[Congressional Record Volume 163, Number 98 (Thursday, June 8, 2017)]
[House]
[Pages H4716-H4802]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINANCIAL CHOICE ACT OF 2017
General Leave
Mr. HENSARLING. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and submit extraneous materials on the bill, H.R. 10, the Financial
CHOICE Act of 2017.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
The SPEAKER pro tempore. Pursuant to House Resolution 375 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the consideration of the bill, H.R. 10.
The Chair appoints the gentleman from Arkansas (Mr. Womack) to
preside over the Committee of the Whole.
{time} 1237
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the consideration of the bill
(H.R. 10) to create hope and opportunity for investors, consumers, and
entrepreneurs by ending bailouts and Too Big to Fail, holding
Washington and Wall Street accountable, eliminating red tape to
increase access to capital and credit, and repealing the provisions of
the Dodd-Frank Act that make America less prosperous, less stable, and
less free, and for other purposes, with Mr. Womack in the chair.
The Clerk read the title of the bill.
The CHAIR. Pursuant to the rule, the bill is considered read the
first time.
The gentleman from Texas (Mr. Hensarling) and the gentlewoman from
California (Ms. Maxine Waters) each will control 45 minutes.
The Chair recognizes the gentleman from Texas.
Mr. HENSARLING. Mr. Chairman, at this time I proudly yield 1 minute
to the gentleman from Wisconsin (Mr. Ryan), the distinguished Speaker
of the House.
Mr. RYAN. Mr. Chairman, I just want to start off by thanking Chairman
Hensarling and the entire Financial Services Committee for their
leadership on this vital and important legislation. Job well done.
The Financial CHOICE Act answers a deep need at the very heart of our
economy. We have heard about this need time and again from our
constituents back home. I sure have.
Small businesses are struggling. They have been unable to hire,
invest, or get the loans that they need to get off the ground. Families
looking to keep their money safe are hit with fees that they cannot
afford.
And why is this? Our community banks are in trouble. They are being
crushed by the costly rules imposed on them by the Dodd-Frank Act. This
law may have had good intentions, but its consequences have been dire
for Main Street.
Let me put it this way: It is more than 1,000 pages long and has more
rules and regulations than any other Obama-era law. The burdens created
are real and deep.
These costs are unsustainable for small community banks who simply
cannot afford to meet all the requirements and can't hire a team of
lawyers to decipher the seemingly endless rules.
So what do they do? They hunker down. They are unable to loan out
money. Or worse, they are shutting down.
The CHOICE Act reins in Dodd-Frank, and it delivers the regulatory
relief these small banks so desperately need. This will change our
communities because these banks are the lifeblood of our Main Streets.
Where I come from, representing towns small and medium, they are not
big companies in big cities getting money from big banks. They are
small- and medium-size businesses in small- and medium-size towns
hoping the community banker will be able to give them the loan they
need to hire some people, to take a risk, to start a small business, to
expand their small business. They know the needs of their communities,
and they are able to identify the people who can fill those needs
successfully.
There is a reason why they handle the vast majority of small-business
loans in this country: because they are the ones who are the closest to
the small businesses.
Here is the difference: The people big banks may overlook thinking it
is some guy with a pipe dream, the community banker is able to
recognize that as a father of four with the drive to make his dream of
a bicycle shop into a reality or a woman seeking to rent out retail
space to open her dream restaurant using her family recipes, or maybe
it is a young farmer with a new idea to integrate the latest technology
into the family farm. The big banks don't pay attention to that; only
community banks do.
A couple of years later, with the help of these kinds of loans from
these local banks, these so-called pipe dreams in these small towns and
these rural counties become successful businesses. They become job
creators. These are the ultimate success stories that our communities
in America are built upon.
This is why the Financial CHOICE Act is so important. It helps
community banks and the small businesses that absolutely depend on
them, it helps them thrive. It protects consumers by increasing
accountability and transparency over the wider financial sector, and it
also repeals ``too big to fail,'' the rules codified by Dodd-Frank that
have left taxpayers on the
[[Page H4717]]
hook for too long. Ultimately, the Financial CHOICE Act is a jobs bill,
and it is one that will bring hope back to Main Street.
It is easy to talk about the economy and regulations as a series of
numbers. It is easy to talk in vague terms about job creators and
small-business owners. But what is far more important is identifying
the problems that they actually face and actually doing something about
those problems to help make a difference to improve their lives.
That is what this CHOICE Act is all about. It is why we were sent
here: to look out for the people who work hard and who do the right
thing.
Let's get this done for them. Let's get this done for the people who
take the risks, who live and breathe their work, for the people who
strive and struggle every day for their families. Let's pass the CHOICE
Act today.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield myself such
time as I may consume.
H.R. 10 is being called the ``Wrong'' CHOICE Act by the American
public because this bill is truly the wrong choice for all of us.
Indeed, this is one of the worst bills I have seen in my time in
Congress.
This bill is a vehicle for Donald Trump's agenda to deregulate and
help out Wall Street. It destroys nearly all of the important policies
we put in place in the Dodd-Frank Wall Street Reform and Consumer
Protection Act to prevent another financial crisis and protect
consumers. This bill would create vast harm and lead us right back to
the bad old days.
We all remember the suffering that resulted from the Great Recession:
$13 trillion in household wealth was lost; 11 million people lost their
homes; the unemployment rate hit 10 percent. The impact was enormous
and felt by all. This bill would pave the way back to economic damage
of the same scale--or worse.
The ``Wrong'' CHOICE Act guts the highly successful Consumer
Financial Protection Bureau, which works to make sure that hardworking
Americans are not subjected to predatory practices in the financial
marketplace.
Since its creation, the Consumer Bureau has returned nearly $12
billion to more than 29 million consumers who have been ripped off by
financial institutions. This bill would foolishly put a stop to the
Consumer Bureau's good work and once again leave consumers vulnerable.
That is not all. Across the board, the ``Wrong'' CHOICE Act removes
essential Dodd-Frank protections for consumers, investors, and our
economy.
{time} 1245
Despite what Republicans will tell you, banks large and small are
doing just fine since the passage of Dodd-Frank. Last year, they posted
record profits. Here is the bottom line: Donald Trump and Republicans
want to open the door to another economic catastrophe like the Great
Recession and return us to a financial system where reckless and
predatory practices harm our families and communities. We cannot allow
that to happen.
Mr. Chair, I urge all of my colleagues to vote ``no'' on this
catastrophically bad bill.
Mr. Chair, I reserve the balance of my time.
Mr. HENSARLING. Mr. Chair, I yield myself such time as I may consume.
Mr. Chairman, it has been 7 years since the Dodd-Frank Act was
passed, a monumental triumph of ideology over compassion and common
sense. All of the promises of Dodd-Frank were broken. They promised us
it would lift the economy, Mr. Chairman, but, instead, we are still
stymied in the weakest, slowest recovery in the postwar era.
They promised us that it would end too big to fail, but, instead, it
cynically codified too-big-to-fail banks in the law and backed it up
with a taxpayer bailout fund.
It promised us, Mr. Chairman--they promised us that it would lead to
a more stable economy, but, instead, the big banks are bigger. The
small banks are fewer. We are losing a community bank or credit union a
day.
Our corporate bond market, a key component of financing of jobs,
historic levels of volatility and illiquidity.
They promised us, Mr. Chairman, that it would help the consumer, but,
instead, we see free checking cut in half at banks, bank fees are up.
The ranks of the unbanked have increased.
For many creditworthy borrowers, they are paying $500 more for an
auto loan. Have you tried getting a mortgage recently? They are harder
to come by and cost hundreds of dollars more to close.
Every promise of Dodd-Frank has been broken. And, Mr. Chairman, we
hear about it every day. I heard from Julieann, a banker in
Massachusetts, and she wrote, `` `We have experienced a spike in loan
declines to women,' for their investigation identified that women
attempting to buy the family home to settle their divorce and stabilize
their family were being declined at a high rate due to the Dodd-Frank
Qualified Mortgage rules. . . .''
Dodd-Frank is hurting recently divorced women. I heard from Allen in
New Hampshire who talked about his need for a new car, but he couldn't
find a loan from a bank, and he said:
But for my local dealer's efforts on my behalf, there is no
doubt I would not be driving my current car, and this was a
desperate situation, for I am the sole income earner for my
family. My wife is ill, and we have two young children in
school. After my old vehicle broke down, I needed to find
reliable, replacement transportation so that I could get to
work and continue to provide for my family. Please ensure
that financing car and truck dealerships are not stymied by
Dodd-Frank's CFPB.
I heard from Maxine in Salt Lake City, who talked about her company.
She said:
Last February, we were awarded a major catering contract
for all food services in the new performing arts center. The
new contract will require us to make a major investment in
equipment in small wares. We will be able to hire 50
additional staff. Unfortunately, red tape got in the way,
turned what should have been a golden opportunity into an
unbelievable headache. Three banks informed us that our
rating, according to new bank regulations imposed by Dodd-
Frank, disqualified us from consideration.
Mr. Chairman, we have letter after letter, email after email, showing
how Dodd-Frank is harming working families, harming small businesses,
crushing community banks.
Fortunately, Mr. Chairman, there is a better, smarter way, and it is
called the Financial CHOICE Act. It is going to create hope and
opportunity for investors and consumers, and entrepreneurs, and it
stands for economic growth for all, but bank bailouts for none.
Contrary to Dodd-Frank, and what every Democrat will come here
today--my friends on the other side of the aisle--and defend, we will
end bank bailouts once and for all. We will replace bailout with
bankruptcy. We will replace economic stagnation with a growing healthy
economy. We will ensure that there will finally be pay increases, wage
increases for working Americans who haven't seen a pay increase since
Dodd-Frank became law.
We will replace Washington micromanagement with market discipline. We
will ensure that we replace taxpayer money with private money because
for every bank who will have a 10 percent simple leverage ratio, which
is analogous to having a private insurance policy against bailout, we
will let them have that Dodd-Frank off-ramp, and that is so important.
But, Mr. Chairman, we are also going to hold Wall Street accountable
with the toughest penalties that they have seen, and no more bailouts.
Perhaps that is one of the reasons they oppose the Financial CHOICE Act
and support the status quo of Dodd-Frank.
We will make sure that there is needed regulatory relief for our
small banks and credit unions, because it is our small banks who loan
to our small businesses, that create the job engine of America, and
make sure that the American Dream is not a pipe dream; but, instead, it
is a dream and a vision where we will only be limited by our
imagination.
Mr. Chair, I reserve the balance of my time.
Ms. MAXINE WATERS of California. Mr. Chair, the Speaker and Mr.
Hensarling would have you think this is all about community banks being
hurt, but let me tell you what this is all about.
U.S. and foreign banks have paid more than $160 billion in penalties
to resolve cases brought against them by the Justice Department and
Federal regulatory agencies for cases involving collusion, fraud
against consumers, bribery, and other abuses.
[[Page H4718]]
There were 144 major cases of $100 million or more against 26 large
U.S. and foreign banks. Just look at this: Bank of America, $56
billion; J.P.Morgan, $28 billion; Citigroup, $15 billion; Wells Fargo--
and you know about Wells Fargo and what they did--$11 billion; Goldman
Sachs, $9 billion; Morgan Stanley, $5 billion. This is about rip-offs,
so this bill will prevent us from being able to assess these kinds of
penalties on those who are ripping off the American public.
Mr. Chair, I yield 1 minute to the gentleman from Missouri (Mr.
Clay), ranking member of the Financial Institutions and Consumer Credit
Subcommittee.
Mr. CLAY. Mr. Chair, I thank the ranking member. I rise today to
oppose H.R. 10, a dangerous assault on American consumers that would
gut the landmark Dodd-Frank Wall Street Reform Act.
If the ``Wrong'' CHOICE Act is allowed to be inflicted on working
families, the reckless financial speculators who sold out the American
people on Wall Street would be given a free pass to perpetrate future
financial abuses that will reap billions for them and rob average
Americans of their financial security again.
The ``Wrong'' CHOICE Act would take us back to the pre-2008 era of
unchecked reckless financial abuses that resulted in the worst
recession since the Great Depression.
Let me remind Members of the crushing cost of that national economic
emergency: over 8 million jobs lost, 10 percent unemployment, 7 million
home foreclosures, and trillions of dollars of personal institutional
wealth wiped out.
No proponent of this bill can look the American people in the face
and tell them that this is better for consumers, because it is not.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Virginia (Mr. Goodlatte), chairman of the Judiciary Committee.
Mr. GOODLATTE. Mr. Chair, I would first like to thank Chairman
Hensarling for introducing this important piece of legislation.
The CHOICE Act replaces the orderly liquidation authority under title
II of Dodd-Frank with a new bankruptcy procedure developed by the
Committee on the Judiciary in the Financial Institution Bankruptcy Act.
In 2008, our economy suffered one of the most significant financial
crises in history. In the ensuing years, experts from the financial,
regulatory, legal, and academic communities have examined how best to
prevent another similar crisis from occurring and to eliminate the
possibility of using taxpayer moneys to bail out failing firms.
The Judiciary Committee has advanced the review of this issue, with
the aim of crafting a solution that will better equip our bankruptcy
laws to resolve failing firms, while also encouraging greater private
counterparty diligence in order to reduce the likelihood of another
financial crisis.
The Financial Institution Bankruptcy Act is the culmination of a
multiyear, bipartisan process that solicited and incorporated the views
of a wide range of leading experts and relevant regulators. The CHOICE
Act incorporates all of the provisions of the Financial Institution
Bankruptcy Act, providing a balanced approach that increases
transparency and predictability in the resolution of a financial firm.
Furthermore, it ensures that shareholders and creditors--not
taxpayers--bear the losses related to the failure of a financial
company.
Mr. Chair, I urge my colleagues to support this legislation.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Colorado (Mr. Perlmutter), ranking member of the
Terrorism, Nonproliferation, and Trade Subcommittee.
Mr. PERLMUTTER. Mr. Chair, I thank the gentlewoman from California
(Ms. Maxine Waters) for yielding me time.
I rise in opposition to H.R. 10, the ``Bad'' CHOICE Act, which brings
back the Wild West to our financial markets and hurts consumers.
It is a bad choice because this takes us back to a time when we were
losing 800,000 jobs a month--not gaining 200,000 jobs a month. Colorado
takes us back to when we had 10 percent unemployment--not 2.5 percent
unemployment. It takes us back to a time when the stock market was
6,500--not 21,000.
It brings back no discipline. The markets were in chaos. People got
hurt. This kind of return to bad legislation and bad regulation is not
good for America, and we should all vote ``no.''
Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from
Missouri (Mr. Luetkemeyer), a real leader on our committee and chairman
of the Financial Institution and Consumer Credit Subcommittee.
Mr. LUETKEMEYER. Mr. Chairman, I am very proud to stand with Chairman
Hensarling today and offer my support for H.R. 10, the Financial CHOICE
Act of 2017.
This bill offers a responsible approach to financial regulation that
will protect consumers and allow the American economy to flourish. The
Financial CHOICE Act makes meaningful reforms that ensure transparency,
restore a rule of law, and help consumers and small businesses gain
access to the credit they need to move forward towards financial
independence, be the entrepreneurs they are, and be able to realize
their dreams.
Mr. Chairman, we lose one community bank or credit union a day, as
the chairman just mentioned, every day. These are the institutions that
lend to families and small businesses across America. These
institutions are the backbone of each of our communities and something
that must be done to reverse this dangerous trend of consolidation and
closure.
There has been a considerable amount of discussion on both sides of
the aisle on the need to help community financial institutions. The
legislation we will consider today provides every Member of Congress
the opportunity to cast a vote in favor of responsible regulatory
relief for credit unions and community banks across the Nation.
The Financial CHOICE Act will increase access to credit for consumers
by easing rules and regulations that never should have been applied to
smaller financial institutions in the first place.
H.R. 10 also makes important reforms to the Consumer Financial
Protection Bureau, an unaccountable agency that embodies the
Washington-knows-best mentality that the Nation is so tired of seeing
and, instead, creates a more responsible framework that actually
protects consumers instead of special interests.
The Financial CHOICE Act offers a new model for financial opportunity
and responsible regulation. It is time to take steps to remove the boot
from the neck of our Nation's lenders and their customers.
Former Fed Chairman Alan Greenspan has said about the bill that it
would have a tremendous stimulative effect on our economy. The
Financial CHOICE Act is the right choice to help our communities grow
their economies and our citizens realize their dreams.
Mr. Chair, I want to thank Chairman Hensarling for his unwavering
leadership and urge my colleagues to support H.R. 10.
Ms. MAXINE WATERS of California. Mr. Chair, I yield 1 minute to the
gentleman from Michigan (Mr. Kildee), the vice ranking member of the
Committee on Financial Services.
Mr. KILDEE. Mr. Chairman, I thank the ranking member for yielding.
I understand the President of the United States himself has no real
understanding of American history, but that is no excuse for this body
for ignoring even the recent history of this country and returning us
to the conditions, to the regulatory environment that not only preceded
but contributed to cause the worst financial crisis that I have
experienced in my lifetime, the Great Recession.
{time} 1300
Millions of people lost their homes. Millions of people lost their
job and lost everything they worked for because they were completely
unprotected against institutions and organizations that were predators
against them. This proposed legislation would take away those very
protections and return us to a time when institutions and organizations
can use unfair and deceptive practices, and the Consumer Financial
Protection Bureau under this legislation would be barred--would be
barred--from going to bat for those people being taken advantage of.
This makes no sense. We ought to reject it, and I urge my colleagues
to join me in doing so.
[[Page H4719]]
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Ohio (Mr. Chabot), the chairman of our Small Business Committee.
Mr. CHABOT. Mr. Chairman, I thank the chairman for yielding.
Mr. Chairman, I rise in strong support of H.R. 10, the Financial
CHOICE Act, and I want to thank Chairman Hensarling for his leadership
on this important issue.
For the last 7 years, Dodd-Frank has blocked small businesses from
getting the capital they need to grow and create more jobs. As chairman
of the Small Business Committee, it is no surprise that small
businesses from all across the country tell me over and over again that
this blocking of capital to them by Dodd-Frank is preventing them from
creating more jobs which are needed in this country.
Whether to pay employees or to buy new equipment, we need to make it
easier for small-business owners to gain access to capital. H.R. 10 is
chock-full of real reforms, including the Helping Angels Lead Our
Startups, or HALOS, Act to encourage and inspire entrepreneurs across
the country.
The Nation's 29 million small businesses are working hard to achieve
the American Dream. Let's not let our own government continue to stand
in their way. Support this legislation. It is very important.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentlewoman from New York (Ms. Velazquez), who is the ranking
member of the Small Business Committee.
Ms. VELAZQUEZ. Mr. Chairman, I want to thank the ranking member,
Maxine Waters.
Here they come again, Mr. Chairman. My colleagues seem to suffer from
a case of policymaking amnesia. I was here in 2008 as our Nation stood
on the edge of financial ruin. I will never forget those dark days.
Thanks to Wall Street making reckless bets and inadequate government
oversight, millions of Americans lost their homes and jobs. Tell them
about market discipline back in 2008. Main Street small businesses shed
employees, and many shut their doors for good. Our economy nearly slid
into another Depression.
Now, my Republican colleagues may have forgotten that sequence of
events, but let me tell you something: The American people have not
forgotten.
Dodd-Frank has improved accountability in the financial system. It
has protected consumers and investors from predatory practices. It
stabilizes our markets. And yet here we are talking about gutting this
landmark law.
The American people are watching. Let's be clear. If you vote
``yes,'' you are voting to restore the same conditions that fueled the
crisis and collapse of 2008. It is a vote you will regret--and be
remembered for. Vote ``no.''
Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from
Michigan (Mr. Huizenga), who is a leader on our Capital Markets,
Securities, and Investments Subcommittee.
Mr. HUIZENGA. Mr. Chairman, the economic downturn in 2008 caused
Michiganders and folks around the country to lose their jobs, families
to lose their savings, and even some to lose their homes. Since that
time, folks on the other side of the aisle have been attempting to
convince the American people that the Dodd-Frank Act is ``the answer''
to the financial crisis, despite the law failing to actually address
the root cause of the downturn. In reality, Dodd-Frank has made it more
difficult for hardworking taxpayers to secure a future for themselves
and their children by denying them the economic recovery that they
deserve.
Hardworking Americans rely on capital markets to save for everything
from college to retirement. We as Congress must act to eliminate the
burdensome and unnecessary red tape created under Dodd-Frank to ensure
U.S. capital markets remain the most effective in the world so that all
investors can receive the greatest return on their investments.
Since Dodd-Frank, our capital markets have become less stable, less
efficient, and less liquid, which has made it more difficult for small
businesses and American job creators around the country to access the
necessary financial resources in order to expand and create jobs. In
fact, Dodd-Frank has severed access to the capital markets for Main
Street businesses and entrepreneurs who are the heartbeat of the
American economy.
In order to succeed, small and growing companies need capital and
credit--the lifeblood for growth, expansion, and job creation. Yet the
government has continued to construct arbitrary walls that cut them off
from essential financing as smaller companies are caught in a sea of
red tape created by Washington bureaucrats.
Enough is enough. In order to increase economic opportunity, we must
enact commonsense regulatory reform and restore accountability to Wall
Street and to Washington. The House Financial Services Committee
achieves this goal through the carefully crafted CHOICE Act, which we
are debating here today.
The Financial CHOICE Act eliminates Dodd-Frank's one-size-fits-all
regulatory structure which has strangled community financial
institutions with overly burdensome regulations that were meant for the
largest banks here in America.
The CHAIR. The time of the gentleman has expired.
Mr. HENSARLING. Mr. Chairman, I yield the gentleman from Michigan an
additional 30 seconds.
Mr. HUIZENGA. Mr. Chairman, by enacting the CHOICE Act, community
banks and credit unions can utilize their resources to help their
individual customers and small businesses achieve financial
independence. If we want small businesses to continue to be the engine
of economic growth, we must remove the regulatory red tape that is
preventing community lenders from supporting these small business job
creators.
We hold Wall Street accountable. We hold the Consumer Financial
Protection Bureau accountable, and we make it more effective to do its
job. No government agency should be unaccountable to the American
taxpayer.
Dodd-Frank was a larger social agenda waiting for a crisis, and I
understand that from my friends on the other side; but today, small
businesses and hardworking Americans continue to pay the price.
The Financial CHOICE Act enacts progrowth reforms, restores
accountability, and provides opportunity. I encourage a ``yes'' vote.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Texas (Mr. Al Green), who is the ranking member of
the Subcommittee on Oversight and Investigations.
Mr. AL GREEN of Texas. Mr. Chairman, I thank the ranking member.
Mr. Chairman, this bill is a setback because it allows the American
public to be subject to rip-offs. It allows you to be ripped off when
you get your auto loan. Without your knowing it, it will allow you to
pay a higher amount than you should be paying.
It allows you to, without your consent, have the money that you place
in the bank be taken away from your account, moved over to another
place, and used to gamble; if they win, they keep the profits--all done
without your consent.
It allows, without your knowledge, the person that you are working
with to invest your pension and to put his interests ahead of your
interests.
This is a rip-off bill. We should not support it. The American
consumers are placed at risk. This is the time to stand. We must say
``no'' to H.R. 10. It is, indeed, the wrong choice.
Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentlewoman
from Missouri (Mrs. Wagner), who is a fighter on our committee. She is
the chair of the Oversight and Investigations Subcommittee.
Mrs. WAGNER. Mr. Chairman, I am proud to stand before you today to
speak on H.R. 10, the Financial CHOICE Act.
I would like to thank Chairman Hensarling and all my colleagues on
the House Financial Services Committee for their hard work on this
legislation, including holding 145 hearings on Dodd-Frank and the
CHOICE Act.
For nearly 10 years following the financial crisis, our country
witnessed one of the weakest recoveries of our lifetimes as Dodd-Frank
held small businesses and families hostage and prevented our economy
from growing. Now it is harder for families to qualify for a mortgage,
obtain an auto loan, and access other forms of credit that they depend
on every single day.
[[Page H4720]]
The only beneficiaries from Dodd-Frank have been Washington
bureaucrats, who have grown more powerful; and big banks have only
grown bigger at the expense of your personal freedoms and your freedom
to make your own financial decisions. Dodd-Frank has failed the
American people.
Instead, the CHOICE Act, which stands for creating hope and
opportunity for investors, consumers, and entrepreneurs, represents a
better way from this Republican Congress that will provide Americans
with the financial opportunities that they deserve. The CHOICE Act is
about helping Main Street, not Wall Street, and will increase lending
in our communities, open up our economy, end taxpayer-funded bank
bailouts, and hold Wall Street and Washington accountable.
It will allow us to impose the toughest penalties on Wall Street
executives who engage in fraud, deception, and self-dealing. Unlike
before, executives who commit financial crimes will be held
accountable, rather than innocent taxpayers and shareholders.
Americans deserve relief from the regulatory burden and lack of
financial options that Dodd-Frank has created. Americans deserve the
``Right'' CHOICE Act.
Mr. Chairman, I urge my colleagues to support H.R. 10.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentlewoman from Wisconsin (Ms. Moore), who is the ranking member
of the Monetary Policy and Trade Subcommittee.
Ms. MOORE. Mr. Chairman, I thank the ranking member.
Mr. Chairman, I rise in opposition to the ``Wrong'' CHOICE Act. This
is a bad bill, and I suspect that Republicans are pushing it through
with only one hearing because they want to push it past the beleaguered
public who lost trillions of dollars of wealth and home value during
the last recession.
Republicans' rubric about freedom and community banks is not fooling
anyone. This legislation unleashes every bloodthirsty and greedy Wall
Street superpredator back into the American people to feast on our
misery like they did pre-Dodd-Frank. In contrast, you will actually
hear the GOP blame predatory borrowers and say that they caused the
crisis--like blaming hungry children for famines.
If this bill passes with the mere 10 percent capital requirements,
the financial system will become brittle, prone to systemic crisis and
taxpayer bailouts--a system that is less fair and rife with fraud.
Didn't we learn our lesson in 2008? 2008 taught us that we cannot
have sustainable economic growth absent good regulation.
Mr. Chairman, I urge my colleagues to reject this bad bill.
Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from
Kentucky (Mr. Barr), who is the chairman of the Monetary Policy and
Trade Subcommittee.
Mr. BARR. Mr. Chairman, the Dodd-Frank Act is a failure, period. It
is estimated to reduce economic output by nearly $1 trillion over the
next 10 years, and it contains more regulatory restrictions than all of
the other regulations enacted by the previous administration combined,
including ObamaCare.
The Financial CHOICE Act provides an off-ramp--much-needed relief--to
Dodd-Frank's growth-crushing regulations. Financial institutions like
community banks and credit unions will have the choice to stay under
the Dodd-Frank regulatory regime or opt for the relief that they are
willing to obtain if they meet a 10 percent simple leverage ratio, a
level that ensures that they can weather economic downturns without the
help of taxpayer bailouts.
This legislation also reins in the primary culprit of the regulatory
onslaught that has caused one in five community financial institutions
in my State of Kentucky to close: the Consumer Financial Protection
Bureau. This is done by giving Congress the power of the purse over the
Bureau for the first time, making its Director removable by the
President, requiring it to conduct cost-benefit analysis, and enhancing
its mission to focus on consumer protection through competition and
choice.
This legislation also delivers important regulatory relief to
community financial institutions, incorporating the TAILOR Act, which
requires Federal regulators to tailor their regulations based on the
size of financial institutions instead of using the typical one-size-
fits-all Washington model.
Additionally, the Financial CHOICE Act ends stifling Dodd-Frank
regulations that constrain lending for manufactured homes by including
the Preserving Access to Manufactured Housing Act. It also further
reduces the chances of a mortgage crisis by giving financial firms an
incentive to retain 100 percent of a mortgage's risk and greater
flexibility to lend by including my Portfolio Lending and Mortgage
Access Act.
Finally, this legislation places the steepest penalties in history on
financial firms that actually break our laws.
So it ends too big to fail, it includes tough penalties--the toughest
penalties in history--for financial fraud and other misdeeds, but it
preserves consumer protections through competition, choice, and access
to the credit Americans need to build our economy.
Mr. Chairman, I want to thank Chairman Hensarling for his leadership
on this issue.
Ms. MAXINE WATERS of California. Mr. Chairman, I have just got to
stop some of this misrepresentation.
Exempt from CFPB's supervision and enforcement, Wall Street reform--
that is Dodd-Frank--recognizes community banks and credit unions have a
small number of employees and a better consumer protection track
record; thus, they are carved out from the Consumer Financial
Protection Bureau's supervision.
{time} 1315
The Consumer Financial Protection Bureau's supervision and
enforcement focuses on the largest banks that they won't talk about
here today and non-banks that compete with small banks and credit
unions.
Mr. Chair, I yield 1 minute to the gentleman from New York (Mr.
Meeks), a senior member of the Financial Services Committee.
Mr. MEEKS. Mr. Chair, how soon do we forget?
The bill before us today is an affront to the American people. This
bill is fatally flawed. It would set America up for more severe
financial crises in the future. It is plain and simply the wrong
choice.
Let me give you one example. Under the ``Wrong'' CHOICE Act, many
banks would be free from regulatory oversight if they merely maintain a
10 percent leverage ratio.
Let's break that down for the American people. If this bill was law
in 2008, one-third of the banks that eventually failed would be free
from regulatory oversight altogether. To be clear, 125 banks that
failed during the crisis would meet the bill's low requirement for
regulatory relief, not according to me, but to an independent
clearinghouse analysis.
You don't have to be a financier to realize that this proposal is
dangerous and an insult to American families who lost nearly
everything. I am talking about those families in rural and urban
America who saw their household net worth drop $10 million, the largest
loss of wealth in the history of the United States of America.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
California (Mr. McCarthy), a gentleman on leave from the Financial
Services Committee and one we proudly call our own.
Mr. McCARTHY. I thank the gentleman for yielding.
Mr. Chair, I first want to thank Chairman Hensarling and the entire
Financial Services Committee for the work they have done on this bill.
They have listened to Members and they have listened to constituents
throughout this country. They studied the issue and they found the very
best policy.
We all know we need economic growth, but we also know that growth
means little if wages will not rise, if jobs do not return, and if more
businesses close than open.
If a rising tide lifts all boats, we need to make sure every American
is in the boat. Repealing Dodd-Frank with the Financial CHOICE Act
lifts people back in so they can participate in America's economy. It
will reestablish the severed ties that link communities to the money
they need to start businesses and hire employees.
[[Page H4721]]
Bringing back the community banks that Dodd-Frank destroyed means
that more people, not just the wealthy, will have access to credit. But
if we want everyone to be part of the American economy, we don't want
people to face the same risks they did before. We want people to be
treated fairly.
In 2008, people lost everything. Aided by misguided Washington
policies, some played fast and loose and put almost everyone else at
risk. So it is only natural that people looked around and asked: Why do
we have a system where, when things go wrong, banks need to get
bailouts, but the American people get nothing?
It is not a fair system. Dodd-Frank made it worse. It actually
codified bailouts into law and made a taxpayer slush fund. On top of
all that, we all know the regulations it created were just ridiculous.
Why is it that the rich and powerful get to game the complicated
rules produced by their friends in the bureaucracy while everyone else
faces a mountain of paperwork and regulations that no human being has a
chance of understanding?
We all know that is not fair. All this ends up boxing out small-
business owners and normal Americans who can't hire lawyers to sift
through it all.
The Financial CHOICE Act levels the playing field. It makes both Wall
Street and Washington accountable so that their bad decisions don't
cost the taxpayers money. It makes things simple so that you don't need
an Ivy League law degree to understand the rules that govern our lives.
America is a nation for the people. Everyone has a shot. Everyone
should be treated the same. Everyone has a chance to succeed. The
Financial CHOICE Act brings us a little closer to that America one more
time.
Ms. MAXINE WATERS of California. Mr. Chair, I yield 1 minute to the
gentleman from Georgia (Mr. David Scott), one of our senior members of
the Financial Services Committee.
Mr. DAVID SCOTT of Georgia. Mr. Chairman, I love this country. The
heart and soul of our country is our financial system.
This bill is a dangerous bill to our economy. Let me tell you why.
First of all, it takes away all of our consumer protections. I want to
give you an example.
Before we had Dodd-Frank, a bank that is insured by the taxpayers
could go in and use their customer's money. They could take their
customer's money out to invest in risky bets, and then when the bets go
south, it is the taxpayers that have to pick up the freight.
Secondly, let us use this example. Because of the impact and the
complexities of our financial system, so much of the cause and effect
of the downturn were the big banks. What Dodd-Frank did was provide a
test to be able to go in and simulate and confer with the bank to
prevent it from going overboard.
Wake up, America. I have talked with our Senators and they have
assured me that this bill is dead on arrival in the Senate.
Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from
New Mexico (Mr. Pearce), who is the chairman of the Terrorism and
Illicit Finance Subcommittee.
Mr. PEARCE. Mr. Chair, credit is one of the most powerful devices of
our financial system. It was designed over time by modern societies. In
some countries, credit is simply not available to those who need it the
most: people at the bottom of the ladder.
In the United States, we have got a well-developed system where
credit is available no matter how bad their credit rating might be.
That is, it was available until the Dodd-Frank regulation created the
CFPB.
In the Second District of New Mexico, 50 percent of the homes are
mobile homes or manufactured housing. Dodd-Frank immediately began to
show that they had no clue about how rural societies worked, and put
into place regulations that choked off the access of most of our
homeowners to manufactured housing.
That wasn't enough for the CFPB. They began then to set forward
qualified mortgages, which then choked off traditional mortgages to
many people in the Second District of New Mexico.
Many people in New Mexico will buy their first mobile home and they
will live in that. Then, over their life, they will buy 8 or 10 more.
Then they sell those one at a time, usually to people who can't get
credit any other way. The CFPB simply shut that down. Now, seniors with
less income, but people who need the loans the most, have one more
source of credit dried up to them.
The rules that affect the rural mortgages and small businesses were
so punitive that the economy in New Mexico has never come back. It is
not just that the Financial CHOICE Act is the right choice in the rural
areas, in our areas; it is the only choice.
I support H.R. 10, and I ask my colleagues to vote ``yes'' on the
bill.
Ms. MAXINE WATERS of California. Mr. Chair, I yield 1\1/2\ minutes to
the gentleman from Virginia (Mr. Scott), the ranking member of the
Education and the Workforce Committee.
Mr. SCOTT of Virginia. Mr. Chairman, I thank the gentlewoman for
yielding.
I rise in opposition to the ``Wrong'' CHOICE Act. In addition to what
else is wrong with the bill, there are two significant problems with it
impacting the jurisdiction of the Education and the Workforce
Committee, where I serve as the ranking Democratic member.
First, the bill essentially eliminates the Consumer Financial
Protection Bureau. The Bureau has played a crucial role in making sure
student loan borrowers are treated fairly and receive the protections
that they deserve. It has shut down fraudulent student loan debt relief
scams, resolved countless consumer complaints, and secured hundreds of
millions of dollars in loan forgiveness for borrowers tricked into
taking out costly private loans.
The bill also repeals the Department of Labor's fiduciary rule, which
simply ensures that financial advisers put their retirement clients'
interests first.
Workers getting ready to retire often seek assistance in making what
would be the biggest financial decision in their life. Let's be clear:
many of these just set aside a few hundred dollars a month throughout
their career, and now have hundreds of thousands of dollars to invest.
They are counting on their financial adviser to do right by them and
their families. This rule simply says that they have to do right for
the families and the workers, not what may generate the highest fees.
Mr. Chairman, this bill undermines key policy priorities impacting
student loans and retirement savings. We should stand up for students
and retirees and reject this bill.
Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from
Wisconsin (Mr. Duffy), the chairman of the Housing and Insurance
Subcommittee.
Mr. DUFFY. Mr. Chairman, this debate oftentimes can become confusing
because banking law is confusing.
We hear both sides take different positions on the Financial CHOICE
Act and on Dodd-Frank, but I think the way you cut to the fat about
whether Dodd-Frank was great law and does the Financial CHOICE Act
actually make this law way better, I think we have to look at a couple
simple factors.
Big banks brought us to the crisis in 2008. The question for my
friends across the aisle and people watching this debate is: Because of
Dodd-Frank, have big banks gotten smaller or have big banks gotten
bigger?
The answer is: Big banks have gotten bigger.
If you go to rural Wisconsin, small community banks and credit unions
that help grow businesses and help provide to capital to our families
are going out of business. Big Wall Street banks don't set up shop in
rural Wisconsin. So the little guy is getting hurt and the big guys are
doing really well.
You have got to ask yourself: Who supports the Financial CHOICE Act?
You have the NFIB protecting small businesses, the Independent
Community Bankers of America, the National Association of Federally-
Insured Credit Unions, and the Credit Union National Association.
Credit unions and small banks support this bill.
Who doesn't support this bill?
Well, if you look to The Washington Post: Hensarling, our chairman,
faces opposition from big-bank CEOs that like Dodd-Frank. They hate the
Financial CHOICE Act.
Another quote from The Wall Street Journal: ``Big banks have an
unexpected message for President-elect Trump: Don't trash the Dodd-
Frank Act.''
[[Page H4722]]
Big banks hate this bill, and little banks and little credit unions
love it. If you want to know where people stand on this, go to your
small community banker, go to your credit union, ask them about Dodd-
Frank, and they will give you an earful. Then ask them: Do you like the
Financial CHOICE Act? They will sit back and give you a small, slow
clap.
Let's do what is right for the American people and the small banks
and small credit unions. Let's join together, pass H.R. 10, and give a
win to the little guy.
Ms. MAXINE WATERS of California. Mr. Chairman, the gentleman asked:
Who does not support this bill?
Let me tell him: advocates, experts, civil rights groups, labor
groups, veterans groups, pension plans, and company shareholders.
We also received a petition urging a ``no'' vote from more than
220,000 concerned Americans.
Let me just say that AARP hates this bill. That is who opposes this
bill.
Mr. Chairman, I yield 1 minute to the gentleman from California (Mr.
Sherman), a senior member of the committee on Financial Services.
{time} 1330
Mr. SHERMAN. Mr. Chairman, this bill contains 12 measures that have
wide Democratic support. Unfortunately, they have been held hostage and
added to a bill that contains a pharmacy of poison pills.
The gentleman from New Mexico points out that we need to do something
with manufactured housing. I support that bill. Liberate that bill.
Don't put it in a bill that is going to die in the Senate.
The gentleman from Wisconsin talks about too big to fail. Please
cosponsor the Sanders-Sherman bill to break up the too big to fail
rather than this bill that lets them stay too big and takes away the
regulation.
I look forward to working in a bipartisan way to support the
Financial Accounting Foundation's efforts to have independently funded
standards for government-issued debt. This bill takes that away.
I look forward to working in a bipartisan way to have different and
lesser standards for community financial institutions like credit
unions and local banks. Instead, this highly partisan bill takes us
down the wrong highway. It is a highway to a bill that will go nowhere
in the Senate, and then we will resume our efforts to improve financial
regulation in this country.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Illinois (Mr. Hultgren).
Mr. HULTGREN. Mr. Chairman, I especially want to thank Chairman
Hensarling and the entire committee for all their hard work in getting
us to this point to be able to pass H.R. 10, the Financial CHOICE Act,
a very important bill to reform significant parts of Dodd-Frank that
are failing. The Financial CHOICE Act is an important recognition of
the many mistakes that policymakers made leading up to and responding
to the financial crisis.
There is no doubt that the American people demanded changes from
Washington when the financial crash led to higher unemployment, huge
drops in home values, and lost hope and opportunities; but instead of
reforms that would increase competition and decrease systemic risk, the
Dodd-Frank Act grew government and piled new regulations on community
banks and credit units and enshrined too big to fail into law.
Forty-two community banks and 106 Illinois credit unions have closed
their doors since Dodd-Frank was signed in 2007. This is unacceptable.
I am grateful that regulatory relief legislation that I have
championed is included in the Financial CHOICE Act, things like the
Community Bank Reporting Relief Act and many other provisions that will
provide great relief to our local financial institutions. That is what
the Financial CHOICE Act is all about: giving opportunities back to
local communities to make good financial decisions for their future.
Ms. MAXINE WATERS of California. Mr. Chairman, continuing to remind
Mr. Duffy who opposes this bill, the Veterans of Foreign Wars of the
United States of America opposes this bill.
I yield 3 minutes to the gentleman from Maryland (Mr. Hoyer), the
distinguished Democratic whip.
Mr. HOYER. Mr. Chairman, I rise in opposition to this legislation,
which I know does not surprise the chairman.
I have been here for some time. I was here in the 1990s. I was here
in the 2000s. Frankly, we took the referee off the field in the 2000s,
and we didn't put the referee as toughly on the field in the late 1990s
as we should have. Brooksley Born warned us about that, and we kept our
eyes shut, and keeping our eyes shut cost millions and millions and
millions of people their jobs, their homes, and their security.
Let us not return to the time of taking the referee off the field.
This bill does that. It is a dangerous piece of legislation. The bill
which my Republican colleagues have put forward would put the American
people at risk once again of having to bail out institutions if they
lose money on risky investments.
Let me say to my Republican friends: I share their view that
community banks should not be treated as too-big-to-fail banks.
However, having said that, this bill takes the referee off the field
one more time. It would effectively eliminate the Consumer Financial
Protection Bureau that is now the American people's watchdog.
We have spent a lot of time this year in the last 5 months passing
bills under the Congressional Review Act that have reduced consumer
protections, civil rights protections, teacher protections,
environmental protections. All we are doing is spending our time taking
away protections for the American people and their futures.
Have we learned nothing, Mr. Chairman? Those who fail to learn from
history, it is often said, are doomed to repeat it. Let us not doom our
citizens to repeat it. Let us not fail to learn the lessons of 2008.
Let us not doom ourselves to repeating the mistakes of the past.
The American people, average investors, and retirees, along with
those who use our markets to save for college and purchase a home,
deserve, and now have, commonsense protections.
Nobody is seeking to punish or limit what financial firms do well,
and that is create and raise capital, but we must ensure that there are
referees on the field to protect investors and taxpayers and citizens
and, yes, our families and our children. This bill does the opposite. I
urge my colleagues to reject it.
Mr. HENSARLING. Mr. Chairman, I yield myself 10 seconds just to say
that perhaps the gentlewoman from California is unaware that the VFW
has tweeted that it lauds Representative Hensarling for a commitment to
protect veterans, and then:
We are so happy that the Financial CHOICE Act has been
endorsed by over 100 groups, including the Concerned Veterans
for America, because of what we do to protect their freedoms.
At this point, I am very happy to yield 1 minute to the gentleman
from Florida (Mr. Ross), a proud member of our committee.
Mr. ROSS. Mr. Chairman, I rise today in support of the Financial
CHOICE Act, a bill that will provide the much-needed relief from the
harmful, complex, and excessive regulatory environment created by the
Dodd-Frank Act.
In the 7 years since the passage of the Dodd-Frank Act, our Nation
has suffered from anemic economic growth, increasingly limited
financial choices for consumers, and an unprecedented level of job-
killing regulations. All the while, big banks have grown larger, and
small banks and credit unions have suffered. In fact, community banks
are closing at the rate of one per day.
Many of my constituents in small and rural towns in the Tampa Bay
area rely heavily on their community banks for financial services. When
those banks are forced to close their doors or raise their fees due to
excessive regulation, my constituents lose access to essential services
and opportunities.
Simply put, Dodd-Frank has failed.
The Financial CHOICE Act represents an alternative and effective
approach to financial regulation, which will protect taxpayers and bank
bailouts, empower investors, and hold government bureaucracies
accountable.
This legislation makes it easier for hardworking Americans to save
and invest for retirement, college, and their future. It will also
increase access to and reduce the cost of credit for families that want
to purchase a home or start a business.
[[Page H4723]]
I urge my colleagues to join me in supporting passage of this bill
and helping Washington get off the backs of hardworking taxpayers.
Ms. MAXINE WATERS of California. I yield 1 minute to the gentleman
from Massachusetts (Mr. Capuano), a senior member of the Financial
Services Committee.
Mr. CAPUANO. Mr. Chairman, you know, I was going to talk about
leveraged buyouts, and I was going to talk about CDOs and CDO squared
and Volcker rules and all those other things, but the truth is that is
not what this is about. It is not about the details of the bill. It is
about the concept. It is about Main Street versus Wall Street.
Now, I am not opposed to Wall Street, but if you make me make a
choice, I am with Main Street. And I know that the radicals are against
this bill, the radicals like the VFW, and I will just read what they
said.
If enacted, the Financial CHOICE Act of 2017 would put
those who have taken an oath to defend this country and our
way of life in financial harm's way.
In light of this and on behalf of the nearly 1.7 million members of
the VFW and its auxiliary, I call on you to oppose H.R. 10.
The other radical group that opposes this bill is the AARP,
representing 38 million Americans; and the Communications Workers of
America, with 700,000 members; and the Brotherhood of Teamsters,
representing, I think, 900,000; and, of course, the California Teachers
Association, which represents 900,000 people, who also invest $202
billion in our country.
All that being said, I am shocked that I am sitting here thinking
that the Dodd-Frank Act is some kind of a failure. Bottom line is we
put an end to the Wild West of Wall Street and we are on to a nice,
steady playing field. We should be able to adjust it, but we should not
throw it out.
Mr. HENSARLING. Mr. Chairman, apparently the gentleman forgot that
the big Wall Street banks also oppose this, according to the Wall
Street Journal, Washington Post, and New York Times.
And I am now very happy to yield 1 minute to the gentleman from North
Carolina (Mr. Pittenger).
Mr. PITTENGER. Mr. Chairman, I am here to support the Financial
CHOICE Act, and for good reasons.
Under Dodd-Frank, North Carolina has lost 50 percent of our banks
since 2010, while three community banks have consolidated just in the
last month. Monthly banking fees have increased 111 percent.
As well, Dodd-Frank created the Consumer Financial Protection Bureau,
which even the liberal D.C. Court of Appeals calls unconstitutional and
a threat to individual liberty.
Dodd-Frank has made the Wall Street banks even bigger and more
powerful; and Dodd-Frank has contributed to the slowest, weakest
economic recovery in 70 years, impeding access to capital and credit in
the market for small business.
Maintaining the status quo is not acceptable.
The Financial CHOICE Act will impose the toughest penalties in
history for fraud on Wall Street. It will end taxpayer bailouts for
Wall Street and allow your community banks and credit unions to focus
on serving you and your local business, which will help create jobs and
grow the economy. The Financial CHOICE Act means opportunity for all
Americans and bailouts for none.
Ms. MAXINE WATERS of California. Mr. Chairman, continuing to answer
Mr. Duffy about who opposes this bill, the Fleet Reserve Association,
which includes the Navy, the Marine Corps, and the Coast Guard.
With that, I yield 1 minute to the gentleman from Massachusetts (Mr.
Lynch), a senior member of the Financial Services Committee.
Mr. LYNCH. Mr. Chairman, I have to say that this is the single worst
piece of legislation that I have seen in my time here in Congress, and
I have been here awhile. So I have to congratulate the gentleman from
Texas for putting this amalgamation of terrible ideas together.
This bill basically destroys the work that we did to try to secure
the banks after the financial crisis of 2008. It harms consumers, it
lets off bad actors, it hamstrings our financial regulators, and I
believe it will lead to the next financial crisis.
This bill will destroy the only consumer protection agency in the
United States Government by handing over the ability to defund the
operation to the people who were committed to opposing its very
creation.
It also repeals the Department of Labor's fiduciary rule that simply
requires that financial advisers put the interests of its clients first
rather than its own.
And finally, it is important to emphasize that the Financial CHOICE
Act rolls back the accountability and reporting standards for credit
rating agencies, as Gretchen Morgenson discussed in a New York Times
``Fair Game'' column on May 7.
Mr. Chairman, to sum up, this is an awful bill. This is a real
stinker. I hope that my colleagues here vote against it.
Mr. HENSARLING. Mr. Chairman, I am happy to yield 1 minute to the
gentleman from Pennsylvania (Mr. Rothfus).
Mr. ROTHFUS. Mr. Chairman, today is a good day. It is yet another day
where we turn the page on the antigrowth policies of the last 8 years
that have given us the slowest economic recovery in 70 years. I urge my
colleagues to vote against the stagnant status quo with a vote for the
Financial CHOICE Act.
With all the debate we are hearing, understand this: The heart of
this bill is about right regulation, accountability, and growth,
restoring healthy, robust growth that will create jobs, lift wages,
and, through the creation of new taxpayers, will increase revenues to
the Federal Treasury that will help pay for critical programs like
Social Security, Medicare, veterans benefits, and national defense.
We have a moral obligation to restore healthy economic growth. The
opponents of this bill, the status quo defenders, are seemingly okay
with slow growth and fewer opportunities.
Mr. Chairman, take a stand for stronger growth. Take a stand for
young people who want more job opportunities. Take a stand for young
families who want a new home. Take a stand for seniors and veterans who
rely on programs funded through a growing, healthy economy. Take a
stand for a better way. Take a stand for a brighter future. Vote for
H.R. 10. Vote for the Financial CHOICE Act.
{time} 1345
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Maryland (Mr. Delaney), a member of the Financial
Services Committee.
Mr. DELANEY. Mr. Chair, I want to thank the gentlewoman for yielding
me time.
Mr. Chairman, during the financial crisis, 19 of the 20 largest
financial institutions in the United States either required a bailout
or a significant investment by the taxpayers. Clearly, reform was
needed, and Dodd-Frank was that reform.
Since Dodd-Frank was put in place, consumer protections have improved
materially, the banking system is safer and more sound, and our banks
and our markets have far outpaced their international competitors.
Dodd-Frank is working.
Is it a perfect piece of legislation? Of course not. Anytime Congress
does something large and transforms an entire industry, we should sign
up as a body for 10 years of fixes, which is what we have not done, and
we have let the American people down.
Are we fixing Dodd-Frank today? No. We are pursuing a misguided and
time-consuming and wasteful repeal effort.
I urge my colleagues to reject the CHOICE Act, and I urge my
Republican colleagues to work with Democrats on bipartisan reforms to
Dodd-Frank that build on its strength and solve and improve weaknesses
in the legislation.
Mr. HENSARLING. Mr. Chair, I yield 1 minute to the gentleman from New
Jersey (Mr. Lance).
Mr. LANCE. Mr. Chair, I rise today in support of the Financial CHOICE
Act. In response to the Great Recession, Congress passed the Dodd-Frank
law. While well intentioned, various Dodd-Frank provisions and
regulations are actually encouraging some of the behavior that led to
the financial crisis.
The law permits Wall Street to receive bailouts and has constricted
credit lending for consumers and small
[[Page H4724]]
businesses. It has drastically hurt community banks throughout this
country, and they had absolutely nothing to do with the financial
crisis. Two thousand community banks have closed nationwide since Dodd-
Frank, including 42 in New Jersey.
Dodd-Frank has institutionalized too big to fail for Wall Street,
while telling community banks on Main Street that they are too small to
succeed.
Congress agrees on the need for strong regulation of our financial
system. The Financial CHOICE Act will bring balanced reform to our
Nation's financial institutions.
Ms. MAXINE WATERS of California. Mr. Chair, I yield 1 minute to the
gentlewoman from Ohio (Mrs. Beatty), a member of the Financial Services
Committee.
Mrs. BEATTY. Mr. Chair, I thank Ranking Member Waters for yielding me
time.
I stand here and I join my colleagues in opposition to the Financial
CHOICE Act. It is the wrong act. And let me just say this to you:
Certainly, it does not provide choice nor does it create hope and
opportunity for investors and for consumers and for entrepreneurs.
I am from the great State of Ohio, and you may have a sign that says
people are for it; I have letters from ProgressOhio; I have letters
from Policy Matters Ohio; I also have a letter here from the National
Consumer Law Center, Advancing Fairness In The Marketplace For All. Let
me just tell you what they are saying. They are saying that it is
breathtaking--the assault on hardworking Americans, the assault on
businesses that want to level the playing field to improve the economy.
Mr. Chair, this is ridiculous that we stand here. If it was such a
good choice, we would have had more meetings on it. If it was such a
good choice for hardworking Americans, then we would have worked with
Republicans and Democrats to make it a fair choice, to make it a right
choice. But I stand here today and tell you it is the wrong choice for
consumers. It is the wrong choice because it eviscerates the Consumer
Financial Protection Bureau. It is against the people, and it is not
for hardworking Americans.
Mr. HENSARLING. Mr. Chair, I yield 1 minute to the gentleman from
Indiana (Mr. Messer), a member of our committee and chairman of the
Republican Policy Committee.
Mr. MESSER. Mr. Chairman, despite the rhetoric and whatever its
intentions, since Dodd-Frank's passage, big bank profits are shattering
records, and home ownership is down, way down, to the lowest level seen
in over 20 years. Car loans and small-business loans are much harder to
get, too. Simply put, Dodd-Frank has been great for Federal regulators
and even big banks but very bad for Hoosier consumers.
The Financial CHOICE Act changes that. It ends too big to fail and
enables Hoosier financial institutions to escape the one-size-fits-all
regulatory regime of Dodd-Frank. That will help hardworking Hoosiers
get more affordable loans.
The Financial CHOICE Act also includes my bill, the RIGHTS at the
CFPB Act, which ensures that anyone pursued by this Federal agency will
have their rights protected and get their day in court.
I urge support of the Financial CHOICE Act.
Ms. MAXINE WATERS of California. Mr. Chair, we have already debunked
what we have been told by the opposition about the oversight, CFPB's
supervision and enforcement. Of course, we have told you about that.
Let's take a moment to tell you that community banks have showed
strength in residential, commercial, industrial loans, and small-
business lending. In fact, overall loan growth at community banks has
been faster than at bigger banks. In the fourth quarter of 2016,
lending was up 8.3 percent for community banks and 4.8 percent for
larger banks.
Mr. Chair, with that, I yield 1 minute to the gentleman from Illinois
(Mr. Foster), a member of the Financial Services Committee.
Mr. FOSTER. Mr. Chair, I thank Ranking Member Waters for yielding me
time and for her leadership on this.
Nine years ago, I was there, in 2008, when our financial system
collapsed, as a new Member of Congress, the sole scientist on the
Financial Services Committee. And as we surveyed the wreckage of our
economy, I wondered how we ever could have gotten into a place like
that with our financial system clogged with toxic assets based on
trillions of dollars of mortgages that never had any realistic chance
of being repaid by their homeowners.
We saw giant banks and trading firms leveraged beyond belief, huge
financial corporations so complex that they had thousands of business
units that even their CEOs were unaware of, and risk management
software that was being ignored, if it existed at all.
How could we have gotten there? But when I look at the CHOICE Act
that Republicans are about to ram through on a party-line vote, I
understand perfectly how we got there. I see all the same forces of
mindless deregulation and free market ideology, an overriding mania for
tax cuts for the rich, while stripping financial protection for
ordinary American families; the same refusal to learn the lessons of
financial history and to replace them with alternative facts that fit
their ideology.
Mr. Chair, I urge my colleagues to stand up for working families and
protect our economy by opposing this bill today.
Mr. HENSARLING. Mr. Chair, I yield 1 minute to the gentleman from
Colorado (Mr. Tipton).
Mr. TIPTON. Mr. Chair, I also want to thank Chairman Hensarling for
offering the legislation under consideration today.
The Financial CHOICE Act takes the necessary steps in reforming the
supervision of our financial system that the Dodd-Frank Act failed to
do. Among other provisions, this legislation requires financial
regulatory agencies to tailor regulatory actions to fit the risk
profile and business model of supervised institutions. Not only will
this ensure appropriately tailored compliance obligations for banks and
credit unions of various risk profiles, but it saves valuable time and
resources for bank examiners.
As it stands now, community banks are facing an ever-increasing
regulatory burden that they can no longer shoulder. This has had a
devastating impact on small banks, forcing consolidation or failure and
stifling the creation of new banks in areas that need access to credit.
In December 2015, a report by the Dallas Fed highlighted this
problem, noting that the regulatory environment tends to be one-size-
fits-all and concluding that the regulatory oversight should match the
risk level an institution poses to the financial system and the economy
at large.
The CHOICE Act will stop the trend of increasing compliance costs and
decreasing financial services.
Mr. Chair, I thank the gentleman from Texas (Mr. Hensarling) for his
tireless efforts on this legislation and urge my colleagues to support
it.
Ms. MAXINE WATERS of California. Mr. Chairman, may I inquire as to
how much time I have remaining?
The ACTING CHAIR (Mr. Rodney Davis of Illinois). The gentlewoman from
California has 21 minutes remaining, and the gentleman from Texas has
15 minutes remaining.
Ms. MAXINE WATERS of California. Mr. Chairman, since it has been
asked about who opposes this bill, I wanted to make sure that we
include in our information to them the religious organizations. The
Congregation of St. Joseph, the Seventh Generation Interfaith Coalition
for Responsible Investment, the Dominican Sisters of Houston, the
Sisters of Mercy, the Interfaith Center on Corporate Responsibility,
the Christian Brothers Investment Services, the National Association of
Evangelicals, the American Baptist Home Mission Society, and the Mercy
Investment Services all urge a ``no'' vote on this terrible bill.
Mr. Chairman, with that, I yield 1 minute to the gentleman from
Washington (Mr. Heck), a senior member now--he has been there for a
while--of the Financial Services Committee.
Mr. HECK. Mr. Chair, I am voting ``no'' on the ``Wrong'' CHOICE Act.
All of us are. Just like healthcare, this legislation takes the
approach that the best way to proceed is with the most extreme bill
possible, a bill that attracts no Democrats and even makes moderate
Republicans deeply uncomfortable.
One reason, the Dodd-Frank Act set up an office at CFPB to protect
servicemembers. That office, initially led by Holly Petraeus, has done
great work
[[Page H4725]]
in educating and fighting for servicemember families. I have worked
with Republicans for years to support and enhance it.
This bill makes that office optional. And it specifically strips the
funding for its financial counseling project. That is appalling. It
hurts my constituents, and, again, it makes my Republican friends
deeply uncomfortable. It is one of scores of provisions that make clear
this isn't a bill designed to help Americans. It is an ideological
document. It hurts men and women in uniform. And oh, by the way,
millions of others. It is a terrible approach.
