[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2798 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 241
118th CONGRESS
  1st Session
                                H. R. 2798

                      [Report No. 118-297, Part I]

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

                            December 4, 2023

             Additional sponsors: Mrs. Houchin and Mr. Hunt

                            December 4, 2023

  Reported from the Committee on Financial Services with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            December 4, 2023

  Committees on Oversight and Accountability, the Judiciary, and Small 
 Business discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on April 
                               24, 2023]


_______________________________________________________________________

                                 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)--
                    (A) in the heading, by striking ``Autonomy of the 
                Bureau'' and inserting ``Coordination With the Board of 
                Governors'';
                    (B) by striking ``(1) Coordination with the board 
                of governors.--''; and
                    (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 921(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''.

                       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.

    (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) 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 $650,000,000 for fiscal year 
        2024 to carry out the authorities of the Bureau.''; and
                    (B) by redesignating paragraph (4) as paragraph 
                (2).
    (b) Transfer of Amounts From Civil Penalty Fund.--On the date that 
funds are appropriated pursuant to section 1017(c)(1) of the Consumer 
Financial Protection Act of 2010 (as amended by subsection (a)) for 
fiscal year 2024, there is transferred an equal amount of funds from 
the Consumer Financial Civil Penalty Fund to the general fund of the 
Treasury.

                 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.''.
                                                 Union Calendar No. 241

118th CONGRESS

  1st Session

                               H. R. 2798

                      [Report No. 118-297, Part I]

_______________________________________________________________________

                                 A BILL

To make reforms to the Bureau of Consumer Financial Protection, and for 
                            other purposes.

_______________________________________________________________________

                            December 4, 2023

  Reported from the Committee on Financial Services with an amendment

                            December 4, 2023

  Committees on Oversight and Accountability, the Judiciary, and Small 
 Business discharged; committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed