT TO THE CONSUMER FINANCIAL CIVIL PENALTY FUND.
Subsection (b)(2) of section 1017 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5497), as redesignated by section
202(3), is further amended by striking ``under the Federal consumer
financial laws.'' and inserting ``under the Federal consumer financial
laws and for awards authorized under section 1017A.''.
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