Please vote ``no'' on the ``Wrong'' CHOICE Act.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Texas (Mr. Williams), my friend and neighbor.
Mr. WILLIAMS. Mr. Chairman, I thank Chairman Hensarling for his
leadership on this issue.
Mr. Chair, the Consumer Financial Protection Bureau has cost American
small businesses, American entrepreneurs, and the American taxpayers
millions of dollars in regulatory costs since the inception.
I actually own a business. I am a small-business owner, and I can
tell you it is horrible legislation. And although this rouge and
unaccountable agency hides behind the false pretense that its actions
protect consumers, there could be nothing further from the truth.
Take, for example, the ability to exempt small community financial
institutions from any rule they impose. In fact, Dodd-Frank gives them
explicit authority to do so. Yet because they lack congressional
oversight, because they have a director who cannot be removed at will,
they simply do absolutely nothing.
Mr. Chair, if my colleagues are looking for a reason to vote for this
bill, they should look no further than the reforms that helped rein in
the CFPB.
Specifically, I am happy to see the committee-incorporated provision
I introduced last Congress which would apply the REINS Act to all
financial agencies, including the CFPB.
Over the last 12 years, $55 billion in regulatory costs have been
levied by our financial agencies, and this must end, and it must end
now.
Again, the Financial CHOICE Act is a win for American taxpayers. It
is purely a win for Americans who are sick and tired of the heavy hand
of Washington.
Mr. Chair, I urge all my colleagues to support this bill.
In God we trust.
Ms. MAXINE WATERS of California. Mr. Chairman, the Members on the
opposite side of the aisle have come here talking about what they are
doing for small banks and how they are against the big banks. Let me
tell you about a letter that was sent yesterday, June 7, from the
American Bankers Association. They said: ``We are pleased that this
legislation contains provisions that ABA and our member banks have long
supported.''
Who are their members? JPMorgan Chase, Wells Fargo, Citigroup, Bank
of America. Wall Street loves this bad bill.
I yield 1 minute to the gentleman from Minnesota (Mr. Ellison), a
senior progressive champion of the Financial Services Committee.
{time} 1400
Mr. ELLISON. Mr. Chairman, I thank the ranking member for yielding.
Since Dodd-Frank's passage, the economy has created over 16 million
jobs over 85 consecutive months. Business lending has increased 75
percent. Banks, large and small, are posting all-time record profits,
community banks are outperforming larger banks, and credit unions are
expanding their membership. And because of the work of the Consumer
Financial Protection Bureau, 29 million people have seen $12 billion
back into their pocket and not into those of improper and illegal
practicing financial services firms.
Do you want to know why we have the ``Wrong'' CHOICE Act before us
today?
Because they want the money. Not the $12 billion that went back to
the 29 million veterans and farmers and students and citizens and
people who need that kind of help for their families. They want that
money going back to the big financial interests.
And that is the purpose of the ``Wrong'' CHOICE Act. It is between
the many and the money, and the ``Wrong'' CHOICE Act stands firmly on
the side of those who would line their pockets in the top 1 percent.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Maine (Mr. Poliquin), a real workhorse of the Financial Services
Committee.
Mr. POLIQUIN. Mr. Chairman, I thank the chairman for yielding.
Mr. Chairman, I represent the most honest, hardworking families in
this country, in the great State of Maine. I also represent tens of
thousands of small-business owners in our State that create thousands
of jobs for our families.
In the State of Maine, Mr. Chairman, we know the difference between
right and wrong, and it is wrong to force taxpayers to bail out huge
Wall Street banks that take too much risk when it goes wrong. Now, the
small community banks and credit unions that dot our landscape in Maine
did not cause the most recent recession.
These reforms that we are passing today in the Financial CHOICE Act
reduce unnecessary paperwork and costs that will help our small
community banks and credit unions lend money to small businesses and
our families so they can live better lives with more freedom and have
better job opportunities.
Also, I am proud to say that the Financial CHOICE Act keeps in place
very strong protections, Mr. Chairman, for consumers of financial
services while at the same time imposing the toughest penalties ever
for fraud and inside dealings for folks that participate in this
industry.
It is no wonder, Mr. Chairman, that huge money center banks and Wall
Street are not for the Financial CHOICE Act. But I am, and I encourage
everybody to vote for this Financial CHOICE Act. It is a great bill for
rural America.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Texas (Mr. Gonzalez), a new member of the Financial
Services Committee.
Mr. GONZALEZ of Texas. Mr. Chairman, I thank Ranking Member Waters
for yielding.
Mr. Chairman, today I rise in opposition to H.R. 10.
While this bill may contain some language that I would agree with and
that is helpful to our community banks, as well as some of our credit
unions, it would be very harmful to our seniors and the elderly.
Additionally, the Financial CHOICE Act, as written, would be dead on
arrival in the U.S. Senate and a monumental waste of time for this
Chamber. As a public servant, we are called to serve the citizens of
our great Nation, those who raised us; those who consistently told us,
``it is more important to have the will than to have mere ability,''
``hace mas el que quiere que el que puede;'' those who forged a new
path and a better way of life.
One of the best measures of a nation is how it cares for its elderly.
As a country, we made a promise to our elderly, to protect them and
ensure that they would have reliable access to resources, and the
support they need to live a dignified life in their later years.
In my book, a promise made should be a promise kept.
Today, my colleagues in support of the ``Wrong'' CHOICE Act seek to
renege on this promise and leave millions of elderly Americans
vulnerable to financial exploitation schemes. One in every five
Americans have been victims of financial abuse, accounting for a cost
of over $36 billion annually. We cannot abandon our elderly when their
resources and, ultimately, their independence is threatened. We must
stand with them and enable the Consumer Financial Protection Bureau to
continue to protect our elderly.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentlewoman
from Utah (Mrs. Love), an incredibly talented member of the Financial
Services Committee.
Mrs. LOVE. Mr. Chairman, I rise in support for the Financial CHOICE
Act, and I urge a vote for it.
America's workers, farmers, businesses, households, savers, and
investors all deserve the flexibility and access to credit that the
Financial CHOICE Act puts in place for our financial system.
[[Page H4726]]
As a former mayor, I know that families, cities, and counties need
access to credit. Whether it is a city that wants to build a library or
a community park, or a family that wants to buy a house, or the farmer
that needs a new tractor to plow her field, we need a financial system
that is strong, innovative, but, most of all, accessible.
Right now, under Dodd-Frank, that isn't the case. For example, one of
my constituents in Utah owns a catering business that is very
successful, but the growth of her company has been stunted because she
ran into red tape and delays after applying for a small business loan.
That is not how things should work. Community banks, which provide
the majority of small bank loans, are closing at the rate of one per
day. Middle- to low-income Americans are getting higher fees, less
consumer service, and less access to credit than ever before.
Everyone deserves a chance to realize their version of the American
Dream, and the Financial CHOICE Act is a bold step toward achieving
that dream.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Florida (Mr. Crist), a new member of the Financial
Services Committee.
Mr. CRIST. Mr. Chairman, I thank the ranking member for her strong
leadership in this fight against the ``Wrong'' CHOICE Act.
The bill before us is broken. I was Governor of Florida when the
financial crisis and foreclosure crisis rolled through my State like a
hurricane. Unrestrained greed on Wall Street caused a preventable
disaster because at no point did anyone say: This is simply wrong.
I remember 2008 and 2009: the bailouts, the foreclosures, and the
long, painful road to recovery. The financial crisis exposed a broken
regulatory system, allowing Wall Street to gamble with Main Street's
future.
With this bill, Members are being asked to again trust the very
people who brought us to this financial crisis. Don't put them back in
charge. Do not let them do it again. Please vote ``no.''
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Arkansas (Mr. Hill), the Financial Services Committee whip.
Mr. HILL. Mr. Chairman, I thank the chairman for his leadership in
guiding the Financial CHOICE Act through the Financial Services
Committee and the House.
Mr. Chairman, I include in the Record a letter from the Arkansas
State Bank Department, and an article by the Arkansas Bankers
Association entitled ``Disappearing Community Banks.''
Arkansas State
Bank Department,
May 1, 2017.
Hon. Jeb Hensarling,
Chairman, House Committee on Financial Services, Washington,
DC.
Hon. Maxine Waters,
Ranking Member, House Committee on Financial Services,
Washington, DC.
Dear Chairman Hensarling and Ranking Member Waters: I am
writing in support of H.R. 10, the ``Financial CHOICE Act of
2017.'' As a state bank regulator, I have seen the huge
burden Dodd-Frank Act of 2010 has placed on community banks.
Since the financial crisis, several community banks in
Arkansas have curtailed or discontinued lending activities--
particularly, residential mortgages--which has been
detrimental to the consumers they serve. In addition, the
number of small community banks in our state and across the
country has decreased, primarily through mergers with larger
banks better equipped to handle Dodd-Frank's onerous
compliance regimen.
I believe the Financial CHOICE Act will address a number of
issues which will improve the business climate for community
banks. In particular, providing broad regulatory relief to
banks with an average leverage capital ratio of at least 10
percent will enhance our community banks ability to serve the
public. With fewer financial and employee resources allocated
to compliance issues, community banks will be able to
increase lending to businesses and individuals, which will
stimulate much-needed economic growth in their communities.
Additionally, I strongly believe the leverage capital ratio
is a better standard by which to assess a bank's health than
risk-based measures.
Thank you for your work in advancing the Financial CHOICE
Act. I greatly appreciate your efforts to help community
banks.
Sincerely,
Candace A. Franks,
Commissioner.
____
[From the Arkansas Banker Association]
Disappearing Community Banks
(By Bill Holmes, President & CEO, Arkansas Bankers Association)
In 1994 I was working for the original Twin City Bank. We
were in a bank wide campaign to break a billion dollars in
assets. There were 260 banks headquartered in Arkansas.
Today, there are 103. If we continue to lose community banks
at the same pace our small businesses, home buyers and
farmers will have only a third of the bank choices they
enjoyed in 1994. This is a problem for our mostly rural
state. And it is not just a local problem, it is happening
across the country.
There are any number of reasons for this decline in
community banks. For the last ten years, the reason I hear
more than any other is the increasing cost of the federal
regulatory burden. The costs of complying with regulations
that should never have been intended for rural banks, the
costs of training more and more staff for compliance issues,
the cost of newly required software to feed a never ending
appetite for data.
I will grant you that after the financial crisis some
regulatory changes were necessary to improve financial
stability. But ten years later we've ended up with too many
regs that don't improve our banks, but do limit our bankers'
discretion and look to drive credit decisions to a score
sheet designed inside the beltway. Our community bankers have
decades of history on their customers, and have always been a
key to the economic growth in their communities. I don't
think the intent of these regulations was to limit the
growth, or limit the home buyers, in our state. But the fact
is it does. And, it is time to fix this.
Chairman Hensarling's The Financial CHOICE Act was recently
sent to the floor for a vote. It includes multiple changes
that our banking industry endorses, and we feel we need these
changes to help spur the economy. This legislation would ease
some requirements on mortgages that banks hold in their own
portfolios. This would let our bankers make many more loans
to self-employed businessmen, or entrepreneurs with unstable
incomes. The Act looks to tailor the regs and requirements
based on the risks and business types of each bank. We need
this to continue to give our customers more diversity and
more choices of where and how to bank.
The U.S. economy is unique. We need a healthy and broad mix
of banks to meet our customers' needs. From international
corporations, to the startup food truck, our bankers are
involved and are integral parts of our economy. If we cannot
get sensible reform in Washington, Arkansas's banking sector
will continue to shrink and become less diverse. Arkansans,
and all Americans, will pay the price in terms of less
lending and fewer opportunities for growth.
Mr. HILL. Mr. Chairman, in this debate today, let's hear what a
commissioner of banking from Arkansas says:
``I am writing in support of H.R. 10, the `Financial CHOICE Act of
2017.' As a State bank regulator, I have seen the huge burden Dodd-
Frank Act of 2010 has placed on community banks. Since the financial
crisis, several community banks in Arkansas have curtailed or
discontinued lending activities--particularly, residential mortgages--
which has been detrimental to the consumers they serve.''
That is a compelling endorsement of this bill from a regulator, Mr.
Chairman, not from a Member of Congress.
And when you look at working families in Arkansas, recently I was
told about an Army National Guard member from north Little Rock, in my
district, who was informed that he would not receive a home to purchase
a manufactured home that would have been twice as large and less
expensive than the 60-year-old house he was renting for his family.
Or a hairstylist from Nevada County, who I received a letter from.
She and her husband, a welder, were denied a loan to purchase a new
home, despite having verifiable income.
That is why we need to repeal, replace, and pass the Financial CHOICE
Act.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Nevada (Mr. Kihuen), a new member of the Financial
Services Committee.
Mr. KIHUEN. Mr. Chairman, I thank the ranking member for yielding me
time and for her tireless work on behalf of working families in
America.
Mr. Chairman, the Financial CHOICE Act is nothing more than a
misguided attempt to return to the days where bad actors could put the
entire financial system at risk.
There is bipartisan support to provide regulatory relief for
community banks and credit unions. Just last
[[Page H4727]]
week, I met with credit unions in my district, and they talked about
the need for thoughtful, tailored regulation. Unfortunately, that kind
of thoughtful reform is not what is before us today.
Instead, we have a bill before us that is a fundamental attack on
working families in America. This bill will make it harder to go after
bad actors in the financial markets by hamstringing regulators, and
would completely gut the Consumer Financial Protection Bureau. It would
eliminate important programs that ensure that taxpayers will not be on
the hook for future bailouts. And it makes our financial system a whole
lot less secure.
The district that I represent was one of the hardest hit in the
entire country during the financial crisis. My constituents sent me
here to ensure that we don't repeat the mistakes of the past, which is
exactly what this bill does.
Mr. Chairman, this bill has been named the Financial CHOICE Act, and
I think it is a fitting name.
Each of us here today has a simple choice to make: Do we side with
the working families of America? Or do we side with the big
corporations and the special interests?
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Minnesota (Mr. Emmer), another hardworking member of the Financial
Services Committee.
Mr. EMMER. Mr. Chairman, I thank the chairman for yielding.
Nearly 7 years ago, the American people were promised that the Dodd-
Frank Wall Street Reform and Consumer Protection Act would end
Washington bailouts, protect consumers, and lead to a more prosperous
economy.
Instead, the big banks and the influence of the Federal Government
have continued to get bigger while smaller, local community banks and
credit unions are closing up shop and our country continues to struggle
with anemic levels of economic growth.
This is why the Financial CHOICE Act is so important. This
legislation gives us an opportunity to return the power to the ``little
guy or gal'' who wants to create a better life for themselves and, by
doing so, for all of us.
It takes steps to end the failure of excessive and redundant
bureaucracy, and it will give our entrepreneurs the opportunity to
access the startup capital they need to grow and thrive once again.
I am especially pleased that this bill includes provisions from my
Micro Offering Safe Harbor Act, the Home Mortgage Disclosure Adjustment
Act, and the Financial Stability Oversight Council Reform Act. These
three bills are important components of the Financial Services
Committee's broader intent of improving opportunity and accountability
for all. I appreciate the chairman's continued efforts to make this
goal a reality.
Mr. Chairman, I thank Chairman Hensarling for all of his work. I look
forward to supporting the Financial CHOICE Act, and I hope all of us
will do the same.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentlewoman from Florida (Mrs. Demings).
Mrs. DEMINGS. Mr. Chairman, do we have a role as Congress to protect
American families?
In my home State of Florida, it is hard to go anywhere without
meeting a family who was affected by the foreclosure crisis. Many not
only lost their homes, but their life savings.
Through Dodd-Frank, Congress created the Consumer Financial
Protection Bureau to go after the bad actors that made tough times
worse for homeowners in Florida by giving the Consumer Financial
Protection Bureau the authority to go after mortgage companies for
deceptive practices, threatening people who were behind on payments and
putting them into debt collection when they were eligible for loan
modification programs.
Dodd-Frank also allowed state attorneys general to file consumer
protection lawsuits against bad actors on behalf of families in their
States.
The Financial CHOICE Act would repeal these important consumer
protections and return us to a time when families were being unfairly
forced into foreclosure.
Mr. Chairman, we can't go back. This is America, where we take care
of our own, don't we? If Congress doesn't protect American families,
who will?
I urge my colleagues to do the right thing and to reject this bill.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Michigan (Mr. Trott), a new and very knowledgeable member of the
Financial Services Committee.
Mr. TROTT. Mr. Chairman, one of the consequences of the financial
crisis is the government had to step in with taxpayer dollars and bail
out the financial industry.
Once Dodd-Frank was enacted, however, we were told: Don't worry.
There will never be another bailout. Rest assured, the orderly
liquidation authority under title II will give the FDIC all the tools
it needs to resolve a failed financial institution.
Indeed, title II does give the FDIC the ability to borrow from the
Treasury all of the taxpayer dollars it needs to reorganize a failed
financial institution. That kind of sounds like a bailout to me.
The Financial CHOICE Act truly ends the risk of taxpayer-funded
bailout. Under the Financial CHOICE Act, a failed bank will go through
bankruptcy. Bankruptcy is a tested, transparent process. Judges sitting
in open court instead of unelected bureaucrats sitting behind closed
doors will make consistent, predictable decisions based on decades of
case law.
More importantly, bankruptcy puts the risk of failure on the bank's
shareholders and creditors, not the taxpayers.
I urge my colleagues to support the Financial CHOICE Act, and truly
put an end to the possibility of yet another taxpayer-funded bailout.
{time} 1415
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Pennsylvania (Mr. Cartwright).
Mr. CARTWRIGHT. Mr. Chairman, my colleagues have already done a good
job of talking in great detail about why this bill is really a festival
of bad choices, of wrong choices for America, but I want to focus on
one issue in particular: executive pay.
This ``Wrong'' CHOICE Act actually takes away provisions that rein in
irresponsible pay to executives, the very people who decide decisions
that get us into this entire mess in the first place.
Number one, this bill eliminates a rule barring incentive-based
executive pay that encourages ``inappropriate risks.'' It puts the
average American in danger of having to pay for another bank bailout.
Giving out bonuses for putting our national financial stability at risk
is flat wrong.
Number two, it eliminates a requirement for corporations to disclose
how their CEO's pay compares to the average employee's salary. This
bill eliminates transparency.
And number three, if you can believe it, this bill even abolishes a
rule requiring companies to disclose whether executives and board
directors are allowed to bet against their own stock. This bill takes
us back to the days of Enron.
I urge my colleagues to vote ``no'' on this irresponsible
legislation.
Mr. HENSARLING. Mr. Chairman, I am happy to yield 1 minute to the
gentleman from Georgia (Mr. Loudermilk), a new member of our committee.
Mr. LOUDERMILK. Mr. Chairman, today we know that a major factor
leading up to the worst economic crisis in our lifetime was the
heavyhanded and meddlesome politics of the Federal Government.
Unfortunately, the previous administration responded to that crisis
not by limiting the intrusion of the Federal bureaucracy, but by
increasing it. They implemented Dodd-Frank under the guise of
protecting the consumer, but, in reality, this bill empowered
government, created new bureaucracies, made the big banks bigger, and
virtually ended the creation of new community banks.
In the wake of the financial crisis, Georgia lost more banks than any
other State in the Nation. Unemployment skyrocketed, and hundreds of
businesses went under. But instead of creating opportunities for
Georgians to pick themselves up and start again, Dodd-Frank continued
to suppress our economic recovery, and today, nearly a decade after the
end of the recession,
[[Page H4728]]
there are still 47 counties in Georgia without a local community bank,
and 3 counties without a single bank branch at all.
The Financial CHOICE Act will reverse these burdensome regulations
and, once again, sow the seeds of prosperity on Main Street, not just
Wall Street. The bill will end bailouts of big banks by taxpayers and
unleash our economic potential by opening the economy to everyone.
I urge my colleagues to support the Financial CHOICE Act.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentleman from Texas (Mr. Doggett).
Mr. DOGGETT. Mr. Chairman, this bill is all about obstructing
effective law enforcement that challenges predatory payday lending,
that protects military families from unjustified foreclosures, and
addresses the burden of mounting student debt.
Republicans give Trump new power to fire the chief cop on the beat
who protects consumers against wrongful financial practices. We have
seen how well that worked with Trump and the FBI. Have you learned
nothing about giving Trump more power?
Without the Consumer Financial Protection Bureau, Wells Fargo would
never have been penalized for its multimillion-dollar fraud.
Republicans here want to shield Wall Street, granting it free rein to
run over people across America and later reward it with even more tax
breaks. They tolerate almost any wrongdoing, any crazy Trump tweet, so
long as they can get more tax breaks and less consumer protection.
Enough is enough. It is time to say no to this sorry bill and offer
protection to the people of America from financial wrongdoing.
Mr. HENSARLING. Mr. Chairman, may I inquire how much time is
remaining on either side?
The Acting CHAIR (Mr. Simpson). The gentleman from Texas has 8
minutes remaining. The gentlewoman from California has 12 minutes
remaining.
Mr. HENSARLING. Mr. Chairman, to better balance the time, I reserve
the balance of my time.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentlewoman from Illinois (Ms. Schakowsky).
Ms. SCHAKOWSKY. Senior citizens, beware of the Financial CHOICE Act.
This bill repeals the best interest rule, which ensures that Americans
that are saving for retirement get financial advice in their best
interest.
Bad advice has real costs. Steven, a 69-year-old Vietnam veteran in
Illinois, lost $147,000 in retirement savings when he got advice that
handsomely profited his so-called investment adviser but devastated
him.
This bill guts the Consumer Financial Protection Bureau, which
prevents financial exploitation of senior citizens.
In December, the CFPB took an action against three crooked reverse
mortgage companies that deliberately failed to tell seniors that they
could lose their homes.
The Financial CHOICE Act is dangerous. It is dangerous for older
Americans, it is dangerous for all Americans, and it is dangerous for
our entire economy. It puts us all at risk. It is the wrong choice for
America, and I urge my colleagues to vote ``no.''
Mr. HENSARLING. Mr. Chairman, I reserve the balance of my time.
Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to
the gentlewoman from Oregon (Ms. Bonamici).
Ms. BONAMICI. Mr. Chairman, I thank the ranking member for yielding.
I rise today in strong opposition to the Financial CHOICE Act because
it will gut the Consumer Financial Protection Bureau and roll back
important protections for seniors, for students, and for hardworking
families across the country.
The CFPB protects Americans from unscrupulous financial practices and
deceitful debt collectors. Since its creation, it has assisted more
than 29 million consumers, many of them seniors, with mortgages, credit
cards, and debt collection.
Unfortunately, seniors are especially vulnerable to financial fraud
and abuse. This bill would roll back the CFPB's ability to identify and
stop unfair and abusive debt collection and telemarketing practices;
and this harmful bill would also prevent the CFPB from cracking down on
predatory payday lenders who take advantage of struggling families by
issuing loans at exorbitant rates.
I worked as a consumer protection attorney, and I worked with too
many families there who lost their homes, too many seniors who were
harassed by debt collectors, too many people who were victims of
predatory payday lending and got into the quicksand and were not able
to get out. We cannot allow this shortsighted bill to stop the good
work of the CFPB.
This bill is called the CHOICE Act, but it is the wrong choice, and I
urge my colleagues to oppose it.
Mr. HENSARLING. Mr. Chairman, I reserve the balance of my time.
Mr. ELLISON. Mr. Chairman, I yield 1 minute to the gentlewoman from
California (Ms. Barragan).
Ms. BARRAGAN. Mr. Chairman, I rise today in opposition to the
``Wrong'' CHOICE Act. This bill has a hidden provision that strips away
oversight for payday lenders.
Payday lenders are like loan sharks, charging upwards of 400 percent
interest on loans. It is outrageous. They prey on vulnerable, low-
income borrowers who are already struggling to get by.
That is how Yesenia from California got trapped in a cycle of debt.
Her mother was diagnosed with breast cancer and lost her job, so
Yesenia had to take out a loan just to buy food. The payday lender
garnished her wages and charged sky-high interest rates and fees. She
ended up paying back thousands more than she borrowed, all because she
needed food for her and her mother.
Let's protect our workers and families. Let's not take away oversight
of this abusive loan industry. I urge my colleagues to oppose H.R. 10.
It is the wrong choice.
Mr. HENSARLING. Mr. Chairman, at this time I am pleased to yield 1
minute to the gentleman from New York (Mr. Zeldin), a new member of our
committee.
Mr. ZELDIN. Mr. Chairman, I rise in strong support of the CHOICE Act,
and I thank Chairman Hensarling for his strong leadership.
Imposing regulations meant for large, transnational firms on
community banks and credit unions may make sense to bureaucrats in
Washington, but to hardworking families on Long Island, it means you
can't buy that first home or you can't get that small-business loan.
Today we have the opportunity to remove the barriers to job creation
and prosperity that have given us the weakest economic recovery in
American history. The CHOICE Act will end taxpayer-funded bailouts,
restore accountability, and jumpstart innovation and job creation.
I strongly support this legislation, and I urge its adoption.
Mr. ELLISON. Mr. Chairman, I yield 1 minute to the gentleman from
Maryland (Mr. Sarbanes).
Mr. SARBANES. Mr. Chairman, in 2008 our financial system cratered,
bringing the broader world economy to its knees. Millions of Americans
lost their homes; millions more lost their jobs by no fault of their
own; and $13 trillion in wealth and savings was lost.
We went to work fixing the glaring holes in our Nation's financial
regulatory system. Among other things, we enacted tougher mortgage
standards; we brought the derivatives market out of the shadows; we
stopped the casino-like bets at our investment banks; and we created a
consumer-focused protection bureau.
Unfortunately, what we couldn't do was eradicate greed; and, sadly,
today greed is rearing its ugly head once again. The Republican-
controlled Congress is about to pass H.R. 10, the ``Wrong'' CHOICE Act,
a bill that would throw away the lessons of the 2008 financial crash
and unleash the demons that nearly took down the world economy.
I urge the House to reject this bill.
Mr. HENSARLING. Mr. Chairman, I am happy to yield 1 minute to the
gentleman from West Virginia (Mr. Mooney), another new member of our
committee.
Mr. MOONEY of West Virginia. Mr. Chairman, I rise today in strong
support of H.R. 10, the Financial CHOICE Act. This critical piece of
legislation rolls back onerous Obama-era regulations on the financial
services industry
[[Page H4729]]
that are strangling small businesses and hurting hardworking American
taxpayers.
As I held roundtables across West Virginia, I heard from small-
business owners and job creators that Obama-era regulations make it
harder for community banks to make loans to small businesses and first-
time home buyers.
The Financial CHOICE Act will remove stifling Federal regulations
from out-of-touch Washington bureaucrats and return financial
decisionmaking to you, the individual consumers and to the small
community banks.
I know that President Trump is committed to supporting the reforms in
the Financial CHOICE Act, and I look forward to continuing to work with
our President to grow our economy and bring much-needed relief to West
Virginia consumers and small-business owners.
I want to thank Chairman Hensarling and my colleagues on the
Financial Services Committee for their leadership on this important
legislation.
Mr. ELLISON. Mr. Chairman, I yield 1 minute to the gentleman from
Vermont (Mr. Welch).
Mr. WELCH. Mr. Chairman, I want to say to my Republican colleagues, I
have heard a lot of advocacy for the small banks. I am with you. Those
folks did not cause the Depression, and we have got to give them
relief.
But what this bill does is essentially use the good reputation of
those small lending institutions in all our communities to create an
opening for the bad actors that did cause this enormous recession, and
it invites them to go back to their bad old days.
The business model of our small banks is to help our folks in small
communities. The business model of some of the Wall Street banks is to
play casino poker with taxpayer money, and that is what happened. We
had institutions on Wall Street that were putting together packages of
bad loans that they shorted for one investor, and then they sold them
as AAA-rated, pension-worthy investments for pensions for our
firefighters and teachers. That is absolutely outrageous, and we are
allowing that to occur again.
We can help the small banks, and we should help the small banks, but
we shouldn't give a free pass.
Now, there is one good thing in this bill. I am glad, very glad to
see that the Durbin rule continues to exist. That was a crackdown. We
finally got some relief for our retailers on the transaction fees on
debit cards.
Mr. HENSARLING. Mr. Chairman, I am now very happy to yield 2 minutes
to the gentleman from North Carolina (Mr. Budd), a huge fighter for
freedom and a fighter against Federal price controls.
Mr. BUDD. Mr. Chairman, I draw a distinction between political costs
and real costs. In no city in the country are the political costs
treated as more real than Washington. But the truth is that for the
other 99 percent of the country, the real costs are what count.
{time} 1430
The real costs of the Durbin amendment have been amply documented.
Community banks have seen interchange revenue fall 20 percent. The low-
income consumer has seen his checking fees double. The small-ticket
merchant has seen his interchange cost increase.
For those of us who campaigned on a platform of free markets and
limited government, which is most of our party, I suggest that a
principle that is followed only when it costs nothing is not much of a
principle at all.
The principle that government shouldn't be setting prices, ended up
having a political price of its own. And for some, that was the only
reality of this debate. I only wish that I could say the same for the 1
million people the Durbin amendment has driven out of the banking
system.
Mr. Chair, I yield to the gentleman from Missouri (Mr. Luetkemeyer).
Mr. LUETKEMEYER. Mr. Chair, I thank the gentleman from North Carolina
for yielding to me and I associate myself with his remarks.
The Durbin amendment has not helped consumers and, in fact, has hurt
them. It has hurt small banks and credit unions. The only entities that
have benefited are the retailers, who, despite their promises to
Congress, have not lowered cost, and some studies even show that they
have increased cost.
Congress should not be in the business of price fixing. Price
controls will never work and will always have negative consequences. I
am committed to returning to free market principles that deliver real
results for consumers.
Mr. HENSARLING. Will the gentleman yield?
Mr. BUDD. Mr. Chair, I yield to the gentleman from Texas.
Mr. HENSARLING. Mr. Chair, I would like to thank both gentlemen for
their steadfast leadership on this issue. Basic economics tell us that
when government fixes market prices, consumer welfare suffers. So it is
not a surprise that researchers have found that the Durbin amendment
resulted in a net loss of perhaps $25 billion for consumers.
But in a larger sense, what we have is a legal dispute between two
parties. This is an issue that belongs in the courts, not Congress,
which is why we sought to repeal the Durbin amendment.
I remain hopeful that Congress will correct this mistake, and I will
work towards that goal in the future.
Mr. ELLISON. Mr. Chair, I yield myself such time as I may consume.
One of the elements of the ``Wrong'' CHOICE Act that is particularly
troublesome to me--and there are many--has to do with the ``Wrong''
CHOICE Act repealing section 953(b) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
Now, people watching this debate, Mr. Chair, might find that to be
just legislative talk, but it is substantively, really important.
Section 953(b) was a hard-fought victory for investors, consumers,
workers, and the general public. Mr. Chair, the law requires that
publicly traded firms disclose the ratio between what they pay their
CEO and what they pay their median worker.
I think this is important information. A CEO of an S&P 500 company
makes, on average, about $331 for every $1 a typical rank-and-file
worker makes. In some companies, this ratio can reach as high as
$1,000-to-$1. Investors should be able to consider if a CEO provides
hundreds of times more value to their employees before investing in a
firm. Actually, exorbitant CEO pay, excessive CEO pay, can impact
dividends. It can impact all kinds of decisions, lead to risk taking,
and it is a good idea for investors and the general public to know that
information.
So while executives are making critical decisions about the direction
of their companies, quality employees ensure those decisions are being
properly implemented.
This pay ratio information benefits investors by giving them valuable
information for ascertaining whether or not a company's employees are
being treated fairly and, therefore, able to retain employees; whether
or not it is a stable company, and a company that values its people.
The ratio helps them to decide how to cast their say-on-pay advisory
votes on executive compensation. And research shows that the higher the
CEO-to-median-worker pay ratio, the more likely the CEO is to pursue
the kind of risky investments that brought the global financial crisis
to bear.
Institute for Policy Studies found that nearly 40 percent of the CEOs
on their top 25 highest paid list over a 20-year period wound up being
fired, sought a bailout, or were forced to pay fraud-related fines.
Moreover, a lower ratio of CEO-to-median-worker pay, implies more
investment in human capital, and a longer-term outlook on the
corporation.
According to the Center for Audit Quality's annual investor survey,
46 percent of investors say they consider CEO compensation in their
decisionmaking.
The current culture of paying CEOs hundreds of times--and even
thousands in some limited cases--more than typical employees hurts
working families, is detrimental to employee morale, and goes against
the research which shows us what is best practice.
Mr. Chair, I reserve the balance of my time.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Tennessee (Mr. Kustoff), a new member of our committee.
Mr. KUSTOFF of Tennessee. Mr. Chair, I rise today in support of H.R.
[[Page H4730]]
10, the Financial CHOICE Act. For 7 years now, Dodd-Frank has stalled
our economic growth. While community banks and credit unions did not
cause the recession, they have carried most of the burden following the
crisis.
These smaller financial institutions are the lifeline of local
businesses, farmers, entrepreneurs, and anyone striving for true
financial independence. The Financial CHOICE Act will bring relief from
onerous rules and regulations that have hamstrung the ability to loan
and to borrow money.
Once businesses can access more capital, they will be able to grow,
hire more employees, contribute more to their communities.
I want to thank Chairman Hensarling and this committee for working
tirelessly to bring the American people the relief that they need.
Mr. Chair, I urge all of my colleagues to support this important
legislation.
Mr. ELLISON. Mr. Chair, I yield 1 minute to the gentlewoman from
California (Ms. Lee).
Ms. LEE. Mr. Chairman, I want to thank the gentleman for yielding and
for his most diligent work on behalf of the American people, and also
to our ranking member, Congresswoman Maxine Waters. I just want to
thank her for really educating this House and the public of the dangers
to consumers of this horrible bill, of course, which I stand in
opposition to.
It really is a wrong choice for American families. Shamefully, this
bill gives Wall Street a handout while stealing from the pockets of
everyday Americans. It would drag us back to the days where Wall Street
and billionaires get richer, while struggling families are left out in
the cold.
The bill significantly undermines both the Consumer Financial
Protection Bureau and the rules it put in place to prevent predatory
lending and subprime loans, particularly in communities of color.
Families lost a generation of wealth prior to Dodd-Frank and have yet
been able to recover.
But this bill also, I must say, puts Wall Street recklessness back in
charge, and it will leave consumers out in the cold again. So it will
take us back to where we were before, and we cannot go back.
That is why we are asking for a ``no'' vote. It destroys protections
for seniors and jeopardizes their financial safety. So I hope that
Members vote ``no'' on this bill.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentlewoman
from New York (Ms. Tenney), another new member of the committee.
Ms. TENNEY. Mr. Chair, I thank Chairman Hensarling for this important
bill. I rise today in support of H.R. 10, the Financial CHOICE Act.
As a single parent and small-business owner, I know from my own
experience that the only way for hardworking Americans to achieve
financial independence is by building an economy from Main Street up,
not Wall Street down.
The CHOICE Act not only imposes the toughest penalties in history for
financial fraud on Wall Street, it saves taxpayers $30 billion. The
CHOICE Act also eliminates taxpayer-funded bailouts while providing
choices for consumers and a real opportunity for economic growth.
As an upstate New Yorker, our region suffers from economic challenges
caused by excessive regulations, such as the Dodd-Frank Act, that have
crushed small businesses. Yet small businesses create nearly 70 percent
of the new jobs. This bill will increase access to capital for small
businesses and startups--our job creators. It will increase job
opportunities and positively benefit New York's 22nd District.
Mr. Chair, I urge all of my colleagues to vote to support our job
creators and to vote for the Financial CHOICE Act.
Mr. ELLISON. Mr. Chair, I yield myself such time as I may consume.
Mr. Chair, does it make sense that, after 8 years of a piece of
regulation, Dodd-Frank, that has brought us increases in GDP, increases
in jobs, and stability in financial markets, that we would now repeal
that piece of legislation to go back to a time when we saw that
deregulation strategy bring us the Great Recession?
It just doesn't make any sense to take the position that what we need
is more wide open, Wild West, you are on your own kind of financial
rules and laws in our country.
The fact is, before Dodd-Frank was passed, we had an abysmal consumer
protection system. We really had seven or eight different agencies that
were sort of responsible, but not really. Consumer protection was not a
priority of the Federal Government. And as a result of it, we saw a
proliferation of mortgages that got people who really couldn't handle
that particular mortgage that they got, or the products were just
fraudulent, get into a situation where they ended up going into
foreclosure.
We saw the secondary market package up some of these bad mortgages.
We saw rating agencies say that these were good equity products, and
when these products started to fail, what we saw is that those big
banks that trafficked in those equities get bailed out, and we saw
citizens lose their homes.
The fact is, going back to those bad old days is just a bad idea--to
bring us back to a time when we didn't have any consumer protection,
when we didn't have any responsibility placed on the shoulders of
management, when we didn't say that we were going to look after these
rating agencies, and we didn't say that these systemically important
large institutions were going to get a little bit more scrutiny.
Before the time that we did that, we saw ruin in the economy. Let me
just remind the American people: we had many States with unemployment
above 10 percent because of the deregulation, laissez-faire attitude
that prevailed in the American financial services legal system.
Those bad old days nearly ruined so many families, and they are just
now starting to recover. But under Dodd-Frank, we have seen month after
month of private sector job growth. We have seen economic activity
increase. Fast enough for me? No. I think we need much more.
But with over $170 billion in record profits from 2016, I can tell
you one thing: this claim on the other side that the banks and
financial services sector is being crushed simply isn't a true
statement. It is just not right.
Business lending is up 75 percent since Dodd-Frank. Data from the
Federal Reserve shows aggregate bank lending has increased from about
$1.2 trillion, in 2010, to $2 trillion in outstanding business loans.
Vote ``no'' on the ``Wrong'' CHOICE Act.
Mr. Chair, I yield back the balance of my time.
Mr. HENSARLING. Mr. Chairman, I yield myself such time as I may
consume.
We have now had 7 years of history with Dodd-Frank, and what do we
know? We know that the big banks are bigger. We know that the small
banks are fewer. The gentleman cites some statistics about lending, but
what he left out is, we are losing a community bank or credit union a
day, and they are not dying of natural causes. They are dying of the
dreaded Dodd-Frank disease.
Our small businesses continue to suffer. It takes small banks to lend
to small businesses. The job engine of America and small bank business
lending isn't recovering, and it can't recover, as long as Dodd-Frank
is on the rolls of the Federal Register.
I got to tell you, Mr. Chairman, it is time. It is time for a better
way. It is time to help our struggling families. That is really what
this is all about. We have had 7 years of Dodd-Frank, and yet working
Americans haven't received a pay increase. Their small businesses can't
get loans. Struggling families have not seen their savings recover from
the great financial panic which, oh, by the way, was brought about by
government in the first place, with dumb regulation to put people into
homes they couldn't afford to keep.
And let's also remember that Dodd-Frank is actually hurting the
consumers it claims to help. Free checking was cut in half. Credit
cards, there are fewer of them. They cost 200 to 300 basis points more.
Have you tried to get a mortgage lately? They are harder to come by.
They cost hundreds of more dollars to close.
Instead, what we have is, Washington elites now making the decision
on whether or not we get to put a credit card in our wallet, whether we
get to put a mortgage on our home.
No, Mr. Chairman, there is a better way. It is why we must enact the
Financial CHOICE Act. There will be economic growth for all, bank
bailouts for none, and we will, once again, have an America that is
only limited by the size of its dreams.
[[Page H4731]]
Mr. Chair, I encourage all to support the Financial CHOICE Act.
Mr. Chair, I yield back the balance of my time.
Mr. PASCRELL. Mr. Chair, prior to 2010, banks lending to consumers
operated with too little oversight and often exploited the lack of
rules to turn a profit at any cost. We saw the dire consequences in the
2008 financial crisis. The Consumer Financial Protection Bureau was
created to enforce laws and protect consumers in the marketplace. Their
mission is to root out deceptive and abusive practices. And so far, the
agency has returned $11.8 billion to consumers from enforcement against
abusive practices from banks, lenders, and financial companies.
I challenge any member of this body to go to one of their
constituents and ask whether or not they would like a consumer watchdog
to stand up for them against abuses from big banks, or if they'd like
us to leave them to go it alone.
The CFPB has already returned $11.8 billion to more than 29 million
consumers. That is $11.8 billion dollars that went back into the
pockets of 29 million of our constituents. A vote for this legislation
is a vote against those 29 million consumers who have been helped by
the CFPB's actions.
In my home state of New Jersey, one resident held a mortgage with
Citibank, who failed to report accurately the status of a closed
account and incorrectly reported it as late. A complaint was submitted
to the CFPB and when they intervened, the issue was resolved and the
late mark removed.
Stories like these are not uncommon. Decisions like these can impact
a consumer's credit for life and cause tremendous distress. Before the
CFPB, consumers facing deceptive practices could go ignored by mega-
banks and lending institutions. But when a government agency with
enforcement powers gets involved, these banks pay attention. They can't
ignore the CFPB.
When the cards are stacked against the everyday consumer, the need
for the CFPB is a no-brainer.
The New York Times this morning reported that the President's pick to
oversee the nation's largest banks, Joseph Otting, formerly ran
OneWest, which has been criticized for ``robo-signing'' foreclosure
documents in the wake of the financial crisis. If Mr. Otting didn't
protect consumers when he ran a mortgage lender, why would he protect
them as Comptroller of the Currency?
Especially in this Administration, we need an independent consumer
watchdog that can act without the influence of politics on behalf of
consumers. Some would choose to erode this bulwark of protection
against the big banks but it is needed now more than ever. Mr. Chair,
this vote is a clear marker of who you stand with: I stand on the side
of my constituents in urging a no vote.
Mr. DeFAZIO. Mr. Chair, In 2008, Wall Street's criminal behavior
drove the economy into the greatest financial crisis since the Great
Depression, creating the grossly unbalanced playing field that is our
economy today. In response, Congress passed the Wall Street Reform and
Consumer Protection Act (Dodd-Frank) in 2010. While Dodd-Frank fell
short on major banking reforms, I supported it because it was better
than no reforms at all.
I am appalled that House Republicans pushed through the Financial
CHOICE Act, which would gut major provisions of Dodd-Frank and allow
Wall Street to return to the same reckless practices that occurred
before the law was passed. The Financial CHOICE Act removes the
watchdog from Wall Street, opening the door to destructive trading at
the expense of pension funds, value investors, and average Americans.
Additionally, those on Wall Street who broke the law and used
Americans' investments as a casino should be held accountable for their
deceptive actions, including jail time. Yet, to this day, no Wall
Street executive has seen jail time for the damage they did on our
financial system. Instead, Wall Street executives are being rewarded
with powerful jobs in the Trump administration.
It is outrageous that Republicans want to allow the banking sector to
return to ``business as usual'' with dangerous financial products and
high-speed speculation. We need stronger, not weaker, financial
reforms, which is why I'm taking on reckless Wall Street trading with
my `Putting Main Street FIRST Act' legislation to discourage
speculative trading by imposing a tax of a fraction of a percent on
stock, bond, and derivative trades. Congress should be fighting for the
interests of the American people, not Wall Street.
Ms. JACKSON LEE. Mr. Chair, I rise today to speak in opposition to
H.R. 10, the ``Financial CHOICE Act of 2017''.
I agree with Ranking Member Maxine Waters by calling this bill the
``Wrong'' CHOICE Act. H.R. 10 is a misguided anti-regulatory bill that
will only diminish national efforts to protect and secure the financial
stability of our nation.
H.R. 10 is ill-conceived, destroying key financial regulations and
consumer protections put in place by the Dodd-Frank Wall Street Reform
and Consumer Protection Act.
H.R. 10 aims to deregulate a financial system that has failed to
regulate itself in the past leading to the financial crash of 2008.
The nation still feels the reverberations of that crisis to this day.
We all remember the foreclosures, the neighborhoods and communities
financially devastated, the jobs lost, and the retirements deferred.
Americans lost $13 trillion in household wealth, 11 million Americans
lost their homes, and the unemployment rate climbed to 10 percent.
This bill is inherently paradoxical because it claims to promote
self-accountability on Wall Street, by taking away governmental
regulations on financial institutions, but that is not the nature of
the beast.
As evidenced by a very recent past, if given the opportunity, Wall
Street runs rampant with greed and disregard for the citizens of our
country.
After the 2008 financial crash, Congress enacted legislation to
protect those that are most vulnerable and to help the country regain
its rightful place in the economic system.
H.R. 10 attempts to halt the progress made to protect our economy and
puts our entire nation's economy at risk of another crisis by launching
an attack against the Consumer Financial Protection Bureau (CFPB), an
institution designed to ensure a financial crash such as the 2008
crisis does not occur again.
CFPB is an effective government institution that has returned nearly
$12 billion to consumers cheated by banks and other financial
institutions.
This bill strips the bureau's ability to stop unfair and abusive
practices perpetuated by financial institutions by removing the
bureau's political independence, threatening its funding and crippling
its ability to ensure Americans' financial welfare.
Taking away CFPB's power is harmful to consumers and small investors,
those whose life savings and futures depend on the protections that
Congress provides.
People of color and low-income families remain especially vulnerable
to the abuse perpetuated by financial institutions.
Houston, home to some of the most diverse population in the nation,
would see direct consequences. H.R. 10 would risk the livelihood of
many living in Houston.
The ``Wrong'' CHOICE Act abandons hard working people and aids Wall
Street in the abuse of hard working Americans, jeopardizing the
financial stability of the entire nation.
The ``Wrong'' CHOICE Act will drag us back to the days when lax
lending, predatory practices and profiteers on Wall Street take
advantage of vulnerable American families.
We must not return to the days when massive taxpayer bailouts were
the norm.
We must not put our financial stability in jeopardy of another
financial meltdown.
{time} 1445
The Acting CHAIR. All time for general debate has expired.
Pursuant to the rule, the bill shall be considered for amendment
under the 5-minute rule.
In lieu of the amendment in the nature of a substitute recommended by
the Committee on Financial Services, printed in the bill, it shall be
in order to consider as an original bill for the purpose of amendment
under the 5-minute rule the amendment in the nature of a substitute
printed in part A of House Report 115-163. That amendment in the nature
of a substitute shall be considered as read.
The text of the amendment in the nature of a substitute is as
follows:
H.R. 10
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
Sec. 1. Short title; table of contents.
Sec. 2. Directed rulemaking repeals.
TITLE I--ENDING ``TOO BIG TO FAIL'' AND BANK BAILOUTS
Subtitle A--Repeal of the Orderly Liquidation Authority
Sec. 111. Repeal of the orderly liquidation authority.
Subtitle B--Financial Institution Bankruptcy
Sec. 121. General provisions relating to covered financial
corporations.
Sec. 122. Liquidation, reorganization, or recapitalization of a covered
financial corporation.
Sec. 123. Amendments to title 28, United States Code.
Subtitle C--Ending Government Guarantees
Sec. 131. Repeal of obligation guarantee program.
Sec. 132. Repeal of systemic risk determination in resolutions.
Sec. 133. Restrictions on use of the Exchange Stabilization Fund.
Subtitle D--Eliminating Financial Market Utility Designations
Sec. 141. Repeal of title VIII.
[[Page H4732]]
Subtitle E--Reform of the Financial Stability Act of 2010
Sec. 151. Repeal and modification of provisions of the Financial
Stability Act of 2010.
Sec. 152. Operational risk capital requirements for banking
organizations.
TITLE II--DEMANDING ACCOUNTABILITY FROM WALL STREET
Subtitle A--SEC Penalties Modernization
Sec. 211. Enhancement of civil penalties for securities laws
violations.
Sec. 212. Updated civil money penalties of Public Company Accounting
Oversight Board.
Sec. 213. Updated civil money penalty for controlling persons in
connection with insider trading.
Sec. 214. Update of certain other penalties.
Sec. 215. Monetary sanctions to be used for the relief of victims.
Sec. 216. GAO report on use of civil money penalty authority by
Commission.
Subtitle B--FIRREA Penalties Modernization
Sec. 221. Increase of civil and criminal penalties originally
established in the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
TITLE III--DEMANDING ACCOUNTABILITY FROM FINANCIAL REGULATORS AND
DEVOLVING POWER AWAY FROM WASHINGTON
Subtitle A--Cost-Benefit Analyses
Sec. 311. Definitions.
Sec. 312. Required regulatory analysis.
Sec. 313. Rule of construction.
Sec. 314. Public availability of data and regulatory analysis.
Sec. 315. Five-year regulatory impact analysis.
Sec. 316. Retrospective review of existing rules.
Sec. 317. Judicial review.
Sec. 318. Chief Economists Council.
Sec. 319. Conforming amendments.
Sec. 320. Other regulatory entities.
Sec. 321. Avoidance of duplicative or unnecessary analyses.
Subtitle B--Congressional Review of Federal Financial Agency Rulemaking
Sec. 331. Congressional review.
Sec. 332. Congressional approval procedure for major rules.
Sec. 333. Congressional disapproval procedure for nonmajor rules.
Sec. 334. Definitions.
Sec. 335. Judicial review.
Sec. 336. Effective date of certain rules.
Sec. 337. Budgetary effects of rules subject to section 332 of the
Financial CHOICE Act of 2017.
Sec. 338. Nonapplicability to monetary policy.
Subtitle C--Judicial Review of Agency Actions
Sec. 341. Scope of judicial review of agency actions.
Subtitle D--Leadership of Financial Regulators
Sec. 351. Federal Deposit Insurance Corporation.
Sec. 352. Federal Housing Finance Agency.
Subtitle E--Congressional Oversight of Appropriations
Sec. 361. Bringing the Federal Deposit Insurance Corporation into the
appropriations process.
Sec. 362. Bringing the Federal Housing Finance Agency into the
appropriations process.
Sec. 363. Bringing the National Credit Union Administration into the
appropriations process.
Sec. 364. Bringing the Office of the Comptroller of the Currency into
the appropriations process.
Sec. 365. Bringing the non-monetary policy related functions of the
Board of Governors of the Federal Reserve System into the
appropriations process.
Subtitle F--International Processes
Sec. 371. Requirements for international processes.
Subtitle G--Unfunded Mandates Reform
Sec. 381. Definitions.
Sec. 382. Application of the Unfunded Mandates Reform Act.
Subtitle H--Enforcement Coordination
Sec. 391. Policies to minimize duplication of enforcement efforts.
Subtitle I--Penalties for Unauthorized Disclosures
Sec. 392. Criminal penalty for unauthorized disclosures.
Subtitle J--Stop Settlement Slush Funds
Sec. 393. Limitation on donations made pursuant to settlement
agreements to which certain departments or agencies are a
party.
TITLE IV--UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, INNOVATORS,
AND JOB CREATORS BY FACILITATING CAPITAL FORMATION
Subtitle A--Small Business Mergers, Acquisitions, Sales, and Brokerage
Simplification
Sec. 401. Registration exemption for merger and acquisition brokers.
Sec. 402. Effective date.
Subtitle B--Encouraging Employee Ownership
Sec. 406. Increased threshold for disclosures relating to compensatory
benefit plans.
Subtitle C--Small Company Disclosure Simplification
Sec. 411. Exemption from XBRL requirements for emerging growth
companies and other smaller companies.
Sec. 412. Analysis by the SEC.
Sec. 413. Report to Congress.
Sec. 414. Definitions.
Subtitle D--Securities and Exchange Commission Overpayment Credit
Sec. 416. Refunding or crediting overpayment of section 31 fees.
Subtitle E--Fair Access to Investment Research
Sec. 421. Safe harbor for investment fund research.
Subtitle F--Accelerating Access to Capital
Sec. 426. Expanded eligibility for use of Form S-3.
Subtitle G--Enhancing the RAISE Act
Sec. 431. Certain accredited investor transactions.
Subtitle H--Small Business Credit Availability
Sec. 436. Business development company ownership of securities of
investment advisers and certain financial companies.
Sec. 437. Expanding access to capital for business development
companies.
Sec. 438. Parity for business development companies regarding offering
and proxy rules.
Subtitle I--Fostering Innovation
Sec. 441. Temporary exemption for low-revenue issuers.
Subtitle J--Small Business Capital Formation Enhancement
Sec. 446. Annual review of government-business forum on capital
formation.
Subtitle K--Helping Angels Lead Our Startups
Sec. 451. Definition of angel investor group.
Sec. 452. Clarification of general solicitation.
Subtitle L--Main Street Growth
Sec. 456. Venture exchanges.
Subtitle M--Micro Offering Safe Harbor
Sec. 461. Exemptions for micro-offerings.
Subtitle N--Private Placement Improvement
Sec. 466. Revisions to SEC Regulation D.
Subtitle O--Supporting America's Innovators
Sec. 471. Investor limitation for qualifying venture capital funds.
Subtitle P--Fix Crowdfunding
Sec. 476. Crowdfunding exemption.
Sec. 477. Exclusion of crowdfunding investors from shareholder cap.
Sec. 478. Preemption of State law.
Sec. 479. Treatment of funding portals.
Subtitle Q--Corporate Governance Reform and Transparency
Sec. 481. Definitions.
Sec. 482. Registration of proxy advisory firms.
Sec. 483. Commission annual report.
Subtitle R--Senior Safe
Sec. 491. Immunity.
Sec. 492. Training required.
Sec. 493. Relationship to State law.
Subtitle S--National Securities Exchange Regulatory Parity
Sec. 496. Application of exemption.
Subtitle T--Private Company Flexibility and Growth
Sec. 497. Shareholder threshold for registration.
Subtitle U--Small Company Capital Formation Enhancements
Sec. 498. JOBS Act-related exemption.
Subtitle V--Encouraging Public Offerings
Sec. 499. Expanding testing the waters and confidential submissions.
TITLE V--REGULATORY RELIEF FOR MAIN STREET AND COMMUNITY FINANCIAL
INSTITUTIONS
Subtitle A--Preserving Access to Manufactured Housing
Sec. 501. Mortgage originator definition.
Sec. 502. High-Cost mortgage definition.
Subtitle B--Mortgage Choice
Sec. 506. Definition of points and fees.
Subtitle C--Financial Institution Customer Protection
Sec. 511. Requirements for deposit account termination requests and
orders.
Sec. 512. Amendments to the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989.
Subtitle D--Portfolio Lending and Mortgage Access
Sec. 516. Safe harbor for certain loans held on portfolio.
Subtitle E--Application of the Expedited Funds Availability Act
Sec. 521. Application of the Expedited Funds Availability Act.
Subtitle F--Small Bank Holding Company Policy Statement
Sec. 526. Changes required to small bank holding company policy
statement on assessment of financial and managerial
factors.
Subtitle G--Community Institution Mortgage Relief
Sec. 531. Community financial institution mortgage relief.
Subtitle H--Financial Institutions Examination Fairness and Reform
Sec. 536. Timeliness of examination reports.
Subtitle I--National Credit Union Administration Budget Transparency
Sec. 541. Budget transparency for the NCUA.
Subtitle J--Taking Account of Institutions With Low Operation Risk
Sec. 546. Regulations appropriate to business models.
Subtitle K--Federal Savings Association Charter Flexibility
Sec. 551. Option for Federal savings associations to operate as a
covered savings association.
[[Page H4733]]
Subtitle L--SAFE Transitional Licensing
Sec. 556. Eliminating barriers to jobs for loan originators.
Subtitle M--Right to Lend
Sec. 561. Small business loan data collection requirement.
Subtitle N--Community Bank Reporting Relief
Sec. 566. Short form call report.
Subtitle O--Homeowner Information Privacy Protection
Sec. 571. Study regarding privacy of information collected under the
Home Mortgage Disclosure Act of 1975.
Subtitle P--Home Mortgage Disclosure Adjustment
Sec. 576. Depository institutions subject to maintenance of records and
disclosure requirements.
Subtitle Q--Protecting Consumers' Access to Credit
Sec. 581. Rate of interest after transfer of loan.
Subtitle R--NCUA Overhead Transparency
Sec. 586. Fund transparency.
Subtitle S--Housing Opportunities Made Easier
Sec. 591. Clarification of donated services to non-profits.
TITLE VI--REGULATORY RELIEF FOR STRONGLY CAPITALIZED, WELL MANAGED
BANKING ORGANIZATIONS
Sec. 601. Capital election.
Sec. 602. Regulatory relief.
Sec. 603. Contingent capital study.
Sec. 604. Study on altering the current prompt corrective action rules.
Sec. 605. Definitions.
TITLE VII--EMPOWERING AMERICANS TO ACHIEVE FINANCIAL INDEPENDENCE
Subtitle A--Separation of Powers and Liberty Enhancements
Sec. 711. Consumer Law Enforcement Agency.
Sec. 712. Bringing the Agency into the regular appropriations process.
Sec. 713. Consumer Law Enforcement Agency Inspector General Reform.
Sec. 714. Private parties authorized to compel the Agency to seek
sanctions by filing civil actions; Adjudications deemed
actions.
Sec. 715. Civil investigative demands to be appealed to courts.
Sec. 716. Agency dual mandate and economic analysis.
Sec. 717. No deference to Agency interpretation.
Subtitle B--Administrative Enhancements
Sec. 721. Advisory opinions.
Sec. 722. Reform of Consumer Financial Civil Penalty Fund.
Sec. 723. Agency pay fairness.
Sec. 724. Elimination of market monitoring functions.
Sec. 725. Reforms to mandatory functional units.
Sec. 726. Repeal of mandatory advisory board.
Sec. 727. Elimination of supervision authority.
Sec. 728. Transfer of old OTS building from OCC to GSA.
Sec. 729. Limitation on Agency authority.
Subtitle C--Policy Enhancements
Sec. 731. Consumer right to financial privacy.
Sec. 732. Repeal of Council authority to set aside Agency rules and
requirement of safety and soundness considerations when
issuing rules.
Sec. 733. Removal of authority to regulate small-dollar credit.
Sec. 734. Reforming indirect auto financing guidance.
Sec. 735. Removal of Agency UDAAP authority.
Sec. 736. Preservation of UDAP authority for Federal banking
regulators.
Sec. 737. Repeal of authority to restrict arbitration.
TITLE VIII--CAPITAL MARKETS IMPROVEMENTS
Subtitle A--SEC Reform, Restructuring, and Accountability
Sec. 801. Authorization of appropriations.
