118 HR 2798 RH: CFPB Transparency and Accountability Reform Act
U.S. House of Representatives
2023-12-04
text/xml
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Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
IB
Union Calendar No. 241
118th CONGRESS
1st Session
H. R. 2798
[Report No. 118–297, Part I]
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.
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.
I

Commission of the Bureau of Consumer Financial Protection Act
101.

Short title
This Act may be cited as the “Commission of the Bureau of Consumer Financial Protection Act”
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.”.
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.
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”.
II

TABS Act of 2023
201.

Short title
This title may be cited as the “Taking Account of Bureaucrats’ Spending Act of 2023” or the “TABS Act of 2023”.
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.
III

CFPB–IG Reform Act of 2023
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”.
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”.
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.
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.
IV

CFPB Dual Mandate and Economic Analysis Act
401.

Short title
This title may be cited as the “CFPB Dual Mandate and Economic Analysis Act”.
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.”.
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.”.
V

Transparency in CFPB Cost-Benefit Analysis Act
501.

Short title
This title may be cited as the “Transparency in CFPB Cost-Benefit Analysis Act”.
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.” .
VI

Making the CFPB Accountable to Small Businesses Act of 2023
601.

Short title
This title may be cited as the “Making the CFPB Accountable to Small Businesses Act of 2023”.
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;”.
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.” .
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.”.
VII

CFPB Whistleblower Incentives and Protection Act
701.

Short title
This title may be cited as the “CFPB Whistleblower Incentives and Protection Act”.
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:
“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.”.
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.”.
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