Sec. 802. Report on unobligated appropriations.
Sec. 803. SEC Reserve Fund abolished.
Sec. 804. Fees to offset appropriations.
Sec. 805. Commission Federal construction funding prohibition.
Sec. 806. Implementation of recommendations.
Sec. 807. Office of Credit Ratings to report to the Division of Trading
and Markets.
Sec. 808. Office of Municipal Securities to report to the Division of
Trading and Markets.
Sec. 809. Independence of Commission Ombudsman.
Sec. 810. Investor Advisory Committee improvements.
Sec. 811. Duties of Investor Advocate.
Sec. 812. Elimination of exemption of Small Business Capital Formation
Advisory Committee from Federal Advisory Committee Act.
Sec. 813. Internal risk controls.
Sec. 814. Applicability of notice and comment requirements of the
Administrative Procedure Act to guidance voted on by the
Commission.
Sec. 815. Limitation on pilot programs.
Sec. 816. Procedure for obtaining certain intellectual property.
Sec. 817. Process for closing investigations.
Sec. 818. Enforcement Ombudsman.
Sec. 819. Adequate notice.
Sec. 820. Advisory committee on Commission's enforcement policies and
practices.
Sec. 821. Process to permit recipient of Wells notification to appear
before Commission staff in-person.
Sec. 822. Publication of enforcement manual.
Sec. 823. Private parties authorized to compel the Securities and
Exchange Commission to seek sanctions by filing civil
actions.
Sec. 824. Certain findings required to approve civil money penalties
against issuers.
Sec. 825. Repeal of authority of the Commission to prohibit persons
from serving as officers or directors.
Sec. 826. Subpoena duration and renewal.
Sec. 827. Elimination of automatic disqualifications.
Sec. 828. Denial of award to culpable whistleblowers.
Sec. 829. Clarification of authority to impose sanctions on persons
associated with a broker or dealer.
Sec. 830. Complaint and burden of proof requirements for certain
actions for breach of fiduciary duty.
Sec. 831. Congressional access to information held by the Public
Company Accounting Oversight Board.
Sec. 832. Abolishing Investor Advisory Group.
Sec. 833. Repeal of requirement for Public Company Accounting Oversight
Board to use certain funds for merit scholarship program.
Sec. 834. Reallocation of fines for violations of rules of municipal
securities rulemaking board.
Subtitle B--Eliminating Excessive Government Intrusion in the Capital
Markets
Sec. 841. Repeal of Department of Labor fiduciary rule and requirements
prior to rulemaking relating to standards of conduct for
brokers and dealers.
Sec. 842. Exemption from risk retention requirements for nonresidential
mortgage.
Sec. 843. Frequency of shareholder approval of executive compensation.
Sec. 844. Shareholder Proposals.
Sec. 845. Prohibition on requiring a single ballot.
Sec. 846. Requirement for municipal advisor for issuers of municipal
securities.
Sec. 847. Small issuer exemption from internal control evaluation.
Sec. 848. Streamlining of applications for an exemption from the
Investment Company Act of 1940.
Sec. 849. Restriction on recovery of erroneously awarded compensation.
Sec. 850. Exemptive authority for certain provisions relating to
registration of nationally recognized statistical rating
organizations.
Sec. 851. Risk-based examinations of Nationally Recognized Statistical
Rating Organizations.
Sec. 852. Transparency of credit rating methodologies.
Sec. 853. Repeal of certain attestation requirements relating to credit
ratings.
Sec. 854. Look-back review by NRSRO.
Sec. 855. Approval of credit rating procedures and methodologies.
Sec. 856. Exception for providing certain material information relating
to a credit rating.
Sec. 857. Repeals.
Sec. 858. Exemption of and reporting by private equity fund advisers.
Sec. 859. Records and reports of private funds.
Sec. 860. Definition of accredited investor.
Sec. 861. Repeal of certain provisions requiring a study and report to
Congress.
Sec. 862. Repeal.
Subtitle C--Harmonization of Derivatives Rules
Sec. 871. Commissions review and harmonization of rules relating to the
regulation of over-the-counter swaps markets.
Sec. 872. Treatment of transactions between affiliates.
TITLE IX--REPEAL OF THE VOLCKER RULE AND OTHER PROVISIONS
Sec. 901. Repeals.
TITLE X--FED OVERSIGHT REFORM AND MODERNIZATION
Sec. 1001. Requirements for policy rules of the Federal Open Market
Committee.
Sec. 1002. Federal Open Market Committee blackout period.
Sec. 1003. Public transcripts of FOMC meetings.
Sec. 1004. Membership of Federal Open Market Committee.
Sec. 1005. Frequency of testimony of the Chairman of the Board of
Governors of the Federal Reserve System to Congress.
Sec. 1006. Vice Chairman for Supervision report requirement.
Sec. 1007. Salaries, financial disclosures, and office staff of the
Board of Governors of the Federal Reserve System.
Sec. 1008. Amendments to powers of the Board of Governors of the
Federal Reserve System.
Sec. 1009. Interest rates on balances maintained at a Federal Reserve
bank by depository institutions established by Federal
Open Market Committee.
Sec. 1010. Audit reform and transparency for the Board of Governors of
the Federal Reserve System.
Sec. 1011. Establishment of a Centennial Monetary Commission.
TITLE XI--IMPROVING INSURANCE COORDINATION THROUGH AN INDEPENDENT
ADVOCATE
Sec. 1101. Repeal of the Federal Insurance Office; Creation of the
Office of the Independent Insurance Advocate.
Sec. 1102. Treatment of covered agreements.
[[Page H4734]]
TITLE XII--TECHNICAL CORRECTIONS
Sec. 1201. Table of contents; Definitional corrections.
Sec. 1202. Antitrust savings clause corrections.
Sec. 1203. Title I corrections.
Sec. 1204. Title III corrections.
Sec. 1205. Title IV correction.
Sec. 1206. Title VI corrections.
Sec. 1207. Title VII corrections.
Sec. 1208. Title IX corrections.
Sec. 1209. Title X corrections.
Sec. 1210. Title XII correction.
Sec. 1211. Title XIV correction.
Sec. 1212. Technical corrections to other statutes.
SEC. 2. DIRECTED RULEMAKING REPEALS.
With respect to any directed rulemaking required by a
provision of law repealed by this Act, to the extent any rule
was issued or revised pursuant to such directed rulemaking,
such rule or revision shall have no force or effect.
TITLE I--ENDING ``TOO BIG TO FAIL'' AND BANK BAILOUTS
Subtitle A--Repeal of the Orderly Liquidation Authority
SEC. 111. REPEAL OF THE ORDERLY LIQUIDATION AUTHORITY.
(a) In General.--Title II of the Dodd-Frank Wall Street
Reform and Consumer Protection Act is hereby repealed and any
Federal law amended by such title shall, on and after the
effective date of this Act, be effective as if title II of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
had not been enacted.
(b) Conforming Amendments.--
(1) Dodd-frank wall street reform and consumer protection
act.--The Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended--
(A) in the table of contents for such Act, by striking all
items relating to title II;
(B) in section 165(d)--
(i) in paragraph (1), by striking ``, the Council, and the
Corporation'' and inserting ``and the Council'';
(ii) in paragraph (2), by striking ``, the Council, and the
Corporation'' and inserting ``and the Council'';
(iii) in paragraph (3), by striking ``and the
Corporation'';
(iv) in paragraph (4)--
(I) by striking ``and the Corporation jointly determine''
and inserting ``determines'';
(II) by striking ``their'' and inserting ``its'';
(III) in subparagraph (A), by striking ``and the
Corporation''; and
(IV) in subparagraph (B), by striking ``and the
Corporation'';
(v) in paragraph (5)--
(I) in subparagraph (A), by striking ``and the Corporation
may jointly'' and inserting ``may''; and
(II) in subparagraph (B)--
(aa) by striking ``and the Corporation'' each place such
term appears;
(bb) by striking ``may jointly'' and inserting ``may'';
(cc) by striking ``have jointly'' and inserting ``has'';
(vi) in paragraph (6), by striking ``, a receiver appointed
under title II,''; and
(vii) by amending paragraph (8) to read as follows:
``(8) Rules.--Not later than 12 months after enactment of
this paragraph, the Board of Governors shall issue final
rules implementing this section.''; and
(C) in section 716(g), by striking ``or a covered financial
company under title II''.
(2) Federal deposit insurance act.--Section 10(b)(3) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is
amended by striking ``, or of such nonbank financial company
supervised by the Board of Governors or bank holding company
described in section 165(a) of the Financial Stability Act of
2010, for the purpose of implementing its authority to
provide for orderly liquidation of any such company under
title II of that Act''.
(3) Federal reserve act.--Section 13(3) of the Federal
Reserve Act is amended--
(A) in subparagraph (B)--
(i) in clause (ii), by striking ``, resolution under title
II of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, or'' and inserting ``or is subject to
resolution under''; and
(ii) in clause (iii), by striking ``, resolution under
title II of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, or'' and inserting ``or resolution under'';
and
(B) by striking subparagraph (E).
Subtitle B--Financial Institution Bankruptcy
SEC. 121. GENERAL PROVISIONS RELATING TO COVERED FINANCIAL
CORPORATIONS.
(a) Definition.--Section 101 of title 11, United States
Code, is amended by inserting the following after paragraph
(9):
``(9A) The term `covered financial corporation' means any
corporation incorporated or organized under any Federal or
State law, other than a stockbroker, a commodity broker, or
an entity of the kind specified in paragraph (2) or (3) of
section 109(b), that is--
``(A) a bank holding company, as defined in section 2(a) of
the Bank Holding Company Act of 1956; or
``(B) a corporation that exists for the primary purpose of
owning, controlling and financing its subsidiaries, that has
total consolidated assets of $50,000,000,000 or greater, and
for which, in its most recently completed fiscal year--
``(i) annual gross revenues derived by the corporation and
all of its subsidiaries from activities that are financial in
nature (as defined in section 4(k) of the Bank Holding
Company Act of 1956) and, if applicable, from the ownership
or control of one or more insured depository institutions,
represents 85 percent or more of the consolidated annual
gross revenues of the corporation; or
``(ii) the consolidated assets of the corporation and all
of its subsidiaries related to activities that are financial
in nature (as defined in section 4(k) of the Bank Holding
Company Act of 1956) and, if applicable, related to the
ownership or control of one or more insured depository
institutions, represents 85 percent or more of the
consolidated assets of the corporation.''.
(b) Applicability of Chapters.--Section 103 of title 11,
United States Code, is amended by adding at the end the
following:
``(l) Subchapter V of chapter 11 of this title applies only
in a case under chapter 11 concerning a covered financial
corporation.''.
(c) Who May Be a Debtor.--Section 109 of title 11, United
States Code, is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``or'' at the end;
(B) in paragraph (3)(B), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(4) a covered financial corporation.''; and
(2) in subsection (d)--
(A) by striking ``and'' before ``an uninsured State member
bank'';
(B) by striking ``or'' before ``a corporation''; and
(C) by inserting ``, or a covered financial corporation''
after ``Federal Deposit Insurance Corporation Improvement Act
of 1991''.
(d) Conversion to Chapter 7.--Section 1112 of title 11,
United States Code, is amended by adding at the end the
following:
``(g) Notwithstanding section 109(b), the court may convert
a case under subchapter V to a case under chapter 7 if--
``(1) a transfer approved under section 1185 has been
consummated;
``(2) the court has ordered the appointment of a special
trustee under section 1186; and
``(3) the court finds, after notice and a hearing, that
conversion is in the best interest of the creditors and the
estate.''.
(e)(1) Section 726(a)(1) of title 11, United States Code,
is amended by inserting after ``first,'' the following: ``in
payment of any unpaid fees, costs, and expenses of a special
trustee appointed under section 1186, and then''.
(2) Section 1129(a) of title 11, United States Code, is
amended by inserting after paragraph (16) the following:
``(17) In a case under subchapter V, all payable fees,
costs, and expenses of the special trustee have been paid or
the plan provides for the payment of all such fees, costs,
and expenses on the effective date of the plan.
``(18) In a case under subchapter V, confirmation of the
plan is not likely to cause serious adverse effects on
financial stability in the United States.''.
(f) Section 322(b)(2) of title 11, United States Code, is
amended by striking ``The'' and inserting ``In cases under
subchapter V, the United States trustee shall recommend to
the court, and in all other cases, the''.
SEC. 122. LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF
A COVERED FINANCIAL CORPORATION.
Chapter 11 of title 11, United States Code, is amended by
adding at the end the following (and conforming the table of
contents for such chapter accordingly):
``SUBCHAPTER V--LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A
COVERED FINANCIAL CORPORATION
``Sec. 1181. Inapplicability of other sections
``Sections 303 and 321(c) do not apply in a case under this
subchapter concerning a covered financial corporation.
Section 365 does not apply to a transfer under section 1185,
1187, or 1188.
``Sec. 1182. Definitions for this subchapter
``In this subchapter, the following definitions shall
apply:
``(1) The term `Board' means the Board of Governors of the
Federal Reserve System.
``(2) The term `bridge company' means a newly formed
corporation to which property of the estate may be
transferred under section 1185(a) and the equity securities
of which may be transferred to a special trustee under
section 1186(a).
``(3) The term `capital structure debt' means all unsecured
debt of the debtor for borrowed money for which the debtor is
the primary obligor, other than a qualified financial
contract and other than debt secured by a lien on property of
the estate that is to be transferred to a bridge company
pursuant to an order of the court under section 1185(a).
``(4) The term `contractual right' means a contractual
right of a kind defined in section 555, 556, 559, 560, or
561.
``(5) The term `qualified financial contract' means any
contract of a kind defined in paragraph (25), (38A), (47), or
(53B) of section 101, section 741(7), or paragraph (4), (5),
(11), or (13) of section 761.
``(6) The term `special trustee' means the trustee of a
trust formed under section 1186(a)(1).
``Sec. 1183. Commencement of a case concerning a covered
financial corporation
``(a) A case under this subchapter concerning a covered
financial corporation may be commenced by the filing of a
petition with the court by the debtor under section 301 only
if the debtor states to the best of its knowledge under
penalty of perjury in the petition that it is a covered
financial corporation.
``(b) The commencement of a case under subsection (a)
constitutes an order for relief under this subchapter.
``(c) The members of the board of directors (or body
performing similar functions) of a covered financial company
shall have no liability to shareholders, creditors, or other
parties in interest for a good faith filing of a petition to
commence a case under this subchapter, or for any
[[Page H4735]]
reasonable action taken in good faith in contemplation of
such a petition or a transfer under section 1185 or section
1186, whether prior to or after commencement of the case.
``(d) Counsel to the debtor shall provide, to the greatest
extent practicable without disclosing the identity of the
potential debtor, sufficient confidential notice to the chief
judge of the court of appeals for the circuit embracing the
district in which such counsel intends to file a petition to
commence a case under this subchapter regarding the potential
commencement of such case. The chief judge of such court
shall randomly assign to preside over such case a bankruptcy
judge selected from among the bankruptcy judges designated by
the Chief Justice of the United States under section 298 of
title 28.
``Sec. 1184. Regulators
``The Board, the Securities Exchange Commission, the Office
of the Comptroller of the Currency of the Department of the
Treasury, the Commodity Futures Trading Commission, and the
Federal Deposit Insurance Corporation may raise and may
appear and be heard on any issue in any case or proceeding
under this subchapter.
``Sec. 1185. Special transfer of property of the estate
``(a) On request of the trustee, and after notice and a
hearing that shall occur not less than 24 hours after the
order for relief, the court may order a transfer under this
section of property of the estate, and the assignment of
executory contracts, unexpired leases, and qualified
financial contracts of the debtor, to a bridge company. Upon
the entry of an order approving such transfer, any property
transferred, and any executory contracts, unexpired leases,
and qualified financial contracts assigned under such order
shall no longer be property of the estate. Except as provided
under this section, the provisions of section 363 shall apply
to a transfer and assignment under this section.
``(b) Unless the court orders otherwise, notice of a
request for an order under subsection (a) shall consist of
electronic or telephonic notice of not less than 24 hours
to--
``(1) the debtor;
``(2) the holders of the 20 largest secured claims against
the debtor;
``(3) the holders of the 20 largest unsecured claims
against the debtor;
``(4) counterparties to any debt, executory contract,
unexpired lease, and qualified financial contract requested
to be transferred under this section;
``(5) the Board;
``(6) the Federal Deposit Insurance Corporation;
``(7) the Secretary of the Treasury and the Office of the
Comptroller of the Currency of the Treasury;
``(8) the Commodity Futures Trading Commission;
``(9) the Securities and Exchange Commission;
``(10) the United States trustee or bankruptcy
administrator; and
``(11) each primary financial regulatory agency, as defined
in section 2(12) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, with respect to any affiliate the
equity securities of which are proposed to be transferred
under this section.
``(c) The court may not order a transfer under this section
unless the court determines, based upon a preponderance of
the evidence, that--
``(1) the transfer under this section is necessary to
prevent serious adverse effects on financial stability in the
United States;
``(2) the transfer does not provide for the assumption of
any capital structure debt by the bridge company;
``(3) the transfer does not provide for the transfer to the
bridge company of any property of the estate that is subject
to a lien securing a debt, executory contract, unexpired
lease or agreement (including a qualified financial contract)
of the debtor unless--
``(A)(i) the bridge company assumes such debt, executory
contract, unexpired lease or agreement (including a qualified
financial contract), including any claims arising in respect
thereof that would not be allowed secured claims under
section 506(a)(1) and after giving effect to such transfer,
such property remains subject to the lien securing such debt,
executory contract, unexpired lease or agreement (including a
qualified financial contract); and
``(ii) the court has determined that assumption of such
debt, executory contract, unexpired lease or agreement
(including a qualified financial contract) by the bridge
company is in the best interests of the estate; or
``(B) such property is being transferred to the bridge
company in accordance with the provisions of section 363;
``(4) the transfer does not provide for the assumption by
the bridge company of any debt, executory contract, unexpired
lease or agreement (including a qualified financial contract)
of the debtor secured by a lien on property of the estate
unless the transfer provides for such property to be
transferred to the bridge company in accordance with
paragraph (3)(A) of this subsection;
``(5) the transfer does not provide for the transfer of the
equity of the debtor;
``(6) the trustee has demonstrated that the bridge company
is not likely to fail to meet the obligations of any debt,
executory contract, qualified financial contract, or
unexpired lease assumed and assigned to the bridge company;
``(7) the transfer provides for the transfer to a special
trustee all of the equity securities in the bridge company
and appointment of a special trustee in accordance with
section 1186;
``(8) after giving effect to the transfer, adequate
provision has been made for the fees, costs, and expenses of
the estate and special trustee; and
``(9) the bridge company will have governing documents, and
initial directors and senior officers, that are in the best
interest of creditors and the estate.
``(d) Immediately before a transfer under this section, the
bridge company that is the recipient of the transfer shall--
``(1) not have any property, executory contracts, unexpired
leases, qualified financial contracts, or debts, other than
any property acquired or executory contracts, unexpired
leases, or debts assumed when acting as a transferee of a
transfer under this section; and
``(2) have equity securities that are property of the
estate, which may be sold or distributed in accordance with
this title.
``Sec. 1186. Special trustee
``(a)(1) An order approving a transfer under section 1185
shall require the trustee to transfer to a qualified and
independent special trustee, who is appointed by the court,
all of the equity securities in the bridge company that is
the recipient of a transfer under section 1185 to hold in
trust for the sole benefit of the estate, subject to
satisfaction of the special trustee's fees, costs, and
expenses. The trust of which the special trustee is the
trustee shall be a newly formed trust governed by a trust
agreement approved by the court as in the best interests of
the estate, and shall exist for the sole purpose of holding
and administering, and shall be permitted to dispose of, the
equity securities of the bridge company in accordance with
the trust agreement.
``(2) In connection with the hearing to approve a transfer
under section 1185, the trustee shall confirm to the court
that the Board has been consulted regarding the identity of
the proposed special trustee and advise the court of the
results of such consultation.
``(b) The trust agreement governing the trust shall
provide--
``(1) for the payment of the fees, costs, expenses, and
indemnities of the special trustee from the assets of the
debtor's estate;
``(2) that the special trustee provide--
``(A) quarterly reporting to the estate, which shall be
filed with the court; and
``(B) information about the bridge company reasonably
requested by a party in interest to prepare a disclosure
statement for a plan providing for distribution of any
securities of the bridge company if such information is
necessary to prepare such disclosure statement;
``(3) that for as long as the equity securities of the
bridge company are held by the trust, the special trustee
shall file a notice with the court in connection with--
``(A) any change in a director or senior officer of the
bridge company;
``(B) any modification to the governing documents of the
bridge company; and
``(C) any material corporate action of the bridge company,
including--
``(i) recapitalization;
``(ii) a material borrowing;
``(iii) termination of an intercompany debt or guarantee;
``(iv) a transfer of a substantial portion of the assets of
the bridge company; or
``(v) the issuance or sale of any securities of the bridge
company;
``(4) that any sale of any equity securities of the bridge
company shall not be consummated until the special trustee
consults with the Federal Deposit Insurance Corporation and
the Board regarding such sale and discloses the results of
such consultation with the court;
``(5) that, subject to reserves for payments permitted
under paragraph (1) provided for in the trust agreement, the
proceeds of the sale of any equity securities of the bridge
company by the special trustee be held in trust for the
benefit of or transferred to the estate;
``(6) the process and guidelines for the replacement of the
special trustee; and
``(7) that the property held in trust by the special
trustee is subject to distribution in accordance with
subsection (c).
``(c)(1) The special trustee shall distribute the assets
held in trust--
``(A) if the court confirms a plan in the case, in
accordance with the plan on the effective date of the plan;
or
``(B) if the case is converted to a case under chapter 7,
as ordered by the court.
``(2) As soon as practicable after a final distribution
under paragraph (1), the office of the special trustee shall
terminate, except as may be necessary to wind up and conclude
the business and financial affairs of the trust.
``(d) After a transfer to the special trustee under this
section, the special trustee shall be subject only to
applicable nonbankruptcy law, and the actions and conduct of
the special trustee shall no longer be subject to approval by
the court in the case under this subchapter.
``Sec. 1187. Temporary and supplemental automatic stay;
assumed debt
``(a)(1) A petition filed under section 1183 operates as a
stay, applicable to all entities, of the termination,
acceleration, or modification of any debt, contract, lease,
or agreement of the kind described in paragraph (2), or of
any right or obligation under any such debt, contract, lease,
or agreement, solely because of--
``(A) a default by the debtor under any such debt,
contract, lease, or agreement; or
``(B) a provision in such debt, contract, lease, or
agreement, or in applicable nonbankruptcy law, that is
conditioned on--
``(i) the insolvency or financial condition of the debtor
at any time before the closing of the case;
``(ii) the commencement of a case under this title
concerning the debtor;
``(iii) the appointment of or taking possession by a
trustee in a case under this title concerning the debtor or
by a custodian before the commencement of the case; or
``(iv) a credit rating agency rating, or absence or
withdrawal of a credit rating agency rating--
[[Page H4736]]
``(I) of the debtor at any time after the commencement of
the case;
``(II) of an affiliate during the period from the
commencement of the case until 48 hours after such order is
entered;
``(III) of the bridge company while the trustee or the
special trustee is a direct or indirect beneficial holder of
more than 50 percent of the equity securities of--
``(aa) the bridge company; or
``(bb) the affiliate, if all of the direct or indirect
interests in the affiliate that are property of the estate
are transferred under section 1185; or
``(IV) of an affiliate while the trustee or the special
trustee is a direct or indirect beneficial holder of more
than 50 percent of the equity securities of--
``(aa) the bridge company; or
``(bb) the affiliate, if all of the direct or indirect
interests in the affiliate that are property of the estate
are transferred under section 1185.
``(2) A debt, contract, lease, or agreement described in
this paragraph is--
``(A) any debt (other than capital structure debt),
executory contract, or unexpired lease of the debtor (other
than a qualified financial contract);
``(B) any agreement under which the debtor issued or is
obligated for debt (other than capital structure debt);
``(C) any debt, executory contract, or unexpired lease of
an affiliate (other than a qualified financial contract); or
``(D) any agreement under which an affiliate issued or is
obligated for debt.
``(3) The stay under this subsection terminates--
``(A) for the benefit of the debtor, upon the earliest of--
``(i) 48 hours after the commencement of the case;
``(ii) assumption of the debt, contract, lease, or
agreement by the bridge company under an order authorizing a
transfer under section 1185;
``(iii) a final order of the court denying the request for
a transfer under section 1185; or
``(iv) the time the case is dismissed; and
``(B) for the benefit of an affiliate, upon the earliest
of--
``(i) the entry of an order authorizing a transfer under
section 1185 in which the direct or indirect interests in the
affiliate that are property of the estate are not transferred
under section 1185;
``(ii) a final order by the court denying the request for a
transfer under section 1185;
``(iii) 48 hours after the commencement of the case if the
court has not ordered a transfer under section 1185; or
``(iv) the time the case is dismissed.
``(4) Subsections (d), (e), (f), and (g) of section 362
apply to a stay under this subsection.
``(b) A debt, executory contract (other than a qualified
financial contract), or unexpired lease of the debtor, or an
agreement under which the debtor has issued or is obligated
for any debt, may be assumed by a bridge company in a
transfer under section 1185 notwithstanding any provision in
an agreement or in applicable nonbankruptcy law that--
``(1) prohibits, restricts, or conditions the assignment of
the debt, contract, lease, or agreement; or
``(2) accelerates, terminates, or modifies, or permits a
party other than the debtor to terminate or modify, the debt,
contract, lease, or agreement on account of--
``(A) the assignment of the debt, contract, lease, or
agreement; or
``(B) a change in control of any party to the debt,
contract, lease, or agreement.
``(c)(1) A debt, contract, lease, or agreement of the kind
described in subparagraph (A) or (B) of subsection (a)(2) may
not be accelerated, terminated, or modified, and any right or
obligation under such debt, contract, lease, or agreement may
not be accelerated, terminated, or modified, as to the bridge
company solely because of a provision in the debt, contract,
lease, or agreement or in applicable nonbankruptcy law--
``(A) of the kind described in subsection (a)(1)(B) as
applied to the debtor;
``(B) that prohibits, restricts, or conditions the
assignment of the debt, contract, lease, or agreement; or
``(C) that accelerates, terminates, or modifies, or permits
a party other than the debtor to terminate or modify, the
debt, contract, lease or agreement on account of--
``(i) the assignment of the debt, contract, lease, or
agreement; or
``(ii) a change in control of any party to the debt,
contract, lease, or agreement.
``(2) If there is a default by the debtor under a provision
other than the kind described in paragraph (1) in a debt,
contract, lease or agreement of the kind described in
subparagraph (A) or (B) of subsection (a)(2), the bridge
company may assume such debt, contract, lease, or agreement
only if the bridge company--
``(A) shall cure the default;
``(B) compensates, or provides adequate assurance in
connection with a transfer under section 1185 that the bridge
company will promptly compensate, a party other than the
debtor to the debt, contract, lease, or agreement, for any
actual pecuniary loss to the party resulting from the
default; and
``(C) provides adequate assurance in connection with a
transfer under section 1185 of future performance under the
debt, contract, lease, or agreement, as determined by the
court under section 1185(c)(4).
``Sec. 1188. Treatment of qualified financial contracts and
affiliate contracts
``(a) Notwithstanding sections 362(b)(6), 362(b)(7),
362(b)(17), 362(b)(27), 362(o), 555, 556, 559, 560, and 561,
a petition filed under section 1183 operates as a stay,
during the period specified in section 1187(a)(3)(A),
applicable to all entities, of the exercise of a contractual
right--
``(1) to cause the modification, liquidation, termination,
or acceleration of a qualified financial contract of the
debtor or an affiliate;
``(2) to offset or net out any termination value, payment
amount, or other transfer obligation arising under or in
connection with a qualified financial contract of the debtor
or an affiliate; or
``(3) under any security agreement or arrangement or other
credit enhancement forming a part of or related to a
qualified financial contract of the debtor or an affiliate.
``(b)(1) During the period specified in section
1187(a)(3)(A), the trustee or the affiliate shall perform all
payment and delivery obligations under such qualified
financial contract of the debtor or the affiliate, as the
case may be, that become due after the commencement of the
case. The stay provided under subsection (a) terminates as to
a qualified financial contract of the debtor or an affiliate
immediately upon the failure of the trustee or the affiliate,
as the case may be, to perform any such obligation during
such period.
``(2) Any failure by a counterparty to any qualified
financial contract of the debtor or any affiliate to perform
any payment or delivery obligation under such qualified
financial contract, including during the pendency of the stay
provided under subsection (a), shall constitute a breach of
such qualified financial contract by the counterparty.
``(c) Subject to the court's approval, a qualified
financial contract between an entity and the debtor may be
assigned to or assumed by the bridge company in a transfer
under, and in accordance with, section 1185 if and only if--
``(1) all qualified financial contracts between the entity
and the debtor are assigned to and assumed by the bridge
company in the transfer under section 1185;
``(2) all claims of the entity against the debtor in
respect of any qualified financial contract between the
entity and the debtor (other than any claim that, under the
terms of the qualified financial contract, is subordinated to
the claims of general unsecured creditors) are assigned to
and assumed by the bridge company;
``(3) all claims of the debtor against the entity under any
qualified financial contract between the entity and the
debtor are assigned to and assumed by the bridge company; and
``(4) all property securing or any other credit enhancement
furnished by the debtor for any qualified financial contract
described in paragraph (1) or any claim described in
paragraph (2) or (3) under any qualified financial contract
between the entity and the debtor is assigned to and assumed
by the bridge company.
``(d) Notwithstanding any provision of a qualified
financial contract or of applicable nonbankruptcy law, a
qualified financial contract of the debtor that is assumed or
assigned in a transfer under section 1185 may not be
accelerated, terminated, or modified, after the entry of the
order approving a transfer under section 1185, and any right
or obligation under the qualified financial contract may not
be accelerated, terminated, or modified, after the entry of
the order approving a transfer under section 1185 solely
because of a condition described in section 1187(c)(1), other
than a condition of the kind specified in section 1187(b)
that occurs after property of the estate no longer includes a
direct beneficial interest or an indirect beneficial interest
through the special trustee, in more than 50 percent of the
equity securities of the bridge company.
``(e) Notwithstanding any provision of any agreement or in
applicable nonbankruptcy law, an agreement of an affiliate
(including an executory contract, an unexpired lease,
qualified financial contract, or an agreement under which the
affiliate issued or is obligated for debt) and any right or
obligation under such agreement may not be accelerated,
terminated, or modified, solely because of a condition
described in section 1187(c)(1), other than a condition of
the kind specified in section 1187(b) that occurs after the
bridge company is no longer a direct or indirect beneficial
holder of more than 50 percent of the equity securities of
the affiliate, at any time after the commencement of the case
if--
``(1) all direct or indirect interests in the affiliate
that are property of the estate are transferred under section
1185 to the bridge company within the period specified in
subsection (a);
``(2) the bridge company assumes--
``(A) any guarantee or other credit enhancement issued by
the debtor relating to the agreement of the affiliate; and
``(B) any obligations in respect of rights of setoff,
netting arrangement, or debt of the debtor that directly
arises out of or directly relates to the guarantee or credit
enhancement; and
``(3) any property of the estate that directly serves as
collateral for the guarantee or credit enhancement is
transferred to the bridge company.
``Sec. 1189. Licenses, permits, and registrations
``(a) Notwithstanding any otherwise applicable
nonbankruptcy law, if a request is made under section 1185
for a transfer of property of the estate, any Federal, State,
or local license, permit, or registration that the debtor or
an affiliate had immediately before the commencement of the
case and that is proposed to be transferred under section
1185 may not be accelerated, terminated, or modified at any
time after the request solely on account of--
``(1) the insolvency or financial condition of the debtor
at any time before the closing of the case;
``(2) the commencement of a case under this title
concerning the debtor;
``(3) the appointment of or taking possession by a trustee
in a case under this title concerning the debtor or by a
custodian before the commencement of the case; or
``(4) a transfer under section 1185.
[[Page H4737]]
``(b) Notwithstanding any otherwise applicable
nonbankruptcy law, any Federal, State, or local license,
permit, or registration that the debtor had immediately
before the commencement of the case that is included in a
transfer under section 1185 shall be valid and all rights and
obligations thereunder shall vest in the bridge company.
``Sec. 1190. Exemption from securities laws
``For purposes of section 1145, a security of the bridge
company shall be deemed to be a security of a successor to
the debtor under a plan if the court approves the disclosure
statement for the plan as providing adequate information (as
defined in section 1125(a)) about the bridge company and the
security.
``Sec. 1191. Inapplicability of certain avoiding powers
``A transfer made or an obligation incurred by the debtor
to an affiliate prior to or after the commencement of the
case, including any obligation released by the debtor or the
estate to or for the benefit of an affiliate, in
contemplation of or in connection with a transfer under
section 1185 is not avoidable under section 544, 547,
548(a)(1)(B), or 549, or under any similar nonbankruptcy law.
``Sec. 1192. Consideration of financial stability
``The court may consider the effect that any decision in
connection with this subchapter may have on financial
stability in the United States.''.
SEC. 123. AMENDMENTS TO TITLE 28, UNITED STATES CODE.
(a) Amendment to Chapter 13.--Chapter 13 of title 28,
United States Code, is amended by adding at the end the
following:
``Sec. 298. Judge for a case under subchapter V of chapter 11
of title 11
``(a)(1) Notwithstanding section 295, the Chief Justice of
the United States shall designate not fewer than 10
bankruptcy judges to be available to hear a case under
subchapter V of chapter 11 of title 11. Bankruptcy judges may
request to be considered by the Chief Justice of the United
States for such designation.
``(2) Notwithstanding section 155, a case under subchapter
V of chapter 11 of title 11 shall be heard under section 157
by a bankruptcy judge designated under paragraph (1), who
shall be randomly assigned to hear such case by the chief
judge of the court of appeals for the circuit embracing the
district in which the case is pending. To the greatest extent
practicable, the approvals required under section 155 should
be obtained.
``(3) If the bankruptcy judge assigned to hear a case under
paragraph (2) is not assigned to the district in which the
case is pending, the bankruptcy judge shall be temporarily
assigned to the district.
``(b) A case under subchapter V of chapter 11 of title 11,
and all proceedings in the case, shall take place in the
district in which the case is pending.
``(c) In this section, the term `covered financial
corporation' has the meaning given that term in section
101(9A) of title 11.''.
(b) Amendment to Section 1334 of Title 28.--Section 1334 of
title 28, United States Code, is amended by adding at the end
the following:
``(f) This section does not grant jurisdiction to the
district court after a transfer pursuant to an order under
section 1185 of title 11 of any proceeding related to a
special trustee appointed, or to a bridge company formed, in
connection with a case under subchapter V of chapter 11 of
title 11.''.
(c) Technical and Conforming Amendment.--The table of
sections for chapter 13 of title 28, United States Code, is
amended by adding at the end the following:
``298. Judge for a case under subchapter V of chapter 11 of title
11.''.
Subtitle C--Ending Government Guarantees
SEC. 131. REPEAL OF OBLIGATION GUARANTEE PROGRAM.
(a) In General.--The following sections of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C.
5301 et seq.) are repealed:
(1) Section 1104.
(2) Section 1105.
(3) Section 1106.
(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 striking the items
relating to sections 1104, 1105, and 1106.
SEC. 132. REPEAL OF SYSTEMIC RISK DETERMINATION IN
RESOLUTIONS.
Section 13(c)(4)(G) of the Federal Deposit Insurance Act
(12 U.S.C. 1823(c)(4)(G)) is hereby repealed.
SEC. 133. RESTRICTIONS ON USE OF THE EXCHANGE STABILIZATION
FUND.
(a) In General.--Section 5302 of title 31, United States
Code, is amended by adding at the end the following:
``(e) Amounts in the fund may not be used for the
establishment of a guaranty program for any nongovernmental
entity.''.
(b) Conforming Amendment.--Section 131(b) of the Emergency
Economic Stabilization Act of 2008 (12 U.S.C. 5236(b)) is
amended by inserting ``, or for the purposes of preventing
the liquidation or insolvency of any entity'' before the
period.
Subtitle D--Eliminating Financial Market Utility Designations
SEC. 141. REPEAL OF TITLE VIII.
(a) Repeal.--Title VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5461 et seq.)
is repealed, and provisions of law amended by such title are
restored and revived as if such title had never been enacted.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by striking the items relating to
title VIII.
Subtitle E--Reform of the Financial Stability Act of 2010
SEC. 151. REPEAL AND MODIFICATION OF PROVISIONS OF THE
FINANCIAL STABILITY ACT OF 2010.
(a) Repeals.--The following provisions of the Financial
Stability Act of 2010 are repealed, and the provisions of law
amended or repealed by such provisions are restored or
revived as if such provisions had not been enacted:
(1) Subtitle B.
(2) Section 113.
(3) Section 114.
(4) Section 115.
(5) Section 116.
(6) Section 117.
(7) Section 119.
(8) Section 120.
(9) Section 121.
(10) Section 161.
(11) Section 162.
(12) Section 164.
(13) Section 166.
(14) Section 167.
(15) Section 168.
(16) Section 170.
(17) Section 172.
(18) Section 174.
(19) Section 175.
(b) Additional Modifications.--The Financial Stability Act
of 2010 (12 U.S.C. 5311 et seq.) is amended--
(1) in section 102(a), by striking paragraph (5);
(2) in section 111--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) by striking ``who shall each'' and inserting ``who
shall, except as provided below, each''; and
(II) by striking subparagraphs (B) through (J) and
inserting the following:
``(B) each member of the Board of Governors, who shall
collectively have 1 vote on the Council;
``(C) the Comptroller of the Currency;
``(D) the Director of the Consumer Law Enforcement Agency;
``(E) each member of the Commission, who shall collectively
have 1 vote on the Council;
``(F) each member of the Corporation, who shall
collectively have 1 vote on the Council;
``(G) each member of the Commodity Futures Trading
Commission, who shall collectively have 1 vote on the
Council;
``(H) the Director of the Federal Housing Finance Agency;
``(I) each member of the National Credit Union
Administration Board, who shall collectively have 1 vote on
the Council; and
``(J) the Independent Insurance Advocate.'';
(ii) in paragraph (2)--
(I) by striking subparagraphs (A) and (B); and
(II) by redesignating subparagraphs (C), (D), and (E) as
subparagraphs (A), (B), and (C), respectively; and
(iii) by adding at the end the following:
``(4) Voting by multi-person entity.--
``(A) Voting within the entity.--An entity described under
subparagraph (B), (E), (F), (G), or (I) of paragraph (1)
shall determine the entity's Council vote by using the voting
process normally applicable to votes by the entity's members.
``(B) Casting of entity vote.--The 1 collective Council
vote of an entity described under subparagraph (A) shall be
cast by the head of such agency or, in the event such head is
unable to cast such vote, the next most senior member of the
entity available.'';
(B) in subsection (c)(1), by striking ``The independent
member of the Council shall serve for a term of 6 years, and
each nonvoting member described in subparagraphs (C), (D),
and (E) of'' and inserting ``Each nonvoting members described
under'';
(C) in subsection (e), by adding at the end the following:
``(3) Staff access.--Any member of the Council may select
to have one or more individuals on the member's staff attend
a meeting of the Council, including any meeting of
representatives of the member agencies other than the members
themselves.
``(4) Congressional oversight.--All meetings of the
Council, whether or not open to the public, shall be open to
the attendance by members of the authorization and oversight
committees of the House of Representatives and the Senate.
``(5) Member agency meetings.--Any meeting of
representatives of the member agencies other than the members
themselves shall be open to attendance by staff of the
authorization and oversight committees of the House of
Representatives and the Senate.'';
(D) by striking subsection (g) (relating to the
nonapplicability of FACA);
(E) by inserting after subsection (f) the following:
``(g) Open Meeting Requirement.--The Council shall be an
agency for purposes of section 552b of title 5, United States
Code (commonly referred to as the `Government in the Sunshine
Act').
``(h) Confidential Congressional Briefings.--The
Chairperson shall at regular times but not less than annually
provide confidential briefings to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, which may
in the discretion of the Chairman of the respective committee
be attended by any combination of the committee's members or
staff.''; and
(F) by redesignating subsections (h) through (j) as
subsections (i) through (k), respectively;
(3) in section 112--
[[Page H4738]]
(A) in subsection (a)(2)--
(i) in subparagraph (A), by striking ``the Federal
Insurance Office and, if necessary to assess risks to the
United States financial system, direct the Office of
Financial Research to'' and inserting ``and, if necessary to
assess risks to the United States financial system,'';
(ii) by striking subparagraphs (B), (H), (I), and (J);
(iii) by redesignating subparagraphs (C), (D), (E), (F),
(G), (K), (L), (M), and (N) as subparagraphs (B), (C), (D),
(E), (F), (G), (H), (I), and (J), respectively;
(iv) in subparagraph (J), as so redesignated--
(I) in clause (iii), by adding ``and'' at the end;
(II) by striking clauses (iv) and (v); and
(III) by redesignating clause (vi) as clause (iv); and
(B) in subsection (d)--
(i) in paragraph (1), by striking ``the Office of Financial
Research, member agencies, and the Federal Insurance Office''
and inserting ``member agencies'';
(ii) in paragraph (2), by striking ``the Office of
Financial Research, any member agency, and the Federal
Insurance Office,'' and inserting ``member agencies'';
(iii) in paragraph (3)--
(I) by striking ``, acting through the Office of Financial
Research,'' each place it appears; and
(II) in subparagraph (B), by striking ``the Office of
Financial Research or''; and
(iv) in paragraph (5)(A), by striking ``, the Office of
Financial Research,'';
(4) by amending section 118 to read as follows:
``SEC. 118. COUNCIL FUNDING.
``There is authorized to be appropriated to the Council
$4,000,000 for fiscal year 2017 and each fiscal year
thereafter to carry out the duties of the Council.'';
(5) in section 163--
(A) by striking subsection (a);
(B) by redesignating subsection (b) as subsection (a); and
(C) in subsection (a), as so redesignated--
(i) by striking ``or a nonbank financial company supervised
by the Board of Governors'' each place such term appears;
(ii) in paragraph (4), by striking ``In addition'' and
inserting the following:
``(A) In general.--In addition''; and
(iii) by adding at the end the following:
``(B) Exception for qualifying banking organization.--
Subparagraph (A) shall not apply to a proposed acquisition by
a qualifying banking organization, as defined under section
605 of the Financial CHOICE Act of 2017.''; and
(6) in section 165--
(A) by striking ``nonbank financial companies supervised by
the Board of Governors and'' each place such term appears;
(B) by striking ``nonbank financial company supervised by
the Board of Governors and'' each place such term appears;
(C) in subsection (a), by amending paragraph (2) to read as
follows:
``(2) Tailored application.--In prescribing more stringent
prudential standards under this section, the Board of
Governors may differentiate among companies on an individual
basis or by category, taking into consideration their capital
structure, riskiness, complexity, financial activities
(including the financial activities of their subsidiaries),
size, and any other risk-related factors that the Board of
Governors deems appropriate.'';
(D) in subsection (b)--
(i) in paragraph (1)(B)(iv), by striking ``, on its own or
pursuant to a recommendation made by the Council in
accordance with section 115,'';
(ii) in paragraph (2)--
(I) by striking ``foreign nonbank financial company
supervised by the Board of Governors or'';
(II) by striking ``shall--'' and all that follows through
``give due'' and inserting ``shall give due'';
(III) in subparagraph (A), by striking ``; and'' and
inserting a period; and
(IV) by striking subparagraph (B);
(iii) in paragraph (3)--
(I) in subparagraph (A)--
(aa) by striking clause (i);
(bb) by redesignating clauses (ii), (iii), and (iv) as
clauses (i), (ii), and (iii), respectively; and
(cc) in clause (iii), as so redesignated, by adding ``and''
at the end;
(II) by striking subparagraphs (B) and (C); and
(III) by redesignating subparagraph (D) as subparagraph
(B); and
(iv) in paragraph (4), by striking ``a nonbank financial
company supervised by the Board of Governors or'';
(E) in subsection (c)--
(i) in paragraph (1), by striking ``under section 115(c)'';
and
(ii) in paragraph (2)--
(I) by amending subparagraph (A) to read as follows:
``(A) any recommendations of the Council;''; and
(II) in subparagraph (D), by striking ``nonbank financial
company supervised by the Board of Governors or'';
(F) in subsection (d)--
(i) by striking ``a nonbank financial company supervised by
the Board of Governors or'' each place such term appears;
(ii) in paragraph (1), by striking ``periodically'' and
inserting ``not more often than every 2 years'';
(iii) in paragraph (3)--
(I) by striking ``The Board'' and inserting the following:
``(A) In general.--The Board'';
(II) by striking ``shall review'' and inserting the
following: ``shall--
``(i) review'';
(III) by striking the period and inserting ``; and''; and
(IV) by adding at the end the following:
``(ii) not later than the end of the 6-month period
beginning on the date the bank holding company submits the
resolution plan, provide feedback to the bank holding company
on such plan.
``(B) Disclosure of assessment framework.--The Board of
Governors shall publicly disclose, including on the website
of the Board of Governors, the assessment framework that is
used to review information under this paragraph and shall
provide the public with a notice and comment period before
finalizing such assessment framework.''.
(iv) in paragraph (6), by striking ``nonbank financial
company supervised by the Board, any bank holding company,''
and inserting ``bank holding company'';
(G) in subsection (e)--
(i) in paragraph (1), by striking ``a nonbank financial
company supervised by the Board of Governors or'';
(ii) in paragraph (3), by striking ``the nonbank financial
company supervised by the Board of Governors or'' each place
such term appears; and
(iii) in paragraph (4), by striking ``a nonbank financial
company supervised by the Board of Governors or'';
(H) in subsection (g)(1), by striking ``and any nonbank
financial company supervised by the Board of Governors'';
(I) in subsection (h)--
(i) by striking paragraph (1);
(ii) by redesignating paragraphs (2), (3), and (4) as
paragraphs (1), (2), and (3), respectively;
(iii) in paragraph (1), as so redesignated, by striking
``paragraph (3)'' each place such term appears and inserting
``paragraph (2)''; and
(iv) in paragraph (2), as so redesignated--
(I) in subparagraph (A), by striking ``the nonbank
financial company supervised by the Board of Governors or
bank holding company described in subsection (a), as
applicable'' and inserting ``a bank holding company described
in subsection (a)''; and
(II) in subparagraph (B), by striking ``the nonbank
financial company supervised by the Board of Governors or a
bank holding company described in subsection (a), as
applicable'' and inserting ``a bank holding company described
in subsection (a)'';
(J) in subsection (i)--
(i) in paragraph (1)--
(I) in subparagraph (A), by striking ``, in coordination
with the appropriate primary financial regulatory agencies
and the Federal Insurance Office,'';
(II) in subparagraph (B)--
(aa) by amending clause (i) to read as follows:
``(i) shall--
``(I) issue regulations, after providing for public notice
and comment, that provide for at least 3 different sets of
conditions under which the evaluation required by this
subsection shall be conducted, including baseline, adverse,
and severely adverse, and methodologies, including models
used to estimate losses on certain assets, and the Board of
Governors shall not carry out any such evaluation until 60
days after such regulations are issued; and
``(II) provide copies of such regulations to the
Comptroller General of the United States and the Panel of
Economic Advisors of the Congressional Budget Office before
publishing such regulations;'';
(bb) in clause (ii), by striking ``and nonbank financial
companies'';
(cc) in clause (iv), by striking ``and'' at the end;
(dd) in clause (v), by striking the period and inserting
the following: ``, including any results of a resubmitted
test;''; and
(ee) by adding at the end the following:
``(vi) shall, in establishing the severely adverse
condition under clause (i), provide detailed consideration of
the model's effects on financial stability and the cost and
availability of credit;
``(vii) shall, in developing the models and methodologies
and providing them for notice and comment under this
subparagraph, publish a process to test the models and
methodologies for their potential to magnify systemic and
institutional risks instead of facilitating increased
resiliency;
``(viii) shall design and publish a process to test and
document the sensitivity and uncertainty associated with the
model system's data quality, specifications, and assumptions;
and
``(ix) shall communicate the range and sources of
uncertainty surrounding the models and methodologies.''; and
(III) by adding at the end the following:
``(C) CCAR requirements.--
``(i) Parameters and consequences applicable to ccar.--The
requirements of subparagraph (B) shall apply to CCAR.
``(ii) Two-year limitation.--The Board of Governors may not
subject a company to CCAR more than once every two years.
``(iii) Mid-cycle resubmission.--If a company receives a
quantitative objection to, or otherwise desires to amend the
company's capital plan, the company may file a new
streamlined plan at any time after a capital planning
exercise has been completed and before a subsequent capital
planning exercise.
``(iv) Limitation on qualitative capital planning
objections.--In carrying out CCAR, the Board of Governors may
not object to a company's capital plan on the basis of
qualitative deficiencies in the company's capital planning
process.
``(v) Company inquiries.--The Board of Governors shall
establish and publish procedures for responding to inquiries
from companies subject to CCAR, including establishing the
time frame in which such responses will be made, and make
such procedures publicly available.
``(vi) CCAR defined.--For purposes of this subparagraph and
subparagraph (E), the term
[[Page H4739]]
`CCAR' means the Comprehensive Capital Analysis and Review
established by the Board of Governors.''; and
(ii) in paragraph (2)--
(I) in subparagraph (A)--
(aa) by striking ``a bank holding company'' and inserting
``bank holding company'';
(bb) by striking ``semiannual'' and inserting ``annual'';
(cc) by striking ``All other financial companies'' and
inserting ``All other bank holding companies''; and
(dd) by striking ``and are regulated by a primary Federal
financial regulatory agency'';
(II) in subparagraph (B)--
(aa) by striking ``and to its primary financial regulatory
agency''; and
(bb) by striking ``primary financial regulatory agency''
the second time it appears and inserting ``Board of
Governors''; and
(III) in subparagraph (C)--
(aa) by striking ``Each Federal primary financial
regulatory agency, in coordination with the Board of
Governors and the Federal Insurance Office,'' and inserting
``The Board of Governors''; and
(bb) by striking ``consistent and comparable''.
(K) in subsection (j)--
(i) in paragraph (1), by striking ``or a nonbank financial
company supervised by the Board of Governors''; and
(ii) in paragraph (2), by striking ``the factors described
in subsections (a) and (b) of section 113 and any other'' and
inserting ``any'';
(L) in subsection (k)(1), by striking ``or nonbank
financial company supervised by the Board of Governors''; and
(M) by adding at the end the following:
``(l) Exemption for Qualifying Banking Organizations.--This
section shall not apply to a proposed acquisition by a
qualifying banking organization, as defined under section 605
of the Financial CHOICE Act of 2017.''.
(c) Treatment of Other Resolution Plan Requirements.--
(1) In general.--With respect to an appropriate Federal
banking agency that requires a banking organization to submit
to the agency a resolution plan not described under section
165(d) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act--
(A) the agency shall comply with the requirements of
paragraphs (3) and (4) of such section 165(d);
(B) the agency may not require the submission of such a
resolution plan more often than every 2 years; and
(C) paragraphs (6) and (7) of such section 165(d) shall
apply to such a resolution plan.
(2) Definitions.--For purposes of this subsection, the
terms ``appropriate Federal banking agency'' and ``banking
organization'' have the meaning given those terms,
respectively, under section 105.
(d) Actions to Create a Bank Holding Company.--Section
3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C.
1842(b)(1)) is amended--
(1) by striking ``Upon receiving'' and inserting the
following:
``(A) In general.--Upon receiving'';
(2) by striking ``Notwithstanding any other provision'' and
inserting the following:
``(B) Immediate action.--
``(i) In general.--Notwithstanding any other provision'';
and
(3) by adding at the end the following:
``(ii) Exception.--The Board may not take any action
pursuant to clause (i) on an application that would cause any
company to become a bank holding company unless such
application involves the company acquiring a bank that is
critically undercapitalized (as such term is defined under
section 38(b) of the Federal Deposit Insurance Act).''.
(e) Concentration Limits Applied Only to Banking
Organizations.--Section 14 of the Bank Holding Company Act of
1956 (12 U.S.C. 1852) is amended--
(1) by striking ``financial company'' each place such term
appears and inserting ``banking organization'';
(2) in subsection (a)--
(A) by amending paragraph (2) to read as follows:
``(2) the term `banking organization' means--
``(A) an insured depository institution;
``(B) a bank holding company;
``(C) a savings and loan holding company;
``(D) a company that controls an insured depository
institution; and
``(E) a foreign bank or company that is treated as a bank
holding company for purposes of this Act; and'';
(B) in paragraph (3)--
(i) in subparagraph (A)(ii), by adding ``and'' at the end;
(ii) in subparagraph (B)(ii), by striking ``; and'' and
inserting a period; and
(iii) by striking subparagraph (C); and
(3) in subsection (b), by striking ``financial companies''
and inserting ``banking organizations''.
(f) Conforming Amendment.--Section 3502(5) of title 44,
United States Code, is amended by striking ``the Office of
Financial Research,''.
(g) Clerical Amendment.--The table of contents under
section 1(b) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act is amended by striking the items
relating to subtitle B of title I and 113, 114, 115, 116,
117, 119, 120, 121, 161, 162, 164, 166, 167, 168, 170, 172,
174, and 175.
SEC. 152. OPERATIONAL RISK CAPITAL REQUIREMENTS FOR BANKING
ORGANIZATIONS.
(a) In General.--An appropriate Federal banking agency may
not establish an operational risk capital requirement for
banking organizations, unless such requirement--
(1) is based on the risks posed by a banking organization's
current activities and businesses;
(2) is appropriately sensitive to the risks posed by such
current activities and businesses;
(3) is determined under a forward-looking assessment of
potential losses that may arise out of a banking
organization's current activities and businesses, which is
not solely based on a banking organization's historical
losses; and
(4) permits adjustments based on qualifying operational
risk mitigants.
(b) Definitions.--For purposes of this section, the terms
``appropriate Federal banking agency'' and ``banking
organization'' have the meaning given those terms,
respectively, under section 605.
TITLE II--DEMANDING ACCOUNTABILITY FROM WALL STREET
Subtitle A--SEC Penalties Modernization
SEC. 211. ENHANCEMENT OF CIVIL PENALTIES FOR SECURITIES LAWS
VIOLATIONS.
(a) Updated Civil Money Penalties.--
(1) Securities act of 1933.--
(A) Money penalties in administrative actions.--Section
8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h-
1(g)(2)) is amended--
(i) in subparagraph (A)--
(I) by striking ``$7,500'' and inserting ``$10,000''; and
(II) by striking ``$75,000'' and inserting ``$100,000'';
(ii) in subparagraph (B)--
(I) by striking ``$75,000'' and inserting ``$100,000''; and
(II) by striking ``$375,000'' and inserting ``$500,000'';
and
(iii) by striking subparagraph (C) and inserting the
following:
``(C) Third tier.--
``(i) In general.--Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such act or omission
shall not exceed the amount specified in clause (ii) if--
``(I) the act or omission described in paragraph (1)
involved fraud, deceit, manipulation, or deliberate or
reckless disregard of a regulatory requirement; and
``(II) such act or omission directly or indirectly resulted
in--
``(aa) substantial losses or created a significant risk of
substantial losses to other persons; or
``(bb) substantial pecuniary gain to the person who
committed the act or omission.
``(ii) Maximum amount of penalty.--The amount referred to
in clause (i) is the greatest of--
``(I) $300,000 for a natural person or $1,450,000 for any
other person;
``(II) 3 times the gross amount of pecuniary gain to the
person who committed the act or omission; or
``(III) the amount of losses incurred by victims as a
result of the act or omission.''.
(B) Money penalties in civil actions.--Section 20(d)(2) of
the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended--
(i) in subparagraph (A)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in subparagraph (B)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking subparagraph (C) and inserting the
following:
``(C) Third tier.--
``(i) In general.--Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such violation shall not
exceed the amount specified in clause (ii) if--
``(I) the violation described in paragraph (1) involved
fraud, deceit, manipulation, or deliberate or reckless
disregard of a regulatory requirement; and
``(II) such violation directly or indirectly resulted in
substantial losses or created a significant risk of
substantial losses to other persons.
``(ii) Maximum amount of penalty.--The amount referred to
in clause (i) is the greatest of--
``(I) $300,000 for a natural person or $1,450,000 for any
other person;
``(II) 3 times the gross amount of pecuniary gain to such
defendant as a result of the violation; or
``(III) the amount of losses incurred by victims as a
result of the violation.''.
(2) Securities exchange act of 1934.--
(A) Money penalties in civil actions.--Section 21(d)(3)(B)
of the Securities Exchange Act of 1934 (15 U.S.C.
78u(d)(3)(B)) is amended--
(i) in clause (i)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in clause (ii)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking clause (iii) and inserting the following:
``(iii) Third tier.--
``(I) In general.--Notwithstanding clauses (i) and (ii),
the amount of penalty for each such violation shall not
exceed the amount specified in subclause (II) if--
``(aa) the violation described in subparagraph (A) involved
fraud, deceit, manipulation, or deliberate or reckless
disregard of a regulatory requirement; and
``(bb) such violation directly or indirectly resulted in
substantial losses or created a significant risk of
substantial losses to other persons.
``(II) Maximum amount of penalty.--The amount referred to
in subclause (I) is the greatest of--
``(aa) $300,000 for a natural person or $1,450,000 for any
other person;
``(bb) 3 times the gross amount of pecuniary gain to such
defendant as a result of the violation; or
[[Page H4740]]
``(cc) the amount of losses incurred by victims as a result
of the violation.''.
(B) Money penalties in administrative actions.--Section
21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
2(b)) is amended--
(i) in paragraph (1)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in paragraph (2)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking paragraph (3) and inserting the
following:
``(3) Third tier.--
``(A) In general.--Notwithstanding paragraphs (1) and (2),
the amount of penalty for each such act or omission shall not
exceed the amount specified in subparagraph (B) if--
``(i) the act or omission described in subsection (a)
involved fraud, deceit, manipulation, or deliberate or
reckless disregard of a regulatory requirement; and
``(ii) such act or omission directly or indirectly resulted
in substantial losses or created a significant risk of
substantial losses to other persons or resulted in
substantial pecuniary gain to the person who committed the
act or omission.
``(B) Maximum amount of penalty.--The amount referred to in
subparagraph (A) is the greatest of--
``(i) $300,000 for a natural person or $1,450,000 for any
other person;
``(ii) 3 times the gross amount of pecuniary gain to the
person who committed the act or omission; or
``(iii) the amount of losses incurred by victims as a
result of the act or omission.''.
(3) Investment company act of 1940.--
(A) Money penalties in administrative actions.--Section
9(d)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a-
9(d)(2)) is amended--
(i) in subparagraph (A)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in subparagraph (B)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking subparagraph (C) and inserting the
following:
``(C) Third tier.--
``(i) In general.--Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such act or omission
shall not exceed the amount specified in clause (ii) if--
``(I) the act or omission described in paragraph (1)
involved fraud, deceit, manipulation, or deliberate or
reckless disregard of a regulatory requirement; and
``(II) such act or omission directly or indirectly resulted
in substantial losses or created a significant risk of
substantial losses to other persons or resulted in
substantial pecuniary gain to the person who committed the
act or omission.
``(ii) Maximum amount of penalty.--The amount referred to
in clause (i) is the greatest of--
``(I) $300,000 for a natural person or $1,450,000 for any
other person;
``(II) 3 times the gross amount of pecuniary gain to the
person who committed the act or omission; or
``(III) the amount of losses incurred by victims as a
result of the act or omission.''.
(B) Money penalties in civil actions.--Section 42(e)(2) of
the Investment Company Act of 1940 (15 U.S.C. 80a-41(e)(2))
is amended--
(i) in subparagraph (A)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in subparagraph (B)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking subparagraph (C) and inserting the
following:
``(C) Third tier.--
``(i) In general.--Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such violation shall not
exceed the amount specified in clause (ii) if--
``(I) the violation described in paragraph (1) involved
fraud, deceit, manipulation, or deliberate or reckless
disregard of a regulatory requirement; and
``(II) such violation directly or indirectly resulted in
substantial losses or created a significant risk of
substantial losses to other persons.
``(ii) Maximum amount of penalty.--The amount referred to
in clause (i) is the greatest of--
``(I) $300,000 for a natural person or $1,450,000 for any
other person;
``(II) 3 times the gross amount of pecuniary gain to such
defendant as a result of the violation; or
``(III) the amount of losses incurred by victims as a
result of the violation.''.
(4) Investment advisers act of 1940.--
(A) Money penalties in administrative actions.--Section
203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C.
80b-3(i)(2)) is amended--
(i) in subparagraph (A)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in subparagraph (B)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking subparagraph (C) and inserting the
following:
``(C) Third tier.--
``(i) In general.--Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such act or omission
shall not exceed the amount specified in clause (ii) if--
``(I) the act or omission described in paragraph (1)
involved fraud, deceit, manipulation, or deliberate or
reckless disregard of a regulatory requirement; and
``(II) such act or omission directly or indirectly resulted
in substantial losses or created a significant risk of
substantial losses to other persons or resulted in
substantial pecuniary gain to the person who committed the
act or omission.
``(ii) Maximum amount of penalty.--The amount referred to
in clause (i) is the greatest of--
``(I) $300,000 for a natural person or $1,450,000 for any
other person;
``(II) 3 times the gross amount of pecuniary gain to the
person who committed the act or omission; or
``(III) the amount of losses incurred by victims as a
result of the act or omission.''.
(B) Money penalties in civil actions.--Section 209(e)(2) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)(2))
is amended--
(i) in subparagraph (A)--
(I) by striking ``$5,000'' and inserting ``$10,000''; and
(II) by striking ``$50,000'' and inserting ``$100,000'';
(ii) in subparagraph (B)--
(I) by striking ``$50,000'' and inserting ``$100,000''; and
(II) by striking ``$250,000'' and inserting ``$500,000'';
and
(iii) by striking subparagraph (C) and inserting the
following:
``(C) Third tier.--
``(i) In general.--Notwithstanding subparagraphs (A) and
(B), the amount of penalty for each such violation shall not
exceed the amount specified in clause (ii) if--
``(I) the violation described in paragraph (1) involved
fraud, deceit, manipulation, or deliberate or reckless
disregard of a regulatory requirement; and
``(II) such violation directly or indirectly resulted in
substantial losses or created a significant risk of
substantial losses to other persons.
``(ii) Maximum amount of penalty.--The amount referred to
in clause (i) is the greatest of--
``(I) $300,000 for a natural person or $1,450,000 for any
other person;
``(II) 3 times the gross amount of pecuniary gain to such
defendant as a result of the violation; or
``(III) the amount of losses incurred by victims as a
result of the violation.''.
(b) Penalties for Recidivists.--
(1) Securities act of 1933.--
(A) Money penalties in administrative actions.--Section
8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h-
1(g)(2)) is amended by adding at the end the following:
``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B),
and (C), the maximum amount of penalty for each such act or
omission shall be 3 times the otherwise applicable amount in
such subparagraphs if, within the 5-year period preceding
such act or omission, the person who committed the act or
omission was criminally convicted for securities fraud or
became subject to a judgment or order imposing monetary,
equitable, or administrative relief in any Commission action
alleging fraud by that person.''.
(B) Money penalties in civil actions.--Section 20(d)(2) of
the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended
by adding at the end the following:
``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B),
and (C), the maximum amount of penalty for each such
violation shall be 3 times the otherwise applicable amount in
such subparagraphs if, within the 5-year period preceding
such violation, the defendant was criminally convicted for
securities fraud or became subject to a judgment or order
imposing monetary, equitable, or administrative relief in any
Commission action alleging fraud by that defendant.''.
(2) Securities exchange act of 1934.--
(A) Money penalties in civil actions.--Section 21(d)(3)(B)
of the Securities Exchange Act of 1934 (15 U.S.C.
78u(d)(3)(B)) is amended by adding at the end the following:
``(iv) Fourth tier.--Notwithstanding clauses (i), (ii), and
(iii), the maximum amount of penalty for each such violation
shall be 3 times the otherwise applicable amount in such
clauses if, within the 5-year period preceding such
violation, the defendant was criminally convicted for
securities fraud or became subject to a judgment or order
imposing monetary, equitable, or administrative relief in any
Commission action alleging fraud by that defendant.''.
(B) Money penalties in administrative actions.--Section
21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
2(b)) is amended by adding at the end the following:
``(4) Fourth tier.--Notwithstanding paragraphs (1), (2),
and (3), the maximum amount of penalty for each such act or
omission shall be 3 times the otherwise applicable amount in
such paragraphs if, within the 5-year period preceding such
act or omission, the person who committed the act or omission
was criminally convicted for securities fraud or became
subject to a judgment or order imposing monetary, equitable,
or administrative relief in any Commission action alleging
fraud by that person.''.
(3) Investment company act of 1940.--
[[Page H4741]]
(A) Money penalties in administrative actions.--Section
9(d)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a-
9(d)(2)) is amended by adding at the end the following:
``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B),
and (C), the maximum amount of penalty for each such act or
omission shall be 3 times the otherwise applicable amount in
such subparagraphs if, within the 5-year period preceding
such act or omission, the person who committed the act or
omission was criminally convicted for securities fraud or
became subject to a judgment or order imposing monetary,
equitable, or administrative relief in any Commission action
alleging fraud by that person.''.
(B) Money penalties in civil actions.--Section 42(e)(2) of
the Investment Company Act of 1940 (15 U.S.C. 80a-41(e)(2))
is amended by adding at the end the following:
``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B),
and (C), the maximum amount of penalty for each such
violation shall be 3 times the otherwise applicable amount in
such subparagraphs if, within the 5-year period preceding
such violation, the defendant was criminally convicted for
securities fraud or became subject to a judgment or order
imposing monetary, equitable, or administrative relief in any
Commission action alleging fraud by that defendant.''.
(4) Investment advisers act of 1940.--
(A) Money penalties in administrative actions.--Section
203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C.
80b-3(i)(2)) is amended by adding at the end the following:
``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B),
and (C), the maximum amount of penalty for each such act or
omission shall be 3 times the otherwise applicable amount in
such subparagraphs if, within the 5-year period preceding
such act or omission, the person who committed the act or
omission was criminally convicted for securities fraud or
became subject to a judgment or order imposing monetary,
equitable, or administrative relief in any Commission action
alleging fraud by that person.''.
(B) Money penalties in civil actions.--Section 209(e)(2) of
the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)(2))
is amended by adding at the end the following:
``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B),
and (C), the maximum amount of penalty for each such
violation shall be 3 times the otherwise applicable amount in
such subparagraphs if, within the 5-year period preceding
such violation, the defendant was criminally convicted for
securities fraud or became subject to a judgment or order
imposing monetary, equitable, or administrative relief in any
Commission action alleging fraud by that defendant.''.
(c) Violations of Injunctions and Bars.--
(1) Securities act of 1933.--Section 20(d) of the
Securities Act of 1933 (15 U.S.C. 77t(d)) is amended--
(A) in paragraph (1), by inserting after ``the rules or
regulations thereunder,'' the following: ``a Federal court
injunction or a bar obtained or entered by the Commission
under this title,''; and
(B) by striking paragraph (4) and inserting the following:
``(4) Special provisions relating to a violation of an
injunction or certain orders.--
``(A) In general.--Each separate violation of an injunction
or order described in subparagraph (B) shall be a separate
offense, except that in the case of a violation through a
continuing failure to comply with such injunction or order,
each day of the failure to comply with the injunction or
order shall be deemed a separate offense.
``(B) Injunctions and orders.--Subparagraph (A) shall apply
with respect to any action to enforce--
``(i) a Federal court injunction obtained pursuant to this
title;
``(ii) an order entered or obtained by the Commission
pursuant to this title that bars, suspends, places
limitations on the activities or functions of, or prohibits
the activities of, a person; or
``(iii) a cease-and-desist order entered by the Commission
pursuant to section 8A.''.
(2) Securities exchange act of 1934.--Section 21(d)(3) of
the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)) is
amended--
(A) in subparagraph (A), by inserting after ``the rules or
regulations thereunder,'' the following: ``a Federal court
injunction or a bar obtained or entered by the Commission
under this title,''; and
(B) by striking subparagraph (D) and inserting the
following:
``(D) Special provisions relating to a violation of an
injunction or certain orders.--
``(i) In general.--Each separate violation of an injunction
or order described in clause (ii) shall be a separate
offense, except that in the case of a violation through a
continuing failure to comply with such injunction or order,
each day of the failure to comply with the injunction or
order shall be deemed a separate offense.
``(ii) Injunctions and orders.--Clause (i) shall apply with
respect to an action to enforce--
``(I) a Federal court injunction obtained pursuant to this
title;
``(II) an order entered or obtained by the Commission
pursuant to this title that bars, suspends, places
limitations on the activities or functions of, or prohibits
the activities of, a person; or
``(III) a cease-and-desist order entered by the Commission
pursuant to section 21C.''.
(3) Investment company act of 1940.--Section 42(e) of the
Investment Company Act of 1940 (15 U.S.C. 80a-41(e)) is
amended--
(A) in paragraph (1), by inserting after ``the rules or
regulations thereunder,'' the following: ``a Federal court
injunction or a bar obtained or entered by the Commission
under this title,''; and
(B) by striking paragraph (4) and inserting the following:
``(4) Special provisions relating to a violation of an
injunction or certain orders.--
``(A) In general.--Each separate violation of an injunction
or order described in subparagraph (B) shall be a separate
offense, except that in the case of a violation through a
continuing failure to comply with such injunction or order,
each day of the failure to comply with the injunction or
order shall be deemed a separate offense.
``(B) Injunctions and orders.--Subparagraph (A) shall apply
with respect to any action to enforce--
``(i) a Federal court injunction obtained pursuant to this
title;
``(ii) an order entered or obtained by the Commission
pursuant to this title that bars, suspends, places
limitations on the activities or functions of, or prohibits
the activities of, a person; or
``(iii) a cease-and-desist order entered by the Commission
pursuant to section 9(f).''.
(4) Investment advisers act of 1940.--Section 209(e) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)) is
amended--
(A) in paragraph (1), by inserting after ``the rules or
regulations thereunder,'' the following: ``a Federal court
injunction or a bar obtained or entered by the Commission
under this title,''; and
(B) by striking paragraph (4) and inserting the following:
``(4) Special provisions relating to a violation of an
injunction or certain orders.--
``(A) In general.--Each separate violation of an injunction
or order described in subparagraph (B) shall be a separate
offense, except that in the case of a violation through a
continuing failure to comply with such injunction or order,
each day of the failure to comply with the injunction or
order shall be deemed a separate offense.
``(B) Injunctions and orders.--Subparagraph (A) shall apply
with respect to any action to enforce--
``(i) a Federal court injunction obtained pursuant to this
title;
``(ii) an order entered or obtained by the Commission
pursuant to this title that bars, suspends, places
limitations on the activities or functions of, or prohibits
the activities of, a person; or
``(iii) a cease-and-desist order entered by the Commission
pursuant to section 203(k).''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to conduct that occurs after the
date of the enactment of this Act.
SEC. 212. UPDATED CIVIL MONEY PENALTIES OF PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD.
(a) In General.--Section 105(c)(4)(D) of the Sarbanes-Oxley
Act of 2002 (15 U.S.C. 7215(c)(4)(D)) is amended--
(1) in clause (i)--
(A) by striking ``$100,000'' and inserting ``$200,000'';
and
(B) by striking ``$2,000,000'' and inserting
``$4,000,000''; and
(2) in clause (ii)--
(A) by striking ``$750,000'' and inserting ``$1,500,000'';
and
(B) by striking ``$15,000,000'' and inserting
``$22,000,000''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to conduct that occurs after the
date of the enactment of this Act.
SEC. 213. UPDATED CIVIL MONEY PENALTY FOR CONTROLLING PERSONS
IN CONNECTION WITH INSIDER TRADING.
(a) In General.--Section 21A(a)(3) of the Securities
Exchange Act of 1934 (15 U.S.C. 78u-1(a)(3)) is amended by
striking ``$1,000,000'' and inserting ``$2,500,000''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to conduct that occurs after the
date of the enactment of this Act.
SEC. 214. UPDATE OF CERTAIN OTHER PENALTIES.
(a) In General.--Section 32 of the Securities Exchange Act
of 1934 (15 U.S.C. 78ff) is amended--
(1) in subsection (a), by striking ``$5,000,000'' and
inserting ``$7,000,000''; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``$2,000,000'' and
inserting ``$4,000,000''; and
(ii) in subparagraph (B), by striking ``$10,000'' and
inserting ``$50,000''; and
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``$100,000'' and
inserting ``$250,000''; and
(ii) in subparagraph (B), by striking ``$10,000'' and
inserting ``$50,000''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to conduct that occurs after the
date of the enactment of this Act.
SEC. 215. MONETARY SANCTIONS TO BE USED FOR THE RELIEF OF
VICTIMS.
(a) In General.--Section 308(a) of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7246(a)) is amended to read as follows:
``(a) Monetary Sanctions to Be Used for the Relief of
Victims.--
``(1) In general.--If, in any judicial or administrative
action brought by the Commission under the securities laws,
the Commission obtains a monetary sanction (as defined in
section 21F(a) of the Securities Exchange Act of 1934)
against any person for a violation of such laws, or such
person agrees, in settlement of any such action, to such
monetary sanction, the amount of such monetary sanction
shall, on the motion
[[Page H4742]]
or at the direction of the Commission, be added to and become
part of a disgorgement fund or other fund established for the
benefit of the victims of such violation.
``(2) Definition of victim.--In this subsection, the term
`victim' has the meaning given the term `crime victim' in
section 3771(e) of title 18, United States Code.''.
(b) Monetary Sanction Defined.--Section 21F(a)(4)(A) of the
Securities Exchange Act of 1934 (15 U.S.C. 78u-6(a)(4)(A)) is
amended by striking ``ordered'' and inserting ``required''.
(c) Effective Date.--The amendments made by this section
apply with respect to any monetary sanction ordered or
required to be paid before or after the date of enactment of
this Act.
SEC. 216. GAO REPORT ON USE OF CIVIL MONEY PENALTY AUTHORITY
BY COMMISSION.
(a) In General.--Not later than 2 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit 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 use by the Commission of the authority to impose or
obtain civil money penalties for violations of the securities
laws during the period beginning on June 1, 2010, and ending
on the date of the enactment of this Act.
(b) Matters Required To Be Included.--The matters covered
by the report required by subsection (a) shall include the
following:
(1) The types of violations for which civil money penalties
were imposed or obtained.
(2) The types of persons on whom civil money penalties were
imposed or from whom such penalties were obtained.
(3) The number and dollar amount of civil money penalties
imposed or obtained, disaggregated as follows:
(A) Penalties imposed in administrative actions and
penalties obtained in judicial actions.
(B) Penalties imposed on or obtained from issuers
(individual and aggregate filers) and penalties imposed on or
obtained from other persons.
(C) Penalties permitted to be retained for use by the
Commission and penalties deposited in the general fund of the
Treasury of the United States.
(4) For penalties imposed on or obtained from issuers:
(A) Whether the violations involved resulted in direct
economic benefit to the issuers.
(B) The impact of the penalties on the shareholders of the
issuers.
(c) Definitions.--In this section, the terms
``Commission'', ``issuer'', and ``securities laws'' have the
meanings given such terms in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).
Subtitle B--FIRREA Penalties Modernization
SEC. 221. INCREASE OF CIVIL AND CRIMINAL PENALTIES ORIGINALLY
ESTABLISHED IN THE FINANCIAL INSTITUTIONS
REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989.
(a) Amendments to FIRREA.--Section 951(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(12 U.S.C. 1833a(b)) is amended--
(1) in paragraph (1), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(2) in paragraph (2), by striking ``$1,000,000 per day or
$5,000,000'' and inserting ``$1,500,000 per day or
$7,500,000''.
(b) Amendments to the Home Owners' Loan Act.--The Home
Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
(1) in section 5(v)(6), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(2) in section 10--
(A) in subsection (r)(3), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(B) in subsection (i)(1)(B), by striking ``$1,000,000'' and
inserting ``$1,500,000''.
(c) Amendments to the Federal Deposit Insurance Act.--The
Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is
amended--
(1) in section 7--
(A) in subsection (a)(1), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(B) in subsection (j)(16)(D), by striking ``$1,000,000''
each place such term appears and inserting ``$1,500,000'';
(2) in section 8--
(A) in subsection (i)(2)(D), by striking ``$1,000,000''
each place such term appears and inserting ``$1,500,000'';
and
(B) in subsection (j), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(3) in section 19(b), by striking ``$1,000,000'' and
inserting ``$1,500,000''.
(d) Amendments to the Federal Credit Union Act.--The
Federal Credit Union Act (12 U.S.C. 1751 et seq.) is
amended--
(1) in section 202(a)(3), by striking ``$1,000,000'' and
inserting ``$1,500,000'';
(2) in section 205(d)(3), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(3) in section 206--
(A) in subsection (k)(2)(D), by striking ``$1,000,000''
each place such term appears and inserting ``$1,500,000'';
and
(B) in subsection (l), by striking ``$1,000,000'' and
inserting ``$1,500,000''.
(e) Amendments to the Revised Statutes of the United
States.--Title LXII of the Revised Statutes of the United
States is amended--
(1) in section 5213(c), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(2) in section 5239(b)(4), by striking ``$1,000,000'' each
place such term appears and inserting ``$1,500,000''.
(f) Amendments to the Federal Reserve Act.--The Federal
Reserve Act (12 U.S.C. 221 et seq.) is amended--
(1) in the 6th undesignated paragraph of section 9, by
striking ``$1,000,000'' and inserting ``$1,500,000'';
(2) in section 19(l)(4), by striking ``$1,000,000'' each
place such term appears and inserting ``$1,500,000''; and
(3) in section 29(d), by striking ``$1,000,000'' each place
such term appears and inserting ``$1,500,000''.
(g) Amendments to the Bank Holding Company Act Amendments
of 1970.--Section 106(b)(2)(F)(iv) of the Bank Holding
Company Act Amendments of 1970 (12 U.S.C. 1978(b)(2)(F)(iv))
is amended by striking ``$1,000,000'' each place such term
appears and inserting ``$1,500,000''.
(h) Amendments to the Bank Holding Company Act of 1956.--
Section 8 of the Bank Holding Company Act of 1956 (12 U.S.C.
1847) is amended--
(1) in subsection (a)(2), by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(2) in subsection (d)(3), by striking ``$1,000,000'' and
inserting ``$1,500,000''.
(i) Amendments to Title 18, United States Code.--Title 18,
United States Code, is amended--
(1) in section 215(a) of chapter 11, by striking
``$1,000,000'' and inserting ``$1,500,000'';
(2) in chapter 31--
(A) in section 656, by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(B) in section 657, by striking ``$1,000,000'' and
inserting ``$1,500,000'';
(3) in chapter 47--
(A) in section 1005, by striking ``$1,000,000'' and
inserting ``$1,500,000'';
(B) in section 1006, by striking ``$1,000,000'' and
inserting ``$1,500,000'';
(C) in section 1007, by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(D) in section 1014, by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(4) in chapter 63--
(A) in section 1341, by striking ``$1,000,000'' and
inserting ``$1,500,000'';
(B) in section 1343, by striking ``$1,000,000'' and
inserting ``$1,500,000''; and
(C) in section 1344, by striking ``$1,000,000'' and
inserting ``$1,500,000''.
TITLE III--DEMANDING ACCOUNTABILITY FROM FINANCIAL REGULATORS AND
DEVOLVING POWER AWAY FROM WASHINGTON
Subtitle A--Cost-Benefit Analyses
SEC. 311. DEFINITIONS.
As used in this subtitle--
(1) the term ``agency'' means the Board of Governors of the
Federal Reserve System, the Consumer Law Enforcement Agency,
the Commodity Futures Trading Commission, the Federal Deposit
Insurance Corporation, the Federal Housing Finance Agency,
the Office of the Comptroller of the Currency, the National
Credit Union Administration, and the Securities and Exchange
Commission;
(2) the term ``chief economist'' means--
(A) with respect to the Board of Governors of the Federal
Reserve System, the Director of the Division of Research and
Statistics, or an employee of the agency with comparable
authority;
(B) with respect to the Consumer Law Enforcement Agency,
the Head of the Office of Economic Analysis, or an employee
of the agency with comparable authority;
(C) with respect to the Commodity Futures Trading
Commission, the Chief Economist, or an employee of the agency
with comparable authority;
(D) with respect to the Federal Deposit Insurance
Corporation, the Director of the Division of Insurance and
Research, or an employee of the agency with comparable
authority;
(E) with respect to the Federal Housing Finance Agency, the
Chief Economist, or an employee of the agency with comparable
authority;
(F) with respect to the Office of the Comptroller of the
Currency, the Director for Policy Analysis, or an employee of
the agency with comparable authority;
(G) with respect to the National Credit Union
Administration, the Chief Economist, or an employee of the
agency with comparable authority; and
(H) with respect to the Securities and Exchange Commission,
the Director of the Division of Economic and Risk Analysis,
or an employee of the agency with comparable authority;
(3) the term ``Council'' means the Chief Economists Council
established under section 318; and
(4) the term ``regulation''--
(A) means an agency statement of general applicability and
future effect that is designed to implement, interpret, or
prescribe law or policy or to describe the procedure or
practice requirements of an agency, including rules, orders
of general applicability, interpretive releases, and other
statements of general applicability that the agency intends
to have the force and effect of law; and
(B) does not include--
(i) a regulation issued in accordance with the formal
rulemaking provisions of section 556 or 557 of title 5,
United States Code;
(ii) a regulation that is limited to agency organization,
management, or personnel matters;
(iii) a regulation promulgated pursuant to statutory
authority that expressly prohibits compliance with this
provision;
(iv) a regulation that is certified by the agency to be an
emergency action, if such certification is published in the
Federal Register;
(v) a regulation that is promulgated by the Board of
Governors of the Federal Reserve System or the Federal Open
Market Committee under section 10A, 10B, 13, 13A, or 19 of
the Federal Reserve Act, or any of subsections (a) through
(f) of section 14 of that Act;
(vi) a regulation filed with the Securities and Exchange
Commission by the Public Company Accounting Oversight Board,
the Municipal Securities Rulemaking Board, or any national
securities association registered under section 15A of the
Securities Exchange Act of 1934 (15 U.S.C.
[[Page H4743]]
78o-3(a)) for which the board or association has itself
conducted the cost-benefit analysis and otherwise complied
with the requirements of section 312; or
(vii) a regulation filed with the Securities and Exchange
Commission by a national securities association registered
under section 15A(k) of the Securities Exchange Act of 1934
(15 U.S.C. 78o-3(k)).
SEC. 312. REQUIRED REGULATORY ANALYSIS.
(a) Requirements for Notices of Proposed Rulemaking.--An
agency may not issue a notice of proposed rulemaking unless
the agency includes in the notice of proposed rulemaking an
analysis that contains, at a minimum, with respect to each
regulation that is being proposed--
(1) an identification of the need for the regulation and
the regulatory objective, including identification of the
nature and significance of the market failure, regulatory
failure, or other problem that necessitates the regulation;
(2) an explanation of why the private market or State,
local, or tribal authorities cannot adequately address the
identified market failure or other problem;
(3) an analysis of the adverse impacts to regulated
entities, other market participants, economic activity, or
agency effectiveness that are engendered by the regulation
and the magnitude of such adverse impacts;
(4) a quantitative and qualitative assessment of all
anticipated direct and indirect costs and benefits of the
regulation (as compared to a benchmark that assumes the
absence of the regulation), including--
(A) compliance costs;
(B) effects on economic activity, net job creation
(excluding jobs related to ensuring compliance with the
regulation), efficiency, competition, and capital formation;
(C) regulatory administrative costs; and
(D) costs imposed by the regulation on State, local, or
tribal governments or other regulatory authorities;
(5) if quantified benefits do not outweigh quantitative
costs, a justification for the regulation;
(6) an identification and assessment of all available
alternatives to the regulation, including modification of an
existing regulation or statute, together with--
(A) an explanation of why the regulation meets the
objectives of the regulation more effectively than the
alternatives, and if the agency is proposing multiple
alternatives, an explanation of why a notice of proposed
rulemaking, rather than an advanced notice of proposed
rulemaking, is appropriate; and
(B) if the regulation is not a pilot program, an
explanation of why a pilot program is not appropriate;
(7) if the regulation specifies the behavior or manner of
compliance, an explanation of why the agency did not instead
specify performance objectives;
(8) an assessment of how the burden imposed by the
regulation will be distributed among market participants,
including whether consumers, investors, small businesses, or
independent financial firms and advisors will be
disproportionately burdened;
(9) an assessment of the extent to which the regulation is
inconsistent, incompatible, or duplicative with the existing
regulations of the agency or those of other domestic and
international regulatory authorities with overlapping
jurisdiction;
(10) a description of any studies, surveys, or other data
relied upon in preparing the analysis;
(11) an assessment of the degree to which the key
assumptions underlying the analysis are subject to
uncertainty; and
(12) an explanation of predicted changes in market
structure and infrastructure and in behavior by market
participants, including consumers and investors, assuming
that they will pursue their economic interests.
(b) Requirements for Notices of Final Rulemaking.--
(1) In general.--Notwithstanding any other provision of
law, an agency may not issue a notice of final rulemaking
with respect to a regulation unless the agency--
(A) has issued a notice of proposed rulemaking for the
relevant regulation;
(B) has conducted and includes in the notice of final
rulemaking an analysis that contains, at a minimum, the
elements required under subsection (a); and
(C) includes in the notice of final rulemaking regulatory
impact metrics selected by the chief economist to be used in
preparing the report required pursuant to section 315.
(2) Consideration of comments.--The agency shall
incorporate in the elements described in paragraph (1)(B) the
data and analyses provided to the agency by commenters during
the comment period, or explain why the data or analyses are
not being incorporated.
(3) Comment period.--An agency shall not publish a notice
of final rulemaking with respect to a regulation, unless the
agency--
(A) has allowed at least 90 days from the date of
publication in the Federal Register of the notice of proposed
rulemaking for the submission of public comments; or
(B) includes in the notice of final rulemaking an
explanation of why the agency was not able to provide a 90-
day comment period.
(4) Prohibited rules.--
(A) In general.--An agency may not publish a notice of
final rulemaking if the agency, in its analysis under
paragraph (1)(B), determines that the quantified costs are
greater than the quantified benefits under subsection (a)(5).
(B) Publication of analysis.--If the agency is precluded by
subparagraph (A) from publishing a notice of final
rulemaking, the agency shall publish in the Federal Register
and on the public website of the agency its analysis under
paragraph (1)(B), and provide the analysis to each House of
Congress.
(C) Congressional waiver.--If the agency is precluded by
subparagraph (A) from publishing a notice of final
rulemaking, Congress, by joint resolution pursuant to the
procedures set forth for joint resolutions in section 802 of
title 5, United States Code, may direct the agency to publish
a notice of final rulemaking notwithstanding the prohibition
contained in subparagraph (A). In applying section 802 of
title 5, United States Code, for purposes of this paragraph,
section 802(e)(2) shall not apply and the terms--
(i) ``joint resolution'' or ``joint resolution described in
subsection (a)'' means only a joint resolution introduced
during the period beginning on the submission or publication
date and ending 60 days thereafter (excluding days either
House of Congress is adjourned for more than 3 days during a
session of Congress), the matter after the resolving clause
of which is as follows: ``That Congress directs,
notwithstanding the prohibition contained in section
312(b)(4)(A) of the Financial CHOICE Act of 2017, the __ to
publish the notice of final rulemaking for the regulation or
regulations that were the subject of the analysis submitted
by the __ to Congress on __.'' (The blank spaces being
appropriately filled in.); and
(ii) ``submission or publication date'' means--
(I) the date on which the analysis under paragraph (1)(B)
is submitted to Congress under paragraph (4)(B); or
(II) if the analysis is submitted to Congress less than 60
session days or 60 legislative days before the date on which
the Congress adjourns a session of Congress, the date on
which the same or succeeding Congress first convenes its next
session.
SEC. 313. RULE OF CONSTRUCTION.
Provided that an agency has first issued an advanced notice
of proposed rulemaking in connection with a regulation, the
agency is not required to comply with section 3506(c)(2) of
title 44, United States Code, with respect to any information
collection request--
(1) that identifies the advanced notice of proposed
rulemaking in such request;
(2) that informs the person from whom the information is
obtained or solicited that the provision of such information
is voluntary;
(3) that is necessary to comply with section 312; and
(4) with respect to which the information collected will
not be used for purposes other than compliance with this
title.
SEC. 314. PUBLIC AVAILABILITY OF DATA AND REGULATORY
ANALYSIS.
(a) In General.--At or before the commencement of the
public comment period with respect to a regulation, the
agency shall make available on its public website sufficient
information about the data, methodologies, and assumptions
underlying the analyses performed pursuant to section 312 so
that the analytical results of the agency are capable of
being substantially reproduced, subject to an acceptable
degree of imprecision or error.
(b) Confidentiality.--The agency shall comply with
subsection (a) in a manner that preserves the nonpublic
nature of confidential information, including confidential
trade secrets, confidential commercial or financial
information, and confidential information about positions,
transactions, or business practices.
SEC. 315. FIVE-YEAR REGULATORY IMPACT ANALYSIS.
(a) In General.--Not later than 5 years after the date of
publication in the Federal Register of a notice of final
rulemaking, the chief economist of the agency shall issue a
report that examines the economic impact of the subject
regulation, including the direct and indirect costs and
benefits of the regulation.
(b) Regulatory Impact Metrics.--In preparing the report
required by subsection (a), the chief economist shall employ
the regulatory impact metrics included in the notice of final
rulemaking pursuant to section 312(b)(1)(C).
(c) Reproducibility.--The report shall include the data,
methodologies, and assumptions underlying the evaluation so
that the agency's analytical results are capable of being
substantially reproduced, subject to an acceptable degree of
imprecision or error.
(d) Confidentiality.--The agency shall comply with
subsection (c) in a manner that preserves the nonpublic
nature of confidential information, including confidential
trade secrets, confidential commercial or financial
information, and confidential information about positions,
transactions, or business practices.
(e) Report.--The agency shall submit the report required by
subsection (a) to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives and post it on the
public website of the agency. Notwithstanding the previous
sentence, the Commodity Futures Trading Commission shall only
submit its report to the Committee on Agriculture, Nutrition,
and Forestry of the Senate and the Committee on Agriculture
of the House of Representatives.
SEC. 316. RETROSPECTIVE REVIEW OF EXISTING RULES.
(a) Regulatory Improvement Plan.--Not later than 1 year
after the date of enactment of this Act and every 5 years
thereafter, each agency shall develop, submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives, and post on the public website of the
agency a plan, consistent with law and its resources and
regulatory priorities, under which the agency will modify,
streamline, expand, or repeal existing regulations so as to
make the regulatory program of the agency more effective or
less burdensome in
[[Page H4744]]
achieving the regulatory objectives. Notwithstanding the
previous sentence, the Commodity Futures Trading Commission
shall only submit its plan to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on
Agriculture of the House of Representatives.
(b) Implementation Progress Report.--Two years after the
date of submission of each plan required under subsection
(a), each agency shall develop, submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives, and post on the public website of the agency
a report of the steps that it has taken to implement the
plan, steps that remain to be taken to implement the plan,
and, if any parts of the plan will not be implemented,
reasons for not implementing those parts of the plan.
Notwithstanding the previous sentence, the Commodity Futures
Trading Commission shall only submit its plan to the
Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Agriculture of the House of
Representatives.
SEC. 317. JUDICIAL REVIEW.
(a) In General.--Notwithstanding any other provision of
law, during the period beginning on the date on which a
notice of final rulemaking for a regulation is published in
the Federal Register and ending 1 year later, a person that
is adversely affected or aggrieved by the regulation is
entitled to bring an action in the United States Court of
Appeals for the District of Columbia Circuit for judicial
review of agency compliance with the requirements of section
312.
(b) Stay.--The court may stay the effective date of the
regulation or any provision thereof.
(c) Relief.--If the court finds that an agency has not
complied with the requirements of section 312, the court
shall vacate the subject regulation, unless the agency shows
by clear and convincing evidence that vacating the regulation
would result in irreparable harm. Nothing in this section
affects other limitations on judicial review or the power or
duty of the court to dismiss any action or deny relief on any
other appropriate legal or equitable ground.
SEC. 318. CHIEF ECONOMISTS COUNCIL.
(a) Establishment.--There is established the Chief
Economists Council.
(b) Membership.--The Council shall consist of the chief
economist of each agency. The members of the Council shall
select the first chairperson of the Council. Thereafter the
position of Chairperson shall rotate annually among the
members of the Council.
(c) Meetings.--The Council shall meet at the call of the
Chairperson, but not less frequently than quarterly.
(d) Report.--One year after the effective date of this Act
and annually thereafter, the Council shall prepare and submit
to the Committee on Banking, Housing, and Urban Affairs and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Financial Services and the
Committee on Agriculture of the House of Representatives, and
make publicly available on the Council's website, a report
on--
(1) the benefits and costs of regulations adopted by the
agencies during the past 12 months;
(2) the regulatory actions planned by the agencies for the
upcoming 12 months;
(3) the cumulative effect of the existing regulations of
the agencies on economic activity, innovation, international
competitiveness of entities regulated by the agencies, and
net job creation (excluding jobs related to ensuring
compliance with the regulation);
(4) the training and qualifications of the persons who
prepared the cost-benefit analyses of each agency during the
past 12 months;
(5) the sufficiency of the resources available to the chief
economists during the past 12 months for the conduct of the
activities required by this subtitle; and
(6) recommendations for legislative or regulatory action to
enhance the efficiency and effectiveness of financial
regulation in the United States.
SEC. 319. CONFORMING AMENDMENTS.
Section 15(a) of the Commodity Exchange Act (7 U.S.C.
19(a)) is amended--
(1) by striking paragraph (1);
(2) in paragraph (2), by striking ``(2)'' and all that
follows through ``light of--'' and inserting the following:
``(1) Considerations.--Before promulgating a regulation
under this chapter or issuing an order (except as provided in
paragraph (2)), the Commission shall take into
consideration--'';
(3) in paragraph (1), as so redesignated--
(A) in subparagraph (B), by striking ``futures'' and
inserting ``the relevant'';
(B) in subparagraph (C), by adding ``and'' at the end;
(C) in subparagraph (D), by striking ``; and'' and
inserting a period; and
(D) by striking subparagraph (E); and
(4) by redesignating paragraph (3) as paragraph (2).
SEC. 320. OTHER REGULATORY ENTITIES.
Not later than 1 year after the date of enactment of this
Act, the Securities and Exchange Commission shall provide to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives, and make publicly available on the
Commission's website a report setting forth a plan for
subjecting the Public Company Accounting Oversight Board, the
Municipal Securities Rulemaking Board, and any national
securities association registered under section 15A of the
Securities Exchange Act of 1934 (15 U.S.C. 78o-4(a)), other
than subsection (k) of such section 15A, to the requirements
of this subtitle, other than direct representation on the
Council.
SEC. 321. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY ANALYSES.
An agency may perform the analyses required by this
subtitle in conjunction with, or as a part of, any other
agenda or analysis required by any other provision of law, if
such other analysis satisfies the provisions of this
subtitle.
Subtitle B--Congressional Review of Federal Financial Agency Rulemaking
SEC. 331. CONGRESSIONAL REVIEW.
(a)(1)(A) Before a rule may take effect, an agency shall
publish in the Federal Register a list of information on
which the rule is based, including data, scientific and
economic studies, and cost-benefit analyses, and identify how
the public can access such information online, and shall
submit to each House of the Congress and to the Comptroller
General a report containing--
(i) a copy of the rule;
(ii) a concise general statement relating to the rule;
(iii) a classification of the rule as a major or nonmajor
rule, including an explanation of the classification
specifically addressing each criteria for a major rule
contained within subparagraphs (A) through (C) of section
334(2);
(iv) a list of any other related regulatory actions
intended to implement the same statutory provision or
regulatory objective as well as the individual and aggregate
economic effects of those actions; and
(v) the proposed effective date of the rule.
(B) On the date of the submission of the report under
subparagraph (A), the agency shall submit to the Comptroller
General and make available to each House of Congress--
(i) a complete copy of the cost-benefit analysis of the
rule, if any, including an analysis of any jobs added or
lost, differentiating between public and private sector jobs;
(ii) the agency's actions pursuant to sections 603, 604,
605, 607, and 609 of title 5, United States Code;
(iii) the agency's actions pursuant to sections 202, 203,
204, and 205 of the Unfunded Mandates Reform Act of 1995 and
subtitle G; and
(iv) any other relevant information or requirements under
any other Act and any relevant Executive orders.
(C) Upon receipt of a report submitted under subparagraph
(A), each House shall provide copies of the report to the
chairman and ranking member of each standing committee with
jurisdiction under the rules of the House of Representatives
or the Senate to report a bill to amend the provision of law
under which the rule is issued.
(2)(A) The Comptroller General shall provide a report on
each major rule to the committees of jurisdiction by the end
of 15 calendar days after the submission or publication date.
The report of the Comptroller General shall include an
assessment of the agency's compliance with procedural steps
required by paragraph (1)(B) and an assessment of whether the
major rule imposes any new limits or mandates on private-
sector activity.
(B) Agencies shall cooperate with the Comptroller General
by providing information relevant to the Comptroller
General's report under subparagraph (A).
(3) A major rule relating to a report submitted under
paragraph (1) shall take effect upon enactment of a joint
resolution of approval described in section 332 or as
provided for in the rule following enactment of a joint
resolution of approval described in section 332, whichever is
later.
(4) A nonmajor rule shall take effect as provided by
section 333 after submission to Congress under paragraph (1).
(5) If a joint resolution of approval relating to a major
rule is not enacted within the period provided in subsection
(b)(2), then a joint resolution of approval relating to the
same rule may not be considered under this subtitle in the
same Congress by either the House of Representatives or the
Senate.
(b)(1) A major rule shall not take effect unless the
Congress enacts a joint resolution of approval described
under section 332.
(2) If a joint resolution described in subsection (a) is
not enacted into law by the end of 70 session days or
legislative days, as applicable, beginning on the date on
which the report referred to in subsection (a)(1)(A) is
received by Congress (excluding days either House of Congress
is adjourned for more than 3 days during a session of
Congress), then the rule described in that resolution shall
be deemed not to be approved and such rule shall not take
effect.
(c)(1) Notwithstanding any other provision of this section
(except subject to paragraph (3)), a major rule may take
effect for one 90-calendar-day period if the President makes
a determination under paragraph (2) and submits written
notice of such determination to the Congress.
(2) Paragraph (1) applies to a determination made by the
President by Executive order that the major rule should take
effect because such rule is--
(A) necessary because of an imminent threat to health or
safety or other emergency;
(B) necessary for the enforcement of criminal laws;
(C) necessary for national security; or
(D) issued pursuant to any statute implementing an
international trade agreement.
(3) An exercise by the President of the authority under
this subsection shall have no effect on the procedures under
section 332.
(d)(1) In addition to the opportunity for review otherwise
provided under this subtitle, in the case of any rule for
which a report was submitted in accordance with subsection
(a)(1)(A) during the period beginning on the date occurring--
(A) in the case of the Senate, 60 session days; or
(B) in the case of the House of Representatives, 60
legislative days,
before the date the Congress is scheduled to adjourn a
session of Congress through the date on which the same or
succeeding Congress first
[[Page H4745]]
convenes its next session, sections 332 and 333 shall apply
to such rule in the succeeding session of Congress.
(2)(A) In applying sections 332 and 333 for purposes of
such additional review, a rule described under paragraph (1)
shall be treated as though--
(i) such rule were published in the Federal Register on--
(I) in the case of the Senate, the 15th session day; or
(II) in the case of the House of Representatives, the 15th
legislative day,
after the succeeding session of Congress first convenes; and
(ii) a report on such rule were submitted to Congress under
subsection (a)(1) on such date.
(B) Nothing in this paragraph shall be construed to affect
the requirement under subsection (a)(1) that a report shall
be submitted to Congress before a rule can take effect.
(3) A rule described under paragraph (1) shall take effect
as otherwise provided by law (including other subsections of
this section).
SEC. 332. CONGRESSIONAL APPROVAL PROCEDURE FOR MAJOR RULES.
(a)(1) For purposes of this section, the term ``joint
resolution'' means only a joint resolution addressing a
report classifying a rule as major pursuant to section
331(a)(1)(A)(iii) that--
(A) bears no preamble;
(B) bears the following title (with blanks filled as
appropriate): ``Approving the rule submitted by ___ relating
to ___.'';
(C) includes after its resolving clause only the following
(with blanks filled as appropriate): ``That Congress approves
the rule submitted by ___ relating to ___.''; and
(D) is introduced pursuant to paragraph (2).
(2) After a House of Congress receives a report classifying
a rule as major pursuant to section 331(a)(1)(A)(iii), the
majority leader of that House (or his or her respective
designee) shall introduce (by request, if appropriate) a
joint resolution described in paragraph (1)--
(A) in the case of the House of Representatives, within 3
legislative days; and
(B) in the case of the Senate, within 3 session days.
(3) A joint resolution described in paragraph (1) shall not
be subject to amendment at any stage of proceeding.
(b) A joint resolution described in subsection (a) shall be
referred in each House of Congress to the committees having
jurisdiction over the provision of law under which the rule
is issued.
(c) In the Senate, if the committee or committees to which
a joint resolution described in subsection (a) has been
referred have not reported it at the end of 15 session days
after its introduction, such committee or committees shall be
automatically discharged from further consideration of the
resolution and it shall be placed on the calendar. A vote on
final passage of the resolution shall be taken on or before
the close of the 15th session day after the resolution is
reported by the committee or committees to which it was
referred, or after such committee or committees have been
discharged from further consideration of the resolution.
(d)(1) In the Senate, when the committee or committees to
which a joint resolution is referred have reported, or when a
committee or committees are discharged (under subsection (c))
from further consideration of a joint resolution described in
subsection (a), it is at any time thereafter in order (even
though a previous motion to the same effect has been
disagreed to) for a motion to proceed to the consideration of
the joint resolution, and all points of order against the
joint resolution (and against consideration of the joint
resolution) are waived. The motion is not subject to
amendment, or to a motion to postpone, or to a motion to
proceed to the consideration of other business. A motion to
reconsider the vote by which the motion is agreed to or
disagreed to shall not be in order. If a motion to proceed to
the consideration of the joint resolution is agreed to, the
joint resolution shall remain the unfinished business of the
Senate until disposed of.
(2) In the Senate, debate on the joint resolution, and on
all debatable motions and appeals in connection therewith,
shall be limited to not more than 2 hours, which shall be
divided equally between those favoring and those opposing the
joint resolution. A motion to further limit debate is in
order and not debatable. An amendment to, or a motion to
postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution
is not in order.
(3) In the Senate, immediately following the conclusion of
the debate on a joint resolution described in subsection (a),
and a single quorum call at the conclusion of the debate if
requested in accordance with the rules of the Senate, the
vote on final passage of the joint resolution shall occur.
(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure
relating to a joint resolution described in subsection (a)
shall be decided without debate.
(e) In the House of Representatives, if any committee to
which a joint resolution described in subsection (a) has been
referred has not reported it to the House at the end of 15
legislative days after its introduction, such committee shall
be discharged from further consideration of the joint
resolution, and it shall be placed on the appropriate
calendar. On the second and fourth Thursdays of each month it
shall be in order at any time for the Speaker to recognize a
Member who favors passage of a joint resolution that has
appeared on the calendar for at least 5 legislative days to
call up that joint resolution for immediate consideration in
the House without intervention of any point of order. When so
called up a joint resolution shall be considered as read and
shall be debatable for 1 hour equally divided and controlled
by the proponent and an opponent, and the previous question
shall be considered as ordered to its passage without
intervening motion. It shall not be in order to reconsider
the vote on passage. If a vote on final passage of the joint
resolution has not been taken by the third Thursday on which
the Speaker may recognize a Member under this subsection,
such vote shall be taken on that day.
(f)(1) If, before passing a joint resolution described in
subsection (a), one House receives from the other a joint
resolution having the same text, then--
(A) the joint resolution of the other House shall not be
referred to a committee; and
(B) the procedure in the receiving House shall be the same
as if no joint resolution had been received from the other
House until the vote on passage, when the joint resolution
received from the other House shall supplant the joint
resolution of the receiving House.
(2) This subsection shall not apply to the House of
Representatives if the joint resolution received from the
Senate is a revenue measure.
(g) If either House has not taken a vote on final passage
of the joint resolution by the last day of the period
described in section 331(b)(2), then such vote shall be taken
on that day.
(h) This section and section 333 are enacted by Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such is
deemed to be part of the rules of each House, respectively,
but applicable only with respect to the procedure to be
followed in that House in the case of a joint resolution
described in subsection (a) and superseding other rules only
where explicitly so; and
(2) with full recognition of the Constitutional right of
either House to change the rules (so far as they relate to
the procedure of that House) at any time, in the same manner
and to the same extent as in the case of any other rule of
that House.
SEC. 333. CONGRESSIONAL DISAPPROVAL PROCEDURE FOR NONMAJOR
RULES.
(a) For purposes of this section, the term ``joint
resolution'' means only a joint resolution introduced in the
period beginning on the date on which the report referred to
in section 331(a)(1)(A) is received by Congress and ending 60
days thereafter (excluding days either House of Congress is
adjourned for more than 3 days during a session of Congress),
the matter after the resolving clause of which is as follows:
``That Congress disapproves the nonmajor rule submitted by
the ___ relating to ___, and such rule shall have no force or
effect.'' (The blank spaces being appropriately filled in).
(b) A joint resolution described in subsection (a) shall be
referred to the committees in each House of Congress with
jurisdiction.
(c) In the Senate, if the committee to which is referred a
joint resolution described in subsection (a) has not reported
such joint resolution (or an identical joint resolution) at
the end of 15 session days after the date of introduction of
the joint resolution, such committee may be discharged from
further consideration of such joint resolution upon a
petition supported in writing by 30 Members of the Senate,
and such joint resolution shall be placed on the calendar.
(d)(1) In the Senate, when the committee to which a joint
resolution is referred has reported, or when a committee is
discharged (under subsection (c)) from further consideration
of a joint resolution described in subsection (a), it is at
any time thereafter in order (even though a previous motion
to the same effect has been disagreed to) for a motion to
proceed to the consideration of the joint resolution, and all
points of order against the joint resolution (and against
consideration of the joint resolution) are waived. The motion
is not subject to amendment, or to a motion to postpone, or
to a motion to proceed to the consideration of other
business. A motion to reconsider the vote by which the motion
is agreed to or disagreed to shall not be in order. If a
motion to proceed to the consideration of the joint
resolution is agreed to, the joint resolution shall remain
the unfinished business of the Senate until disposed of.
(2) In the Senate, debate on the joint resolution, and on
all debatable motions and appeals in connection therewith,
shall be limited to not more than 10 hours, which shall be
divided equally between those favoring and those opposing the
joint resolution. A motion to further limit debate is in
order and not debatable. An amendment to, or a motion to
postpone, or a motion to proceed to the consideration of
other business, or a motion to recommit the joint resolution
is not in order.
(3) In the Senate, immediately following the conclusion of
the debate on a joint resolution described in subsection (a),
and a single quorum call at the conclusion of the debate if
requested in accordance with the rules of the Senate, the
vote on final passage of the joint resolution shall occur.
(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure
relating to a joint resolution described in subsection (a)
shall be decided without debate.
(e) In the Senate, the procedure specified in subsection
(c) or (d) shall not apply to the consideration of a joint
resolution respecting a nonmajor rule--
(1) after the expiration of the 60 session days beginning
with the applicable submission or publication date; or
(2) if the report under section 331(a)(1)(A) was submitted
during the period referred to in section 331(d)(1), after the
expiration of the 60 session days beginning on the 15th
session day after the succeeding session of Congress first
convenes.
(f) If, before the passage by one House of a joint
resolution of that House described in subsection (a), that
House receives from the other House a joint resolution
described in subsection (a), then the following procedures
shall apply:
[[Page H4746]]
(1) The joint resolution of the other House shall not be
referred to a committee.
(2) With respect to a joint resolution described in
subsection (a) of the House receiving the joint resolution--
(A) the procedure in that House shall be the same as if no
joint resolution had been received from the other House; but
(B) the vote on final passage shall be on the joint
resolution of the other House.
SEC. 334. DEFINITIONS.
For purposes of this subtitle:
(1) The term ``agency'' has the meaning given such term
under section 311.
(2) The term ``major rule'' means any rule, including an
interim final rule, that the Administrator of the Office of
Information and Regulatory Affairs of the Office of
Management and Budget finds has resulted in or is likely to
result in--
(A) an annual cost on the economy of $100,000,000 or more,
adjusted annually for inflation;
(B) a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government
agencies, or geographic regions; or
(C) significant adverse effects on competition, employment,
investment, productivity, innovation, or on the ability of
United States-based enterprises to compete with foreign-based
enterprises in domestic and export markets.
(3) The term ``nonmajor rule'' means any rule that is not a
major rule.
(4) The term ``rule'' has the meaning given such term in
section 551 of title 5, United States Code, except that such
term does not include--
(A) any rule of particular applicability, including a rule
that approves or prescribes for the future rates, wages,
prices, services, or allowances therefore, corporate or
financial structures, reorganizations, mergers, or
acquisitions thereof, or accounting practices or disclosures
bearing on any of the foregoing;
(B) any rule relating to agency management or personnel; or
(C) any rule of agency organization, procedure, or practice
that does not substantially affect the rights or obligations
of non-agency parties.
(5) The term ``submission date or publication date'',
except as otherwise provided in this subtitle, means--
(A) in the case of a major rule, the date on which the
Congress receives the report submitted under section
331(a)(1)(A); and
(B) in the case of a nonmajor rule, the later of--
(i) the date on which the Congress receives the report
submitted under section 331(a)(1)(A); and
(ii) the date on which the nonmajor rule is published in
the Federal Register, if so published.
SEC. 335. JUDICIAL REVIEW.
(a) No determination, finding, action, or omission under
this subtitle shall be subject to judicial review.
(b) Notwithstanding subsection (a), a court may determine
whether a Federal financial agency has completed the
necessary requirements under this subtitle for a rule to take
effect.
(c) The enactment of a joint resolution of approval under
section 332 shall not be interpreted to serve as a grant or
modification of statutory authority by Congress for the
promulgation of a rule, shall not extinguish or affect any
claim, whether substantive or procedural, against any alleged
defect in a rule, and shall not form part of the record
before the court in any judicial proceeding concerning a rule
except for purposes of determining whether or not the rule is
in effect.
SEC. 336. EFFECTIVE DATE OF CERTAIN RULES.
Notwithstanding section 331--
(1) any rule that establishes, modifies, opens, closes, or
conducts a regulatory program for a commercial, recreational,
or subsistence activity related to hunting, fishing, or
camping, or
(2) any rule other than a major rule which the Federal
financial agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefore in the
rule issued) that notice and public procedure thereon are
impracticable, unnecessary, or contrary to the public
interest,
shall take effect at such time as the Federal financial
agency promulgating the rule determines.
SEC. 337. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 332
OF THE FINANCIAL CHOICE ACT OF 2017.
Section 257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by adding at the end
the following new subparagraph:
``(E) Budgetary effects of rules subject to section 332 of
the financial choice act of 2017.--Any rules subject to the
congressional approval procedure set forth in section 332 of
the Financial CHOICE Act of 2017 affecting budget authority,
outlays, or receipts shall be assumed to be effective unless
it is not approved in accordance with such section.''.
SEC. 338. NONAPPLICABILITY TO MONETARY POLICY.
Nothing in this subtitle shall apply to rules that concern
monetary policy proposed or implemented by the Board of
Governors of the Federal Reserve System or the Federal Open
Market Committee.
Subtitle C--Judicial Review of Agency Actions
SEC. 341. SCOPE OF JUDICIAL REVIEW OF AGENCY ACTIONS.
(a) In General.--Notwithstanding any other provision of
law, in any judicial review of an agency action pursuant to
chapter 7 of title 5, United States Code, to the extent
necessary to decision and when presented, the reviewing court
shall determine the meaning or applicability of the terms of
an agency action and decide de novo all relevant questions of
law, including the interpretation of constitutional and
statutory provisions, and rules made by an agency. If the
reviewing court determines that a statutory or regulatory
provision relevant to its decision contains a gap or
ambiguity, the court shall not interpret that gap or
ambiguity as an implicit delegation to the agency of
legislative rule making authority and shall not rely on such
gap or ambiguity as a justification either for interpreting
agency authority expansively or for deferring to the agency's
interpretation on the question of law. Notwithstanding any
other provision of law, this section shall apply in any
action for judicial review of agency action authorized under
any provision of law. No law may exempt any such civil action
from the application of this section except by specific
reference to this section.
(b) Agency Defined.--For purposes of this section, the term
``agency'' has the meaning given such term under section 311.
(c) Effective Date.--Subsection (a) shall take effect after
the end of the 2-year period beginning on the date of the
enactment of this Act.
Subtitle D--Leadership of Financial Regulators
SEC. 351. FEDERAL DEPOSIT INSURANCE CORPORATION.
Section 2 of the Federal Deposit Insurance Act (12 U.S.C.
1812) is amended--
(1) in subsection (a)(1), by striking ``5 members'' and all
that follows through ``3 of whom'' and inserting the
following: ``5 members, who'';
(2) by amending subsection (d) to read as follows:
``(d) Vacancy.--Any vacancy on the Board of Directors shall
be filled in the manner in which the original appointment was
made.''; and
(3) in subsection (f)--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2).
SEC. 352. FEDERAL HOUSING FINANCE AGENCY.
Section 1312(b)(2) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (12 U.S.C. 4512)
is amended by striking ``for cause''.
Subtitle E--Congressional Oversight of Appropriations
SEC. 361. BRINGING THE FEDERAL DEPOSIT INSURANCE CORPORATION
INTO THE APPROPRIATIONS PROCESS.
(a) In General.--Section 10(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1820(a)) is amended--
(1) by striking ``(a) The'' and inserting the following:
``(a) Powers.--
``(1) In general.--The'';
(2) by inserting ``, subject to paragraph (2),'' after
``The Board of Directors of the Corporation''; and
(3) by adding at the end the following new paragraph:
``(2) Appropriations requirement.--
``(A) Operating fund.--There is established an Operating
Fund, to which Congress shall provide annual appropriations
to the Corporation, which shall be separate from the Deposit
Insurance Fund.
``(B) Recovery of costs of annual appropriation.--The
Corporation shall collect assessments and other fees, as
provided under this Act, that are designed to recover the
costs to the Government of the annual appropriation to the
Corporation by Congress. Subject to subparagraph (E), the
Corporation may only incur obligations, or allow and pay
expenses, from the Operating Fund pursuant to an
appropriations Act.
``(C) Deposits.--Assessments and other fees described under
subparagraph (B) for any fiscal year--
``(i) shall be deposited in the Operating Fund; and
``(ii) except as provided in subparagraph (E), shall not be
collected for any fiscal year except to the extent provided
in advance in appropriation Acts.
``(D) Credits.--Amounts deposited in the Operating Fund
during a fiscal year shall be credited as offsetting the
amount appropriated to the Operating Fund for such fiscal
year.
``(E) Exception for certain programs.--This paragraph shall
not apply to the Corporation's Insurance Business Line
Programs and Receivership Management Business Line Programs,
as in existence on the date of enactment of this
paragraph.''.
(b) Conforming Amendment.--Subsection (d) of section 7 of
the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended
to read as follows:
``(d) Deposit Insurance Fund Exempt From Apportionment.--
Notwithstanding any other provision of law, amounts received
pursuant to any assessments or other fees that are deposited
into the Deposit Insurance Fund shall not be subject to
apportionment for the purposes of chapter 15 of title 31,
United States Code, or under any other authority.''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and fees collected
on or after October 1, 2017.
SEC. 362. BRINGING THE FEDERAL HOUSING FINANCE AGENCY INTO
THE APPROPRIATIONS PROCESS.
(a) In General.--Section 1316 of the Housing and Community
Development Act of 1992 (12 U.S.C. 4516) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Appropriations Requirement.--
``(1) Recovery of costs of annual appropriation.--The
Agency shall collect assessments and other fees that are
designed to recover the costs to the Government of the annual
appropriation to the Agency by Congress.
[[Page H4747]]
``(2) Offsetting collections.--Assessments and other fees
described under paragraph (1) for any fiscal year--
``(A) shall be deposited and credited as offsetting
collections to the account providing appropriations to the
Agency; and
``(B) shall not be collected for any fiscal year except to
the extent provided in advance in appropriation Acts.''; and
(2) by striking subsection (f).
(b) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and assessments and
other fees collected on or after October 1, 2017.
SEC. 363. BRINGING THE NATIONAL CREDIT UNION ADMINISTRATION
INTO THE APPROPRIATIONS PROCESS.
(a) In General.--Section 105 of the Federal Credit Union
Act (12 U.S.C. 1755) is amended--
(1) by amending subsections (a) and (b) to read as follows:
``(a) Payment by Federal Credit Unions to Administration.--
Each insured credit union shall pay to the Administration an
annual fee.
``(b) Determinations of Assessment Periods and Payment
Dates.--The Board shall determine the periods for which the
fee referred to under subsection (a) shall be assessed and
the date for the payment of such fee or increments
thereof.'';
(2) in subsection (c), by striking ``operating'';
(3) by amending subsection (d) to read as follows:
``(d) Appropriations Requirement.--
``(1) Recovery of costs of annual appropriation.--The
Administration shall collect fees other than those fees
referred to under subsection (a) from each insured credit
union, as provided under this Act, in an amount stated as a
percentage of insured shares of each insured credit union
(which percentage shall be the same for all insured credit
unions). Such fees shall be designed to recover the costs to
the Government of the annual appropriation to the
Administration by Congress.
``(2) Offsetting collections.--Fees described under
paragraph (1) for any fiscal year--
``(A) shall be deposited and credited as offsetting
collections to the account providing appropriations to the
Administration; and
``(B) shall not be collected for any fiscal year except to
the extent provided in advance in appropriation Acts.
``(3) Exception for insurance functions.--This subsection
shall not apply to the National Credit Union Share Insurance
Fund, including assessments and other fees that are deposited
into, and amounts paid from, the National Credit Union Share
Insurance Fund.''; and
(4) by striking subsection (e).
(b) Conforming Amendments.--The Federal Credit Union Act
(12 U.S.C. 1751 et seq.) is amended--
(1) in section 120(j), by striking paragraph (3);
(2) by amending section 128 to read as follows:
``SEC. 128. NATIONAL CREDIT UNION SHARE INSURANCE FUND EXEMPT
FROM APPORTIONMENT.
``Notwithstanding any other provision of law, amounts
received pursuant to any assessments or other fees that are
deposited into the National Credit Union Share Insurance Fund
or the Temporary Corporate Credit Union Stabilization Fund
shall not be subject to apportionment for the purposes of
chapter 15 of title 31, United States Code, or under any
other authority.''; and
(3) in section 203(a), by striking ``and for such
administrative and other expenses incurred in carrying out
the purposes of this title''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and fees collected
on or after October 1, 2017.
SEC. 364. BRINGING THE OFFICE OF THE COMPTROLLER OF THE
CURRENCY INTO THE APPROPRIATIONS PROCESS.
(a) In General.--Section 5240A of the Revised Statutes of
the United States (12 U.S.C. 16) is amended--
(1) by striking ``Sec. 5240A. The Comptroller of the
Currency may collect an assessment, fee, or other charge from
any entity described in section 3(q)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)(1)), as the
Comptroller determines is necessary or appropriate to carry
out the responsibilities of the Office of the Comptroller of
the Currency. In establishing the amount of an assessment,
fee, or charge collected from an entity under this section,''
and inserting the following:
``SEC. 5240A. COLLECTION OF FEES; APPROPRIATIONS REQUIREMENT.
``(a) In General.--In establishing the amount of an
assessment, fee, or charge collected from an entity under
subsection (b),'';
(2) by striking ``Funds derived'' and all that follows
through the end of the section; and
(3) by adding at the end the following:
``(b) Appropriations Requirement.--
``(1) Recovery of costs of annual appropriation.--The
Comptroller of the Currency shall impose and collect
assessments, fees, or other charges that are designed to
recover the costs to the Government of the annual
appropriation to the Office of the Comptroller of the
Currency by Congress.
``(2) Offsetting collections.--Assessments and other fees
described under paragraph (1) for any fiscal year--
``(A) shall be deposited and credited as offsetting
collections to the account providing appropriations to the
Office of the Comptroller of the Currency; and
``(B) shall not be collected for any fiscal year except to
the extent provided in advance in appropriation Acts.''.
(b) Conforming Amendment.--Section 5240 (12 U.S.C. 481 et
seq.) of the Revised Statutes of the United States is amended
by striking the fourth undesignated paragraph.
(c) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and fees collected
on or after October 1, 2017.
SEC. 365. BRINGING THE NON-MONETARY POLICY RELATED FUNCTIONS
OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM INTO THE APPROPRIATIONS PROCESS.
(a) In General.--The Federal Reserve Act is amended by
inserting after section 11B the following:
``SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON-MONETARY
POLICY RELATED ADMINISTRATIVE COSTS.
``(a) Appropriations Requirement.--
``(1) Recovery of costs of annual appropriation.--The Board
of Governors of the Federal Reserve System and the Federal
reserve banks shall collect assessments and other fees, as
provided under this Act, that are designed to recover the
costs to the Government of the annual appropriation to the
Board of Governors of the Federal Reserve System by Congress.
The Board of Governors of the Federal Reserve System and the
Federal reserve banks may only incur obligations or allow and
pay expenses with respect to non-monetary policy related
administrative costs pursuant to an appropriations Act.
``(2) Offsetting collections.--Assessments and other fees
described under paragraph (1) for any fiscal year--
``(A) shall be deposited and credited as offsetting
collections to the account providing appropriations to the
Board of Governors of the Federal Reserve System; and
``(B) shall not be collected for any fiscal year except to
the extent provided in advance in appropriation Acts.
``(3) Limitation.--This subsection shall only apply to the
non-monetary policy related administrative costs of the Board
of Governors of the Federal Reserve System.
``(b) Definitions.--For purposes of this section:
``(1) Monetary policy.--The term `monetary policy' means a
strategy for producing a generally acceptable exchange medium
that supports the productive employment of economic resources
by reliably serving as both a unit of account and store of
value.
``(2) Non-monetary policy related administrative costs.--
The term `non-monetary policy related administrative costs'
means administrative costs not related to the conduct of
monetary policy, and includes--
``(A) direct operating expenses for supervising and
regulating entities supervised and regulated by the Board of
Governors of the Federal Reserve System, including conducting
examinations, conducting stress tests, communicating with the
entities regarding supervisory matters and laws, and
regulations;
``(B) operating expenses for activities integral to
carrying out supervisory and regulatory responsibilities,
such as training staff in the supervisory function, research
and analysis functions including library subscription
services, and collecting and processing regulatory reports
filed by supervised institutions; and
``(C) support, overhead, and pension expenses related to
the items described under subparagraphs (A) and (B).''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and fees collected
on or after October 1, 2017.
Subtitle F--International Processes
SEC. 371. REQUIREMENTS FOR INTERNATIONAL PROCESSES.
(a) Board of Governors Requirements.--Section 11 of the
Federal Reserve Act (12 U.S.C. 248), as amended by section
1007(a), is further amended by adding at the end the
following new subsection:
``(w) International Processes.--
``(1) Notice of process; consultation.--At least 30
calendar days before any member or employee of the Board of
Governors of the Federal Reserve System participates in a
process of setting financial standards as a part of any
foreign or multinational entity, the Board of Governors
shall--
``(A) issue a notice of the process, including the subject
matter, scope, and goals of the process, to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(B) make such notice available to the public, including
on the website of the Board of Governors; and
``(C) solicit public comment, and consult with the
committees described under subparagraph (A), with respect to
the subject matter, scope, and goals of the process.
``(2) Public reports on process.--After the end of any
process described under paragraph (1), the Board of Governors
shall issue a public report on the topics that were discussed
during the process and any new or revised rulemakings or
policy changes that the Board of Governors believes should be
implemented as a result of the process and make the report
available on the website of the Board of Governors.
``(3) Notice of agreements; consultation.--At least 90
calendar days before any member or employee of the Board of
Governors of the Federal Reserve System participates in a
process of setting financial standards as a part of any
foreign or multinational entity, the Board of Governors
shall--
``(A) issue a notice of agreement to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(B) make such notice available to the public, including
on the website of the Board of Governors; and
[[Page H4748]]
``(C) consult with the committees described under
subparagraph (A) with respect to the nature of the agreement
and any anticipated effects such agreement will have on the
economy.
``(4) Definition.--For purposes of this subsection, the
term `process' shall include any official proceeding or
meeting on financial regulation of a recognized international
organization with authority to set financial standards on a
global or regional level, including the Financial Stability
Board, the Basel Committee on Banking Supervision (or a
similar organization), and the International Association of
Insurance Supervisors (or a similar organization).''.
(b) FDIC Requirements.--The Federal Deposit Insurance Act
(12 U.S.C. 1811 et seq.) is amended by adding at the end the
following new section:
``SEC. 51. INTERNATIONAL PROCESSES.
``(a) Notice of Process; Consultation.--At least 30
calendar days before the Board of Directors participates in a
process of setting financial standards as a part of any
foreign or multinational entity, the Board of Directors
shall--
``(1) issue a notice of the process, including the subject
matter, scope, and goals of the process, to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(2) make such notice available to the public, including
on the website of the Corporation; and
``(3) solicit public comment, and consult with the
committees described under paragraph (1), with respect to the
subject matter, scope, and goals of the process.
``(b) Public Reports on Process.--After the end of any
process described under subsection (a), the Board of
Directors shall issue a public report on the topics that were
discussed at the process and any new or revised rulemakings
or policy changes that the Board of Directors believes should
be implemented as a result of the process and make the report
available on the website of the Corporation.
``(c) Notice of Agreements; Consultation.--At least 90
calendar days before the Board of Directors participates in a
process of setting financial standards as a part of any
foreign or multinational entity, the Board of Directors
shall--
``(1) issue a notice of agreement to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(2) make such notice available to the public, including
on the website of the Corporation; and
``(3) consult with the committees described under paragraph
(1) with respect to the nature of the agreement and any
anticipated effects such agreement will have on the economy.
``(d) Definition.--For purposes of this section, the term
`process' shall include any official proceeding or meeting on
financial regulation of a recognized international
organization with authority to set financial standards on a
global or regional level, including the Financial Stability
Board, the Basel Committee on Banking Supervision (or a
similar organization), and the International Association of
Insurance Supervisors (or a similar organization).''.
(c) Treasury Requirements.--Section 325 of title 31, United
States Code, is amended by adding at the end the following
new subsection:
``(d) International Processes.--
``(1) Notice of process; consultation.--At least 30
calendar days before the Secretary participates in a process
of setting financial standards as a part of any foreign or
multinational entity, the Secretary shall--
``(A) issue a notice of the process, including the subject
matter, scope, and goals of the process, to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(B) make such notice available to the public, including
on the website of the Department of the Treasury; and
``(C) solicit public comment, and consult with the
committees described under subparagraph (A), with respect to
the subject matter, scope, and goals of the process.
``(2) Public reports on process.--After the end of any
process described under paragraph (1), the Secretary shall
issue a public report on the topics that were discussed at
the process and any new or revised rulemakings or policy
changes that the Secretary believes should be implemented as
a result of the process and make the report available on the
website of the Department of the Treasury.
``(3) Notice of agreements; consultation.--At least 90
calendar days before the Secretary participates in a process
of setting financial standards as a part of any foreign or
multinational entity, the Secretary shall--
``(A) issue a notice of agreement to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(B) make such notice available to the public, including
on the website of the Department of the Treasury; and
``(C) consult with the committees described under
subparagraph (A) with respect to the nature of the agreement
and any anticipated effects such agreement will have on the
economy.
``(4) Definition.--For purposes of this subsection, the
term `process' shall include any official proceeding or
meeting on financial regulation of a recognized international
organization with authority to set financial standards on a
global or regional level, including the Financial Stability
Board, the Basel Committee on Banking Supervision (or a
similar organization), and the International Association of
Insurance Supervisors (or a similar organization).''.
(d) OCC Requirements.--Chapter one of title LXII of the
Revised Statutes of the United States (12 U.S.C. 21 et seq.)
is amended--
(1) by adding at the end the following new section:
``SEC. 5156B. INTERNATIONAL PROCESSES.
``(a) Notice of Process; Consultation.--At least 30
calendar days before the Comptroller of the Currency
participates in a process of setting financial standards as a
part of any foreign or multinational entity, the Comptroller
of the Currency shall--
``(1) issue a notice of the process, including the subject
matter, scope, and goals of the process, to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(2) make such notice available to the public, including
on the website of the Office of the Comptroller of the
Currency; and
``(3) solicit public comment, and consult with the
committees described under paragraph (1), with respect to the
subject matter, scope, and goals of the process.
``(b) Public Reports on Process.--After the end of any
process described under subsection (a), the Comptroller of
the Currency shall issue a public report on the topics that
were discussed at the process and any new or revised
rulemakings or policy changes that the Comptroller of the
Currency believes should be implemented as a result of the
process.
``(c) Notice of Agreements; Consultation.--At least 90
calendar days before the Comptroller of the Currency
participates in a process of setting financial standards as a
part of any foreign or multinational entity, the Comptroller
of the Currency shall--
``(1) issue a notice of agreement to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(2) make such notice available to the public, including
on the website of the Office of the Comptroller of the
Currency; and
``(3) consult with the committees described under paragraph
(1) with respect to the nature of the agreement and any
anticipated effects such agreement will have on the economy.
``(d) Definition.--For purposes of this section, the term
`process' shall include any official proceeding or meeting on
financial regulation of a recognized international
organization with authority to set financial standards on a
global or regional level, including the Financial Stability
Board, the Basel Committee on Banking Supervision (or a
similar organization), and the International Association of
Insurance Supervisors (or a similar organization).''; and
(2) in the table of contents for such chapter, by adding at
the end the following new item:
``5156B. International processes.''.
(e) Securities and Exchange Commission Requirements.--
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C.
78d), as amended by section 818(a), is further amended by
adding at the end the following new subsection:
``(k) International Processes.--
``(1) Notice of process; consultation.--At least 30
calendar days before the Commission participates in a process
of setting financial standards as a part of any foreign or
multinational entity, the Commission shall--
``(A) issue a notice of the process, including the subject
matter, scope, and goals of the process, to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(B) make such notice available to the public, including
on the website of the Commission; and
``(C) solicit public comment, and consult with the
committees described under subparagraph (A), with respect to
the subject matter, scope, and goals of the process.
``(2) Public reports on process.--After the end of any
process described under paragraph (1), the Commission shall
issue a public report on the topics that were discussed at
the process and any new or revised rulemakings or policy
changes that the Commission believes should be implemented as
a result of the process and make the report available on the
website of the Commission.
``(3) Notice of agreements; consultation.--At least 90
calendar days before the Commission participates in a process
of setting financial standards as a part of any foreign or
multinational entity, the Commission shall--
``(A) issue a notice of agreement to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate;
``(B) make such notice available to the public, including
on the website of the Commission; and
``(C) consult with the committees described under
subparagraph (A) with respect to the nature of the agreement
and any anticipated effects such agreement will have on the
economy.
``(4) Definition.--For purposes of this subsection, the
term `process' shall include any official proceeding or
meeting on financial regulation of a recognized international
organization with authority to set financial standards on a
global or regional level, including the Financial Stability
Board, the Basel Committee on Banking Supervision (or a
similar organization), and the International Association of
Insurance Supervisors (or a similar organization).''.
(f) Commodity Futures Trading Commission Requirements.--
Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is
amended by adding at the end the following:
``(k) International Processes.--
``(1) Notice of process; consultation.--At least 30
calendar days before the Commission participates in a process
of setting financial standards as a part of any foreign or
multinational entity, the Commission shall--
``(A) issue a notice of the process, including the subject
matter, scope, and goals of the process, to--
[[Page H4749]]
``(i) the Committee on Agriculture of the House of
Representatives; and
``(ii) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
``(B) make such notice available to the public, including
on the website of the Commission; and
``(C) solicit public comment, and consult with the
committees described under subparagraph (A), with respect to
the subject matter, scope, and goals of the process.
``(2) Public reports on process.--After the end of any
process described under paragraph (1), the Commission shall
issue a public report on the topics that were discussed
during the process and any new or revised rulemakings or
policy changes that the Commission believes should be
implemented as a result of the process and make the report
available on the website of the Commission.
``(3) Notice of agreements; consultation.--At least 90
calendar days before the Commission participates in a process
of setting financial standards as a part of any foreign or
multinational entity, the Commission shall--
``(A) issue a notice of agreement to--
``(i) the Committee on Agriculture of the House of
Representatives; and
``(ii) the Committee on Agriculture, Nutrition, and
Forestry of the Senate;
``(B) make such notice available to the public, including
on the website of the Commission; and
``(C) consult with the committees described under
subparagraph (A) with respect to the nature of the agreement
and any anticipated effects such agreement will have on the
economy.
``(4) Definition.--For purposes of this subsection, the
term `process' shall include any official proceeding or
meeting on financial regulation of a recognized international
organization with authority to set financial standards on a
global or regional level, including the Financial Stability
Board, the Basel Committee on Banking Supervision (or a
similar organization), and the International Association of
Insurance Supervisors (or a similar organization).''.
Subtitle G--Unfunded Mandates Reform
SEC. 381. DEFINITIONS.
For purposes of this subtitle:
(1) Agency.--The term ``agency'' has the meaning given such
term under section 311.
(2) Direct costs.--The term ``direct costs'' has the
meaning given such term under section 421(3) of the
Congressional Budget and Impoundment Control Act of 1974 (2
U.S.C. 658(3)), except that--
(A) in the case of a Federal intergovernmental mandate, the
term means the aggregate estimated amounts that all State,
local, and Tribal governments would incur or be required to
spend or would be prohibited from raising in revenues in
order to comply with the Federal intergovernmental mandate;
and
(B) in the case of a Federal private sector mandate, the
term means the aggregate estimated amounts that the private
sector will be required to spend or could forgo in profits,
including costs passed on to consumers or other entities
taking into account, to the extent practicable, behavioral
changes, in order to comply with the Federal private sector
mandate.
(3) Other definitions.--Except as provided under paragraphs
(1) and (2), the definitions under section 421 of the
Congressional Budget and Impoundment Control Act of 1974
shall apply to this subtitle.
SEC. 382. APPLICATION OF THE UNFUNDED MANDATES REFORM ACT.
(a) In General.--The Unfunded Mandates Reform Act of 1995
(2 U.S.C. 1501 et seq.) shall apply to the Board of Governors
of the Federal Reserve System, the Consumer Law Enforcement
Agency, the Commodity Futures Trading Commission, the Federal
Deposit Insurance Corporation, the Federal Housing Finance
Agency, the Office of the Comptroller of the Currency, the
National Credit Union Administration, and the Securities and
Exchange Commission.
(b) Statements to Accompany Significant Regulatory
Actions.--
(1) In general.--Unless otherwise expressly prohibited by
law, before promulgating any general notice of proposed
rulemaking or any final rule, or within six months after
promulgating any final rule that was not preceded by a
general notice of proposed rulemaking, if the proposed
rulemaking or final rule includes a Federal mandate that may
result in an annual effect on State, local, or Tribal
governments, or to the private sector, in the aggregate of
$100,000,000 or more in any 1 year, the agency shall prepare
a written statement containing the following:
(A) The text of the draft proposed rulemaking or final
rule, together with the information required under
subsections (a) and (b)(1) of section 312, as applicable,
including an explanation of the manner in which the proposed
rulemaking or final rule is consistent with the statutory
requirement and avoids undue interference with State, local,
and Tribal governments in the exercise of their governmental
functions.
(B) Estimates by the agency, if and to the extent that the
agency determines that accurate estimates are reasonably
feasible, of--
(i) the future compliance costs of the Federal mandate; and
(ii) any disproportionate budgetary effects of the Federal
mandate upon any particular regions of the nation or
particular State, local, or Tribal governments, urban or
rural or other types of communities, or particular segments
of the private sector.
(C)(i) A detailed description of the extent of the agency's
prior consultation with the private sector and elected
representatives (under subsection (c) and section 204 of the
Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534) of the
affected State, local, and tribal governments.
(ii) A detailed summary of the comments and concerns that
were presented by the private sector and State, local, or
Tribal governments either orally or in writing to the agency.
(iii) A detailed summary of the agency's evaluation of
those comments and concerns.
(D) A detailed summary of how the agency complied with
section 312, as applicable.
(2) Prevention of duplicative requirements.--If an agency
is required to prepare a written statement under both
paragraph (1) and section 202(a) of the Unfunded Mandates
Reform Act of 1995 (2 U.S.C. 1532(a)), the agency shall
prepare only one written statement that consolidates and
meets the requirements of such paragraph and such section.
(c) State, Local, and Tribal Government and Private Sector
Input.--
(1) In general.--Each agency shall, to the extent permitted
in law, develop an effective process to permit impacted
parties within the private sector (including small
businesses) to provide meaningful and timely input in the
development of regulatory proposals containing significant
Federal mandates.
(2) Prevention of duplicative processes.--If an agency is
required to develop a process under both paragraph (1) and
section 204(a) of the Unfunded Mandates Reform Act of 1995 (2
U.S.C. 1534(a)), the agency shall develop only one process
that consolidates and meets the requirements of such
paragraph and such section.
(3) Guidelines.--For appropriate implementation of this
subsection and of section 204 of the Unfunded Mandates Reform
Act, consistent with applicable laws and regulations, the
following guidelines shall be followed: --
(A) Consultations shall take place as early as possible,
before issuance of a notice of proposed rulemaking, continue
through the final rule stage, and be integrated explicitly
into the rulemaking process.
(B) Agencies shall consult with a wide variety of State,
local, and Tribal officials and impacted parties within the
private sector (including small businesses). Geographic,
political, and other factors that may differentiate varying
points of view should be considered.
(C) Agencies should estimate benefits and costs to assist
with these consultations. The scope of the consultation
should reflect the cost and significance of the Federal
mandate being considered.
(D) Agencies shall, to the extent practicable--
(i) seek out the views of State, local, and Tribal
governments, and impacted parties within the private sector
(including small businesses), on costs, benefits, and risks;
and
(ii) solicit ideas about alternative methods of compliance
and potential flexibilities, and input on whether the Federal
regulation will harmonize with and not duplicate similar laws
in other levels of government.
(E) Consultations shall address the cumulative impact of
regulations on the affected entities.
(F) Agencies may accept electronic submissions of comments
by relevant parties but may not use those comments as the
sole method of satisfying the guidelines in this subsection.
(d) Office of Information and Regulatory Affairs
Responsibilities.--
(1) In general.--The Administrator of the Office of
Information and Regulatory Affairs shall provide meaningful
guidance and oversight so that each agency's regulations for
which a written statement is required under subsection (b)
and section 202 of the Unfunded Mandates Reform Act of 1995
(2 U.S.C. 1532) are consistent with the principles and
requirements of this title, as well as other applicable laws,
and do not conflict with the policies or actions of another
Federal agency (as the term ``agency'' is defined under
section 551 of title 5, United States Code). If the
Administrator determines that an agency's regulations for
which a written statement is required under subsection (b)
and section 202 of the Unfunded Mandates Reform Act of 1995
do not comply with such principles and requirements, are not
consistent with other applicable laws, or conflict with the
policies or actions of another Federal agency (as the term
``agency'' is defined under section 551 of title 5, United
States Code), the Administrator shall identify areas of
noncompliance, notify the agency, and request that the agency
comply before the agency finalizes the regulation concerned.
(2) Annual statements to congress on agency compliance.--
The Administrator of the Office of Information and Regulatory
Affairs shall submit to the Director of the Office of
Management and Budget for inclusion in the annual report
required by section 208 of the Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1538) a written report detailing compliance
by each agency with the requirements of this title that
relate to regulations for which a written statement is
required by subsection (b) and section 202 of the Unfunded
Mandates Reform Act of 1995 (2 U.S.C. 1532), including
activities undertaken at the request of the Administrator to
improve compliance, during the preceding reporting period.
The report shall also contain an appendix detailing
compliance by each agency with subsection (c) and section 204
of the Unfunded Mandates Reform Act.
(e) Expanded Judicial Review.--
(1) Agency statements on significant regulatory actions.--
(A) In general.--Compliance or noncompliance by any agency
with the provisions of subsection (b) and sections 202,
203(a)(1) and (2), and 205 of the Unfunded Mandates Reform
Act of 1995 shall be subject to judicial review in accordance
with this subsection.
(B) Limited review of agency compliance or noncompliance.--
(i) Scope of review under title 5.--Agency compliance or
noncompliance with the provisions of subsection (b) and
sections 202, 203(a)(1) and (2), and 205 of the Unfunded
Mandates Reform Act of 1995 shall be subject to judicial
review under section 706(1) of title 5, United States Code,
and as provided under clause (ii).
[[Page H4750]]
(ii) Court may compel preparation of written statement.--If
an agency fails to prepare the written statement (including
the preparation of the estimates, analyses, statements, or
descriptions) under subsection (b) and section 202 of the
Unfunded Mandates Reform Act, prepare a written plan under
paragraphs (1) and (2) of section 203 of the Unfunded
Mandates Reform Act, or comply with section 205 of the
Unfunded Mandates Reform Act, a court may compel the agency
to prepare such written statement, prepare such written plan,
or comply with such section.
(C) Review of agency rules.--In any judicial review under
any other Federal law of an agency rule for which compliance
with this subtitle is required, the inadequacy or failure to
prepare required material, or to comply with provisions of
subsection (b) and sections 202, 203(a)(1) and (2), and 205
of the Unfunded Mandates Reform Act of 1995 may be used as a
basis for staying, enjoining, invalidating or otherwise
affecting such agency rule.
(D) Certain information as part of record.--Any information
generated under subsection (b) and sections 202, 203(a)(1)
and (2), and 205 of the Unfunded Mandates Reform Act of 1995
that is part of the rulemaking record for judicial review
under the provisions of any other Federal law may be
considered as part of the record for judicial review
conducted under such other provisions of Federal law.
(E) Application of other federal law.--For any petition
under subparagraph (B) the provisions of such other Federal
law shall control all other matters, such as exhaustion of
administrative remedies, the time for and manner of seeking
review and venue, except that if such other Federal law does
not provide a limitation on the time for filing a petition
for judicial review that is less than 180 days, such
limitation shall be 180 days after a final rule is
promulgated by the appropriate agency.
(F) Effective date.--This paragraph shall apply to any
agency rule for which a general notice of proposed rulemaking
is promulgated on or after the date of the enactment of this
Act.
(2) Judicial review and rule of construction.--Except as
provided in paragraph (1)--
(A) any estimate, analysis, statement, description, or
report prepared under this subtitle, any compliance or
noncompliance with the provisions of this subtitle, and any
determination concerning the applicability of the provisions
of this subtitle shall not be subject to judicial review; and
(B) no provision of this subtitle shall be construed to
create any right or benefit, substantive or procedural,
enforceable by any person in any administrative or judicial
action.
Subtitle H--Enforcement Coordination
SEC. 391. POLICIES TO MINIMIZE DUPLICATION OF ENFORCEMENT
EFFORTS.
(a) In General.--Each agency (as defined under section 311)
shall, not later than the end of the 90-day period beginning
on the date of the enactment of this Act, implement policies
and procedures--
(1) to minimize duplication of efforts with other Federal
or State authorities when bringing an administrative or
judicial action against an individual or entity;
(2) to establish when joint investigations, administrative
actions, or judicial actions or the coordination of law
enforcement activities are necessary and appropriate and in
the public interest; and
(3) to, in the course of a joint investigation,
administrative action, or judicial action, establish a lead
agency to avoid duplication of efforts and unnecessary
burdens and to ensure consistent enforcement, as necessary
and appropriate and in the public interest.
(b) Rule of Construction.--Nothing in this section may be
construed to preempt State law or mandate coordination by a
State authority.
Subtitle I--Penalties for Unauthorized Disclosures
SEC. 392. CRIMINAL PENALTY FOR UNAUTHORIZED DISCLOSURES.
Section 165 of the Financial Stability Act of 2010 (12
U.S.C. 5365), as amended by section 151(b)(6)(M), is further
amended by adding at the end the following:
``(m) Criminal Penalty for Unauthorized Disclosures.--
``(1) In general.--Any officer or employee of a Federal
department or agency, who by virtue of such officer or
employee's employment or official position, has possession
of, or access to, agency records which contain individually
identifiable information submitted pursuant to the
requirements of this section, the disclosure of which is
prohibited by Federal statute, rule, or regulation, and who
knowing that disclosure of the specific material is so
prohibited, willfully discloses the material in any manner to
any person or agency not entitled to receive it, shall be
guilty of a misdemeanor and fined not more than $5,000.
``(2) Obtaining records under false pretenses.--Any person
who knowingly and willfully requests or obtains information
described under paragraph (1) from a Federal department or
agency under false pretenses shall be guilty of a misdemeanor
and fined not more than $5,000.
``(3) Treatment of determinations.--For purposes of this
subsection, a determination made under subsection (d) or (i)
based on individually identifiable information submitted
pursuant to the requirements of this section shall be deemed
individually identifiable information, the disclosure of
which is prohibited by Federal statute.''.
Subtitle J--Stop Settlement Slush Funds
SEC. 393. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT
AGREEMENTS TO WHICH CERTAIN DEPARTMENTS OR
AGENCIES ARE A PARTY.
(a) Limitation on Required Donations.--No settlement to
which a department or agency is a party may direct or provide
for a payment to any person who is not a victim of the
alleged wrongdoing.
(b) Penalty.--Any Executive branch official or agent
thereof who enters into or enforces a settlement in violation
of subsection (a), shall be subject to the same penalties
that would apply in the case of a violation of section 3302
of title 31, United States Code.
(c) Effective Date.--Subsections (a) and (b) apply only in
the case of a settlement agreement concluded on or after the
date of enactment of this Act.
(d) Definitions.--
(1) The term ``department or agency''--
(A) has the meaning given the term ``agency'' under section
311; and
(B) means the Department of Housing and Urban Development,
the Department of Justice, and the Rural Housing Service of
the Department of Agriculture.
(2) The term ``settlement agreement'' means a settlement
agreement resolving a civil action or potential civil action,
a plea agreement, a deferred prosecution agreement, or a non-
prosecution agreement.
(3) The term ``payment'' means a payment or loan.
(4) The term ``payment to any person who is not a victim''
means any payment other than a payment--
(A) to a person who is party to the lawsuit or settlement;
(B) that provides restitution for or otherwise directly
remedies actual harm (including to the environment) directly
and proximately caused by the party making the payment as a
result of that party's alleged wrongdoing;
(C) that constitutes payment for services rendered in
connection with the case; or
(D) made pursuant to section 3663 of title 18, United
States Code.
TITLE IV--UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, INNOVATORS,
AND JOB CREATORS BY FACILITATING CAPITAL FORMATION
Subtitle A--Small Business Mergers, Acquisitions, Sales, and Brokerage
Simplification
SEC. 401. REGISTRATION EXEMPTION FOR MERGER AND ACQUISITION
BROKERS.
Section 15(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78o(b)) is amended by adding at the end the following:
``(13) Registration exemption for merger and acquisition
brokers.--
``(A) In general.--Except as provided in subparagraph (B),
an M&A broker shall be exempt from registration under this
section.
``(B) Excluded activities.--An M&A broker is not exempt
from registration under this paragraph if such broker does
any of the following:
``(i) Directly or indirectly, in connection with the
transfer of ownership of an eligible privately held company,
receives, holds, transmits, or has custody of the funds or
securities to be exchanged by the parties to the transaction.
``(ii) Engages on behalf of an issuer in a public offering
of any class of securities that is registered, or is required
to be registered, with the Commission under section 12 or
with respect to which the issuer files, or is required to
file, periodic information, documents, and reports under
subsection (d).
``(iii) Engages on behalf of any party in a transaction
involving a public shell company.
``(C) Disqualifications.--An M&A broker is not exempt from
registration under this paragraph if such broker is subject
to--
``(i) suspension or revocation of registration under
paragraph (4);
``(ii) a statutory disqualification described in section
3(a)(39);
``(iii) a disqualification under the rules adopted by the
Commission under section 926 of the Investor Protection and
Securities Reform Act of 2010 (15 U.S.C. 77d note); or
``(iv) a final order described in paragraph (4)(H).
``(D) Rule of construction.--Nothing in this paragraph
shall be construed to limit any other authority of the
Commission to exempt any person, or any class of persons,
from any provision of this title, or from any provision of
any rule or regulation thereunder.
``(E) Definitions.--In this paragraph:
``(i) Control.--The term `control' means the power,
directly or indirectly, to direct the management or policies
of a company, whether through ownership of securities, by
contract, or otherwise. There is a presumption of control for
any person who--
``(I) is a director, general partner, member or manager of
a limited liability company, or officer exercising executive
responsibility (or has similar status or functions);
``(II) has the right to vote 20 percent or more of a class
of voting securities or the power to sell or direct the sale
of 20 percent or more of a class of voting securities; or
``(III) in the case of a partnership or limited liability
company, has the right to receive upon dissolution, or has
contributed, 20 percent or more of the capital.
``(ii) Eligible privately held company.--The term `eligible
privately held company' means a privately held company that
meets both of the following conditions:
``(I) The company does not have any class of securities
registered, or required to be registered, with the Commission
under section 12 or with respect to which the company files,
or is required to file, periodic information, documents, and
reports under subsection (d).
``(II) In the fiscal year ending immediately before the
fiscal year in which the services of the M&A broker are
initially engaged with respect to the securities transaction,
the company meets either or both of the following conditions
(determined in accordance with the historical financial
accounting records of the company):
[[Page H4751]]
``(aa) The earnings of the company before interest, taxes,
depreciation, and amortization are less than $25,000,000.
``(bb) The gross revenues of the company are less than
$250,000,000.
``(iii) M&A broker.--The term `M&A broker' means a broker,
and any person associated with a broker, engaged in the
business of effecting securities transactions solely in
connection with the transfer of ownership of an eligible
privately held company, regardless of whether the broker acts
on behalf of a seller or buyer, through the purchase, sale,
exchange, issuance, repurchase, or redemption of, or a
business combination involving, securities or assets of the
eligible privately held company, if the broker reasonably
believes that--
``(I) upon consummation of the transaction, any person
acquiring securities or assets of the eligible privately held
company, acting alone or in concert, will control and,
directly or indirectly, will be active in the management of
the eligible privately held company or the business conducted
with the assets of the eligible privately held company; and
``(II) if any person is offered securities in exchange for
securities or assets of the eligible privately held company,
such person will, prior to becoming legally bound to
consummate the transaction, receive or have reasonable access
to the most recent fiscal year-end financial statements of
the issuer of the securities as customarily prepared by the
management of the issuer in the normal course of operations
and, if the financial statements of the issuer are audited,
reviewed, or compiled, any related statement by the
independent accountant, a balance sheet dated not more than
120 days before the date of the offer, and information
pertaining to the management, business, results of operations
for the period covered by the foregoing financial statements,
and material loss contingencies of the issuer.
``(iv) Public shell company.--The term `public shell
company' is a company that at the time of a transaction with
an eligible privately held company--
``(I) has any class of securities registered, or required
to be registered, with the Commission under section 12 or
that is required to file reports pursuant to subsection (d);
``(II) has no or nominal operations; and
``(III) has--
``(aa) no or nominal assets;
``(bb) assets consisting solely of cash and cash
equivalents; or
``(cc) assets consisting of any amount of cash and cash
equivalents and nominal other assets.
``(F) Inflation adjustment.--
``(i) In general.--On the date that is 5 years after the
date of the enactment of this paragraph, and every 5 years
thereafter, each dollar amount in subparagraph (E)(ii)(II)
shall be adjusted by--
``(I) dividing the annual value of the Employment Cost
Index For Wages and Salaries, Private Industry Workers (or
any successor index), as published by the Bureau of Labor
Statistics, for the calendar year preceding the calendar year
in which the adjustment is being made by the annual value of
such index (or successor) for the calendar year ending
December 31, 2012; and
``(II) multiplying such dollar amount by the quotient
obtained under subclause (I).
``(ii) Rounding.--Each dollar amount determined under
clause (i) shall be rounded to the nearest multiple of
$100,000.''.
SEC. 402. EFFECTIVE DATE.
This subtitle and any amendment made by this subtitle shall
take effect on the date that is 90 days after the date of the
enactment of this Act.
Subtitle B--Encouraging Employee Ownership
SEC. 406. INCREASED THRESHOLD FOR DISCLOSURES RELATING TO
COMPENSATORY BENEFIT PLANS.
Not later than 60 days after the date of the enactment of
this Act, the Securities and Exchange Commission shall revise
section 230.701(e) of title 17, Code of Federal Regulations,
so as to increase from $5,000,000 to $20,000,000 the
aggregate sales price or amount of securities sold during any
consecutive 12-month period in excess of which the issuer is
required under such section to deliver an additional
disclosure to investors. The Commission shall index for
inflation such aggregate sales price or amount every 5 years
to reflect the change in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics,
rounding to the nearest $1,000,000.
Subtitle C--Small Company Disclosure Simplification
SEC. 411. EXEMPTION FROM XBRL REQUIREMENTS FOR EMERGING
GROWTH COMPANIES AND OTHER SMALLER COMPANIES.
(a) Exemption for Emerging Growth Companies.--Emerging
growth companies are exempted from the requirements to use
Extensible Business Reporting Language (XBRL) for financial
statements and other periodic reporting required to be filed
with the Commission under the securities laws. Such companies
may elect to use XBRL for such reporting.
(b) Exemption for Other Smaller Companies.--Issuers with
total annual gross revenues of less than $250,000,000 are
exempt from the requirements to use XBRL for financial
statements and other periodic reporting required to be filed
with the Commission under the securities laws. Such issuers
may elect to use XBRL for such reporting. An exemption under
this subsection shall continue in effect until--
(1) the date that is five years after the date of enactment
of this Act; or
(2) the date that is two years after a determination by the
Commission, by order after conducting the analysis required
by section 3, that the benefits of such requirements to such
issuers outweigh the costs, but no earlier than three years
after enactment of this Act.
(c) Modifications to Regulations.--Not later than 60 days
after the date of enactment of this Act, the Commission shall
revise its regulations under parts 229, 230, 232, 239, 240,
and 249 of title 17, Code of Federal Regulations, to reflect
the exemptions set forth in subsections (a) and (b).
SEC. 412. ANALYSIS BY THE SEC.
The Commission shall conduct an analysis of the costs and
benefits to issuers described in section 411(b) of the
requirements to use XBRL for financial statements and other
periodic reporting required to be filed with the Commission
under the securities laws. Such analysis shall include an
assessment of--
(1) how such costs and benefits may differ from the costs
and benefits identified by the Commission in the order
relating to interactive data to improve financial reporting
(dated January 30, 2009; 74 Fed. Reg. 6776) because of the
size of such issuers;
(2) the effects on efficiency, competition, capital
formation, and financing and on analyst coverage of such
issuers (including any such effects resulting from use of
XBRL by investors);
(3) the costs to such issuers of--
(A) submitting data to the Commission in XBRL;
(B) posting data on the website of the issuer in XBRL;
(C) software necessary to prepare, submit, or post data in
XBRL; and
(D) any additional consulting services or filing agent
services;
(4) the benefits to the Commission in terms of improved
ability to monitor securities markets, assess the potential
outcomes of regulatory alternatives, and enhance investor
participation in corporate governance and promote capital
formation; and
(5) the effectiveness of standards in the United States for
interactive filing data relative to the standards of
international counterparts.
SEC. 413. REPORT TO CONGRESS.
Not later than one year after the date of enactment of this
Act, the Commission shall provide the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report
regarding--
(1) the progress in implementing XBRL reporting within the
Commission;
(2) the use of XBRL data by Commission officials;
(3) the use of XBRL data by investors;
(4) the results of the analysis required by section 412;
and
(5) any additional information the Commission considers
relevant for increasing transparency, decreasing costs, and
increasing efficiency of regulatory filings with the
Commission.
SEC. 414. DEFINITIONS.
As used in this subtitle, the terms ``Commission'',
``emerging growth company'', ``issuer'', and ``securities
laws'' have the meanings given such terms in section 3 of the
Securities Exchange Act of 1934 (15 U.S.C. 78c).
Subtitle D--Securities and Exchange Commission Overpayment Credit
SEC. 416. REFUNDING OR CREDITING OVERPAYMENT OF SECTION 31
FEES.
(a) In General.--Section 31 of the Securities Exchange Act
of 1934 (15 U.S.C. 78ee) is amended by adding at the end the
following:
``(n) Overpayment.--If a national securities exchange or
national securities association pays to the Commission an
amount in excess of fees and assessments due under this
section and informs the Commission of such amount paid in
excess within 10 years of the date of the payment, the
Commission shall offset future fees and assessments due by
such exchange or association in an amount equal to such
excess amount.''.
(b) Applicability.--The amendment made by this section
shall apply to any fees and assessments paid before, on, or
after the date of enactment of this section.
Subtitle E--Fair Access to Investment Research
SEC. 421. SAFE HARBOR FOR INVESTMENT FUND RESEARCH.
(a) Expansion of the Safe Harbor.--Not later than the end
of the 45-day period beginning on the date of enactment of
this Act, the Securities and Exchange Commission shall
propose, and not later than the end of the 120-day period
beginning on such date, the Commission shall adopt, upon such
terms, conditions, or requirements as the Commission may
determine necessary or appropriate in the public interest,
for the protection of investors, and for the promotion of
capital formation, revisions to section 230.139 of title 17,
Code of Federal Regulations, to provide that a covered
investment fund research report that is published or
distributed by a broker or dealer--
(1) shall be deemed, for purposes of sections 2(a)(10) and
5(c) of the Securities Act of 1933 (15 U.S.C. 77b(a)(10),
77e(c)), not to constitute an offer for sale or an offer to
sell a security that is the subject of an offering pursuant
to a registration statement that is effective, even if the
broker or dealer is participating or will participate in the
registered offering of the covered investment fund's
securities; and
(2) shall be deemed to satisfy the conditions of subsection
(a)(1) or (a)(2) of section 230.139 of title 17, Code of
Federal Regulations, or any successor provisions, for
purposes of the Commission's rules and regulations under the
Federal securities laws and the rules of any self-regulatory
organization.
(b) Implementation of Safe Harbor.--In implementing the
safe harbor pursuant to subsection (a), the Commission
shall--
(1) not, in the case of a covered investment fund with a
class of securities in substantially
[[Page H4752]]
continuous distribution, condition the safe harbor on whether
the broker's or dealer's publication or distribution of a
covered investment fund research report constitutes such
broker's or dealer's initiation or reinitiation of research
coverage on such covered investment fund or its securities;
(2) not--
(A) require the covered investment fund to have been
registered as an investment company under the Investment
Company Act of 1940 (15 U.S.C. 80a-1 et seq.) or subject to
the reporting requirements of section 13 or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)) for
any period exceeding the period of time referenced under
paragraph (a)(1)(i)(A)(1) of section 230.139 of title 17,
Code of Federal Regulations; or
(B) impose a minimum float provision exceeding that
referenced in paragraph (a)(1)(i)(A)(1)(i) of section 230.139
of title 17, Code of Federal Regulations;
(3) provide that a self-regulatory organization may not
maintain or enforce any rule that would--
(A) prohibit the ability of a member to publish or
distribute a covered investment fund research report solely
because the member is also participating in a registered
offering or other distribution of any securities of such
covered investment fund; or
(B) prohibit the ability of a member to participate in a
registered offering or other distribution of securities of a
covered investment fund solely because the member has
published or distributed a covered investment fund research
report about such covered investment fund or its securities;
and
(4) provide that a covered investment fund research report
shall not be subject to section 24(b) of the Investment
Company Act of 1940 (15 U.S.C. 80a-24(b)) or the rules and
regulations thereunder, except that such report may still be
subject to such section and the rules and regulations
thereunder to the extent that it is otherwise not subject to
the content standards in the rules of any self-regulatory
organization related to research reports, including those
contained in the rules governing communications with the
public regarding investment companies or substantially
similar standards.
(c) Rules of Construction.--Nothing in this Act shall be
construed as in any way limiting--
(1) the applicability of the antifraud or antimanipulation
provisions of the Federal securities laws and rules adopted
thereunder to a covered investment fund research report,
including section 17 of the Securities Act of 1933 (15 U.S.C.
77q), section 34(b) of the Investment Company Act of 1940 (15
U.S.C. 80a-33), and sections 9 and 10 of the Securities
Exchange Act of 1934 (15 U.S.C. 78i, 78j); or
(2) the authority of any self-regulatory organization to
examine or supervise a member's practices in connection with
such member's publication or distribution of a covered
investment fund research report for compliance with
applicable provisions of the Federal securities laws or self-
regulatory organization rules related to research reports,
including those contained in rules governing communications
with the public.
(d) Interim Effectiveness of Safe Harbor.--
(1) In general.--From and after the 120-day period
beginning on the date of enactment of this Act, if the
Commission has not adopted revisions to section 230.139 of
title 17, Code of Federal Regulations, as required by
subsection (a), and until such time as the Commission has
done so, a broker or dealer distributing or publishing a
covered investment fund research report after such date shall
be able to rely on the provisions of section 230.139 of title
17, Code of Federal Regulations, and the broker or dealer's
publication of such report shall be deemed to satisfy the
conditions of subsection (a)(1) or (a)(2) of section 230.139
of title 17, Code of Federal Regulations, if the covered
investment fund that is the subject of such report satisfies
the reporting history requirements (without regard to Form S-
3 or Form F-3 eligibility) and minimum float provisions of
such subsections for purposes of the Commission's rules and
regulations under the Federal securities laws and the rules
of any self-regulatory organization, as if revised and
implemented in accordance with subsections (a) and (b).
(2) Status of covered investment fund.--After such period
and until the Commission has adopted revisions to section
230.139 and FINRA has revised rule 2210, for purposes of
subsection (c)(7)(O) of such rule, a covered investment fund
shall be deemed to be a security that is listed on a national
securities exchange and that is not subject to section 24(b)
of the Investment Company Act of 1940 (15 U.S.C. 80a-24(b)).
Communications concerning only covered investment funds that
fall within the scope of such section shall not be required
to be filed with FINRA.
(e) Definitions.--For purposes of this section:
(1) The term ``covered investment fund research report''
means a research report published or distributed by a broker
or dealer about a covered investment fund or any securities
issued by the covered investment fund, but not including a
research report to the extent that it is published or
distributed by the covered investment fund or any affiliate
of the covered investment fund.
(2) The term ``covered investment fund'' means--
(A) an investment company registered under, or that has
filed an election to be treated as a business development
company under, the Investment Company Act of 1940 and that
has filed a registration statement under the Securities Act
of 1933 for the public offering of a class of its securities,
which registration statement has been declared effective by
the Commission; and
(B) a trust or other person--
(i) issuing securities in an offering registered under the
Securities Act of 1933 and which class of securities is
listed for trading on a national securities exchange;
(ii) the assets of which consist primarily of commodities,
currencies, or derivative instruments that reference
commodities or currencies, or interests in the foregoing; and
(iii) that provides in its registration statement under the
Securities Act of 1933 that a class of its securities are
purchased or redeemed, subject to conditions or limitations,
for a ratable share of its assets.
(3) The term ``FINRA'' means the Financial Industry
Regulatory Authority.
(4) The term ``research report'' has the meaning given that
term under section 2(a)(3) of the Securities Act of 1933 (15
U.S.C. 77b(a)(3)), except that such term shall not include an
oral communication.
(5) The term ``self-regulatory organization'' has the
meaning given to that term under section 3(a)(26) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)).
Subtitle F--Accelerating Access to Capital
SEC. 426. EXPANDED ELIGIBILITY FOR USE OF FORM S-3.
Not later than 45 days after the date of the enactment of
this Act, the Securities and Exchange Commission shall revise
Form S-3--
(1) so as to permit securities to be registered pursuant to
General Instruction I.B.1. of such form provided that
either--
(A) the aggregate market value of the voting and non-voting
common equity held by non-affiliates of the registrant is
$75,000,000 or more; or
(B) the registrant has at least one class of common equity
securities listed and registered on a national securities
exchange; and
(2) so as to remove the requirement of paragraph (c) from
General Instruction I.B.6. of such form.
Subtitle G--Enhancing the RAISE Act
SEC. 431. CERTAIN ACCREDITED INVESTOR TRANSACTIONS.
Section 4 of the Securities Act of 1933 (15 U.S.C. 77d) is
amended--
(1) by amending subsection (d) to read as follows:
``(d)(1) The transactions referred to in subsection (a)(7)
are transactions where--
``(A) each purchaser is an accredited investor, as that
term is defined in section 230.501(a) of title 17, Code of
Federal Regulations (or any successor thereto); and
``(B) if any securities sold in reliance on subsection
(a)(7) are offered by means of any general solicitation or
general advertising, all such sales are made through a
platform available only to accredited investors.
``(2) Securities sold in reliance on subsection (a)(7)
shall be deemed to have been acquired in a transaction not
involving any public offering.
``(3) The exemption provided by this subsection shall not
be available for a transaction where the seller is--
``(A) an issuer, its subsidiaries or parent;
``(B) an underwriter acting on behalf of the issuer, its
subsidiaries or parent, which receives compensation from the
issuer with respect to such sale; or
``(C) a dealer.
``(4) A transaction meeting the requirements of this
subsection shall be deemed not to be a distribution for
purposes of section 2(a)(11).''; and
(2) by striking subsection (e).
Subtitle H--Small Business Credit Availability
SEC. 436. BUSINESS DEVELOPMENT COMPANY OWNERSHIP OF
SECURITIES OF INVESTMENT ADVISERS AND CERTAIN
FINANCIAL COMPANIES.
(a) In General.--Section 60 of the Investment Company Act
of 1940 (15 U.S.C. 80a-59) is amended--
(1) by striking ``Notwithstanding'' and inserting ``(a)
Notwithstanding'';
(2) by striking ``except that the Commission shall not''
and inserting the following: ``except that--
``(1) section 12 shall not apply to the purchasing,
otherwise acquiring, or holding by a business development
company of any security issued by, or any other interest in
the business of, any person who is an investment adviser
registered under title II of this Act, who is an investment
adviser to an investment company, or who is an eligible
portfolio company; and
``(2) the Commission shall not'';
(3) by adding at the end the following:
``(b) Nothing in this section shall prevent the Commission
from issuing rules to address potential conflicts of interest
between business development companies and investment
advisers.''.
(b) Definition of Eligible Portfolio Company.--Section
2(a)(46)(B) of the Investment Company Act of 1940 (15 U.S.C.
80a-2(a)(46)(B)) is amended by inserting before the semicolon
the following: ``(unless it is described in paragraph (2),
(3), (4), (5), (6), or (9) of such section)''.
(c) Investment Threshold.--Section 55(a) of the Investment
Company Act of 1940 is amended by inserting before the colon
the following: ``, provided that no more than 50 percent of
its total assets are assets described in section 3(c)''.
SEC. 437. EXPANDING ACCESS TO CAPITAL FOR BUSINESS
DEVELOPMENT COMPANIES.
(a) In General.--Section 61(a) of the Investment Company
Act of 1940 (15 U.S.C. 80a-60(a)) is amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively;
(2) by striking paragraph (1) and inserting the following:
``(1) Except as provided in paragraph (2), the asset
coverage requirements of subparagraphs (A) and (B) of section
18(a)(1) (and any related rule promulgated under this Act)
applicable to
[[Page H4753]]
business development companies shall be 200 percent.
``(2) The asset coverage requirements of subparagraphs (A)
and (B) of section 18(a)(1) and of subparagraphs (A) and (B)
of section 18(a)(2) (and any related rule promulgated under
this Act) applicable to a business development company shall
be 150 percent if--
``(A) within five business days of the approval of the
adoption of the asset coverage requirements described in
clause (ii), the business development company discloses such
approval and the date of its effectiveness in a Form 8-K
filed with the Commission and in a notice on its website and
discloses in its periodic filings made under section 13 of
the Securities and Exchange Act of 1934 (15 U.S.C. 78m)--
``(i) the aggregate value of the senior securities issued
by such company and the asset coverage percentage as of the
date of such company's most recent financial statements; and
``(ii) that such company has adopted the asset coverage
requirements of this subparagraph and the effective date of
such requirements;
``(B) with respect to a business development company that
issues equity securities that are registered on a national
securities exchange, the periodic filings of the company
under section 13(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78m) include disclosures reasonably designed to
ensure that shareholders are informed of--
``(i) the amount of indebtedness and asset coverage ratio
of the company, determined as of the date of the financial
statements of the company dated on or most recently before
the date of such filing; and
``(ii) the principal risk factors associated with such
indebtedness, to the extent such risk is incurred by the
company; and
``(C)(i) the application of this paragraph to the company
is approved by the required majority (as defined in section
57(o)) of the directors of or general partners of such
company who are not interested persons of the business
development company, which application shall become effective
on the date that is 1 year after the date of the approval,
and, with respect to a business development company that
issues equity securities that are not registered on a
national securities exchange, the company extends, to each
person who is a shareholder as of the date of the approval,
an offer to repurchase the equity securities held by such
person as of such approval date, with 25 percent of such
securities to be repurchased in each of the four quarters
following such approval date; or
``(ii) the company obtains, at a special or annual meeting
of shareholders or partners at which a quorum is present, the
approval of more than 50 percent of the votes cast of the
application of this paragraph to the company, which
application shall become effective on the date immediately
after the date of the approval.'';
(3) in paragraph (3) (as redesignated), by inserting ``or
which is a stock'' after ``indebtedness'';
(4) in subparagraph (A) of paragraph (4) (as
redesignated)--
(A) in the matter preceding clause (i), by striking
``voting''; and
(B) by amending clause (iii) to read as follows:
``(iii) the exercise or conversion price at the date of
issuance of such warrants, options, or rights is not less
than--
``(I) the market value of the securities issuable upon the
exercise of such warrants, options, or rights at the date of
issuance of such warrants, options, or rights; or
``(II) if no such market value exists, the net asset value
of the securities issuable upon the exercise of such
warrants, options, or rights at the date of issuance of such
warrants, options, or rights; and''; and
(5) by adding at the end the following:
``(6)(A) Except as provided in subparagraph (B), the
following shall not apply to a business development company:
``(i) Subparagraphs (C) and (D) of section 18(a)(2).
``(ii) Subparagraph (E) of section 18(a)(2), to the extent
such subparagraph requires any priority over any other class
of stock as to distribution of assets upon liquidation.
``(iii) With respect to a senior security which is a stock,
subsections (c) and (i) of section 18.
``(B) Subparagraph (A) shall not apply with respect to
preferred stock issued to a person who is not known by the
company to be a qualified institutional buyer (as defined in
section 3(a) of the Securities Exchange Act of 1934).''.
(b) Conforming Amendments.--The Investment Company Act of
1940 (15 U.S.C. 80a-1 et seq.) is amended--
(1) in section 57--
(A) in subsection (j)(1), by striking ``section
61(a)(3)(B)'' and inserting ``section 61(a)(4)(B)''; and
(B) in subsection (n)(2), by striking ``section
61(a)(3)(B)'' and inserting ``section 61(a)(4)(B)''; and
(2) in section 63(3), by striking ``section 61(a)(3)'' and
inserting ``section 61(a)(4)''.
SEC. 438. PARITY FOR BUSINESS DEVELOPMENT COMPANIES REGARDING
OFFERING AND PROXY RULES.
(a) Revision to Rules.--Not later than 1 year after the
date of enactment of this Act, the Securities and Exchange
Commission shall revise any rules to the extent necessary to
allow a business development company that has filed an
election pursuant to section 54 of the Investment Company Act
of 1940 (15 U.S.C. 80a-53) to use the securities offering and
proxy rules that are available to other issuers that are
required to file reports under section 13 or section 15(d) of
the Securities Exchange Act of 1934 (15 U.S.C. 78m; 78o(d)).
Any action that the Commission takes pursuant to this
subsection shall include the following:
(1) The Commission shall revise rule 405 under the
Securities Act of 1933 (17 C.F.R. 230.405)--
(A) to remove the exclusion of a business development
company from the definition of a well-known seasoned issuer
provided by that rule; and
(B) to add registration statements filed on Form N-2 to the
definition of automatic shelf registration statement provided
by that rule.
(2) The Commission shall revise rules 168 and 169 under the
Securities Act of 1933 (17 C.F.R. 230.168 and 230.169) to
remove the exclusion of a business development company from
an issuer that can use the exemptions provided by those
rules.
(3) The Commission shall revise rules 163 and 163A under
the Securities Act of 1933 (17 C.F.R. 230.163 and 230.163A)
to remove a business development company from the list of
issuers that are ineligible to use the exemptions provided by
those rules.
(4) The Commission shall revise rule 134 under the
Securities Act of 1933 (17 C.F.R. 230.134) to remove the
exclusion of a business development company from that rule.
(5) The Commission shall revise rules 138 and 139 under the
Securities Act of 1933 (17 C.F.R. 230.138 and 230.139) to
specifically include a business development company as an
issuer to which those rules apply.
(6) The Commission shall revise rule 164 under the
Securities Act of 1933 (17 C.F.R. 230.164) to remove a
business development company from the list of issuers that
are excluded from that rule.
(7) The Commission shall revise rule 433 under the
Securities Act of 1933 (17 C.F.R. 230.433) to specifically
include a business development company that is a well-known
seasoned issuer as an issuer to which that rule applies.
(8) The Commission shall revise rule 415 under the
Securities Act of 1933 (17 C.F.R. 230.415)--
(A) to state that the registration for securities provided
by that rule includes securities registered by a business
development company on Form N-2; and
(B) to provide an exception for a business development
company from the requirement that a Form N-2 registrant must
furnish the undertakings required by item 34.4 of Form N-2.
(9) The Commission shall revise rule 497 under the
Securities Act of 1933 (17 C.F.R. 230.497) to include a
process for a business development company to file a form of
prospectus that is parallel to the process for filing a form
of prospectus under rule 424(b).
(10) The Commission shall revise rules 172 and 173 under
the Securities Act of 1933 (17 C.F.R. 230.172 and 230.173) to
remove the exclusion of an offering of a business development
company from those rules.
(11) The Commission shall revise rule 418 under the
Securities Act of 1933 (17 C.F.R. 230.418) to provide that a
business development company that would otherwise meet the
eligibility requirements of General Instruction I.A of Form
S-3 shall be exempt from paragraph (a)(3) of that rule.
(12) The Commission shall revise rule 14a-101 under the
Securities Exchange Act of 1934 (17 C.F.R. 240.14a-101) to
provide that a business development company that would
otherwise meet the requirements of General Instruction I.A of
Form S-3 shall be deemed to meet the requirements of Form S-3
for purposes of Schedule 14A.
(13) The Commission shall revise rule 103 under Regulation
FD (17 C.F.R. 243.103) to provide that paragraph (a) of that
rule applies for purposes of Form N-2.
(b) Revision to Form N-2.--Not later than 1 year after the
date of enactment of this Act, the Commission shall revise
Form N-2--
(1) to include an item or instruction that is similar to
item 12 on Form S-3 to provide that a business development
company that would otherwise meet the requirements of Form S-
3 shall incorporate by reference its reports and documents
filed under the Securities Exchange Act of 1934 into its
registration statement filed on Form N-2; and
(2) to include an item or instruction that is similar to
the instruction regarding automatic shelf offerings by well-
known seasoned issuers on Form S-3 to provide that a business
development company that is a well-known seasoned issuer may
file automatic shelf offerings on Form N-2.
(c) Treatment if Revisions Not Completed in Timely
Manner.--If the Commission fails to complete the revisions
required by subsections (a) and (b) by the time required by
such subsections, a business development company shall be
entitled to treat such revisions as having been completed in
accordance with the actions required to be taken by the
Commission by such subsections until such time as such
revisions are completed by the Commission.
(d) Rule of Construction.--Any reference in this section to
a rule or form means such rule or form or any successor rule
or form.
Subtitle I--Fostering Innovation
SEC. 441. TEMPORARY EXEMPTION FOR LOW-REVENUE ISSUERS.
Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7262) is amended by adding at the end the following:
``(d) Temporary Exemption for Low-Revenue Issuers.--
``(1) Low-revenue exemption.--Subsection (b) shall not
apply with respect to an audit report prepared for an issuer
that--
``(A) ceased to be an emerging growth company on the last
day of the fiscal year of the issuer following the fifth
anniversary of the date of the first sale of common equity
securities of the issuer pursuant to an effective
registration statement under the Securities Act of 1933;
``(B) had average annual gross revenues of less than
$50,000,000 as of its most recently completed fiscal year;
and
``(C) is not a large accelerated filer.
``(2) Expiration of temporary exemption.--An issuer ceases
to be eligible for the exemption
[[Page H4754]]
described under paragraph (1) at the earliest of--
``(A) the last day of the fiscal year of the issuer
following the tenth anniversary of the date of the first sale
of common equity securities of the issuer pursuant to an
effective registration statement under the Securities Act of
1933;
``(B) the last day of the fiscal year of the issuer during
which the average annual gross revenues of the issuer exceed
$50,000,000; or
``(C) the date on which the issuer becomes a large
accelerated filer.
``(3) Definitions.--For purposes of this subsection:
``(A) Average annual gross revenues.--The term `average
annual gross revenues' means the total gross revenues of an
issuer over its most recently completed three fiscal years
divided by three.
``(B) Emerging growth company.--The term `emerging growth
company' has the meaning given such term under section 3 of
the Securities Exchange Act of 1934 (15 U.S.C. 78c).
``(C) Large accelerated filer.--The term `large accelerated
filer' has the meaning given that term under section 240.12b-
2 of title 17, Code of Federal Regulations, or any successor
thereto.''.
Subtitle J--Small Business Capital Formation Enhancement
SEC. 446. ANNUAL REVIEW OF GOVERNMENT-BUSINESS FORUM ON
CAPITAL FORMATION.
Section 503 of the Small Business Investment Incentive Act
of 1980 (15 U.S.C. 80c-1) is amended by adding at the end the
following:
``(e) The Commission shall--
``(1) review the findings and recommendations of the forum;
and
``(2) each time the forum submits a finding or
recommendation to the Commission, promptly issue a public
statement--
``(A) assessing the finding or recommendation of the forum;
and
``(B) disclosing the action, if any, the Commission intends
to take with respect to the finding or recommendation.''.
Subtitle K--Helping Angels Lead Our Startups
SEC. 451. DEFINITION OF ANGEL INVESTOR GROUP.
As used in this subtitle, the term ``angel investor group''
means any group that--
(1) is composed of accredited investors interested in
investing personal capital in early-stage companies;
(2) holds regular meetings and has defined processes and
procedures for making investment decisions, either
individually or among the membership of the group as a whole;
and
(3) is neither associated nor affiliated with brokers,
dealers, or investment advisers.
SEC. 452. CLARIFICATION OF GENERAL SOLICITATION.
(a) In General.--Not later than 6 months after the date of
enactment of this Act, the Securities and Exchange Commission
shall revise Regulation D of its rules (17 C.F.R. 230.500 et
seq.) to require that in carrying out the prohibition against
general solicitation or general advertising contained in
section 230.502(c) of title 17, Code of Federal Regulations,
the prohibition shall not apply to a presentation or other
communication made by or on behalf of an issuer which is made
at an event--
(1) sponsored by--
(A) the United States or any territory thereof, by the
District of Columbia, by any State, by a political
subdivision of any State or territory, or by any agency or
public instrumentality of any of the foregoing;
(B) a college, university, or other institution of higher
education;
(C) a nonprofit organization;
(D) an angel investor group;
(E) a venture forum, venture capital association, or trade
association; or
(F) any other group, person or entity as the Securities and
Exchange Commission may determine by rule;
(2) where any advertising for the event does not reference
any specific offering of securities by the issuer;
(3) the sponsor of which--
(A) does not make investment recommendations or provide
investment advice to event attendees;
(B) does not engage in an active role in any investment
negotiations between the issuer and investors attending the
event;
(C) does not charge event attendees any fees other than
administrative fees; and
(D) does not receive any compensation with respect to such
event that would require registration of the sponsor as a
broker or a dealer under the Securities Exchange Act of 1934,
or as an investment advisor under the Investment Advisers Act
of 1940; and
(4) where no specific information regarding an offering of
securities by the issuer is communicated or distributed by or
on behalf of the issuer, other than--
(A) that the issuer is in the process of offering
securities or planning to offer securities;
(B) the type and amount of securities being offered;
(C) the amount of securities being offered that have
already been subscribed for; and
(D) the intended use of proceeds of the offering.
(b) Rule of Construction.--Subsection (a) may only be
construed as requiring the Securities and Exchange Commission
to amend the requirements of Regulation D with respect to
presentations and communications, and not with respect to
purchases or sales.
Subtitle L--Main Street Growth
SEC. 456. VENTURE EXCHANGES.
(a) Securities Exchange Act of 1934.--Section 6 of the
Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by
adding at the end the following:
``(m) Venture Exchange.--
``(1) Registration.--
``(A) In general.--A national securities exchange may elect
to be treated (or for a listing tier of such exchange to be
treated) as a venture exchange by notifying the Commission of
such election, either at the time the exchange applies to be
registered as a national securities exchange or after
registering as a national securities exchange.
``(B) Determination time period.--With respect to a
securities exchange electing to be treated (or for a listing
tier of such exchange to be treated) as a venture exchange--
``(i) at the time the exchange applies to be registered as
a national securities exchange, such application and election
shall be deemed to have been approved by the Commission
unless the Commission denies such application before the end
of the 6-month period beginning on the date the Commission
received such application; and
``(ii) after registering as a national securities exchange,
such election shall be deemed to have been approved by the
Commission unless the Commission denies such approval before
the end of the 6-month period beginning on the date the
Commission received notification of such election.
``(2) Powers and restrictions.--A venture exchange--
``(A) may only constitute, maintain, or provide a market
place or facilities for bringing together purchasers and
sellers of venture securities;
``(B) may determine the increment to be used for quoting
and trading venture securities on the exchange;
``(C) shall disseminate last sale and quotation information
on terms that are fair and reasonable and not unreasonably
discriminatory;
``(D) may choose to carry out periodic auctions for the
sale of a venture security instead of providing continuous
trading of the venture security; and
``(E) may not extend unlisted trading privileges to any
venture security.
``(3) Exemptions from certain national security exchange
regulations.--A venture exchange shall not be required to--
``(A) comply with any of sections 242.600 through 242.612
of title 17, Code of Federal Regulations;
``(B) comply with any of sections 242.300 through 242.303
of title 17, Code of Federal Regulations;
``(C) submit any data to a securities information
processor; or
``(D) use decimal pricing.
``(4) Treatment of certain exempted securities.--A security
that is exempt from registration pursuant to section 3(b) of
the Securities Act of 1933 shall be exempt from section 12(a)
of this title with respect to the trading of such security on
a venture exchange, if the issuer of such security is in
compliance with all disclosure obligations of such section
3(b) and the regulations issued under such section.
``(5) Definitions.--For purposes of this subsection:
``(A) Early-stage, growth company.--
``(i) In general.--The term `early-stage, growth company'
means an issuer--
``(I) that has not made an initial public offering of any
securities of the issuer; and
``(II) with a market capitalization of $1,000,000,000 (as
such amount is indexed for inflation every 5 years by the
Commission to reflect the change in the Consumer Price Index
for All Urban Consumers published by the Bureau of Labor
Statistics, setting the threshold to the nearest $1,000,000)
or less.
``(ii) Treatment when market capitalization exceeds
threshold.--
``(I) In general.--In the case of an issuer that is an
early-stage, growth company the securities of which are
traded on a venture exchange, such issuer shall not cease to
be an early-stage, growth company by reason of the market
capitalization of such issuer exceeding the threshold
specified in clause (i)(II) until the end of the period of 24
consecutive months during which the market capitalization of
such issuer exceeds $2,000,000,000 (as such amount is indexed
for inflation every 5 years by the Commission to reflect the
change in the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics, setting the
threshold to the nearest $1,000,000).
``(II) Exemptions.--If an issuer would cease to be an
early-stage, growth company under subclause (I), the venture
exchange may, at the request of the issuer, exempt the issuer
from the market capitalization requirements of this
subparagraph for the 1-year period that begins on the day
after the end of the 24-month period described in such
subclause. The venture exchange may, at the request of the
issuer, extend the exemption for 1 additional year.
``(B) Venture security.--The term `venture security'
means--
``(i) securities of an early-stage, growth company that are
exempt from registration pursuant to section 3(b) of the
Securities Act of 1933; and
``(ii) securities of an emerging growth company.''.
(b) Securities Act of 1933.--Section 18(b)(1) of the
Securities Act of 1933 (15 U.S.C. 77r(b)(1)) is amended--
(1) in subparagraph (B), by striking ``or'' at the end;
(2) in subparagraph (C), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(D) a venture security, as defined under section 6(m)(5)
of the Securities Exchange Act of 1934.''.
(c) Sense of Congress.--It is the sense of the Congress
that the Securities and Exchange Commission should--
(1) when necessary or appropriate in the public interest
and consistent with the protection of
[[Page H4755]]
investors, make use of the Commission's general exemptive
authority under section 36 of the Securities Exchange Act of
1934 (15 U.S.C. 78mm) with respect to the provisions added by
this section; and
(2) if the Commission determines appropriate, create an
Office of Venture Exchanges within the Commission's Division
of Trading and Markets.
(d) Rule of Construction.--Nothing in this section or the
amendments made by this section shall be construed to impair
or limit the construction of the antifraud provisions of the
securities laws (as defined in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a))) or the authority of
the Securities and Exchange Commission under those
provisions.
(e) Effective Date for Tiers of Existing National
Securities Exchanges.--In the case of a securities exchange
that is registered as a national securities exchange under
section 6 of the Securities Exchange Act of 1934 (15 U.S.C.
78f) on the date of the enactment of this Act, any election
for a listing tier of such exchange to be treated as a
venture exchange under subsection (m) of such section shall
not take effect before the date that is 180 days after such
date of enactment.
Subtitle M--Micro Offering Safe Harbor
SEC. 461. EXEMPTIONS FOR MICRO-OFFERINGS.
(a) In General.--Section 4 of the Securities Act of 1933
(15 U.S.C. 77d) is amended--
(1) in subsection (a), by adding at the end the following:
``(8) transactions meeting the requirements of subsection
(e).''; and
(2) as amended by section 431(2), by inserting after
subsection (d) the following:
``(e) Certain Micro-Offerings.--The transactions referred
to in subsection (a)(8) are transactions involving the sale
of securities by an issuer (including all entities controlled
by or under common control with the issuer) that meet all of
the following requirements:
``(1) Pre-existing relationship.--Each purchaser has a
substantive pre-existing relationship with an officer of the
issuer, a director of the issuer, or a shareholder holding 10
percent or more of the shares of the issuer.
``(2) 35 or fewer purchasers.--There are no more than, or
the issuer reasonably believes that there are no more than,
35 purchasers of securities from the issuer that are sold in
reliance on the exemption provided under subsection (a)(8)
during the 12-month period preceding such transaction.
``(3) Small offering amount.--The aggregate amount of all
securities sold by the issuer, including any amount sold in
reliance on the exemption provided under subsection (a)(8),
during the 12-month period preceding such transaction, does
not exceed $500,000.''.
(b) Exemption Under State Regulations.--Section 18(b)(4) of
the Securities Act of 1933 (15 U.S.C. 77r(b)(4)) is amended--
(1) in subparagraph (F), by striking ``or'' at the end;
(2) in subparagraph (G), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(H) section 4(a)(8).''.
Subtitle N--Private Placement Improvement
SEC. 466. REVISIONS TO SEC REGULATION D.
Not later than 45 days following the date of the enactment
of this Act, the Securities and Exchange Commission shall
revise Regulation D (17 C.F.R. 501 et seq.) in accordance
with the following:
(1) The Commission shall revise Form D filing requirements
to require an issuer offering or selling securities in
reliance on an exemption provided under Rule 506 of
Regulation D to file with the Commission a single notice of
sales containing the information required by Form D for each
new offering of securities no earlier than 15 days after the
date of the first sale of securities in the offering. The
Commission shall not require such an issuer to file any
notice of sales containing the information required by Form D
except for the single notice described in the previous
sentence.
(2) The Commission shall make the information contained in
each Form D filing available to the securities commission (or
any agency or office performing like functions) of each State
and territory of the United States and the District of
Columbia.
(3) The Commission shall not condition the availability of
any exemption for an issuer under Rule 506 of Regulation D
(17 C.F.R. 230.506) on the issuer's or any other person's
filing with the Commission of a Form D or any similar report.
(4) The Commission shall not require issuers to submit
written general solicitation materials to the Commission in
connection with a Rule 506(c) offering, except when the
Commission requests such materials pursuant to the
Commission's authority under section 8A or section 20 of the
Securities Act of 1933 (15 U.S.C. 77h-1 or 77t) or section 9,
10(b), 21A, 21B, or 21C of the Securities Exchange Act of
1934 (15 U.S.C. 78i, 78j(b), 78u-1, 78u-2, or 78u-3).
(5) The Commission shall not extend the requirements
contained in Rule 156 to private funds.
(6) The Commission shall revise Rule 501(a) of Regulation D
to provide that a person who is a ``knowledgeable employee''
of a private fund or the fund's investment adviser, as
defined in Rule 3c-5(a)(4) (17 C.F.R. 270.3c-5(a)(4)), shall
be an accredited investor for purposes of a Rule 506 offering
of a private fund with respect to which the person is a
knowledgeable employee.
Subtitle O--Supporting America's Innovators
SEC. 471. INVESTOR LIMITATION FOR QUALIFYING VENTURE CAPITAL
FUNDS.
Section 3(c)(1) of the Investment Company Act of 1940 (15
U.S.C. 80a-3(c)(1)) is amended--
(1) by inserting after ``one hundred persons'' the
following: ``(or, with respect to a qualifying venture
capital fund, 500 persons)''; and
(2) by adding at the end the following:
``(C) The term `qualifying venture capital fund' means any
venture capital fund (as defined pursuant to section
203(l)(1) of the Investment Advisers Act of 1940 (15 U.S.C.
80b-3(l)(1)) with no more than $50,000,000 in aggregate
capital contributions and uncalled committed capital, as such
dollar amount is annually adjusted by the Commission to
reflect the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor.''.
Subtitle P--Fix Crowdfunding
SEC. 476. CROWDFUNDING EXEMPTION.
(a) Securities Act of 1933.--Section 4(a) of the Securities
Act of 1933 (15 U.S.C. 77d) is amended by striking paragraph
(6) and inserting the following:
``(6) transactions involving the offer or sale of
securities by an issuer, provided that--
``(A) in the case of a transaction involving an
intermediary between the issuer and the investor, such
intermediary complies with the requirements under section
4A(a); and
``(B) in the case of a transaction not involving an
intermediary between the issuer and the investor, the issuer
complies with the requirements under section 4A(b).''.
(b) Requirements to Qualify for Crowdfunding Exemption.--
Section 4A of the Securities Act of 1933 (15 U.S.C. 77d-1) is
amended to read as follows:
``SEC. 4A. REQUIREMENTS WITH RESPECT TO CERTAIN SMALL
TRANSACTIONS.
``(a) Requirements on Intermediaries.--For purposes of
section 4(a)(6), a person acting as an intermediary in a
transaction involving the offer or sale of securities shall
comply with the requirements of this subsection if the
intermediary--
``(1) warns investors, including on the intermediary's
website used for the offer and sale of such securities, of
the speculative nature generally applicable to investments in
startups, emerging businesses, and small issuers, including
risks in the secondary market related to illiquidity;
``(2) warns investors that they are subject to the
restriction on sales requirement described under subsection
(e);
``(3) takes reasonable measures to reduce the risk of fraud
with respect to such transaction;
``(4) registers with the Commission and the Financial
Industry Regulatory Authority, including by providing the
Commission with the intermediary's physical address, website
address, and the names of the intermediary and employees of
the intermediary, and keep such information up-to-date;
``(5) provides the Commission with continuous investor-
level access to the intermediary's website;
``(6) requires each potential investor to answer questions
demonstrating--
``(A) an understanding of the level of risk generally
applicable to investments in startups, emerging businesses,
and small issuers;
``(B) an understanding of the risk of illiquidity; and
``(C) such other areas as the Commission may determine
appropriate by rule or regulation, including information
relating to the owners' and management's experience, and any
related party transactions and conflicts of interest;
``(7) carries out a background check on the issuer's
principals;
``(8) provides the Commission and potential investors with
notice of the offering not less than 10 days prior to such
offering, not later than the first day securities are offered
to potential investors, including--
``(A) the issuer's name, legal status, physical address,
and website address;
``(B) the names of the issuer's principals;
``(C) the stated purpose and intended use of the proceeds
of the offering sought by the issuer; and
``(D) the target offering amount and the deadline to reach
the target offering amount;
``(9) outsources cash-management functions to a qualified
third party custodian, such as a broker or dealer registered
under section 15(b)(1) of the Securities Exchange Act of
1934, a trust company, or an insured depository institution;
``(10) makes available on the intermediary's website a
method of communication that permits the issuer and investors
to communicate with one another; and
``(11) provides the Commission with a notice upon
completion of the offering, which shall include the aggregate
offering amount and the number of purchasers.
``(b) Requirements on Issuers if No Intermediary.--For
purposes of section 4(a)(6), an issuer who offers or sells
securities without an intermediary shall comply with the
requirements of this subsection if the issuer--
``(1) warns investors, including on the issuer's website,
of the speculative nature generally applicable to investments
in startups, emerging businesses, and small issuers,
including risks in the secondary market related to
illiquidity;
``(2) warns investors that they are subject to the
restriction on sales requirement described under subsection
(e);
``(3) takes reasonable measures to reduce the risk of fraud
with respect to such transaction;
``(4) provides the Commission with the issuer's physical
address, website address, and the names of the principals and
employees of the issuers, and keeps such information up-to-
date;
``(5) provides the Commission with continuous investor-
level access to the issuer's website;
``(6) requires each potential investor to answer questions
demonstrating--
``(A) an understanding of the level of risk generally
applicable to investments in startups, emerging businesses,
and small issuers;
[[Page H4756]]
``(B) an understanding of the risk of illiquidity; and
``(C) such other areas as the Commission may determine
appropriate by rule or regulation;
``(7) provides the Commission with notice of the offering
not less than 10 days prior to such offering, not later than
the first day securities are offered to potential investors,
including--
``(A) the stated purpose and intended use of the proceeds
of the offering sought by the issuer; and
``(B) the target offering amount and the deadline to reach
the target offering amount;
``(8) outsources cash-management functions to a qualified
third party custodian, such as a broker or dealer registered
under section 15(b)(1) of the Securities Exchange Act of
1934, a trust company, or an insured depository institution;
``(9) makes available on the issuer's website a method of
communication that permits the issuer and investors to
communicate with one another;
``(10) does not offer personalized investment advice;
``(11) provides the Commission with a notice upon
completion of the offering, which shall include the aggregate
offering amount and the number of purchasers; and
``(c) Verification of Income.--For purposes of section
4(a)(6), an issuer or intermediary may rely on certifications
as to annual income provided by the person to whom the
securities are sold to verify the investor's income.
``(d) Information Available to States.--The Commission
shall make the notices described under subsections (a)(9),
(a)(13), (b)(8), and (b)(13) and the information described
under subsections (a)(4) and (b)(4) available to the States.
``(e) Restriction on Sales.--With respect to a transaction
involving the issuance of securities described under section
4(a)(6), a purchaser may not transfer such securities during
the 1-year period beginning on the date of purchase, unless
such securities are sold to--
``(1) the issuer of such securities; or
``(2) an accredited investor.
``(f) Construction.--
``(1) No registration as broker.--With respect to a
transaction described under section 4(a)(6) involving an
intermediary, such intermediary shall not be required to
register as a broker under section 15(a)(1) of the Securities
Exchange Act of 1934 solely by reason of participation in
such transaction.
``(2) No preclusion of other capital raising.--Nothing in
this section or section 4(a)(6) shall be construed as
preventing an issuer from raising capital through methods not
described under section 4(a)(6).''.
(c) Rulemaking.--Not later than 180 days after the date of
enactment of this Act, the Securities and Exchange Commission
shall issue or revise such rules as may be necessary to carry
out section 4A of the Securities Act of 1933, ans amended by
this Act. In issuing or revising such rules, the Commission
shall consider the costs and benefits of the action.
(d) Disqualification.--Not later than 180 days after the
date of enactment of this Act, the Securities and Exchange
Commission shall by rule or regulation establish
disqualification provisions under which an issuer shall not
be eligible to utilize the exemption under section 4(a)(6) of
the Securities Act of 1933 (as amended by this Act) based on
the disciplinary history of the issuer or its predecessors,
affiliates, officers, directors, or persons fulfilling
similar roles. The Commission shall also establish
disqualification provisions under which an intermediary shall
not be eligible to act as an intermediary in connection with
an offering utilizing the exemption under section 4(a)(6) of
the Securities Act of 1933 based on the disciplinary history
of the intermediary or its predecessors, affiliates,
officers, directors, or persons fulfilling similar roles.
Such provisions shall be substantially similar to the
disqualification provisions contained in the regulations
adopted in accordance with section 926 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (15 U.S.C. 77d
note).
SEC. 477. EXCLUSION OF CROWDFUNDING INVESTORS FROM
SHAREHOLDER CAP.
Section 12(g)(5) of the Securities Exchange Act of 1934 (15
U.S.C. 78l(g)(5)) is amended--
(1) by striking ``(5) For the purposes'' and inserting:
``(5) Definitions.--
``(A) In general.--For the purposes''; and
(2) by adding at the end the following:
``(B) Exclusion for persons holding certain securities.--
For purposes of this subsection, securities held by persons
who purchase such securities in transactions described under
section 4(a)(6) of the Securities Act of 1933 shall not be
deemed to be `held of record'.''.
SEC. 478. PREEMPTION OF STATE LAW.
(a) In General.--Section 18(b)(4)(C) of the Securities Act
of 1933 (15 U.S.C. 77r(b)(4)(C)) is amended by striking
``section 4(6)'' and inserting ``section 4(a)(6)''.
(b) Clarification of the Preservation of State Enforcement
Authority.--
(1) In general.--The amendments made by section 305(a) of
the Jumpstart Our Business Startups Act, as amended by
subsection (a), relate solely to State registration,
documentation, and offering requirements, as described under
section 18(a) of Securities Act of 1933 (15 U.S.C. 77r(a)),
and shall have no impact or limitation on other State
authority to take enforcement action with regard to an
issuer, intermediary, or any other person or entity using the
exemption from registration provided by section 4(a)(6) of
such Act. Notwithstanding monetary penalties or sanctions, a
State may not impose any filing or fee under such authority.
(2) Clarification of state jurisdiction over unlawful
conduct of intermediaries, issuers, and custodians.--Section
18(c)(1) of the Securities Act of 1933 is amended by striking
``in connection with securities or securities transactions''
and all that follows and inserting the following: ``in
connection with securities or securities transactions, with
respect to--
``(A) fraud or deceit;
``(B) unlawful conduct by a broker or dealer; and
``(C) with respect to a transaction described under section
4(a)(6), unlawful conduct by an intermediary, issuer, or
custodian.''.
SEC. 479. TREATMENT OF FUNDING PORTALS.
Section 5312(c) of title 31, United States Code, is amended
by adding at the end the following:
``(2) Funding portals not included in definition.--The term
`financial institution' (as defined in subsection (a)) does
not include a funding portal (as defined under section 3(a)
of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a))).''.
Subtitle Q--Corporate Governance Reform and Transparency
SEC. 481. DEFINITIONS.
(a) Securities Exchange Act of 1934.--Section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended
by adding at the end the following new paragraphs:
``(83) Proxy advisory firm.--The term `proxy advisory firm'
means any person who is primarily engaged in the business of
providing proxy voting research, analysis, or recommendations
to clients, which conduct constitutes a solicitation within
the meaning of section 14 and the Commission's rules and
regulations thereunder, except to the extent that the person
is exempted by such rules and regulations from requirements
otherwise applicable to persons engaged in a solicitation.
``(84) Person associated with a proxy advisory firm.--The
term `person associated with' a proxy advisory firm means any
partner, officer, or director of a proxy advisory firm (or
any person occupying a similar status or performing similar
functions), any person directly or indirectly controlling,
controlled by, or under common control with a proxy advisory
firm, or any employee of a proxy advisory firm, except that
persons associated with a proxy advisory firm whose functions
are clerical or ministerial shall not be included in the
meaning of such term. The Commission may by rules and
regulations classify, for purposes or any portion or portions
of this Act, persons, including employees controlled by a
proxy advisory firm.''.
(b) Applicable Definitions.--As used in this subtitle--
(1) the term ``Commission'' means the Securities and
Exchange Commission; and
(2) the term ``proxy advisory firm'' has the same meaning
as in section 3(a)(83) of the Securities Exchange Act of
1934, as added by this subtitle.
SEC. 482. REGISTRATION OF PROXY ADVISORY FIRMS.
(a) Amendment.--The Securities Exchange Act of 1934 is
amended by inserting after section 15G the following new
section:
``SEC. 15H. REGISTRATION OF PROXY ADVISORY FIRMS.
``(a) Conduct Prohibited.--It shall be unlawful for a proxy
advisory firm to make use of the mails or any means or
instrumentality of interstate commerce to provide proxy
voting research, analysis, or recommendations to any client,
unless such proxy advisory firm is registered under this
section.
``(b) Registration Procedures.--
``(1) Application for registration.--
``(A) In general.--A proxy advisory firm must file with the
Commission an application for registration, in such form as
the Commission shall require, by rule or regulation, and
containing the information described in subparagraph (B).
``(B) Required information.--An application for
registration under this section shall contain information
regarding--
``(i) a certification that the applicant has adequate
financial and managerial resources to consistently provide
proxy advice based on accurate information;
``(ii) the procedures and methodologies that the applicant
uses in developing proxy voting recommendations, including
whether and how the applicant considers the size of a company
when making proxy voting recommendations;
``(iii) the organizational structure of the applicant;
``(iv) whether or not the applicant has in effect a code of
ethics, and if not, the reasons therefor;
``(v) any potential or actual conflict of interest relating
to the ownership structure of the applicant or the provision
of proxy advisory services by the applicant, including
whether the proxy advisory firm engages in services ancillary
to the provision of proxy advisory services such as
consulting services for corporate issuers, and if so the
revenues derived therefrom;
``(vi) the policies and procedures in place to manage
conflicts of interest under subsection (f); and
``(vii) any other information and documents concerning the
applicant and any person associated with such applicant as
the Commission, by rule, may prescribe as necessary or
appropriate in the public interest or for the protection of
investors.
``(2) Review of application.--
``(A) Initial determination.--Not later than 90 days after
the date on which the application for registration is filed
with the Commission under paragraph (1) (or within such
longer period as to which the applicant consents) the
Commission shall--
``(i) by order, grant registration; or
``(ii) institute proceedings to determine whether
registration should be denied.
``(B) Conduct of proceedings.--
``(i) Content.--Proceedings referred to in subparagraph
(A)(ii) shall--
``(I) include notice of the grounds for denial under
consideration and an opportunity for hearing; and
[[Page H4757]]
``(II) be concluded not later than 120 days after the date
on which the application for registration is filed with the
Commission under paragraph (1).
``(ii) Determination.--At the conclusion of such
proceedings, the Commission, by order, shall grant or deny
such application for registration.
``(iii) Extension authorized.--The Commission may extend
the time for conclusion of such proceedings for not longer
than 90 days, if it finds good cause for such extension and
publishes its reasons for so finding, or for such longer
period as to which the applicant consents.
``(C) Grounds for decision.--The Commission shall grant
registration under this subsection--
``(i) if the Commission finds that the requirements of this
section are satisfied; and
``(ii) unless the Commission finds (in which case the
Commission shall deny such registration) that--
``(I) the applicant has failed to certify to the
Commission's satisfaction that it has adequate financial and
managerial resources to consistently provide proxy advice
based on accurate information and to materially comply with
the procedures and methodologies disclosed under paragraph
(1)(B) and with subsections (f) and (g); or
``(II) if the applicant were so registered, its
registration would be subject to suspension or revocation
under subsection (e).
``(3) Public availability of information.--Subject to
section 24, the Commission shall make the information and
documents submitted to the Commission by a proxy advisory
firm in its completed application for registration, or in any
amendment submitted under paragraph (1) or (2) of subsection
(c), publicly available on the Commission's website, or
through another comparable, readily accessible means.
``(c) Update of Registration.--
``(1) Update.--Each registered proxy advisory firm shall
promptly amend and update its application for registration
under this section if any information or document provided
therein becomes materially inaccurate, except that a
registered proxy advisory firm is not required to amend the
information required to be filed under subsection
(b)(1)(B)(i) by filing information under this paragraph, but
shall amend such information in the annual submission of the
organization under paragraph (2) of this subsection.
``(2) Certification.--Not later than 90 calendar days after
the end of each calendar year, each registered proxy advisory
firm shall file with the Commission an amendment to its
registration, in such form as the Commission, by rule, may
prescribe as necessary or appropriate in the public interest
or for the protection of investors--
``(A) certifying that the information and documents in the
application for registration of such registered proxy
advisory firm continue to be accurate in all material
respects; and
``(B) listing any material change that occurred to such
information or documents during the previous calendar year.
``(d) Censure, Denial, or Suspension of Registration;
Notice and Hearing.--The Commission, by order, shall censure,
place limitations on the activities, functions, or operations
of, suspend for a period not exceeding 12 months, or revoke
the registration of any registered proxy advisory firm if the
Commission finds, on the record after notice and opportunity
for hearing, that such censure, placing of limitations,
suspension, or revocation is necessary for the protection of
investors and in the public interest and that such registered
proxy advisory firm, or any person associated with such an
organization, whether prior to or subsequent to becoming so
associated--
``(1) has committed or omitted any act, or is subject to an
order or finding, enumerated in subparagraph (A), (D), (E),
(H), or (G) of section 15(b)(4), has been convicted of any
offense specified in section 15(b)(4)(B), or is enjoined from
any action, conduct, or practice specified in subparagraph
(C) of section 15(b)(4), during the 10-year period preceding
the date of commencement of the proceedings under this
subsection, or at any time thereafter;
``(2) has been convicted during the 10-year period
preceding the date on which an application for registration
is filed with the Commission under this section, or at any
time thereafter, of--
``(A) any crime that is punishable by imprisonment for one
or more years, and that is not described in section
15(b)(4)(B); or
``(B) a substantially equivalent crime by a foreign court
of competent jurisdiction;
``(3) is subject to any order of the Commission barring or
suspending the right of the person to be associated with a
registered proxy advisory firm;
``(4) fails to furnish the certifications required under
subsections (b)(2)(C)(ii)(I) and (c)(2);
``(5) has engaged in one or more prohibited acts enumerated
in paragraph (1); or
``(6) fails to maintain adequate financial and managerial
resources to consistently offer advisory services with
integrity, including by failing to comply with subsections
(f) or (g).
``(e) Termination of Registration.--
``(1) Voluntary withdrawal.--A registered proxy advisory
firm may, upon such terms and conditions as the Commission
may establish as necessary in the public interest or for the
protection of investors, which terms and conditions shall
include at a minimum that the registered proxy advisory firm
will no longer conduct such activities as to bring it within
the definition of proxy advisory firm in section 3(a)(83) of
the Securities Exchange Act of 1934, withdraw from
registration by filing a written notice of withdrawal to the
Commission.
``(2) Commission authority.--In addition to any other
authority of the Commission under this title, if the
Commission finds that a registered proxy advisory firm is no
longer in existence or has ceased to do business as a proxy
advisory firm, the Commission, by order, shall cancel the
registration under this section of such registered proxy
advisory firm.
``(f) Management of Conflicts of Interest.--
``(1) Organization policies and procedures.--Each
registered proxy advisory firm shall establish, maintain, and
enforce written policies and procedures reasonably designed,
taking into consideration the nature of the business of such
registered proxy advisory firm and associated persons, to
address and manage any conflicts of interest that can arise
from such business.
``(2) Commission authority.--The Commission shall issue
final rules to prohibit, or require the management and
disclosure of, any conflicts of interest relating to the
offering of proxy advisory services by a registered proxy
advisory firm, including, without limitation, conflicts of
interest relating to--
``(A) the manner in which a registered proxy advisory firm
is compensated by the client, or any affiliate of the client,
for providing proxy advisory services;
``(B) the provision of consulting, advisory, or other
services by a registered proxy advisory firm, or any person
associated with such registered proxy advisory firm, to the
client;
``(C) business relationships, ownership interests, or any
other financial or personal interests between a registered
proxy advisory firm, or any person associated with such
registered proxy advisory firm, and any client, or any
affiliate of such client;
``(D) transparency around the formulation of proxy voting
policies;
``(E) the execution of proxy votes if such votes are based
upon recommendations made by the proxy advisory firm in which
someone other than the issuer is a proponent;
``(F) issuing recommendations where proxy advisory firms
provide advisory services to a company; and
``(G) any other potential conflict of interest, as the
Commission deems necessary or appropriate in the public
interest or for the protection of investors.
``(g) Reliability of Proxy Advisory Firm Services.--
``(1) In general.--Each registered proxy advisory firm
shall have staff sufficient to produce proxy voting
recommendations that are based on accurate and current
information. Each registered proxy advisory firm shall detail
procedures sufficient to permit companies receiving proxy
advisory firm recommendations access in a reasonable time to
the draft recommendations, with an opportunity to provide
meaningful comment thereon, including the opportunity to
present details to the person responsible for developing the
recommendation in person or telephonically. Each registered
proxy advisory firm shall employ an ombudsman to receive
complaints about the accuracy of voting information used in
making recommendations from the subjects of the proxy
advisory firm's voting recommendations, and shall resolve
those complaints in a timely fashion and in any event prior
to voting on the matter to which the recommendation relates.
``(2) Draft recommendations defined.--For purposes of this
subsection, the term `draft recommendations'--
``(A) means the overall conclusions of proxy voting
recommendations prepared for the clients of a proxy advisory
firm, including any public data cited therein, any company
information or substantive analysis impacting the
recommendation, and the specific voting recommendations on
individual proxy ballot issues; and
``(B) does not include the entirety of the proxy advisory
firm's final report to its clients.
``(h) Designation of Compliance Officer.--Each registered
proxy advisory firm shall designate an individual responsible
for administering the policies and procedures that are
required to be established pursuant to subsections (f) and
(g), and for ensuring compliance with the securities laws and
the rules and regulations thereunder, including those
promulgated by the Commission pursuant to this section.
``(i) Prohibited Conduct.--
``(1) Prohibited acts and practices.--The Commission shall
issue final rules to prohibit any act or practice relating to
the offering of proxy advisory services by a registered proxy
advisory firm that the Commission determines to be unfair or
coercive, including any act or practice relating to--
``(A) conditioning a voting recommendation or other proxy
advisory firm recommendation on the purchase by an issuer or
an affiliate thereof of other services or products, of the
registered proxy advisory firm or any person associated with
such registered proxy advisory firm; and
``(B) modifying a voting recommendation or otherwise
departing from its adopted systematic procedures and
methodologies in the provision of proxy advisory services,
based on whether an issuer, or affiliate thereof, subscribes
or will subscribe to other services or product of the
registered proxy advisory firm or any person associated with
such organization.
``(2) Rule of construction.--Nothing in paragraph (1), or
in any rules or regulations adopted thereunder, may be
construed to modify, impair, or supersede the operation of
any of the antitrust laws (as defined in the first section of
the Clayton Act, except that such term includes section 5 of
the Federal Trade Commission Act, to the extent that such
section 5 applies to unfair methods of competition).
``(j) Statements of Financial Condition.--Each registered
proxy advisory firm shall, on a confidential basis, file with
the Commission, at intervals determined by the Commission,
such financial statements, certified (if required by the
rules or regulations of the Commission) by an
[[Page H4758]]
independent public auditor, and information concerning its
financial condition, as the Commission, by rule, may
prescribe as necessary or appropriate in the public interest
or for the protection of investors.
``(k) Annual Report.--Each registered proxy advisory firm
shall, at the beginning of each fiscal year of such firm,
report to the Commission on the number of shareholder
proposals its staff reviewed in the prior fiscal year, the
number of recommendations made in the prior fiscal year, the
number of staff who reviewed and made recommendations on such
proposals in the prior fiscal year, and the number of
recommendations made in the prior fiscal year where the
proponent of such recommendation was a client of or received
services from the proxy advisory firm.
``(l) Transparent Policies.--Each registered proxy advisory
firm shall file with the Commission and make publicly
available its methodology for the formulation of proxy voting
policies and voting recommendations.
``(m) Rules of Construction.--
``(1) No waiver of rights, privileges, or defenses.--
Registration under and compliance with this section does not
constitute a waiver of, or otherwise diminish, any right,
privilege, or defense that a registered proxy advisory firm
may otherwise have under any provision of State or Federal
law, including any rule, regulation, or order thereunder.
``(2) No private right of action.--Nothing in this section
may be construed as creating any private right of action, and
no report filed by a registered proxy advisory firm in
accordance with this section or section 17 shall create a
private right of action under section 18 or any other
provision of law.
``(n) Regulations.--
``(1) New provisions.--Such rules and regulations as are
required by this section or are otherwise necessary to carry
out this section, including the application form required
under subsection (a)--
``(A) shall be issued by the Commission, not later than 180
days after the date of enactment of this section; and
``(B) shall become effective not later than 1 year after
the date of enactment of this section.
``(2) Review of existing regulations.--Not later than 270
days after the date of enactment of this section, the
Commission shall--
``(A) review its existing rules and regulations which
affect the operations of proxy advisory firms;
``(B) amend or revise such rules and regulations in
accordance with the purposes of this section, and issue such
guidance, as the Commission may prescribe as necessary or
appropriate in the public interest or for the protection of
investors; and
``(C) direct Commission staff to withdraw the Egan Jones
Proxy Services (May 27, 2004) and Institutional Shareholder
Services, Inc. (September 15, 2004) no-action letters.
``(o) Applicability.--This section, other than subsection
(n), which shall apply on the date of enactment of this
section, shall apply on the earlier of--
``(1) the date on which regulations are issued in final
form under subsection (n)(1); or
``(2) 270 days after the date of enactment of this
section.''.
(b) Conforming Amendment.--Section 17(a)(1) of the
Securities Exchange Act of 1934 (15 U.S.C. 78q(a)(1)) is
amended by inserting ``proxy advisory firm,'' after
``nationally recognized statistical rating organization,''.
SEC. 483. COMMISSION ANNUAL REPORT.
The Commission shall make an annual report publicly
available on the Commission's Internet website. Such report
shall, with respect to the year to which the report relates--
(1) identify applicants for registration under section 15H
of the Securities Exchange Act of 1934, as added by this
subtitle;
(2) specify the number of and actions taken on such
applications;
(3) specify the views of the Commission on the state of
competition, transparency, policies and methodologies, and
conflicts of interest among proxy advisory firms;
(4) include the determination of the Commission with regard
to--
(A) the quality of proxy advisory services issued by proxy
advisory firms;
(B) the financial markets;
(C) competition among proxy advisory firms;
(D) the incidence of undisclosed conflicts of interest by
proxy advisory firms;
(E) the process for registering as a proxy advisory firm;
and
(F) such other matters relevant to the implementation of
this subtitle and the amendments made by this subtitle, as
the Commission determines necessary to bring to the attention
of the Congress;
(5) identify problems, if any, that have resulted from the
implementation of this subtitle and the amendments made by
this subtitle; and
(6) recommend solutions, including any legislative or
regulatory solutions, to any problems identified under
paragraphs (4) and (5).
Subtitle R--Senior Safe
SEC. 491. IMMUNITY.
(a) Definitions.--In this subtitle--
(1) the term ``Bank Secrecy Act Officer'' means an
individual responsible for ensuring compliance with the
requirements mandated by subchapter II of chapter 53 of title
31, United States Code;
(2) the term ``broker-dealer'' means a broker or dealer, as
those terms are defined, respectively, in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
(3) the term ``covered agency'' means--
(A) a State financial regulatory agency, including a State
securities or law enforcement authority and a State insurance
regulator;
(B) each of the Federal financial institutions regulatory
agencies;
(C) the Securities and Exchange Commission;
(D) a law enforcement agency;
(E) and State or local agency responsible for administering
adult protective service laws; and
(F) a State attorney general.
(4) the term ``covered financial institution'' means--
(A) a credit union;
(B) a depository institution;
(C) an investment advisor;
(D) a broker-dealer;
(E) an insurance company;
(F) a State attorney general; and
(G) a transfer agent.
(5) the term ``credit union'' means a Federal credit union,
State credit union, or State-chartered credit union, as those
terms are defined in section 101 of the Federal Credit Union
Act (12 U.S.C. 1752);
(6) the term ``depository institution'' has the meaning
given the term in section 3(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c));
(7) the term ``exploitation'' means the fraudulent or
otherwise illegal, unauthorized, or improper act or process
of an individual, including a caregiver or fiduciary, that--
(A) uses the resources of a senior citizen for monetary
personal benefit, profit, or gain; or
(B) results in depriving a senior citizen of rightful
access to or use of benefits, resources, belongings or
assets;
(8) the term ``Federal financial institutions regulatory
agencies'' has the meaning given the term in section 1003 of
the Federal Financial Institutions Examination Council Act of
1978 (12 U.S.C. 3302);
(9) the term ``investment adviser'' has the meaning given
the term in section 202 of the Investment Advisers Act of
1940 (15 U.S.C. 80b-2);
(10) the term ``insurance company'' has the meaning given
the term in section 2(a) of the Investment Company Act of
1940 (15 U.S.C. 80a-2(a));
(11) the term ``registered representative'' means an
individual who represents a broker-dealer in effecting or
attempting to affect a purchase or sale of securities;
(12) the term ``senior citizen'' means an individual who is
not less than 65 years of age;
(13) the term ``State insurance regulator'' has the meaning
given such term in section 315 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6735);
(14) the term ``State securities or law enforcement
authority'' has the meaning given the term in section
24(f)(4) of the Securities Exchange Act of 1934 (15 U.S.C.
78x(f)(4)); and
(15) the term ``transfer agent'' has the meaning given the
term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(b) Immunity From Suit.--
(1) Immunity for individuals.--An individual who has
received the training described in section 492 shall not be
liable, including in any civil or administrative proceeding,
for disclosing the possible exploitation of a senior citizen
to a covered agency if the individual, at the time of the
disclosure--
(A) served as a supervisor, compliance officer (including a
Bank Secrecy Act Officer), or registered representative for a
covered financial institution; and
(B) made the disclosure with reasonable care including
reasonable efforts to avoid disclosure other than to a
covered agency.
(2) Immunity for covered financial institutions.--A covered
financial institution shall not be liable, including in any
civil or administrative proceeding, for a disclosure made by
an individual described in paragraph (1) if--
(A) the individual was employed by, or, in the case of a
registered representative, affiliated or associated with, the
covered financial institution at the time of the disclosure;
and
(B) before the time of the disclosure, the covered
financial institution provided the training described in
section 492 to each individual described in section 492(a).
SEC. 492. TRAINING REQUIRED.
(a) In General.--A covered financial institution may
provide training described in subsection (b)(1) to each
officer or employee of, or registered representative
affiliated or associated with, the covered financial
institution who--
(1) is described in section 491(b)(1)(A);
(2) may come into contact with a senior citizen as a
regular part of the duties of the officer, employee, or
registered representative; or
(3) may review or approve the financial documents, records,
or transactions of a senior citizen in connection with
providing financial services to a senior citizen.
(b) Training.--
(1) In general.--The training described in this paragraph
shall--
(A) instruct any individual attending the training on how
to identify and report the suspected exploitation of a senior
citizen;
(B) discuss the need to protect the privacy and respect the
integrity of each individual customer of a covered financial
institution; and
(C) be appropriate to the job responsibilities of the
individual attending the training.
(2) Timing.--The training required under subsection (a)
shall be provided as soon as reasonably practicable but not
later than 1 year after the date on which an officer,
employee, or registered representative begins employment with
or becomes affiliated or associated with the covered
financial institution.
(3) Bank secrecy act officer.--An individual who is
designated as a compliance officer under an anti-money
laundering program established pursuant to section 5318(h) of
title 31, United States Code, shall be deemed to have
received the training described under this subsection.
SEC. 493. RELATIONSHIP TO STATE LAW.
Nothing in this Act shall be construed to preempt or limit
any provision of State law, except
[[Page H4759]]
only to the extent that section 491 provides a greater level
of protection against liability to an individual described in
section 491(b)(1) or to a covered financial institution
described in section 491(b)(2) than is provided under State
law.
Subtitle S--National Securities Exchange Regulatory Parity
SEC. 496. APPLICATION OF EXEMPTION.
Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C.
77r(b)(1)), as amended by section 456(b), is further
amended--
(1) by striking subparagraph (A);
(2) in subparagraph (B), by striking ``that the Commission
determines by rule (on its own initiative or on the basis of
a petition) are substantially similar to the listing
standards applicable to securities described in subparagraph
(A)'' and inserting ``that have been approved by the
Commission'';
(3) in subparagraph (C), by striking ``or (B)''; and
(4) by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (A), (B), and (C), respectively.
Subtitle T--Private Company Flexibility and Growth
SEC. 497. SHAREHOLDER THRESHOLD FOR REGISTRATION.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
is amended--
(1) in section 12(g)--
(A) in paragraph (1)--
(i) by striking ``shall--'' and all that follows through
``register such security'' and inserting ``shall, not later
than 120 days after the last day of its first fiscal year
ended after the effective date of this subsection on which
the issuer has total assets exceeding $10,000,000 (or such
greater amount of assets as the Commission may establish by
rule) and a class of equity security (other than an exempted
security) held of record by 2,000 or more persons (or such
greater number of persons as the Commission may establish by
rule), register such security''; and
(ii) by adding at the end the following: ``The dollar
figure in this paragraph shall be indexed for inflation every
5 years by the Commission to reflect the change in the
Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics, rounded to the nearest
$100,000.''; and
(B) in paragraph (4), by striking ``300 persons'' and all
that follows through ``1,200 persons persons'' and inserting
``1,200 persons''; and
(2) in section 15(d)(1), by striking ``300 persons'' and
all that follows through ``1,200 persons persons'' and
inserting ``1,200 persons''.
Subtitle U--Small Company Capital Formation Enhancements
SEC. 498. JOBS ACT-RELATED EXEMPTION.
Section 3(b) of the Securities Act of 1933 (15 U.S.C.
77c(b)) is amended--
(1) in paragraph (2)(A), by striking ``$50,000,000'' and
inserting ``$75,000,000, adjusted for inflation by the
Commission every 2 years to the nearest $10,000 to reflect
the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics''; and
(2) in paragraph (5)--
(A) by striking ``such amount as'' and inserting: ``such
amount, in addition to the adjustment for inflation provided
for under such paragraph (2)(A), as''; and
(B) by striking ``such amount, it'' and inserting ``such
amount, in addition to the adjustment for inflation provided
for under such paragraph (2)(A), it''.
Subtitle V--Encouraging Public Offerings
SEC. 499. EXPANDING TESTING THE WATERS AND CONFIDENTIAL
SUBMISSIONS.
The Securities Act of 1933 (15 U.S.C. 77a et seq.) is
amended--
(1) in section 5(d), by striking ``an emerging growth
company or any person authorized to act on behalf of an
emerging growth company'' and inserting ``an issuer or any
person authorized to act on behalf of an issuer''; and
(2) in section 6(e)--
(A) in the heading, by striking ``Emerging Growth
Companies'' and inserting ``Draft Registration Statements'';
and
(B) by amending paragraph (1) to read as follows:
``(1) In general.--Any issuer, prior to its initial public
offering date, may confidentially submit to the Commission a
draft registration statement, for confidential nonpublic
review by the staff of the Commission prior to public filing,
provided that the initial confidential submission and all
amendments thereto shall be publicly filed with the
Commission not later than 15 days before the date on which
the issuer conducts a road show, as such term is defined in
section 230.433(h)(4) of title 17, Code of Federal
Regulations, or any successor thereto.''.
TITLE V--REGULATORY RELIEF FOR MAIN STREET AND COMMUNITY FINANCIAL
INSTITUTIONS
Subtitle A--Preserving Access to Manufactured Housing
SEC. 501. MORTGAGE ORIGINATOR DEFINITION.
Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is
amended--
(1) by redesignating the second subsection (cc) and
subsection (dd) as subsections (dd) and (ee), respectively;
and
(2) in paragraph (2)(C) of subsection (dd), as so
redesignated, by striking ``an employee of a retailer of
manufactured homes who is not described in clause (i) or
(iii) of subparagraph (A) and who does not advise a consumer
on loan terms (including rates, fees, and other costs)'' and
inserting ``a retailer of manufactured or modular homes or
its employees unless such retailer or its employees receive
compensation or gain for engaging in activities described in
subparagraph (A) that is in excess of any compensation or
gain received in a comparable cash transaction''.
SEC. 502. HIGH-COST MORTGAGE DEFINITION.
Section 103 of the Truth in Lending Act (15 U.S.C. 1602),
as amended by section 501, is further amended--
(1) by redesignating subsection (aa) (relating to
disclosure of greater amount or percentage), as so designated
by section 1100A of the Consumer Financial Protection Act of
2010, as subsection (bb);
(2) by redesignating subsection (bb) (relating to high cost
mortgages), as so designated by section 1100A of the Consumer
Financial Protection Act of 2010, as subsection (aa), and
moving such subsection to immediately follow subsection (z);
and
(3) in subsection (aa)(1)(A), as so redesignated--
(A) in clause (i)(I), by striking ``(8.5 percentage points,
if the dwelling is personal property and the transaction is
for less than $50,000)'' and inserting ``(10 percentage
points if the dwelling is personal property or is a
transaction that does not include the purchase of real
property on which a dwelling is to be placed, and the
transaction is for less than $75,000 (as such amount is
adjusted by the Consumer Law Enforcement Agency to reflect
the change in the Consumer Price Index))''; and
(B) in clause (ii)--
(i) in subclause (I), by striking ``or'' at the end; and
(ii) by adding at the end the following:
``(III) in the case of a transaction for less than $75,000
(as such amount is adjusted by the Consumer Law Enforcement
Agency to reflect the change in the Consumer Price Index) in
which the dwelling is personal property (or is a consumer
credit transaction that does not include the purchase of real
property on which a dwelling is to be placed) the greater of
5 percent of the total transaction amount or $3,000 (as such
amount is adjusted by the Consumer Law Enforcement Agency to
reflect the change in the Consumer Price Index); or''.
Subtitle B--Mortgage Choice
SEC. 506. DEFINITION OF POINTS AND FEES.
(a) Amendment to Section 103 of TILA.--Paragraph (4) of
section 103(aa) of the Truth in Lending Act, as redesignated
by section 502, is amended--
(1) by striking ``paragraph (1)(B)'' and inserting
``paragraph (1)(A) and section 129C'';
(2) in subparagraph (C)--
(A) by inserting ``and insurance'' after ``taxes'';
(B) in clause (ii), by inserting ``, except as retained by
a creditor or its affiliate as a result of their
participation in an affiliated business arrangement (as
defined in section 3(7) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2602(7)),'' after
``compensation''; and
(C) by striking clause (iii) and inserting the following:
``(iii) the charge is--
``(I) a bona fide third-party charge not retained by the
mortgage originator, creditor, or an affiliate of the
creditor or mortgage originator; or
``(II) a charge set forth in section 106(e)(1);''; and
(3) in subparagraph (D)--
(A) by striking ``accident,''; and
(B) by striking ``or any payments'' and inserting ``and any
payments''.
(b) Amendment to Section 129C of TILA.--Section 129C of the
Truth in Lending Act (15 U.S.C. 1639c) is amended--
(1) in subsection (a)(5)(C), by striking ``103'' and all
that follows through ``or mortgage originator'' and inserting
``103(aa)(4)''; and
(2) in subsection (b)(2)(C)(i), by striking ``103'' and all
that follows through ``or mortgage originator)'' and
inserting ``103(aa)(4)''.
Subtitle C--Financial Institution Customer Protection
SEC. 511. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMINATION
REQUESTS AND ORDERS.
(a) Termination Requests or Orders Must Be Material.--
(1) In general.--An appropriate Federal banking agency may
not formally or informally request or order a depository
institution to terminate a specific customer account or group
of customer accounts or to otherwise restrict or discourage a
depository institution from entering into or maintaining a
banking relationship with a specific customer or group of
customers unless--
(A) the agency has a material reason for such request or
order; and
(B) such reason is not based solely on reputation risk.
(2) Treatment of national security threats.--If an
appropriate Federal banking agency believes a specific
customer or group of customers is, or is acting as a conduit
for, an entity which--
(A) poses a threat to national security,
(B) is involved in terrorist financing,
(C) is an agency of the government of Iran, North Korea,
Syria, or any country listed from time to time on the State
Sponsors of Terrorism list,
(D) is located in, or is subject to the jurisdiction of,
any country specified in subparagraph (C), or
(E) does business with any entity described in subparagraph
(C) or (D), unless the appropriate Federal banking agency
determines that the customer or group of customers has used
due diligence to avoid doing business with any entity
described in subparagraph (C) or (D),
such belief shall satisfy the requirement under paragraph
(1).
(b) Notice Requirement.--
(1) In general.--If an appropriate Federal banking agency
formally or informally requests or orders a depository
institution to terminate a
[[Page H4760]]
specific customer account or a group of customer accounts,
the agency shall--
(A) provide such request or order to the institution in
writing; and
(B) accompany such request or order with a written
justification for why such termination is needed, including
any specific laws or regulations the agency believes are
being violated by the customer or group of customers, if any.
(2) Justification requirement.--A justification described
under paragraph (1)(B) may not be based solely on the
reputation risk to the depository institution.
(c) Customer Notice.--
(1) Notice required.--Except as provided under paragraph
(2), if an appropriate Federal banking agency orders a
depository institution to terminate a specific customer
account or a group of customer accounts, the depository
institution shall inform the customer or customers of the
justification for the customer's account termination
described under subsection (b).
(2) Notice prohibited in cases of national security.--If an
appropriate Federal banking agency requests or orders a
depository institution to terminate a specific customer
account or a group of customer accounts based on a belief
that the customer or customers pose a threat to national
security, or are otherwise described under subsection (a)(2),
neither the depository institution nor the appropriate
Federal banking agency may inform the customer or customers
of the justification for the customer's account termination.
(d) Reporting Requirement.--Each appropriate Federal
banking agency shall issue an annual report to the Congress
stating--
(1) the aggregate number of specific customer accounts that
the agency requested or ordered a depository institution to
terminate during the previous year; and
(2) the legal authority on which the agency relied in
making such requests and orders and the frequency on which
the agency relied on each such authority.
(e) Definitions.--For purposes of this section:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' means--
(A) the appropriate Federal banking agency, as defined
under section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and
(B) the National Credit Union Administration, in the case
of an insured credit union.
(2) Depository institution.--The term ``depository
institution'' means--
(A) a depository institution, as defined under section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B) an insured credit union.
SEC. 512. AMENDMENTS TO THE FINANCIAL INSTITUTIONS REFORM,
RECOVERY, AND ENFORCEMENT ACT OF 1989.
Section 951 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1833a) is amended--
(1) in subsection (c)(2), by striking ``affecting a
federally insured financial institution'' and inserting
``against a federally insured financial institution or by a
federally insured financial institution against an
unaffiliated third person''; and
(2) in subsection (g)--
(A) in the heading, by striking ``Subpoenas'' and inserting
``Investigations''; and
(B) by amending paragraph (1)(C) to read as follows:
``(C) summon witnesses and require the production of any
books, papers, correspondence, memoranda, or other records
which the Attorney General deems relevant or material to the
inquiry, if the Attorney General--
``(i) requests a court order from a court of competent
jurisdiction for such actions and offers specific and
articulable facts showing that there are reasonable grounds
to believe that the information or testimony sought is
relevant and material for conducting an investigation under
this section; or
``(ii) either personally or through delegation no lower
than the Deputy Attorney General, issues and signs a subpoena
for such actions and such subpoena is supported by specific
and articulable facts showing that there are reasonable
grounds to believe that the information or testimony sought
is relevant for conducting an investigation under this
section.''.
Subtitle D--Portfolio Lending and Mortgage Access
SEC. 516. SAFE HARBOR FOR CERTAIN LOANS HELD ON PORTFOLIO.
(a) In General.--Section 129C of the Truth in Lending Act
(15 U.S.C. 1639c) is amended by adding at the end the
following:
``(j) Safe Harbor for Certain Loans Held on Portfolio.--
``(1) Safe harbor for creditors that are depository
institutions.--
``(A) In general.--A creditor that is a depository
institution shall not be subject to suit for failure to
comply with subsection (a), (c)(1), or (f)(2) of this section
or section 129H with respect to a residential mortgage loan,
and the banking regulators shall treat such loan as a
qualified mortgage, if--
``(i) the creditor has, since the origination of the loan,
held the loan on the balance sheet of the creditor; and
``(ii) all prepayment penalties with respect to the loan
comply with the limitations described under subsection
(c)(3).
``(B) Exception for certain transfers.--In the case of a
depository institution that transfers a loan originated by
that institution to another depository institution by reason
of the bankruptcy or failure of the originating depository
institution or the purchase of the originating depository
institution, the depository institution transferring such
loan shall be deemed to have complied with the requirement
under subparagraph (A)(i).
``(2) Safe harbor for mortgage originators.--A mortgage
originator shall not be subject to suit for a violation of
section 129B(c)(3)(B) for steering a consumer to a
residential mortgage loan if--
``(A) the creditor of such loan is a depository institution
and has informed the mortgage originator that the creditor
intends to hold the loan on the balance sheet of the creditor
for the life of the loan; and
``(B) the mortgage originator informs the consumer that the
creditor intends to hold the loan on the balance sheet of the
creditor for the life of the loan.
``(3) Definitions.--For purposes of this subsection:
``(A) Banking regulators.--The term `banking regulators'
means the Federal banking agencies, the Consumer Law
Enforcement Agency, and the National Credit Union
Administration.
``(B) Depository institution.--The term `depository
institution' has the meaning given that term under section
19(b)(1) of the Federal Reserve Act (12 U.S.C. 505(b)(1)).
``(C) Federal banking agencies.--The term `Federal banking
agencies' has the meaning given that term under section 3 of
the Federal Deposit Insurance Act.''.
(b) Rule of Construction.--Nothing in the amendment made by
this section may be construed as preventing a balloon loan
from qualifying for the safe harbor provided under section
129C(j) of the Truth in Lending Act if the balloon loan
otherwise meets all of the requirements under such subsection
(j), regardless of whether the balloon loan meets the
requirements described under clauses (i) through (iv) of
section 129C(b)(2)(E) of such Act.
Subtitle E--Application of the Expedited Funds Availability Act
SEC. 521. APPLICATION OF THE EXPEDITED FUNDS AVAILABILITY
ACT.
(a) In General.--The Expedited Funds Availability Act (12
U.S.C. 4001 et seq.) is amended--
(1) in section 602(20) (12 U.S.C. 4001(20)) by inserting
``, located in the United States,'' after ``ATM'';
(2) in section 602(21) (12 U.S.C. 4001(21)) by inserting
``American Samoa, the Commonwealth of the Northern Mariana
Islands,'' after ``Puerto Rico,'';
(3) in section 602(23) (12 U.S.C. 4001(23)) by inserting
``American Samoa, the Commonwealth of the Northern Mariana
Islands,'' after ``Puerto Rico,''; and
(4) in section 603(d)(2)(A) (12 U.S.C. 4002(d)(2)(A)), by
inserting ``American Samoa, the Commonwealth of the Northern
Mariana Islands,'' after ``Puerto Rico,''.
(b) Effective Date.--This section shall take effect on
January 1, 2017.
Subtitle F--Small Bank Holding Company Policy Statement
SEC. 526. CHANGES REQUIRED TO SMALL BANK HOLDING COMPANY
POLICY STATEMENT ON ASSESSMENT OF FINANCIAL AND
MANAGERIAL FACTORS.
(a) In General.--Before the end of the 6-month period
beginning on the date of the enactment of this Act, the Board
of Governors of the Federal Reserve System shall revise the
Small Bank Holding Company Policy Statement on Assessment of
Financial and Managerial Factors (12 C.F.R. part 225--
appendix C) to raise the consolidated asset threshold under
such policy statement from $1,000,000,000 (as adjusted by
Public Law 113-250) to $10,000,000,000.
(b) Conforming Amendment.--Subparagraph (C) of section
171(b)(5) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5371(b)(5)) is amended to read as
follows:
``(C) any bank holding company or savings and loan holding
company that is subject to the application of the Small Bank
Holding Company Policy Statement on Assessment of Financial
and Managerial Factors of the Board of Governors (12 C.F.R.
part 225--appendix C).''.
Subtitle G--Community Institution Mortgage Relief
SEC. 531. COMMUNITY FINANCIAL INSTITUTION MORTGAGE RELIEF.
(a) Exemption From Escrow Requirements for Loans Held by
Smaller Creditors.--Section 129D of the Truth in Lending Act
(15 U.S.C. 1639d) is amended--
(1) by adding at the end the following:
``(k) Safe Harbor for Loans Held by Smaller Creditors.--
``(1) In general.--A creditor shall not be in violation of
subsection (a) with respect to a loan if--
``(A) the creditor has consolidated assets of
$10,000,000,000 or less; and
``(B) the creditor holds the loan on the balance sheet of
the creditor for the 3-year period beginning on the date of
the origination of the loan.
``(2) Exception for certain transfers.--In the case of a
creditor that transfers a loan to another person by reason of
the bankruptcy or failure of the creditor, the purchase of
the creditor, or a supervisory act or recommendation from a
State or Federal regulator, the creditor shall be deemed to
have complied with the requirement under paragraph (1)(B).'';
and
(2) by striking the term ``Board'' each place such term
appears and inserting ``Consumer Law Enforcement Agency''.
(b) Modification to Exemption for Small Servicers of
Mortgage Loans.--Section 6 of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding
at the end the following:
``(n) Small Servicer Exemption.--The Consumer Law
Enforcement Agency shall, by regulation, provide exemptions
to, or adjustments for, the provisions of this section for a
servicer that annually services 20,000 or fewer mortgage
loans, in order to reduce regulatory burdens while
appropriately balancing consumer protections.''.
[[Page H4761]]
Subtitle H--Financial Institutions Examination Fairness and Reform
SEC. 536. TIMELINESS OF EXAMINATION REPORTS.
(a) In General.--The Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is
amended by adding at the end the following:
``SEC. 1012. TIMELINESS OF EXAMINATION REPORTS.
``(a) In General.--
``(1) Final examination report.--A Federal financial
institutions regulatory agency shall provide a final
examination report to a financial institution not later than
60 days after the later of--
``(A) the exit interview for an examination of the
institution; or
``(B) the provision of additional information by the
institution relating to the examination.
``(2) Exit interview.--If a financial institution is not
subject to a resident examiner program, the exit interview
shall occur not later than the end of the 9-month period
beginning on the commencement of the examination, except that
such period may be extended by the Federal financial
institutions regulatory agency by providing written notice to
the institution and the Independent Examination Review
Director describing with particularity the reasons that a
longer period is needed to complete the examination.
``(b) Examination Materials.--Upon the request of a
financial institution, the Federal financial institutions
regulatory agency shall include with the final report an
appendix listing all examination or other factual information
relied upon by the agency in support of a material
supervisory determination.
``SEC. 1013. EXAMINATION STANDARDS.
``(a) In General.--In the examination of a financial
institution--
``(1) a commercial loan shall not be placed in non-accrual
status solely because the collateral for such loan has
deteriorated in value;
``(2) a modified or restructured commercial loan shall be
removed from non-accrual status if the borrower demonstrates
the ability to perform on such loan over a maximum period of
6 months, except that with respect to loans on a quarterly,
semiannual, or longer repayment schedule such period shall be
a maximum of 3 consecutive repayment periods;
``(3) a new appraisal on a performing commercial loan shall
not be required unless an advance of new funds is involved;
and
``(4) in classifying a commercial loan in which there has
been deterioration in collateral value, the amount to be
classified shall be the portion of the deficiency relating to
the decline in collateral value and repayment capacity of the
borrower.
``(b) Well Capitalized Institutions.--The Federal financial
institutions regulatory agencies may not require a financial
institution that is well capitalized to raise additional
capital in lieu of an action prohibited under subsection (a).
``(c) Consistent Loan Classifications.--The Federal
financial institutions regulatory agencies shall develop and
apply identical definitions and reporting requirements for
non-accrual loans.
``SEC. 1014. OFFICE OF INDEPENDENT EXAMINATION REVIEW.
``(a) Establishment.--There is established in the Council
an Office of Independent Examination Review (the `Office').
``(b) Head of Office.--There is established the position of
the Independent Examination Review Director (the `Director'),
as the head of the Office. The Director shall be appointed by
the Council and shall be independent from any member agency
of the Council.
``(c) Staffing.--The Director is authorized to hire staff
to support the activities of the Office.
``(d) Duties.--The Director shall--
``(1) receive and, at the Director's discretion,
investigate complaints from financial institutions, their
representatives, or another entity acting on behalf of such
institutions, concerning examinations, examination practices,
or examination reports;
``(2) hold meetings, at least once every three months and
in locations designed to encourage participation from all
sections of the United States, with financial institutions,
their representatives, or another entity acting on behalf of
such institutions, to discuss examination procedures,
examination practices, or examination policies;
``(3) review examination procedures of the Federal
financial institutions regulatory agencies to ensure that the
written examination policies of those agencies are being
followed in practice and adhere to the standards for
consistency established by the Council;
``(4) conduct a continuing and regular review of
examination quality assurance for all examination types
conducted by the Federal financial institutions regulatory
agencies;
``(5) adjudicate any supervisory appeal initiated under
section 1015; and
``(6) report annually to the Committee on Financial
Services of the House of Representatives, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the
Council, on the reviews carried out pursuant to paragraphs
(3) and (4), including compliance with the requirements set
forth in section 1012 regarding timeliness of examination
reports, and the Council's recommendations for improvements
in examination procedures, practices, and policies.
``(e) Confidentiality.--The Director shall keep
confidential all meetings with, discussions with, and
information provided by financial institutions.
``SEC. 1015. RIGHT TO INDEPENDENT REVIEW OF MATERIAL
SUPERVISORY DETERMINATIONS.
``(a) In General.--A financial institution shall have the
right to obtain an independent review of a material
supervisory determination contained in a final report of
examination.
``(b) Notice.--
``(1) Timing.--A financial institution seeking review of a
material supervisory determination under this section shall
file a written notice with the Independent Examination Review
Director (the `Director') within 60 days after receiving the
final report of examination that is the subject of such
review.
``(2) Identification of determination.--The written notice
shall identify the material supervisory determination that is
the subject of the independent examination review, and a
statement of the reasons why the institution believes that
the determination is incorrect or should otherwise be
modified.
``(3) Information to be provided to institution.--Any
information relied upon by the agency in the final report
that is not in the possession of the financial institution
may be requested by the financial institution and shall be
delivered promptly by the agency to the financial
institution.
``(c) Right to Hearing.--
``(1) In general.--The Director shall determine the merits
of the appeal on the record or, at the financial
institution's election, shall refer the appeal to an
Administrative Law Judge to conduct a confidential hearing
pursuant to the procedures set forth under sections 556 and
557 of title 5, United States Code, which hearing shall take
place not later than 60 days after the petition for review
was received by the Director, and to issue a proposed
decision to the Director based upon the record established at
such hearing.
``(2) Standard of review.--In rendering a determination or
recommendation under this subsection, neither the
Administrative Law Judge nor the Director shall defer to the
opinions of the examiner or agency, but shall conduct a de
novo review to independently determine the appropriateness of
the agency's decision based upon the relevant statutes,
regulations, and other appropriate guidance, as well as
evidence adduced at any hearing.
``(d) Final Decision.--A decision by the Director on an
independent review under this section shall--
``(1) be made not later than 60 days after the record has
been closed; and
``(2) be deemed final agency action and shall bind the
agency whose supervisory determination was the subject of the
review and the financial institution requesting the review.
``(e) Right to Judicial Review.--A financial institution
shall have the right to petition for review of final agency
action under this section by filing a Petition for Review
within 60 days of the Director's decision in the United
States Court of Appeals for the District of Columbia Circuit
or the Circuit in which the financial institution is located.
``(f) Report.--The Director shall report annually to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on actions taken under this
section, including the types of issues that the Director has
reviewed and the results of those reviews. In no case shall
such a report contain information about individual financial
institutions or any confidential or privileged information
shared by financial institutions.
``(g) Retaliation Prohibited.--A Federal financial
institutions regulatory agency may not--
``(1) retaliate against a financial institution, including
service providers, or any institution-affiliated party (as
defined under section 3 of the Federal Deposit Insurance
Act), for exercising appellate rights under this section; or
``(2) delay or deny any agency action that would benefit a
financial institution or any institution-affiliated party on
the basis that an appeal under this section is pending under
this section.
``(h) Rule of Construction.--Nothing in this section may be
construed--
``(1) to affect the right of a Federal financial
institutions regulatory agency to take enforcement or other
supervisory actions related to a material supervisory
determination under review under this section; or
``(2) to prohibit the review under this section of a
material supervisory determination with respect to which
there is an ongoing enforcement or other supervisory
action.''.
(b) Additional Amendments.--
(1) Riegle community development and regulatory improvement
act of 1994.--Section 309 of the Riegle Community Development
and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is
amended--
(A) in subsection (a), by inserting after ``appropriate
Federal banking agency'' the following: ``, the Consumer Law
Enforcement Agency,'';
(B) in subsection (b)--
(i) in paragraph (2), by striking ``the appellant from
retaliation by agency examiners'' and inserting ``the insured
depository institution or insured credit union from
retaliation by the agencies referred to in subsection (a)'';
and
(ii) by adding at the end the following flush-left text:
``For purposes of this subsection and subsection (e),
retaliation includes delaying consideration of, or
withholding approval of, any request, notice, or application
that otherwise would have been approved, but for the exercise
of the institution's or credit union's rights under this
section.'';
(C) in subsection (e)(2)--
(i) in subparagraph (B), by striking ``and'' at the end;
(ii) in subparagraph (C), by striking the period and
inserting ``; and''; and
(iii) by adding at the end the following:
``(D) ensure that appropriate safeguards exist for
protecting the insured depository institution
[[Page H4762]]
or insured credit union from retaliation by any agency
referred to in subsection (a) for exercising its rights under
this subsection.''; and
(D) in subsection (f)(1)(A)--
(i) in clause (ii), by striking ``and'' at the end;
(ii) in clause (iii), by striking ``and'' at the end; and
(iii) by adding at the end the following:
``(iv) any issue specifically listed in an exam report as a
matter requiring attention by the institution's management or
board of directors; and
``(v) any suspension or removal of an institution's status
as eligible for expedited processing of applications,
requests, notices, or filings on the grounds of a supervisory
or compliance concern, regardless of whether that concern has
been cited as a basis for another material supervisory
determination or matter requiring attention in an examination
report, provided that the conduct at issue did not involve
violation of any criminal law; and''.
(2) Federal credit union act.--Section 205(j) of the
Federal Credit Union Act (12 U.S.C. 1785(j)) is amended by
inserting ``the Consumer Law Enforcement Agency,'' before
``the Administration'' each place such term appears.
(3) Federal financial institutions examination council act
of 1978.--The Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended--
(A) in section 1003, by amending paragraph (1) to read as
follows:
``(1) the term `Federal financial institutions regulatory
agencies'--
``(A) means the Office of the Comptroller of the Currency,
the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, and the National
Credit Union Administration; and
``(B) for purposes of sections 1012, 1013, 1014, and 1015,
includes the Consumer Law Enforcement Agency;''; and
(B) in section 1005, by striking ``One-fifth'' and
inserting ``One-fourth''.
Subtitle I--National Credit Union Administration Budget Transparency
SEC. 541. BUDGET TRANSPARENCY FOR THE NCUA.
Section 209(b) of the Federal Credit Union Act (12 U.S.C.
1789) is amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively;
(2) by inserting before paragraph (2), as so redesignated,
the following:
``(1) on an annual basis and prior to the submission of the
detailed business-type budget required under paragraph (2)--
``(A) make publicly available and cause to be printed in
the Federal Register a draft of such detailed business-type
budget; and
``(B) hold a public hearing, with public notice provided of
such hearing, wherein the public can submit comments on the
draft of such detailed business-type budget;''; and
(3) in paragraph (2), as so redesignated--
(A) by inserting ``detailed'' after ``submit a''; and
(B) by inserting ``, and where such budget shall address
any comments submitted by the public pursuant to paragraph
(1)(B)'' after ``Control Act''.
Subtitle J--Taking Account of Institutions With Low Operation Risk
SEC. 546. REGULATIONS APPROPRIATE TO BUSINESS MODELS.
(a) In General.--For any regulatory action occurring after
the date of the enactment of this Act, each Federal financial
institutions regulatory agency shall--
(1) take into consideration the risk profile and business
models of each type of institution or class of institutions
subject to the regulatory action;
(2) determine the necessity, appropriateness, and impact of
applying such regulatory action to such institutions or
classes of institutions; and
(3) tailor such regulatory action in a manner that limits
the regulatory compliance impact, cost, liability risk, and
other burdens, as appropriate, for the risk profile and
business model of the institution or class of institutions
involved.
(b) Other Considerations.--In carrying out the requirements
of subsection (a), each Federal financial institutions
regulatory agency shall consider--
(1) the impact that such regulatory action, both by itself
and in conjunction with the aggregate effect of other
regulations, has on the ability of the applicable institution
or class of institutions to serve evolving and diverse
customer needs;
(2) the potential impact of examination manuals, regulatory
actions taken with respect to third-party service providers,
or other regulatory directives that may be in conflict or
inconsistent with the tailoring of such regulatory action
described in subsection (a)(3); and
(3) the underlying policy objectives of the regulatory
action and statutory scheme involved.
(c) Notice of Proposed and Final Rulemaking.--Each Federal
financial institutions regulatory agency shall disclose in
every notice of proposed rulemaking and in any final
rulemaking for a regulatory action how the agency has applied
subsections (a) and (b).
(d) Reports to Congress.--
(1) Individual agency reports.--
(A) In general.--Not later than 1 year after the date of
the enactment of this Act and annually thereafter, each
Federal financial institutions regulatory agency shall report
to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the specific actions taken to
tailor the regulatory actions of the agency pursuant to the
requirements of this Act.
(B) Appearance before the committees.--The head of each
Federal financial institution regulatory agency shall appear
before the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate after each report is made
pursuant to subparagraph (A) to testify on the contents of
such report.
(2) FIEC reports.--
(A) In general.--Not later than 3 months after each report
is submitted under paragraph (1), the Financial Institutions
Examination Council shall report to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate on--
(i) the extent to which regulatory actions tailored
pursuant to this Act result in different treatment of
similarly situated institutions of diverse charter types; and
(ii) the reasons for such differential treatment.
(B) Appearance before the committees.--The Chairman of the
Financial Institutions Examination Council shall appear
before the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate after each report is made
pursuant to subparagraph (A) to testify on the contents of
such report.
(e) Limited Look-Back Application.--
(1) In general.--Each Federal financial institutions
regulatory agency shall conduct a review of all regulations
adopted during the period beginning on the date that is seven
years before the date of the introduction of this Act in the
House of Representatives and ending on the date of the
enactment of this Act, and apply the requirements of this Act
to such regulations.
(2) Revision.--If the application of the requirements of
this Act to any such regulation requires such regulation to
be revised, the applicable Federal financial institutions
regulatory agency shall revise such regulation within 3 years
of the enactment of this Act.
(f) Definitions.--In this Act, the following definitions
shall apply:
(1) Federal financial institutions regulatory agencies.--
The term ``Federal financial institutions regulatory
agencies'' means the Office of the Comptroller of the
Currency, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, the
National Credit Union Administration, and the Consumer Law
Enforcement Agency.
(2) Regulatory action.--The term ``regulatory action''
means any proposed, interim, or final rule or regulation,
guidance, or published interpretation.
Subtitle K--Federal Savings Association Charter Flexibility
SEC. 551. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO OPERATE
AS A COVERED SAVINGS ASSOCIATION.
The Home Owners' Loan Act is amended by inserting after
section 5 (12 U.S.C. 1464) the following:
``SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS
ASSOCIATION.
``(a) Definition.--In this section, the term `covered
savings association' means a Federal savings association that
makes an election approved under subsection (b).
``(b) Election.--
``(1) In general.--Upon issuance of the rules described in
subsection (f), a Federal savings association may elect to
operate as a covered savings association by submitting a
notice to the Comptroller of such election.
``(2) Approval.--A Federal savings association shall be
deemed to be approved to operate as a covered savings
association on the date that is 60 days after the date on
which the Comptroller receives the notice under paragraph
(1), unless the Comptroller notifies the Federal savings
association otherwise.
``(c) Rights and Duties.--Notwithstanding any other
provision of law and except as otherwise provided in this
section, a covered savings association shall--
``(1) have the same rights and privileges as a national
bank that has its main office situated in the same location
as the home office of the covered savings association; and
``(2) be subject to the same duties, restrictions,
penalties, liabilities, conditions, and limitations that
would apply to such a national bank.
``(d) Treatment of Covered Savings Associations.--A covered
savings association shall be treated as a Federal savings
association for the purposes--
``(1) of governance of the covered savings association,
including incorporation, bylaws, boards of directors,
shareholders, and distribution of dividends;
``(2) of consolidation, merger, dissolution, conversion
(including conversion to a stock bank or to another charter),
conservatorship, and receivership; and
``(3) determined by regulation of the Comptroller.
``(e) Existing Branches.--A covered savings association may
continue to operate any branch or agency the covered savings
association operated on the date on which an election under
subsection (b) is approved.
``(f) Rulemaking.--The Comptroller shall issue rules to
carry out this section--
``(1) that establish streamlined standards and procedures
that clearly identify required documentation or timelines for
an election under subsection (b);
``(2) that require a Federal savings association that makes
an election under subsection (b) to identify specific assets
and subsidiaries--
``(A) that do not conform to the requirements for assets
and subsidiaries of a national bank; and
``(B) that are held by the Federal savings association on
the date on which the Federal savings association submits a
notice of such election;
``(3) that establish--
``(A) a transition process for bringing such assets and
subsidiaries into conformance with the requirements for a
national bank; and
[[Page H4763]]
``(B) procedures for allowing the Federal savings
association to provide a justification for grandfathering
such assets and subsidiaries after electing to operate as a
covered savings association;
``(4) that establish standards and procedures to allow a
covered savings association to terminate an election under
subsection (b) after an appropriate period of time or to make
a subsequent election;
``(5) that clarify requirements for the treatment of
covered savings associations, including the provisions of law
that apply to covered savings associations; and
``(6) as the Comptroller deems necessary and in the
interests of safety and soundness.''.
Subtitle L--SAFE Transitional Licensing
SEC. 556. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.
(a) In General.--The S.A.F.E. Mortgage Licensing Act of
2008 (12 U.S.C. 5101 et seq.) is amended by adding at the end
the following:
``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.
``(a) Temporary Authority to Originate Loans for Loan
Originators Moving From a Depository Institution to a Non-
depository Institution.--
``(1) In general.--Upon employment by a State-licensed
mortgage company, an individual who is a registered loan
originator shall be deemed to have temporary authority to act
as a loan originator in an application State for the period
described in paragraph (2) if the individual--
``(A) has not had an application for a loan originator
license denied, or had such a license revoked or suspended in
any governmental jurisdiction;
``(B) has not been subject to or served with a cease and
desist order in any governmental jurisdiction or as described
in section 1514(c);
``(C) has not been convicted of a felony that would
preclude licensure under the law of the application State;
``(D) has submitted an application to be a State-licensed
loan originator in the application State; and
``(E) was registered in the Nationwide Mortgage Licensing
System and Registry as a loan originator during the 12-month
period preceding the date of submission of the information
required under section 1505(a).
``(2) Period.--The period described in paragraph (1) shall
begin on the date that the individual submits the information
required under section 1505(a) and shall end on the earliest
of--
``(A) the date that the individual withdraws the
application to be a State-licensed loan originator in the
application State;
``(B) the date that the application State denies, or issues
a notice of intent to deny, the application;
``(C) the date that the application State grants a State
license; or
``(D) the date that is 120 days after the date on which the
individual submits the application, if the application is
listed on the Nationwide Mortgage Licensing System and
Registry as incomplete.
``(b) Temporary Authority to Originate Loans for State-
licensed Loan Originators Moving Interstate.--
``(1) In general.--A State-licensed loan originator shall
be deemed to have temporary authority to act as a loan
originator in an application State for the period described
in paragraph (2) if the State-licensed loan originator--
``(A) meets the requirements of subparagraphs (A), (B),
(C), and (D) of subsection (a)(1);
``(B) is employed by a State-licensed mortgage company in
the application State; and
``(C) was licensed in a State that is not the application
State during the 30-day period preceding the date of
submission of the information required under section 1505(a)
in connection with the application submitted to the
application State.
``(2) Period.--The period described in paragraph (1) shall
begin on the date that the State-licensed loan originator
submits the information required under section 1505(a) in
connection with the application submitted to the application
State and end on the earliest of--
``(A) the date that the State-licensed loan originator
withdraws the application to be a State-licensed loan
originator in the application State;
``(B) the date that the application State denies, or issues
a notice of intent to deny, the application;
``(C) the date that the application State grants a State
license; or
``(D) the date that is 120 days after the date on which the
State-licensed loan originator submits the application, if
the application is listed on the Nationwide Mortgage
Licensing System and Registry as incomplete.
``(c) Applicability.--
``(1) Any person employing an individual who is deemed to
have temporary authority to act as a loan originator in an
application State pursuant to this section shall be subject
to the requirements of this title and to applicable State law
to the same extent as if such individual was a State-licensed
loan originator licensed by the application State.
``(2) Any individual who is deemed to have temporary
authority to act as a loan originator in an application State
pursuant to this section and who engages in residential
mortgage loan origination activities shall be subject to the
requirements of this title and to applicable State law to the
same extent as if such individual was a State-licensed loan
originator licensed by the application State.
``(d) Definitions.--In this section, the following
definitions shall apply:
``(1) State-licensed mortgage company.--The term `State-
licensed mortgage company' means an entity licensed or
registered under the law of any State to engage in
residential mortgage loan origination and processing
activities.
``(2) Application state.--The term `application State'
means a State in which a registered loan originator or a
State-licensed loan originator seeks to be licensed.''.
(b) Table of Contents Amendment.--The table of contents in
section 1(b) of the Housing and Economic Recovery Act of 2008
(42 U.S.C. 4501 note) is amended by inserting after the item
relating to section 1517 the following:
``Sec. 1518. Employment transition of loan originators.''.
(c) Amendment to Civil Liability of the Consumer Law
Enforcement Agency and Other Officials.--Section 1513 of the
S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5112) is
amended by striking ``are loan originators or are applying
for licensing or registration as loan originators'' and
inserting ``are applying for licensing or registration using
the Nationwide Mortgage Licensing System and Registry''.
Subtitle M--Right to Lend
SEC. 561. SMALL BUSINESS LOAN DATA COLLECTION REQUIREMENT.
(a) Repeal.--Section 704B of the Equal Credit Opportunity
Act (15 U.S.C. 1691c-2) is repealed.
(b) Conforming Amendments.--Section 701(b) of the Equal
Credit Opportunity Act (15 U.S.C. 1691(b)) is amended--
(1) in paragraph (3), by inserting ``or'' at the end;
(2) in paragraph (4), by striking ``; or'' and inserting a
period; and
(3) by striking paragraph (5).
(c) Clerical Amendment.--The table of sections for title
VII of the Consumer Credit Protection Act is amended by
striking the item relating to section 704B.
Subtitle N--Community Bank Reporting Relief
SEC. 566. SHORT FORM CALL REPORT.
(a) In General.--Section 7(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(a)) is amended by adding at the
end the following:
``(12) Short form reporting.--
``(A) In general.--The appropriate Federal banking agencies
shall issue regulations allowing for a reduced reporting
requirement for covered depository institutions when making
the first and third report of condition for a year, as
required pursuant to paragraph (3).
``(B) Covered depository institution defined.--For purposes
of this paragraph, the term `covered depository institution'
means an insured depository institution that--
``(i) is well capitalized (as defined under section 38(b));
and
``(ii) satisfies such other criteria as the appropriate
Federal banking agencies determine appropriate.''.
(b) Report to Congress.--Not later than 180 days after the
date of the enactment of this Act, and every 365 days
thereafter until the appropriate Federal banking agencies (as
defined under section 3 of the Federal Deposit Insurance Act)
have issued the regulations required under section
7(a)(12)(A) of the Federal Deposit Insurance Act, such
agencies shall submit 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 describing
the progress made in issuing such regulations.
Subtitle O--Homeowner Information Privacy Protection
SEC. 571. STUDY REGARDING PRIVACY OF INFORMATION COLLECTED
UNDER THE HOME MORTGAGE DISCLOSURE ACT OF 1975.
(a) Study.--The Comptroller General of the United States
shall conduct a study to determine whether the data required
to be published, made available, or disclosed under the final
rule, in connection with other publicly available data
sources, including data made publicly available under
Regulation C (12 C.F.R. 1003) before the effective date of
the final rule, could allow for or increase the probability
of--
(1) exposure of the identity of mortgage applicants or
mortgagors through reverse engineering;
(2) exposure of mortgage applicants or mortgagors to
identity theft or the loss of sensitive personal financial
information;
(3) the marketing or sale of unfair or deceptive financial
products to mortgage applicants or mortgagors based on such
data;
(4) personal financial loss or emotional distress resulting
from the exposure of mortgage applicants or mortgagors to
identify theft or the loss of sensitive personal financial
information; and
(5) the potential legal liability facing the Consumer Law
Enforcement Agency and market participants in the event the
data required to be published, made available, or disclosed
under the final rule leads or contributes to identity theft
or the capture of sensitive personal financial information.
(b) Report.--The Comptroller General of the United States
shall submit 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 that
includes--
(1) the findings and conclusions of the Comptroller General
with respect to the study required under subsection (a); and
(2) any recommendations for legislative or regulatory
actions that--
(A) would enhance the privacy of a consumer when accessing
mortgage credit; and
(B) are consistent with consumer protections and safe and
sound banking operations.
(c) Suspension of Data Sharing Requirements.--
Notwithstanding any other provision of law, including the
final rule--
(1) depository institutions shall not be required to
publish, disclose, or otherwise make available to the public,
pursuant to the Home Mortgage Disclosure Act of 1975 (or
regulations
[[Page H4764]]
issued under such Act) any data that was not required to be
published, disclosed, or otherwise made available pursuant to
such Act (or regulations issued under such Act) on the day
before the date of the enactment of the Dodd-Frank Wall
Street Reform and Consumer Protection Act; and
(2) the Consumer Law Enforcement Agency and the Financial
Institutions Examination Council shall not publish, disclose,
or otherwise make available to the public any such
information received from a depository institution pursuant
to the final rule, except as required by law.
(d) Temporary Suspension of Data Reporting
Requirements..--Notwithstanding any other provision of law,
the effective date for new reporting requirements contained
in the final rule shall be January 1, 2019.
(e) Definitions.--For purposes of this section:
(1) Depository institution.--The term ``depository
institution'' has the meaning given that term under section
303 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C.
2802).
(2) Final rule.--The term ``final rule'' means the final
rule issued by the Bureau of Consumer Financial Protection
titled ``Home Mortgage Disclosure (Regulation C)'' (October
28, 2015; 80 Fed. Reg. 66128).
Subtitle A--Home Mortgage Disclosure Adjustment
SEC. 576. DEPOSITORY INSTITUTIONS SUBJECT TO MAINTENANCE OF
RECORDS AND DISCLOSURE REQUIREMENTS.
(a) In General.--Section 304 of the Home Mortgage
Disclosure Act of 1975 (12 U.S.C. 2803) is amended--
(1) by redesignating subsection (i) as paragraph (2) and
adjusting the margin appropriately; and
(2) by inserting before such paragraph (2) the following:
``(i) Exemptions.--
``(1) In general.--With respect to a depository
institution, the requirements of subsections (a) and (b)
shall not apply--
``(A) with respect to closed-end mortgage loans, if such
depository institution originated less than 100 closed-end
mortgage loans in each of the two preceding calendar years;
and
``(B) with respect to open-end lines of credit, if such
depository institution originated less than 200 open-end
lines of credit in each of the two preceding calendar
years.''.
(b) Technical Correction.--Section 304(i)(2) of such Act,
as redesignated by subsection (a), is amended by striking
``section 303(2)(A)'' and inserting ``section 303(3)(A)''.
Subtitle B--Protecting Consumers' Access to Credit
SEC. 581. RATE OF INTEREST AFTER TRANSFER OF LOAN.
(a) Amendment to the Revised Statutes.--Section 5197 of the
Revised Statutes of the United States (12 U.S.C. 85) is
amended by adding at the end the following new sentence: ``A
loan that is valid when made as to its maximum rate of
interest in accordance with this section shall remain valid
with respect to such rate regardless of whether the loan is
subsequently sold, assigned, or otherwise transferred to a
third party, and may be enforced by such third party
notwithstanding any State law to the contrary.''.
(b) Amendment to the Home Owners' Loan Act.--Section
4(g)(1) of the Home Owners' Loan Act (12 U.S.C. 1463(g)(1))
is amended by adding at the end the following new sentence:
``A loan that is valid when made as to its maximum rate of
interest in accordance with this subsection shall remain
valid with respect to such rate regardless of whether the
loan is subsequently sold, assigned, or otherwise transferred
to a third party, and may be enforced by such third party
notwithstanding any State law to the contrary.''.
(c) Amendment to the Federal Credit Union Act.--Section
205(g)(1) of the Federal Credit Union Act (12 U.S.C.
1785(g)(1)) is amended by adding at the end the following new
sentence: ``A loan that is valid when made as to its maximum
rate of interest in accordance with this subsection shall
remain valid with respect to such rate regardless of whether
the loan is subsequently sold, assigned, or otherwise
transferred to a third party, and may be enforced by such
third party notwithstanding any State law to the contrary.''.
(d) Amendment to the Federal Deposit Insurance Act.--
Section 27(a) of the Federal Deposit Insurance Act (12 U.S.C.
1831d(a)) is amended by adding at the end the following new
sentence: ``A loan that is valid when made as to its maximum
rate of interest in accordance with this section shall remain
valid with respect to such rate regardless of whether the
loan is subsequently sold, assigned, or otherwise transferred
to a third party, and may be enforced by such third party
notwithstanding any State law to the contrary.''.
Subtitle C--NCUA Overhead Transparency
SEC. 586. FUND TRANSPARENCY.
Section 203 of the Federal Credit Union Act (12 U.S.C.
1783) is amended by adding at the end the following:
``(g) Fund Transparency.--
``(1) In general.--The Board shall accompany each annual
budget submitted pursuant to section 209(b) with a report
containing--
``(A) a detailed analysis of how the expenses of the
Administration are assigned between prudential activities and
insurance-related activities and the extent to which those
expenses are paid from the fees collected pursuant to section
105 or from the Fund; and
``(B) the Board's supporting rationale for any proposed use
of amounts in the Fund contained in such budget, including
detailed breakdowns and supporting rationales for any such
proposed use related to titles of this Act other than this
title.
``(2) Public disclosure.--The Board shall make each report
described under paragraph (1) available to the public and
available on the Board's website.''.
Subtitle D--Housing Opportunities Made Easier
SEC. 591. CLARIFICATION OF DONATED SERVICES TO NON-PROFITS.
Section 129E(i) of the Truth in Lending Act (15 U.S.C.
1639e(i)) is amended by adding at the end the following:
``(4) Rule of construction related to appraisal
donations.--For purposes of paragraph (1), if a fee appraiser
voluntarily donates appraisal services to an organization
described in section 170(c)(2) of the Internal Revenue Code
of 1986, such voluntary donation shall be deemed customary
and reasonable.''.
TITLE VI--REGULATORY RELIEF FOR STRONGLY CAPITALIZED, WELL MANAGED
BANKING ORGANIZATIONS
SEC. 601. CAPITAL ELECTION.
(a) In General.--A banking organization may make an
election under this section to be treated as a qualifying
banking organization for purposes of the regulatory relief
described under section 602.
(b) Requirements.--A banking organization may qualify to be
treated as a qualifying banking organization if--
(1) the banking organization has an average leverage ratio
of at least 10 percent;
(2) with respect to a depository institution holding
company, each insured depository institution subsidiary of
the holding company simultaneously makes the election
described under subsection (a); and
(3) with respect to an insured depository institution, any
parent depository institution holding company of the
institution simultaneously makes the election described under
subsection (a).
(c) Election Process.--To make an election under this
section, a banking organization shall submit an election to
the appropriate Federal banking agency (and any applicable
State bank supervisor that regulates the banking
organization) containing--
(1) a notice of such election;
(2) the banking organization's average leverage ratio, as
well as the organization's quarterly leverage ratio for each
of the most recently completed four calendar quarters;
(3) if the banking organization is a depository institution
holding company, the information described under paragraph
(2) for each of the organization's insured depository
institution subsidiaries; and
(4) if the banking organization is an insured depository
institution, the information described under paragraph (2)
for any parent depository institution holding company of the
institution.
(d) Effective Date of Election.--
(1) In general.--An election made under this section shall
take effect at the end of the 30-day period beginning on the
date that the appropriate Federal banking agency receives the
application described under subsection (c), unless the
appropriate Federal banking agency determines that the
banking organization has not met the requirements described
under subsection (b).
(2) Notice of failure to meet requirements.--If the
appropriate Federal banking agency determines that a banking
organization submitting an election notice under subsection
(c) does not meet the requirements described under subsection
(b), the agency shall--
(A) notify the banking organization (and any applicable
State bank supervisor that regulates the banking
organization), in writing, of such determination as soon as
possible after such determination is made, but in no case
later than the end of the 30-day period beginning on the date
that the appropriate Federal banking agency receives the
election; and
(B) include in such notification the specific reasons for
such determination and steps that the banking organization
can take to meet such requirements.
(e) Treatment of Certain New Banking Organizations.--In the
case of a banking organization that is a newly-chartered
insured depository institution or a banking organization that
becomes a banking organization because it controls a newly-
chartered insured depository institution, such banking
organization may be treated as a qualifying banking
organization immediately upon becoming a banking
organization, if--
(1) an election to be treated as a qualifying banking
organization was included in the application filed with the
appropriate Federal banking agency in connection with
becoming a banking organization; and
(2) as of the date the banking organization becomes a
banking organization, the banking organization's tangible
equity divided by the banking organization's leverage
exposure, expressed as a percentage, is at least 10 percent.
(f) Failure to Maintain Quarterly Leverage Ratio and Loss
of Election.--
(1) Effect of failure to maintain quarterly leverage
ratio.--
(A) In general.--If, with respect to the most recently
completed calendar quarter, the appropriate Federal banking
agency determines that a qualifying banking organization's
quarterly leverage ratio is below 10 percent--
(i) the appropriate Federal banking agency shall notify the
qualifying banking organization and any applicable State bank
supervisor that regulates the banking organization of such
determination;
(ii) the appropriate Federal banking agency may prohibit
the banking organization from making a capital distribution;
and
(iii) the banking organization shall, within 3 months of
the first such determination, submit a capital restoration
plan to the appropriate Federal banking agency.
[[Page H4765]]
(B) Loss of election after one-year remediation period.--If
a banking organization described under subparagraph (A) does
not, within the 1-year period beginning on the date of such
determination, raise the organization's quarterly leverage
ratio for a calendar quarter ending in such 1-year period to
at least 10 percent, the banking organization's election
under this section shall be terminated, and the appropriate
Federal banking agency shall notify any applicable State bank
supervisor that regulates the banking organization of such
termination.
(C) Effect of subsidiary on parent organization.--With
respect to a qualifying banking organization described under
subparagraph (A) that is an insured depository institution,
any parent depository institution holding company of the
qualifying banking organization shall--
(i) if the appropriate Federal banking agency determines it
appropriate, be prohibited from making a capital distribution
(other than a capital contribution to such qualifying banking
organization described under subparagraph (A)); and
(ii) if the qualifying banking organization has an election
terminated under subparagraph (B), any such parent depository
institution holding company shall also have its election
under this section terminated.
(2) Immediate loss of election if the quarterly leverage
ratio falls below 6 percent.--
(A) In general.--If, with respect to the most recently
completed calendar quarter, the appropriate Federal banking
agency determines that a qualifying banking organization's
quarterly leverage ratio is below 6 percent, the banking
organization's election under this section shall be
terminated, and the appropriate Federal banking agency shall
notify any applicable State bank supervisor that regulates
the banking organization of such termination.
(B) Effect of subsidiary on parent organization.--With
respect to a qualifying banking organization described under
subparagraph (A) that is an insured depository institution,
any parent depository institution holding company of the
qualifying banking organization shall also have its election
under this section terminated.
(3) Ability to make future elections.--If a banking
organization has an election under this section terminated,
the banking organization may not apply for another election
under this section until the banking organization has
maintained a quarterly leverage ratio of at least 10 percent
for 8 consecutive calendar quarters.
SEC. 602. REGULATORY RELIEF.
(a) In General.--A qualifying banking organization shall be
exempt from the following:
(1) Any Federal law, rule, or regulation addressing capital
or liquidity requirements or standards.
(2) Any Federal law, rule, or regulation that permits an
appropriate Federal banking agency to object to a capital
distribution.
(3) Any consideration by an appropriate Federal banking
agency of the following:
(A) Any risk the qualifying banking organization may pose
to ``the stability of the financial system of the United
States'', under section 5(c)(2) of the Bank Holding Company
Act of 1956.
(B) The ``extent to which a proposed acquisition, merger,
or consolidation would result in greater or more concentrated
risks to the stability of the United States banking or
financial system'', under section 3(c)(7) of the Bank Holding
Company Act of 1956, so long as the banking organization,
after such proposed acquisition, merger, or consolidation,
would maintain a quarterly leverage ratio of at least 10
percent.
(C) Whether the performance of an activity by the banking
organization could possibly pose a ``risk to the stability of
the United States banking or financial system'', under
section 4(j)(2)(A) of the Bank Holding Company Act of 1956.
(D) Whether the acquisition of control of shares of a
company engaged in an activity described in section
4(j)(1)(A) of the Bank Holding Company Act of 1956 could
possibly pose a ``risk to the stability of the United States
banking or financial system'', under section 4(j)(2)(A) of
the Bank Holding Company Act of 1956, so long as the banking
organization, after acquiring control of such company, would
maintain a quarterly leverage ratio of at least 10 percent.
(E) Whether a merger would pose a ``risk to the stability
of the United States banking or financial system'', under
section 18(c)(5) of the Federal Deposit Insurance Act, so
long as the banking organization, after such proposed merger,
would maintain a quarterly leverage ratio of at least 10
percent.
(F) Any risk the qualifying banking organization may pose
to ``the stability of the financial system of the United
States'', under section 10(b)(4) of the Home Owners' Loan
Act.
(4) Subsections (i)(8) and (k)(6)(B)(ii) of section 4 and
section 14 of the Bank Holding Company Act of 1956.
(5) Section 18(c)(13) of the Federal Deposit Insurance Act.
(6) Section 163 of the Financial Stability Act of 2010.
(7) Section 10(e)(2)(E) of the Home Owners' Loan Act.
(8) Any Federal law, rule, or regulation implementing
standards of the type provided for in subsections (b), (c),
(d), (e), (g), (h), (i), and (j) of section 165 of the
Financial Stability Act of 2010.
(9) Any Federal law, rule, or regulation providing
limitations on mergers, consolidations, or acquisitions of
assets or control, to the extent such limitations relate to
capital or liquidity standards or concentrations of deposits
or assets, so long as the banking organization, after such
proposed merger, consolidation, or acquisition, would
maintain a quarterly leverage ratio of at least 10 percent.
(b) Qualifying Banking Organizations Treated as Well
Capitalized.--A qualifying banking organization shall be
deemed to be ``well capitalized'' for purposes of--
(1) section 216 of the Federal Credit Union Act; and
(2) sections 29, 38, 44, and 46 of the Federal Deposit
Insurance Act.
(c) Treatment of Certain Risk-weighted Asset Requirements
for Qualifying Banking Organizations.--
(1) Acquisition size criteria treatment.--A qualifying
banking organization shall be deemed to meet the criteria
described under section 4(j)(4)(D) of the Bank Holding
Company Act of 1956, so long as after the proposed
transaction the acquiring qualifying banking organization
would maintain a quarterly leverage ratio of at least 10
percent.
(2) Use of leverage exposure.--With respect to a qualifying
banking organization, in determining whether a proposal
qualifies with the criteria described under subparagraphs
(A)(iii) and (B)(i) of section 4(j)(4) of the Bank Holding
Company Act of 1956, the Board of Governors of the Federal
Reserve System shall consider the leverage exposure of an
insured depository institution instead of the total risk-
weighted assets of such institution.
SEC. 603. CONTINGENT CAPITAL STUDY.
(a) Study.--The Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and the
Office of the Comptroller of the Currency shall each carry
out a study, which shall include holding public hearings, on
how to design a requirement that banking organizations issue
contingent capital with a market-based conversion trigger.
(b) Report.--Not later than the end of the 1-year period
beginning on the date of the enactment of this Act, each
agency described under subsection (a) shall submit a report
to the Congress containing--
(1) all findings and determinations made by the agency in
carrying out the study required under subsection (a); and
(2) the agency's recommendations on how the Congress should
design a requirement that banking organizations issue
contingent capital with a market-based conversion trigger.
SEC. 604. STUDY ON ALTERING THE CURRENT PROMPT CORRECTIVE
ACTION RULES.
(a) Study.--The Comptroller General of the United States
shall conduct a study to assess the benefits and feasibility
of altering the current prompt corrective action rules and
replacing the Basel-based capital ratios with the
nonperforming asset coverage ratio or NACR as the trigger for
specific required supervisory interventions. The Comptroller
General shall ensure that such study includes the following:
(1) An assessment of the performance of an NACR forward-
looking measure of a banking organization's solvency
condition relative to the regulatory capital ratios currently
used by prompt corrective action rules.
(2) An analysis of the performance of alternative
definitions of nonperforming assets.
(3) An assessment of the impact of two alternative
intervention thresholds:
(A) An initial (high) intervention threshold, below which
appropriate Federal banking agency examiners are required to
intervene and assess a banking organization's condition and
prescribe remedial measures.
(B) A lower threshold, below which banking organizations
must increase their capital, seek an acquirer, or face
mandatory resolution within 90 days.
(b) Report.--Not later than the end of the 1-year period
beginning on the date of the enactment of this Act, the
Comptroller General shall submit a report to the Congress
containing--
(1) all findings and determinations made in carrying out
the study required under subsection (a); and
(2) recommendations on the most suitable definition of
nonperforming assets, as well as the two numerical thresholds
that trigger specific required supervisory interventions.
SEC. 605. DEFINITIONS.
For purposes of this title:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency''--
(A) has the meaning given such term under section 3 of the
Federal Deposit Insurance Act; and
(B) means the National Credit Union Administration, in the
case of an insured credit union.
(2) Banking organization.--The term ``banking
organization'' means--
(A) an insured depository institution;
(B) an insured credit union;
(C) a depository institution holding company;
(D) a company that is treated as a bank holding company for
purposes of section 8 of the International Banking Act; and
(E) a U.S. intermediate holding company established by a
foreign banking organization pursuant to section 252.153 of
title 12, Code of Federal Regulations.
(3) Foreign exchange swap .--The term ``foreign exchange
swap'' has the meaning given that term under section 1a of
the Commodity Exchange Act.
(4) Insured credit union.--The term ``insured credit
union'' has the meaning given that term under section 101 of
the Federal Credit Union Act.
(5) Leverage exposure.--The term ``leverage exposure''--
(A) with respect to a banking organization other than an
insured credit union or a traditional banking organization,
has the meaning given the term ``total leverage exposure''
under section 3.10(c)(4)(ii), 217.10(c)(4), or 324.10(c)(4)
of title 12, Code of Federal Regulations, as applicable, as
in effect on the date of the enactment of this Act;
[[Page H4766]]
(B) with respect to a traditional banking organization
other than an insured credit union, means total assets (minus
any items deducted from common equity tier 1 capital) as
calculated in accordance with generally accepted accounting
principles and as reported on the traditional banking
organization's applicable regulatory filing with the banking
organization's appropriate Federal banking agency; and
(C) with respect to a banking organization that is an
insured credit union, has the meaning given the term ``total
assets'' under section 702.2 of title 12, Code of Federal
Regulations, as in effect on the date of the enactment of
this Act.
(6) Leverage ratio definitions.--
(A) Average leverage ratio.--With respect to a banking
organization, the term ``average leverage ratio'' means the
average of the banking organization's quarterly leverage
ratios for each of the most recently completed four calendar
quarters.
(B) Quarterly leverage ratio.--With respect to a banking
organization and a calendar quarter, the term ``quarterly
leverage ratio'' means the organization's tangible equity
divided by the organization's leverage exposure, expressed as
a percentage, on the last day of such quarter.
(7) NACR.--The term ``NACR'' means--
(A) book equity less nonperforming assets plus loan loss
reserves, divided by
(B) total banking organization assets.
(8) Nonperforming assets.--The term ``nonperforming
assets'' means--
(A) 20 percent of assets that are past due 30 to 89 days,
plus
(B) 50 percent of assets that are past due 90 days or more,
plus
(C) 100 percent of nonaccrual assets and other real estate
owned.
(9) Qualifying banking organization.--The term ``qualifying
banking organization'' means a banking organization that has
made an election under section 601 and with respect to which
such election is in effect.
(10) Security-based swap .--The term ``security-based
swap'' has the meaning given that term under section 3 of the
Securities Exchange Act of 1934.
(11) Swap.--The term ``swap'' has the meaning given that
term under section 1a of the Commodity Exchange Act.
(12) Tangible equity.--The term ``tangible equity''--
(A) with respect to a banking organization other than a
credit union, means the sum of--
(i) common equity tier 1 capital;
(ii) additional tier 1 capital consisting of instruments
issued on or before the date of enactment of this Act; and
(iii) with respect to a depository institution holding
company that had less than $15,000,000,000 in total
consolidated assets as of December 31, 2009, or March 31,
2010, or a banking organization that was a mutual holding
company as of May 19, 2010, trust preferred securities issued
prior to May 19, 2010, to the extent such organization was
permitted, as of the date of the enactment of this Act, to
consider such securities as tier 1 capital under existing
regulations of the appropriate Federal banking agency; and
(B) with respect to a banking organization that is a credit
union, has the meaning given the term ``net worth'' under
section 702.2 of title 12, Code of Federal Regulations, as in
effect on the date of the enactment of this Act.
(13) Traditional banking organization.--The term
``traditional banking organization'' means a banking
organization that--
(A) has zero trading assets and zero trading liabilities;
(B) does not engage in swaps or security-based swaps, other
than swaps or security-based swaps referencing interest rates
or foreign exchange swaps; and
(C) has a total notional exposure of swaps and security-
based swaps of not more than $8,000,000,000.
(14) Other banking terms.--The terms ``insured depository
institution'' and ``depository institution holding company''
have the meaning given those terms, respectively, under
section 3 of the Federal Deposit Insurance Act.
(15) Other capital terms.--With respect to a banking
organization, the terms ``additional tier 1 capital'' and
``common equity tier 1 capital'' have the meaning given such
terms, respectively, under section 3.20, 217.20, or 324.20 of
title 12, Code of Federal Regulations, as applicable, as in
effect on the date of the enactment of this Act.
TITLE VII--EMPOWERING AMERICANS TO ACHIEVE FINANCIAL INDEPENDENCE
Subtitle A--Separation of Powers and Liberty Enhancements
SEC. 711. CONSUMER LAW ENFORCEMENT AGENCY.
(a) Making the Bureau an Independent Consumer Law
Enforcement Agency.--The Consumer Financial Protection Act of
2010 (12 U.S.C. 5481 et seq.) is amended--
(1) in section 1011--
(A) in the heading of such section, by striking ``BUREAU OF
CONSUMER FINANCIAL PROTECTION'' and inserting ``CONSUMER LAW
ENFORCEMENT AGENCY'';
(B) in subsection (a)--
(i) in the heading of such subsection, by striking
``Bureau'' and inserting ``Agency'';
(ii) by striking ``in the Federal Reserve System,'';
(iii) by striking ``independent bureau'' and inserting
``independent agency''; and
(iv) by striking `` `Bureau of Consumer Financial
Protection' '' and inserting `` `Consumer Law Enforcement
Agency' (hereinafter in this section referred to as the
`Agency')'';
(C) in subsection (b)(5), by amending subparagraph (A) to
read as follows:
``(A) shall be appointed by the President; and'';
(D) in subsection (c), by striking paragraph (3);
(E) in subsection (e), by striking ``, including in cities
in which the Federal reserve banks, or branches of such
banks, are located,''; and
(F) by striking ``Bureau'' each place such term appears and
inserting ``Agency''; and
(2) in section 1012--
(A) in subsection (a)(10), by striking ``examinations,'';
and
(B) by striking subsection (c).
(b) Deeming of Name.--Any reference in a law, regulation,
document, paper, or other record of the United States to the
Bureau of Consumer Financial Protection shall be deemed a
reference to the Consumer Law Enforcement Agency.
(c) Conforming Amendments.--
(1) 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--
(A) in the table of contents in section 1(b)--
(i) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency''; and
(ii) in the table of contents relating to title X, in the
items relating to subtitle B, subtitle C, and section 1027,
by striking ``Bureau'' each place such term appears and
inserting ``Agency'';
(B) in section 2, by amending paragraph (4) to read as
follows:
``(4) Agency.--The term `Agency' means the Consumer Law
Enforcement Agency established under title X.'';
(C) in section 342 by striking ``Bureau'' each place such
term appears in headings and text and inserting ``Agency'';
(D) in section 1400(b)--
(i) by striking ``Bureau of Consumer Financial Protection''
and inserting ``Consumer Law Enforcement Agency''; and
(ii) in the subsection heading, by striking ``Bureau of
Consumer Financial Protection'' and inserting ``Consumer Law
Enforcement Agency'';
(E) in section 1411(a)(1), by striking ``Bureau'' and
inserting ``Agency''; and
(F) in section 1447, by striking ``Director of the Bureau''
each place such term appears and inserting ``Director of the
Consumer Law Enforcement Agency''.
(2) Alternative mortgage transaction parity act of 1982.--
The Alternative Mortgage Transaction Parity Act of 1982 (12
U.S.C. 3801 et seq.) is amended--
(A) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency''; and
(B) in the subsection heading of subsection (d) of section
804 (12 U.S.C. 3803(d)), by striking ``Bureau'' and inserting
``Agency''.
(3) Electronic fund transfer act.--The Electronic Fund
Transfer Act (15 U.S.C. 1693 et seq.) is amended--
(A) by amending the second paragraph (4) (defining the term
``Bureau'') to read as follows:
``(4) the term `Agency' means the Consumer Law Enforcement
Agency;'';
(B) in section 916(d)(1), by striking ``Bureau of Consumer
Financial Protection'' and inserting ``Consumer Law
Enforcement Agency''; and
(C) by striking ``Bureau'' each place that term appears in
heading or text and inserting ``Agency''.
(4) Equal credit opportunity act.--The Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.) is amended--
(A) in section 702 (15 U.S.C. 1691a), by amending
subsection (c) to read as follows:
``(c) The term `Agency' means the Consumer Law Enforcement
Agency.''; and
(B) by striking ``Bureau'' each place that term appears in
heading or text and inserting ``Agency''.
(5) Expedited funds availability act.--The Expedited Funds
Availability Act (12 U.S.C. 4001 et seq.) is amended--
(A) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency''; and
(B) in the heading of section 605(f)(1), by striking
``board and bureau'' and inserting ``Board and agency''.
(6) Fair and accurate credit transactions act of 2003.--The
Fair and Accurate Credit Transactions Act of 2003 (Public Law
108-159) is amended by striking ``Bureau'' each place such
term appears in heading and text and inserting ``Agency''.
(7) Fair credit reporting act.--The Fair Credit Reporting
Act (15 U.S.C. 1681 et seq.) is amended--
(A) by amending section 603(w) to read as follows:
``(w) Agency.--The term `Agency' means the Consumer Law
Enforcement Agency.''; and
(B) by striking ``Bureau'' each place such term appears,
other than in sections 626 and 603(v), and inserting
``Agency''.
(8) Fair debt collection practices act.--The Fair Debt
Collection Practices Act (15 U.S.C. 1692 et seq.) is
amended--
(A) by amending section 803(1) to read as follows:
``(1) The term `Agency' means the Consumer Law Enforcement
Agency.''; and
(B) by striking ``Bureau'' each place such term appears in
heading or text and inserting ``Agency''.
(9) Federal deposit insurance act.--The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(A) in the second paragraph (6) (with the heading
``Referral to bureau of consumer financial protection'') of
section 8(t) (12 U.S.C. 1818(t))--
(i) in the paragraph heading, by striking ``bureau of
consumer financial protection'';
[[Page H4767]]
and inserting ``Consumer law enforcement agency''; and
(ii) by striking ``Bureau of Consumer Financial
Protection'' and inserting ``Consumer Law Enforcement
Agency'';
(B) by amending clause (vi) of section 11(t)(2)(A) (12
U.S.C. 1821(t)(2)(A)(vi)) to read as follows:
``(vi) The Consumer Law Enforcement Agency.'';
(C) in section 18(x) (12 U.S.C. 1828(x)), by striking
``Bureau of Consumer Financial Protection'' each place such
term appears and inserting ``Consumer Law Enforcement
Agency'';
(D) by striking ``Bureau'' each place such term appears and
inserting ``Agency''; and
(E) in section 43(e) (12 U.S.C. 1831t(e)), by amending
paragraph (5) to read as follows:
``(5) Agency.--The term `Agency' means the Consumer Law
Enforcement Agency.''.
(10) Federal financial institutions examination council act
of 1978.--The Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended--
(A) in section 1004(a)(4), by striking ``Consumer Financial
Protection Bureau'' and inserting ``Consumer Law Enforcement
Agency''; and
(B) in section 1011, by striking ``Bureau of Consumer
Financial Protection'' and inserting ``Consumer Law
Enforcement Agency''.
(11) Financial institutions reform, recovery, and
enforcement act of 1989.--The Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (Public Law 101-73; 103
Stat. 183) is amended--
(A) in section 1112(b) (12 U.S.C. 3341), by striking
``Bureau of Consumer Financial Protection'' and inserting
``Consumer Law Enforcement Agency'';
(B) in section 1124 (12 U.S.C. 3353), by striking ``Bureau
of Consumer Financial Protection'' each place such term
appears and inserting ``Consumer Law Enforcement Agency'';
(C) in section 1125 (12 U.S.C. 3354), by striking ``Bureau
of Consumer Financial Protection'' each place such term
appears and inserting ``Consumer Law Enforcement Agency'';
and
(D) in section 1206(a) (12 U.S.C. 1833b(a)), by striking
``Federal Housing Finance Board'' and all that follows
through ``Farm Credit Administration'' and inserting
``Federal Housing Finance Agency, the Consumer Law
Enforcement Agency, and the Farm Credit Administration''.
(12) Financial literacy and education improvement act.--
Section 513 of the Financial Literacy and Education
Improvement Act (20 U.S.C. 9702) is amended by striking
``Bureau of Consumer Financial Protection'' each place such
term appears and inserting ``Consumer Law Enforcement
Agency''.
(13) Gramm-Leach-Bliley act.--Title V of the Gramm-Leach-
Bliley Act (15 U.S.C. 6801 et seq.) is amended--
(A) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency''; and
(B) in section 505(a)(8) (15 U.S.C. 6805(a)(8)), by
striking ``Bureau'' and inserting ``Agency''.
(14) Home mortgage disclosure act of 1975.--The Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is
amended--
(A) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency'';
(B) by striking ``Bureau'' each place such term appears and
inserting ``Agency''; and
(C) in section 303, by amending paragraph (1) to read as
follows:
``(1) the term `Agency' means the Consumer Law Enforcement
Agency;''.
(15) Homeowners protection act of 1998.--Section 10(a)(4)
of the Homeowners Protection Act of 1998 (12 U.S.C.
4909(a)(4)) is amended by striking ``Bureau of Consumer
Financial Protection'' and inserting ``Consumer Law
Enforcement Agency''.
(16) Home ownership and equity protection act of 1994.--
Section 158(a) of the Home Ownership and Equity Protection
Act of 1994 (15 U.S.C. 1601 note) is amended by striking
``Bureau'' and inserting ``Consumer Law Enforcement Agency''.
(17) Interstate land sales full disclosure act.--The
Interstate Land Sales Full Disclosure Act (12 U.S.C. 1701 et
seq.) is amended--
(A) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Agency'';
(B) in section 1402, by amending paragraph (12) to read as
follows:
``(12) `Agency' means the Consumer Law Enforcement
Agency.''; and
(C) in section 1416, by striking ``Bureau'' each place such
term appears and inserting ``Agency''.
(18) Real estate settlement procedures act of 1974.--The
Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601
et seq.) is amended--
(A) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency'';
(B) by striking ``Bureau'' each place such term appears and
inserting ``Agency''; and
(C) in section 3, by amending paragraph (9) to read as
follows:
``(9) the term `Agency' means the Consumer Law Enforcement
Agency.''.
(19) Revised statues of the united states.--Section
5136C(b)(3)(B) of the Revised Statutes of the United States
(12 U.S.C. 25b(b)(3)(B)) is amended by striking ``Bureau of
Consumer Financial Protection'' and inserting ``Consumer Law
Enforcement Agency''.
(20) Right to financial privacy act of 1978.--The Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is
amended--
(A) by amending subparagraph (B) of section 1101(7) (12
U.S.C. 3401(7)(B)) to read as follows:
``(B) the Consumer Law Enforcement Agency;''; and
(B) by striking ``Bureau of Consumer Financial Protection''
each place such term appears in heading or text and inserting
``Consumer Law Enforcement Agency''.
(21) 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.) is
amended--
(A) in section 1507, by striking ``Bureau, and the Bureau
of Consumer Financial Protection'' each place such term
appears and inserting ``Consumer Law Enforcement Agency'';
(B) by striking ``Bureau of Consumer Financial Protection''
each place such term appears and inserting ``Consumer Law
Enforcement Agency'';
(C) by striking ``Bureau'' each place such appears, other
than in sections 1505(a)(1), 1507(a)(2)(A), and 1511(b), and
inserting ``Agency'';
(D) in section 1503, by amending paragraph (1) to read as
follows:
``(1) Agency.--The term `Agency' means the Consumer Law
Enforcement Agency.'';
(E) in the heading of section 1508, by striking ``BUREAU OF
CONSUMER FINANCIAL PROTECTION'' and inserting ``CONSUMER LAW
ENFORCEMENT AGENCY''; and
(F) in the heading of section 1514, by striking ``BUREAU''
and inserting ``AGENCY''.
(22) Telemarketing and consumer fraud and abuse prevention
act.--The Telemarketing and Consumer Fraud and Abuse
Prevention Act (15 U.S.C. 6101 et seq.) is amended by
striking ``Bureau of Consumer Financial Protection'' each
place such term appears in heading or text and inserting
``Consumer Law Enforcement Agency''.
(23) Title 5, united states code.--Title 5, United States
Code, is amended--
(A) in section 552a(w)--
(i) in the subsection heading, by striking ``Bureau of
Consumer Financial Protection'' and inserting ``Consumer Law
Enforcement Agency'';
(ii) by striking ``Bureau of Consumer Financial
Protection'' and inserting ``Consumer Law Enforcement
Agency'';
(B) in section 609(d)(2), by striking ``Consumer Financial
Protection Bureau of the Federal Reserve System'' and
inserting ``Consumer Law Enforcement Agency''; and
(C) in section 3132(a)(1)(D), by inserting ``the Consumer
Law Enforcement Agency,'' before ``and the National Credit
Union Administration''.
(24) Title 10, united states code.--
(A) Section 987.--Section 987(h)(3)(E) of title 10, United
States Code, is amended by striking ``Bureau of Consumer
Financial Protection'' and inserting ``Consumer Law
Enforcement Agency''.
(B) NDAA fy 2015.--Section 557(a) of the Carl Levin and
Howard P. ``Buck'' McKeon National Defense Authorization Act
for Fiscal Year 2015 (Public Law 113-29; 128 Stat. 3381; 10
U.S.C. 1144 note), is amended by striking ``Consumer
Financial Protection Bureau'' each place such term appears
and inserting ``Consumer Law Enforcement Agency''.
(25) Title 44, united states code.--Title 44, United States
Code, is amended--
(A) in section 3502(5), by striking ``the Bureau of
Consumer Financial Protection,''; and
(B) in section 3513(c), by striking ``Bureau of Consumer
Financial Protection'' and inserting ``Consumer Law
Enforcement Agency''.
(26) Truth in lending act.--The Truth in Lending Act (15
U.S.C. 1601 et seq.) is amended--
(A) by amending section 103(b) (15 U.S.C. 1602(b)) to read
as follows:
``(b) Agency.--The term `Agency' means the Consumer Law
Enforcement Agency.'';
(B) by amending section 103(c) (15 U.S.C. 1602(c)) to read
as follows:
``(c) Board.--The term `Board' means the Board of Governors
of the Federal Reserve System.''; and
(C) in section 128(f) (15 U.S.C. 1638(f)), by striking
``Board'' each place such term appears and inserting
``Agency'';
(D) in sections 129B (15 U.S.C. 1639b) and 129C (15 U.S.C.
1639c), by striking ``Board'' each place such term appears
and inserting ``Agency'';
(E) in section 140A (15 U.S.C. 1651), by striking ``in
consultation with the Bureau'' and inserting ``in
consultation with the Federal Trade Commission'';
(F) by striking ``Bureau'' each place such term appears in
heading or text and inserting ``Agency''; and
(G) by striking ``bureau'' and inserting ``Agency'' in the
paragraph headings for--
(i) section 122(d)(2) (15 U.S.C. 1632(d)(2));
(ii) section 127(c)(5) (15 U.S.C. 1637(c)(5));
(iii) section 127(r)(3) (15 U.S.C. 1637(r)(3)); and
(iv) section 127A(a)(14) (15 U.S.C. 1637a(a)(14)).
(27) Truth in savings act.--The Truth in Savings Act (12
U.S.C. 4301 et seq.) is amended--
(A) by amending paragraph (4) of section 274 (12 U.S.C.
4313(4)) to read as follows:
``(4) Agency.--The term `Agency' means the Consumer Law
Enforcement Agency.'';
(B) by striking ``National Credit Union Administration
Bureau'' each place such term appears and inserting
``National Credit Union Administration Board''; and
(C) by striking ``Bureau'' each place such term appears and
inserting ``Agency'', except in section 233(b)(4)(B).
SEC. 712. BRINGING THE AGENCY INTO THE REGULAR APPROPRIATIONS
PROCESS.
Section 1017 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5497) is amended--
(1) in subsection (a)--
(A) by amending the heading of such subsection to read as
follows: ``Budget, Financial Management, and Audit.--'';
[[Page H4768]]
(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 Agency for each of fiscal years
2017 and 2018 an amount equal to the aggregate amount of
funds transferred by the Board of Governors to the Bureau of
Consumer Financial Protection during fiscal year 2015.''; and
(B) by redesignating paragraph (4) as paragraph (2).
SEC. 713. CONSUMER LAW ENFORCEMENT AGENCY INSPECTOR GENERAL
REFORM.
(a) Appointment of Inspector General.--The Inspector
General Act of 1978 (5 U.S.C. App.) is amended--
(1) in section 8G--
(A) in subsection (a)(2), by striking ``and the Bureau of
Consumer Financial Protection'';
(B) in subsection (c), by striking ``For purposes of
implementing this section'' and all that follows through the
end of the subsection; and
(C) in subsection (g)(3), by striking ``and the Bureau of
Consumer Financial Protection''; and
(2) in section 12--
(A) in paragraph (1), by inserting ``the Consumer Law
Enforcement Agency;'' after ``the President of the Export-
Import Bank;''; and
(B) in paragraph (2), by inserting ``the Consumer Law
Enforcement Agency,'' after ``the Export-Import Bank,''.
(b) Requirements for the Inspector General for the Consumer
Law Enforcement Agency.--
(1) Establishment.--Section 1011 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5491), as amended by
section 311, is further amended by adding at the end the
following:
``(f) Inspector General.--There is established the position
of the Inspector General of the Agency.''; and
(2) Hearings.--Section 1016 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5496) 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 Agency shall appear before each of
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives at semi-annual hearings no less frequently
than twice annually, at a date determined by the chairman of
the respective committee, to testify regarding the reports
required under subsection (b) and the reports required under
section 5 of the Inspector General Act of 1978 (5 U.S.C.
App.).''.
(3) Participation in the council of inspectors general on
financial oversight.--Section 989E(a)(1) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act is amended by
adding at the end the following:
``(J) The Consumer Law Enforcement Agency.''.
(4) 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 Consumer Law Enforcement
Agency in accordance with section 3 of the Inspector General
Act of 1978 (5 U.S.C. App.).
(c) Transition Period.--The Inspector General of the Board
of Governors of the Federal Reserve System and the Bureau of
Consumer Financial Protection shall serve in that position
until the confirmation of an Inspector General for the
Consumer Law Enforcement Agency. At that time, the Inspector
General of the Board of Governors of the Federal Reserve
System and the Bureau of Consumer Financial Protection shall
become the Inspector General of the Board of Governors of the
Federal Reserve System.
SEC. 714. PRIVATE PARTIES AUTHORIZED TO COMPEL THE AGENCY TO
SEEK SANCTIONS BY FILING CIVIL ACTIONS;
ADJUDICATIONS DEEMED ACTIONS.
Section 1053 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5563) is amended by adding at the end the
following:
``(f) Private Parties Authorized to Compel the Agency to
Seek Sanctions by Filing Civil Actions.--
``(1) Termination of administrative proceeding.--In the
case of any person who is a party to a proceeding brought by
the Agency under this section, to which chapter 5 of title 5,
United States Code, applies, and against whom an order
imposing a cease and desist order or a penalty may be issued
at the conclusion of the proceeding, that person may, not
later than 20 days after receiving notice of such proceeding,
and at that person's discretion, require the Agency to
terminate the proceeding.
``(2) Civil action authorized.--If a person requires the
Agency to terminate a proceeding pursuant to paragraph (1),
the Agency may bring a civil action against that person for
the same remedy that might be imposed.
``(g) Adjudications Deemed Actions.--Any administrative
adjudication commenced under this section shall be deemed an
`action' for purposes of section 1054(g).''.
SEC. 715. CIVIL INVESTIGATIVE DEMANDS TO BE APPEALED TO
COURTS.
Section 1052 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5562) is amended--
(1) in subsection (c)--
(A) in paragraph (2), by inserting after ``shall state''
the following: ``with specificity''; and
(B) by adding at the end the following:
``(14) Meeting requirement.--The recipient of a civil
investigative demand shall meet and confer with an Agency
investigator within 30 calendar days after receipt of the
demand to discuss and attempt to resolve all issues regarding
compliance with the civil investigative demand, unless the
Agency grants an extension requested by such recipient.'';
(2) in subsection (f)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Not later than 45 days after the service
of any civil investigative demand upon any person under
subsection (c), or at any time before the return date
specified in the demand, whichever period is shorter, or
within such period exceeding 45 days after service or in
excess of such return date as may be prescribed in writing,
subsequent to service, by any Agency investigator named in
the demand, such person may file, in the district court of
the United States for any judicial district in which such
person resides, is found, or transacts business, a petition
for an order modifying or setting aside the demand.''; and
(B) in paragraph (2), by striking ``at the Bureau''; and
(3) in subsection (h)--
(A) by striking ``(1) In general.--''; and
(B) by striking paragraph (2).
SEC. 716. AGENCY DUAL MANDATE AND ECONOMIC ANALYSIS.
(a) Purpose.--Section 1021(a) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5511(a)) is amended by
adding at the end the following: ``In addition, the Director
shall seek to implement and, where applicable, enforce
Federal consumer financial law consistently for the purpose
of strengthening participation in markets by covered persons,
without Government interference or subsidies, to increase
competition and enhance consumer choice.''.
(b) Office of Economic Analysis.--
(1) In general.--Section 1013 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5493), as amended by
section 725, is further amended by adding at the end the
following:
``(h) Office of Economic Analysis.--
``(1) Establishment.--The Director shall, not later than
the end of the 60-day period beginning on the date of the
enactment of this subsection, establish an Office of Economic
Analysis.
``(2) Direct reporting.--The head of the Office of Economic
Analysis shall report directly to the Director.
``(3) Review and assessment of proposed rules and
regulations.--The Office of Economic Analysis shall--
``(A) review all proposed rules and regulations, including
regulatory guidance, of the Agency;
``(B) assess the impact of such rules and regulations,
including regulatory guidance, on consumer choice, price, and
access to credit products; and
``(C) publish a report on such reviews and assessments in
the Federal Register.
``(4) Measuring existing rules and regulations.--The Office
of Economic Analysis shall--
``(A) review each rule and regulation issued by the Agency
after 1, 2, 6, and 11 years of the date such rule became
effective;
``(B) measure the rule or regulation's success in solving
the problem that the rule or regulation was intended to solve
when issued; and
``(C) publish a report on such review and measurement in
the Federal Register.
``(5) Cost-benefit analysis related to administrative
enforcement and civil actions.--The Office of Economic
Analysis shall--
``(A) carry out a cost-benefit analysis of any proposed
administrative enforcement action, civil lawsuit, or consent
order of the Agency; and
``(B) assess the impact of such complaint, lawsuit, or
order on consumer choice, price, and access to credit
products.''.
(2) 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.--Before issuing any rule or regulation,
the Director shall consider the review and assessment of such
rule or regulation, including regulatory guidance, carried
out by the Office of Economic Analysis.
``(6) Identification of problems and metrics for judging
success.--
``(A) In general.--The Director shall, in each proposed
rulemaking of the Agency--
``(i) identify the problem that the particular rule or
regulations is seeking to solve; and
``(ii) specify the metrics by which the Agency 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.''.
(3) Consideration of cost-benefit review related to
administrative actions.--The Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5301 et seq.) is
amended--
(A) in subtitle E of title X, by adding at the end the
following:
``SEC. 1059. CONSIDERATION OF COST-BENEFIT ANALYSIS RELATED
TO ADMINISTRATIVE ENFORCEMENT AND CIVIL
ACTIONS.
``Before initiating any administrative enforcement action
or civil lawsuit or entering into a consent order, the
Director shall consider the cost-benefit analysis of such
action, lawsuit, or order carried out by the Office of
Economic Analysis.''; and
[[Page H4769]]
(B) in the table of contents under section 1(b), by
inserting after the item relating to section 1058 the
following:
``Sec. 1059. Consideration of cost-benefit analysis related to
administrative enforcement and civil actions.''.
(c) Avoidance of Duplicative or Unnecessary Analyses.--The
Consumer Law Enforcement Agency may perform any of the
analyses required by the amendments made by this section in
conjunction with, or as part of, any other agenda or analysis
required by any other provision of law, if such other agenda
or analysis satisfies the provisions of this section.
SEC. 717. NO DEFERENCE TO AGENCY INTERPRETATION.
The Consumer Financial Protection Act of 2010 (12 U.S.C.
5481 et seq.) is amended--
(1) in section 1022(b)(4)--
(A) by striking ``(A) In general.--''; and
(B) by striking subparagraph (B); and
(2) in section 1061(b)(5)(E)--
(A) by striking ``affords to the--'' and all that follows
through ``(i) Federal Trade Commission'' and inserting
``affords to the Federal Trade Commission'';
(B) by striking ``; or'' and inserting a period; and
(C) by striking clause (ii).
Subtitle B--Administrative Enhancements
SEC. 721. ADVISORY OPINIONS.
Section 1022(b) of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5512(b)), as amended by section 716, is
further amended by adding at the end the following:
``(7) Advisory opinions.--
``(A) Establishing procedures.--
``(i) In general.--The Director shall establish a procedure
and, as necessary, promulgate rules to provide written
opinions in response to inquiries concerning the conformance
of specific conduct with Federal consumer financial law. In
establishing the procedure, the Director shall consult with
the prudential regulators and such other Federal departments
and agencies as the Director determines appropriate, and
obtain the views of all interested persons through a public
notice and comment period.
``(ii) Scope of request.--A request for an opinion under
this paragraph must relate to specific proposed or
prospective conduct by a covered person contemplating the
proposed or prospective conduct.
``(iii) Submission.--A request for an opinion under this
paragraph may be submitted to the Director either by or on
behalf of a covered person.
``(iv) Right to withdraw inquiry.--Any inquiry under this
paragraph may be withdrawn at any time prior to the Director
issuing an opinion in response to such inquiry, and any
opinion based on an inquiry that has been withdrawn shall
have no force or effect.
``(B) Issuance of opinions.--
``(i) In general.--The Director shall, within 90 days of
receiving the request for an opinion under this paragraph,
either--
``(I) issue an opinion stating whether the described
conduct would violate Federal consumer financial law;
``(II) if permissible under clause (iii), deny the request;
or
``(III) explain why it is not feasible to issue an opinion.
``(ii) Extension.--Notwithstanding clause (i), if the
Director determines that the Agency requires additional time
to issue an opinion, the Director may make a single extension
of the deadline of 90 days or less.
``(iii) Denial of requests.--The Director shall not issue
an opinion, and shall so inform the requestor, if the request
for an opinion--
``(I) asks a general question of interpretation;
``(II) asks about a hypothetical situation;
``(III) asks about the conduct of someone other than the
covered person on whose behalf the request is made;
``(IV) asks about past conduct that the covered person on
whose behalf the request is made does not plan to continue in
the future; or
``(V) fails to provide necessary supporting information
requested by the Agency within a reasonable time established
by the Agency.
``(iv) Amendment and revocation.--An advisory opinion
issued under this paragraph may be amended or revoked at any
time.
``(v) Public disclosure.--An opinion rendered pursuant to
this paragraph shall be placed in the Agency's public record
90 days after the requesting party has received the advice,
subject to any limitations on public disclosure arising from
statutory restrictions, Agency regulations, or the public
interest. The Agency shall redact any personal, confidential,
or identifying information about the covered person or any
other persons mentioned in the advisory opinion, unless the
covered person consents to such disclosure.
``(vi) Report to congress.--The Agency shall, concurrent
with the semi-annual report required under section 1016(b),
submit information regarding the number of requests for an
advisory opinion received, the subject of each request, the
number of requests denied pursuant to clause (iii), and the
time needed to respond to each request.
``(C) Reliance on opinion.--Any person may rely on an
opinion issued by the Director pursuant to this paragraph
that has not been amended or withdrawn. No liability under
Federal consumer financial law shall attach to conduct
consistent with an advisory opinion that had not been amended
or withdrawn at the time the conduct was undertaken.
``(D) Assistance for small businesses.--
``(i) In general.--The Agency shall assist, to the maximum
extent practicable, small businesses in preparing inquiries
under this paragraph.
``(ii) Small business defined.--For purposes of this
subparagraph, the term `small business' has the meaning given
the term `small business concern' under section 3 of the
Small Business Act (15 U.S.C. 632).
``(E) Inquiry fee.--
``(i) In general.--The Director shall develop a system to
charge a fee for each inquiry made under this paragraph in an
amount sufficient, in the aggregate, to pay for the cost of
carrying out this paragraph.
``(ii) Notice and comment.--Not later than 45 days after
the date of the enactment of this paragraph, the Director
shall publish a description of the fee system described in
clause (i) in the Federal Register and shall solicit comments
from the public for a period of 60 days after publication.
``(iii) Finalization.--The Director shall publish a final
description of the fee system and implement such fee system
not later than 30 days after the end of the public comment
period described in clause (ii).''.
SEC. 722. REFORM OF CONSUMER FINANCIAL CIVIL PENALTY FUND.
(a) Segregated Accounts.--Section 1017(b) of the Consumer
Financial Protection Act of 2010, as redesignated by section
712, is amended by redesignating paragraph (2) as paragraph
(3), and by inserting after paragraph (1) the following new
paragraph:
``(2) Segregated accounts in civil penalty fund.--
``(A) In general.--The Agency shall establish and maintain
a segregated account in the Civil Penalty Fund each time the
Agency obtains a civil penalty against any person in any
judicial or administrative action under Federal consumer
financial laws.
``(B) Deposits in segregated accounts.--The Agency shall
deposit each civil penalty collected into the segregated
account established for such penalty under subparagraph
(A).''.
(b) Payment to Victims.--Paragraph (3) of section 1017(b)
of such Act, as redesignated by subsection (a), is amended to
read as follows:
``(3) Payment to victims.--
``(A) In general.--
``(i) Identification of class.--Not later than 60 days
after the date of deposit of amounts in a segregated account
in the Civil Penalty Fund, the Agency shall identify the
class of victims of the violation of Federal consumer
financial laws for which such amounts were collected and
deposited under paragraph (2).
``(ii) Payments.--The Agency, within 2 years after the date
on which such class of victims is identified, shall locate
and make payments from such amounts to each victim.
``(B) Funds deposited in treasury.--
``(i) In general.--The Agency shall deposit into the
general fund of the Treasury any amounts remaining in a
segregated account in the Civil Penalty Fund at the end of
the 2-year period for payments to victims under subparagraph
(A).
``(ii) Impossible or impractical payments.--If the Agency
determines before the end of the 2-year period for payments
to victims under subparagraph (A) that such victims cannot be
located or payments to such victims are otherwise not
practicable, the Agency shall deposit into the general fund
of the Treasury the amounts in the segregated account in the
Civil Penalty Fund.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to civil penalties collected after the
date of enactment of this Act.
(2) Amounts in consumer financial civil penalty fund on
date of enactment.--With respect to amounts in the Consumer
Financial Civil Penalty Fund on the date of enactment of this
Act that were not allocated for consumer education and
financial literacy programs on or before September 30, 2015,
the Consumer Law Enforcement Agency shall separate such
amounts into segregated accounts in accordance with, and for
purposes of, section 1017(d) of the Consumer Financial
Protection Act of 2010, as amended by this section. The date
of deposit of such amounts shall be deemed to be the date of
enactment of this Act.
SEC. 723. AGENCY PAY FAIRNESS.
(a) In General.--Section 1013(a)(2) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5493(a)(2)) is
amended to read as follows:
``(2) Compensation.--The rates of basic pay for all
employees of the Agency shall be set and adjusted by the
Director in accordance with the General Schedule set forth in
section 5332 of title 5, United States Code.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to service by an employee of the Consumer Law
Enforcement Agency following the 90-day period beginning on
the date of enactment of this Act.
SEC. 724. ELIMINATION OF MARKET MONITORING FUNCTIONS.
The Consumer Financial Protection Act of 2010 (12 U.S.C.
5481 et seq.) is amended--
(1) in section 1021(c)--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4), (5), and (6) as
paragraphs (3), (4), and (5), respectively;
(2) in section 1022, by striking subsection (c); and
(3) in section 1026(b), by striking ``, and to assess and
detect risks to consumers and consumer financial markets''.
SEC. 725. REFORMS TO MANDATORY FUNCTIONAL UNITS.
The Consumer Financial Protection Act of 2010 (12 U.S.C.
5481 et seq.) is amended--
(1) in section 1013--
(A) in subsection (b)--
(i) in paragraph (1), by striking ``shall establish'' and
inserting ``may establish'';
(ii) in paragraph (2), by striking ``shall establish'' and
inserting ``may establish''; and
(iii) paragraph (3)(D)--
(I) by striking ``To facilitate preparation of the reports
required under subparagraph (C),
[[Page H4770]]
supervision and enforcement activities, and monitoring of the
market for consumer financial products and services, the''
and inserting ``The''; and
(II) by adding at the end the following: ``Information
collected under this paragraph may not be made publicly
available, except as required by law.'';
(B) in subsection (c)--
(i) in paragraph (1), by striking ``shall establish'' and
inserting ``may establish''; and
(ii) in paragraph (3), by striking ``There is established
the'' and inserting ``At any time when the Office of Fair
Lending and Equal Opportunity exists within the Agency, there
shall be a'';
(C) in subsection (d)--
(i) in paragraph (1), by striking ``shall establish'' and
inserting ``may establish'';
(ii) in paragraph (3)--
(I) in subparagraph (A), by inserting ``, if such Office
exists within the Agency,'' after ``Community Affairs
Office''; and
(II) in subparagraph (B), by striking ``established by the
Director'' and inserting ``, if established by the
Director,''; and
(iii) in paragraph (4), by striking ``Not later than 24
months after the designated transfer date, and annually
thereafter,'' and inserting ``Annually, at any time when the
Office of Financial Education exists within the Agency,'';
(D) in subsection (e)(1), by striking ``shall establish''
and inserting ``may establish'';
(E) by striking subsection (f);
(F) by redesignating subsections (g) and (h) as subsections
(f) and (g), respectively; and
(G) in subsection (f), as so redesignated--
(i) in paragraph (1)--
(I) by striking ``Before the end of the 180-day period
beginning on the designated transfer date, the Director
shall'' and inserting ``The Director may''; and
(II) by striking ``on protection from unfair, deceptive,
and abusive practices and'';
(ii) in paragraph (2), by striking ``The Office'' and
inserting ``At any time when the Office of Financial
Protection for Older Americans exists within the Agency, the
Office''; and
(iii) in paragraph (3)--
(I) in subparagraph (A)--
(aa) by striking clause (i);
(bb) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively; and
(cc) in clause (ii), as so redesignated, by striking ``to
respond to consumer problems caused by unfair, deceptive, or
abusive practices'';
(II) in subparagraph (B), by striking ``and alert the
Commission and State regulators of certifications or
designations that are identified as unfair, deceptive, or
abusive''; and
(III) in subparagraph (D)--
(aa) by striking clause (i); and
(bb) by redesignating clauses (ii) and (iii) as clauses (i)
and (ii), respectively;
(2) in section 1029(e), by inserting after ``Affairs,'' the
following: ``if established under this title,''; and
(3) in section 1035--
(A) in subsection (a), by striking ``shall designate'' and
inserting ``may designate''; and
(B) in subsection (b), by striking ``The Secretary'' and
inserting ``If the Secretary designates the Ombudsman under
subsection (a), the Secretary''.
SEC. 726. REPEAL OF MANDATORY ADVISORY BOARD.
(a) In General.--Section 1014 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5494) is repealed.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by striking the item relation to
section 1014.
(c) Rule of Construction.--Nothing in this section may be
construed as limiting the authority of the Director of the
Consumer Law Enforcement Agency to establish advisory
committees pursuant to the Federal Advisory Committee Act.
SEC. 727. ELIMINATION OF SUPERVISION AUTHORITY.
(a) In General.--The Consumer Financial Protection Act of
2010 (12 U.S.C. 5481 et seq.) is amended--
(1) in section 1002(15)(B)(ii)(I), by striking
``examination or'';
(2) in section 1013(a)(1)(B), by striking ``compliance
examiners, compliance supervision analysts,'';
(3) in section 1016(c)--
(A) in paragraph (5), by striking ``supervisory and''; and
(B) in paragraph (6), by striking ``orders, and supervisory
actions'' and inserting ``and orders'';
(4) in section 1024--
(A) in the heading, by striking ``SUPERVISION OF'' and
inserting ``AUTHORITY WITH RESPECT TO CERTAIN'';
(B) in subsection (a)--
(i) in paragraph (1)(B), by striking ``as defined by rule
in accordance with paragraph (2)'' and inserting ``as of the
date of the enactment of the Financial CHOICE Act of 2017'';
(ii) by striking paragraph (2);
(iii) by redesignating paragraph (3) as paragraph (2); and
(iv) in subparagraph (A) of paragraph (2), as so
redesignated, by striking ``1025(a) or'';
(C) by striking subsection (b);
(D) by redesignating subsections (c), (d), (e), and (f) as
subsections (b), (c), (d), and (e), respectively;
(E) in subsection (c), as so redesignated--
(i) in the heading, by striking ``and Examination
Authority''; and
(ii) by striking ``, conduct examinations,'' each place
such term appears;
(F) in subsection (d), as so redesignated--
(i) by inserting ``rulemaking and enforcement, but not
supervisory,'' before ``authority of the Bureau''; and
(ii) by striking ``conducting any examination or requiring
any report from a service provider subject to this
subsection'' and inserting ``carrying out any authority
pursuant to this subsection with respect to a service
provider'';
(5) by striking section 1025;
(6) in section 1026--
(A) by amending subsection (a) to read as follows:
``(a) Scope of Coverage.--This section shall apply to any
covered person that is an insured depository institution or
an insured credit union.'';
(B) in subsection (b)(3), by striking ``report of
examination or related'';
(C) by striking subsection (c);
(D) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively;
(E) in subsection (c), as so redesignated, by adding at the
end the following:
``(3) Very large institutions.--
``(A) Primary enforcement authority.--Notwithstanding
paragraph (1), to the extent that the Agency and another
Federal agency are authorized to enforce a Federal consumer
financial law, the Agency shall have primary authority to
enforce that Federal consumer financial law with respect to
an insured depository institution or insured credit union, if
such depository institution or credit union has total assets
of more than $10,000,000,000, and any affiliate thereof.
``(B) Referral.--Any Federal agency, other than the Federal
Trade Commission, that is authorized to enforce a Federal
consumer financial law may recommend, in writing, to the
Agency that the Agency initiate an enforcement proceeding
with respect to a person described in subparagraph (A), as
the Agency is authorized to do by that Federal consumer
financial law.
``(C) Backup enforcement authority.--If the Agency does
not, before the end of the 120-day period beginning on the
date on which the Agency receives a recommendation under
subparagraph (B), initiate an enforcement proceeding, the
other agency referred to in subparagraph (B) may initiate an
enforcement proceeding.''; and
(F) in subsection (d), as so redesignated--
(i) by inserting after ``subsection (a)'' the following:
``, or to any person described under subsection (c)(3)(A),'';
(ii) by striking ``section 1025'' and inserting ``this
section''; and
(iii) by striking ``When conducting any examination or
requiring any report from a service provider subject to this
subsection'' and inserting ``In carrying out any authority
pursuant to this subsection with respect to a service
provider'';
(7) in section 1027--
(A) by striking ``supervisory,'' each place such term
appears;
(B) in subsection (e)(1), by striking ``supervisory or'';
and
(C) in subsection (p), by striking ``section 1024(c)(1)''
and inserting ``section 1024(b)(1)'';
(8) in section 1034--
(A) by striking subsections (b) and (c); and
(B) by redesignating subsection (d) as subsection (b);
(9) in section 1053--
(A) in subsection (b)(1)(A), by striking ``sections 1024,
1025, and 1026'' and inserting ``sections 1024 and 1026'';
and
(B) in subsection (c)(3)(B)(ii)(II), by striking ``, by
examination or otherwise,'';
(10) in section 1054(a), by striking ``sections 1024, 1025,
and 1026'' and inserting ``sections 1024 and 1026'';
(11) in section 1061--
(A) in subsection (a)(1)--
(i) in subparagraph (A), by striking ``; and'' at the end
and inserting a period;
(ii) by striking ``means--'' and all that follows through
``(A) all'' and inserting ``means all'';
(iii) by striking subparagraph (B); and
(B) in subsection (c)--
(i) by amending paragraph (1) to read as follows:
``(1) Examination.--A transferor agency that is a
prudential regulator shall have exclusive authority (relative
to the Bureau) to require reports from and conduct
examinations for compliance with Federal consumer financial
laws with respect to a person described in section
1026(a).'';
(ii) in paragraph (2)--
(I) by striking subparagraph (A); and
(II) by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively;
(12) in section 1063, by striking ``sections 1024, 1025,
and 1026'' each place such term appears and inserting
``sections 1024 and 1026''; and
(13) in section 1067, by striking subsection (e).
(b) Home Mortgage Disclosure Act of 1975.--Section 305(d)
of the Home Mortgage Disclosure Act of 1975 (12 U.S.C.
2804(d)) is amended by striking ``examine and''.
(c) Omnibus Appropriations Act, 2009.--Section 626 of the
Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 note) is
repealed.
(d) Clerical Amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended--
(1) in the item relating to section 1024, by striking
``SUPERVISION OF'' and inserting ``AUTHORITY WITH RESPECT TO
CERTAIN''; and
(2) by striking the item relating to section 1025.
SEC. 728. TRANSFER OF OLD OTS BUILDING FROM OCC TO GSA.
Within 180 days of the date of the enactment of this Act,
the Comptroller of the Currency shall transfer, at no cost,
the parcel of real property in the District of Columbia
located at 1700 G Street, Northwest, to the administrative
jurisdiction, custody, and control of the Administrator of
General Services.
[[Page H4771]]
SEC. 729. LIMITATION ON AGENCY AUTHORITY.
Section 1027 of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5517) is amended--
(1) in subsection (g)(3)(A), by striking ``may not exercise
any rulemaking or enforcement authority'' and inserting ``may
not exercise any rulemaking, enforcement, or other
authority'';
(2) in subsection (i)(1), by striking ``shall have no
authority to exercise any power to enforce this title'' and
inserting ``may not exercise any rulemaking, enforcement, or
other authority''; and
(3) in subsection (j)(1), by striking ``shall have no
authority to exercise any power to enforce this title'' and
inserting ``may not exercise any rulemaking, enforcement, or
other authority''.
Subtitle C--Policy Enhancements
SEC. 731. CONSUMER RIGHT TO FINANCIAL PRIVACY.
(a) Requirement of the Agency to Obtain Permission Before
Collecting Nonpublic Personal Information.--Section 1022 of
the Consumer Financial Protection Act of 2010 (12 U.S.C.
5512), as amended by section 724(2), is further amended by
inserting after subsection (b) the following:
``(c) Consumer Privacy.--
``(1) In general.--The Agency may not request, obtain,
access, collect, use, retain, or disclose any nonpublic
personal information about a consumer unless--
``(A) the Agency clearly and conspicuously discloses to the
consumer, in writing or in an electronic form, what
information will be requested, obtained, accessed, collected,
used, retained, or disclosed; and
``(B) before such information is requested, obtained,
accessed, collected, used, retained, or disclosed, the
consumer informs the Agency that such information may be
requested, obtained, accessed, collected, used, retained, or
disclosed.
``(2) Application of requirement to contractors of the
agency.--Paragraph (1) shall apply to any person directed or
engaged by the Agency to collect information to the extent
such information is being collected on behalf of the Agency.
``(3) Definition of nonpublic personal information.--In
this subsection, the term `nonpublic personal information'
has the meaning given the term in section 509 of the Gramm-
Leach-Bliley Act (15 U.S.C. 6809).''.
(b) Removal of Exemption for the Agency From the Right to
Financial Privacy Act.--Section 1113 of the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3413) is amended by
striking subsection (r).
SEC. 732. REPEAL OF COUNCIL AUTHORITY TO SET ASIDE AGENCY
RULES AND REQUIREMENT OF SAFETY AND SOUNDNESS
CONSIDERATIONS WHEN ISSUING RULES.
(a) Repeal of Authority.--
(1) In general.--Section 1023 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5513) is hereby repealed.
(2) Conforming amendment.--Section 1022(b)(2)(C) of the
Consumer Financial Protection Act of 2010 (12 U.S.C.
5512(b)(2)(C)) is amended by striking ``, except that nothing
in this clause shall be construed as altering or limiting the
procedures under section 1023 that may apply to any rule
prescribed by the Bureau''.
(3) Clerical amendment.--The table of contents under
section 1(b) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act is amended by striking the item
relating to section 1023.
(b) Safety and Soundness Check.--Section 1022(b)(2)(A) of
the Consumer Financial Protection Act of 2010 (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 adding ``and'' at the end; and
(3) by adding at the end the following:
``(iii) the impact of such rule on the financial safety or
soundness of an insured depository institution;''.
SEC. 733. REMOVAL OF AUTHORITY TO REGULATE SMALL-DOLLAR
CREDIT.
The Consumer Financial Protection Act of 2010 (12 U.S.C.
5481 et seq.) is amended--
(1) in section 1024(a)(1)--
(A) in subparagraph (C), by adding ``or'' at the end;
(B) in subparagraph (D), by striking ``; or'' and inserting
a period; and
(C) by striking subparagraph (E); and
(2) in section 1027, by adding at the end the following:
``(t) No Authority to Regulate Small-dollar Credit.--The
Agency may not exercise any rulemaking, enforcement, or other
authority with respect to payday loans, vehicle title loans,
or other similar loans.''.
SEC. 734. REFORMING INDIRECT AUTO FINANCING GUIDANCE.
(a) Nullification of Auto Lending Guidance.--Bulletin 2013-
02 of the Bureau of Consumer Financial Protection (published
March 21, 2013) shall have no force or effect.
(b) Guidance Requirements.--Section 1022(b) of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5512(b)), as
amended by section 721, is further amended by adding at the
end the following:
``(8) Guidance on indirect auto financing.--In proposing
and issuing guidance primarily related to indirect auto
financing, the Agency shall--
``(A) provide for a public notice and comment period before
issuing the guidance in final form;
``(B) make available to the public, including on the
website of the Agency, all studies, data, methodologies,
analyses, and other information relied on by the Agency in
preparing such guidance;
``(C) redact such information as necessary to maintain the
nonpublic nature of confidential information, such as trade
secrets and other confidential commercial or financial
information, and personally identifiable information;
``(D) consult with the Board of Governors of the Federal
Reserve System, the Federal Trade Commission, and the
Department of Justice; and
``(E) conduct a study on the costs and impacts of such
guidance to consumers and women-owned, minority-owned,
veteran-owned, and small businesses, including consumers and
small businesses in rural areas.''.
(c) Rule of Construction.--Nothing in this section shall be
construed to apply to guidance issued by the Consumer Law
Enforcement Agency that is not primarily related to indirect
auto financing.
SEC. 735. REMOVAL OF AGENCY UDAAP AUTHORITY.
(a) In General.--The Consumer Financial Protection Act of
2010 (12 U.S.C. 5481 et seq.) is amended--
(1) in section 1021(b)(2), by striking ``from unfair,
deceptive, or abusive acts and practices and'';
(2) by striking section 1031;
(3) in section 1036(a)--
(A) in paragraph (1)--
(i) by striking ``provider'' and all that follows through
``to offer'' and inserting ``provider to offer'';
(ii) by striking subparagraph (B); and
(B) in paragraph (2)(C), by striking ``; or'' at the end
and inserting a period; and
(C) by striking paragraph (3); and
(4) in section 1061(b)(5)--
(A) in subparagraph (B)--
(i) by striking ``(i) In general.--''; and
(ii) by striking clause (ii);
(B) by striking subparagraph (D); and
(C) by redesignating subparagraph (E) (as amended by
section 717(2)) as subparagraph (D); and
(5) in section 1076(b)(2), by striking ``determine--'' and
all that follows through ``(B) provide for'' and inserting
``determine, provide for''.
(b) Telemarketing and Consumer Fraud and Abuse Prevention
Act.--Section 3(c) of the Telemarketing and Consumer Fraud
and Abuse Prevention Act (15 U.S.C. 6102) is amended--
(1) in paragraph (1), by striking ``; and'' at the end and
inserting a period;
(2) by striking paragraph (2); and
(3) by striking ``subsection (a)--'' and all that follows
through ``(1) shall'' and inserting ``subsection (a) shall''.
(c) Clerical Amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by striking the item relating to
section 1031.
SEC. 736. PRESERVATION OF UDAP AUTHORITY FOR FEDERAL BANKING
REGULATORS.
(a) In General.--Section 18(f) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)) is amended to read as
follows:
``(f) Unfair or Deceptive Acts or Practices by Depository
Institutions.--
``(1) In general.--In order to prevent unfair or deceptive
acts or practices in or affecting commerce (including acts or
practices which are unfair or deceptive to consumers) by
depository institutions, each Federal banking regulator shall
prescribe regulations to carry out the purposes of this
section, including regulations defining with specificity such
unfair or deceptive acts or practices, and containing
requirements prescribed for the purpose of preventing such
acts or practices.
``(2) Promulgating substantially similar regulations.--
Whenever the Commission prescribes a rule under subsection
(a)(1)(B), then within 60 days after such rule takes effect
each Federal banking regulator shall promulgate substantially
similar regulations prohibiting acts or practices of
depository institutions which are substantially similar to
those prohibited by rules of the Commission and which impose
substantially similar requirements, unless--
``(A) the Federal banking regulator finds that such acts or
practices of depository institutions are not unfair or
deceptive; or
``(B) the Board of Governors of the Federal Reserve System
finds that implementation of similar regulations with respect
to depository institutions would seriously conflict with
essential monetary and payments systems policies of such
Board, and publishes any such finding, and the reasons
therefor, in the Federal Register.
``(3) Enforcement.--
``(A) In general.--Compliance with regulations prescribed
under this subsection shall be enforced--
``(i) under section 8 of the Federal Deposit Insurance Act,
with respect to a depository institution other than a Federal
credit union; and
``(ii) under sections 120 and 206 of the Federal Credit
Union Act, with respect to a Federal credit union.
``(B) Deeming of violation.--For the purpose of the
exercise by a Federal banking regulator of the regulator's
powers under any Act referred to in subparagraph (A), a
violation of any regulation prescribed under this subsection
shall be deemed to be a violation of a requirement imposed
under that Act.
``(C) Enforcement through any existing authority.--In
addition to its powers under any provision of law
specifically referred to in subparagraph (A), each Federal
banking regulator may exercise, for the purpose of enforcing
compliance with any regulation prescribed under this
subsection, any other authority conferred on the regulator by
law.
``(4) Rule of construction.--The authority of the Board of
Governors of the Federal Reserve System to issue regulations
under this subsection does not impair the authority of any
other Federal banking regulator to make rules respecting the
regulator's own procedures in enforcing compliance with
regulations prescribed under this subsection.
``(5) Report to congress.--Each Federal banking regulator
exercising authority under
[[Page H4772]]
this subsection shall transmit to the Congress each year a
detailed report on its activities under this subsection
during the preceding calendar year.
``(6) Definitions.--For purposes of this Act:
``(A) Bank.--The term `bank' means--
``(i) national banks and Federal branches and Federal
agencies of foreign banks;
``(ii) member banks of the Federal Reserve System (other
than national banks), branches and agencies of foreign banks
(other than Federal branches, Federal agencies, and insured
State branches of foreign banks), commercial lending
companies owned or controlled by foreign banks, and
organizations operating under section 25 or 25A of the
Federal Reserve Act; and
``(iii) banks insured by the Federal Deposit Insurance
Corporation (other than banks referred to in clause (i) or
(ii)) and insured State branches of foreign banks.
``(B) Depository institution.--The term `depository
institution' means a bank, a savings and loan institution, or
a Federal credit union.
``(C) Federal banking regulator.--The term `Federal banking
regulator'--
``(i) has the meaning given the term `appropriate Federal
banking agency' under section 3 of the Federal Deposit
Insurance Act; and
``(ii) means the National Credit Union Administration, in
the case of a Federal credit union.
``(D) Federal credit union.--The term `Federal credit
union' has the same meaning as in section 101 of the Federal
Credit Union Act.
``(E) Savings and loan institution.--The term `savings and
loan institution' has the same meaning as in section 3 of the
Federal Deposit Insurance Act.
``(F) Other terms.--The terms used in this paragraph that
are not defined in this Act or otherwise defined in section
3(s) of the Federal Deposit Insurance Act shall have the
meaning given to them in section 1(b) of the International
Banking Act of 1978.''.
(b) Conforming Amendments.--The Federal Trade Commission
Act (15 U.S.C. 41 et seq.) is amended--
(1) in section 6(j)(6), by striking ``section 18(f)(3) (15
U.S.C. 57a(f)(3)), a Federal credit union described in
section 18(f)(4) (15 U.S.C. 57a(f)(4))'' and inserting
``section 18(f), a Federal credit union described in section
18(f)'';
(2) in section 21(b)(6)(C), by striking ``section 18(f)(3)
of the Federal Trade Commission Act (15 U.S.C. 57a(f)(3)), or
a Federal credit union described in section 18(f)(4) of the
Federal Trade Commission Act (15 U.S.C. 57a(f)(4))'' and
inserting ``section 18(f), or a Federal credit union
described in section 18(f)'';
(3) by striking ``section 18(f)(2)'' and inserting
``section 18(f)'';
(4) by striking ``section 18(f)(3)'' each place such term
appears and inserting ``section 18(f)''; and
(5) by striking ``section 18(f)(4)'' each place such term
appears and inserting ``section 18(f)''.
SEC. 737. REPEAL OF AUTHORITY TO RESTRICT ARBITRATION.
(a) In General.--Section 1028 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5518) is hereby repealed.
(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 striking the item
relating to section 1028.
TITLE VIII--CAPITAL MARKETS IMPROVEMENTS
Subtitle A--SEC Reform, Restructuring, and Accountability
SEC. 801. AUTHORIZATION OF APPROPRIATIONS.
Section 35 of the Securities Exchange Act of 1934 (15
U.S.C. 78kk) is amended by striking paragraphs (1) through
(5) and inserting the following:
``(1) for fiscal year 2017, $1,605,000,000;
``(2) for fiscal year 2018, $1,655,000,000;
``(3) for fiscal year 2019, $1,705,000,000;
``(4) for fiscal year 2020, $1,755,000,000;
``(5) for fiscal year 2021, $1,805,000,000; and
``(6) for fiscal year 2022, $1,855,000,000.''.
SEC. 802. REPORT ON UNOBLIGATED APPROPRIATIONS.
Section 23 of the Securities Exchange Act of 1934 (15
U.S.C. 78w) is amended by adding at the end the following:
``(e) Report on Unobligated Appropriations.--If, at the end
of any fiscal year, there remain unobligated any funds that
were appropriated to the Commission for such fiscal year, the
Commission shall, not later than 30 days after the last day
of such fiscal year, submit to the Committee on Financial
Services and the Committee on Appropriations of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs and the Committee on Appropriations of the
Senate and make available on the Commission's website a
report stating the amount of such unobligated funds. If there
is any material change in the amount stated in the report,
the Commission shall, not later than 7 days after determining
the amount of the change, submit to such committees and make
available on the Commission's website a supplementary report
stating the amount of and reason for the change.''.
SEC. 803. SEC RESERVE FUND ABOLISHED.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C.
78d) is amended by striking subsection (i).
SEC. 804. FEES TO OFFSET APPROPRIATIONS.
(a) Section 31 of the Securities Exchange Act of 1934.--
Section 31 of the Securities Exchange Act of 1934 (15 U.S.C.
78ee) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Collection.--The Commission shall, in accordance with
this section, collect transaction fees and assessments.'';
(2) in subsection (i)--
(A) in paragraph (1)(A), by inserting ``except as provided
in paragraph (2),'' before ``shall''; and
(B) by striking paragraph (2) and inserting the following:
``(2) General revenue.--Any fees collected for a fiscal
year pursuant to this section, sections 13(e) and 14(g) of
this title, and section 6(b) of the Securities Act of 1933 in
excess of the amount provided in appropriation Acts for
collection for such fiscal year pursuant to such sections
shall be deposited and credited as general revenue of the
Treasury.'';
(3) in subsection (j)--
(A) by striking ``the regular appropriation to the
Commission by Congress for such fiscal year'' each place it
appears and inserting ``the target offsetting collection
amount for such fiscal year''; and
(B) in paragraph (2), by striking ``subsection (l)'' and
inserting ``subsection (l)(2)''; and
(4) by striking subsection (l) and inserting the following:
``(l) Definitions.--For purposes of this section:
``(1) Target offsetting collection amount.--The target
offsetting collection amount for a fiscal year is--
``(A) for fiscal year 2017, $1,400,000,000; and
``(B) for each succeeding fiscal year, the target
offsetting collection amount for the prior fiscal year,
adjusted by the rate of inflation.
``(2) Baseline estimate of the aggregate dollar amount of
sales.--The baseline estimate of the aggregate dollar amount
of sales for any fiscal year is the baseline estimate of the
aggregate dollar amount of sales of securities (other than
bonds, debentures, other evidences of indebtedness, security
futures products, and options on securities indexes
(excluding a narrow-based security index)) to be transacted
on each national securities exchange and by or through any
member of each national securities association (otherwise
than on a national securities exchange) during such fiscal
year as determined by the Commission, after consultation with
the Congressional Budget Office and the Office of Management
and Budget, using the methodology required for making
projections pursuant to section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985.''.
(b) Section 6(b) of the Securities Act of 1933.--Section
6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) is
amended--
(1) by striking ``target fee collection amount'' each place
it appears and inserting ``target offsetting collection
amount'';
(2) in paragraph (4), by striking the last sentence and
inserting the following: ``Subject to paragraphs (6)(B) and
(7), an adjusted rate prescribed under paragraph (2) shall
take effect on the later of--
``(A) the first day of the fiscal year to which such rate
applies; or
``(B) five days after the date on which a regular
appropriation to the Commission for such fiscal year is
enacted.'';
(3) in paragraph (5), by inserting ``of the Securities
Exchange Act of 1934'' after ``sections 13(e) and 14(g)'';
(4) by redesignating paragraph (6) as paragraph (8);
(5) by inserting after paragraph (5) the following:
``(6) Offsetting collections.--Fees collected pursuant to
this subsection for any fiscal year--
``(A) except as provided in section 31(i)(2) of the
Securities Exchange Act of 1934, shall be deposited and
credited as offsetting collections to the account providing
appropriations to the Commission; and
``(B) except as provided in paragraph (7), shall not be
collected for any fiscal year except to the extent provided
in advance in appropriation Acts.
``(7) Lapse of appropriation.--If on the first day of a
fiscal year a regular appropriation to the Commission has not
been enacted, the Commission shall continue to collect fees
(as offsetting collections) under this subsection at the rate
in effect during the preceding fiscal year, until 5 days
after the date such a regular appropriation is enacted.'';
and
(6) in subparagraph (A) of paragraph (8) (as so
redesignated)--
(A) by striking the subparagraph heading and inserting
``Target offsetting collection amount.--''; and
(B) in the heading of the right column of the table, by
striking ``fee'' and inserting ``offsetting''.
(c) Section 13(e) of the Securities Exchange Act of 1934.--
Section 13(e) of the Securities Exchange Act of 1934 (15
U.S.C. 78m(e)) is amended--
(1) by striking paragraph (5) and inserting the following:
``(5) Offsetting collections.--Fees collected pursuant to
this subsection for any fiscal year--
``(A) except as provided in section 31(i)(2), shall be
deposited and credited as offsetting collections to the
account providing appropriations to the Commission; and
``(B) except as provided in paragraph (8), shall not be
collected for any fiscal year except to the extent provided
in advance in appropriations Acts.''; and
(2) by adding at the end the following:
``(8) Lapse of appropriation.--If on the first day of a
fiscal year a regular appropriation to the Commission has not
been enacted, the Commission shall continue to collect fees
(as offsetting collections) under this subsection at the rate
in effect during the preceding fiscal year, until 5 days
after the date such a regular appropriation is enacted.''.
(d) Section 14(g) of the Securities Exchange Act of 1934.--
Section 14(g) of the Securities Exchange Act of 1934 (15
U.S.C. 78n(g)) is amended--
(1) by striking paragraph (5) and inserting the following:
[[Page H4773]]
``(5) Offsetting collections.--Fees collected pursuant to
this subsection for any fiscal year--
``(A) except as provided in section 31(i)(2), shall be
deposited and credited as offsetting collections to the
account providing appropriations to the Commission; and
``(B) except as provided in paragraph (8), shall not be
collected for any fiscal year except to the extent provided
in advance in appropriations Acts.'';
(2) by redesignating paragraph (8) as paragraph (9); and
(3) by inserting after paragraph (7) the following:
``(8) Lapse of appropriation.--If on the first day of a
fiscal year a regular appropriation to the Commission has not
been enacted, the Commission shall continue to collect fees
(as offsetting collections) under this subsection at the rate
in effect during the preceding fiscal year, until 5 days
after the date such a regular appropriation is enacted.''.
(e) Effective Date.--The amendments made by this section--
(1) shall apply beginning on October 1, 2017, except that
for fiscal year 2018, the Securities and Exchange Commission
shall publish--
(A) the rates established under section 31 of the
Securities Exchange Act of 1934, as amended by this section,
not later than 30 days after the date on which an Act making
a regular appropriation to the Commission for fiscal year
2018 is enacted; and
(B) the rate established under section 6(b) of the
Securities Act of 1933, as amended by this section, not later
than August 31, 2017; and
(2) shall not apply with respect to fees for any fiscal
year before fiscal year 2018.
SEC. 805. COMMISSION FEDERAL CONSTRUCTION FUNDING
PROHIBITION.
The Securities and Exchange Commission may not obligate any
funds for the purpose of Federal construction of a new
headquarters facility of the Commission.
SEC. 806. IMPLEMENTATION OF RECOMMENDATIONS.
Section 967 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act is amended by adding at the end the
following:
``(d) Implementation of Recommendations.--Not later than 6
months after the date of enactment of this subsection, the
Securities and Exchange Commission shall complete an
implementation of the recommendations contained in the report
of the independent consultant issued under subsection (b) on
March 10, 2011. To the extent that implementation of certain
recommendations requires legislation, the Commission shall
submit a report to Congress containing a request for
legislation granting the Commission such authority it needs
to fully implement such recommendations.''.
SEC. 807. OFFICE OF CREDIT RATINGS TO REPORT TO THE DIVISION
OF TRADING AND MARKETS.
Section 15E(p)(1) of the Securities Exchange Act of 1934
(15 U.S.C. 78o-7(p)(1)) is amended--
(1) in subparagraph (A), by striking ``within the
Commission'' and inserting ``within the Division of Trading
and Markets''; and
(2) in subparagraph (B), by striking ``report to the
Chairman'' and inserting ``report to the head of the Division
of Trading and Markets''.
SEC. 808. OFFICE OF MUNICIPAL SECURITIES TO REPORT TO THE
DIVISION OF TRADING AND MARKETS.
Section 979 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (15 U.S.C. 78o-4a) is amended--
(1) in subsection (a), by inserting ``, within the Division
of Trading and Markets,'' after ``There shall be in the
Commission''; and
(2) in subsection (b), by striking ``report to the
Chairman'' and inserting ``report to the head of the Division
of Trading and Markets''.
SEC. 809. INDEPENDENCE OF COMMISSION OMBUDSMAN.
Section 4(g)(8) of the Securities Exchange Act of 1934 (15
U.S.C. 78d(g)(8)) is amended--
(1) in subparagraph (A), by striking ``the Investor
Advocate shall appoint'' and all that follows through
``Investor Advocate'' and inserting ``the Chairman shall
appoint an Ombudsman, who shall report to the Commission'';
and
(2) in subparagraph (D)--
(A) by striking ``report to the Investor Advocate'' and
inserting ``report to the Commission''; and
(B) by striking the last sentence.
SEC. 810. INVESTOR ADVISORY COMMITTEE IMPROVEMENTS.
Section 39 of the Securities Exchange Act of 1934 (15
U.S.C. 78pp) is amended--
(1) in subsection (a)(2)(B), by striking ``submit'' and
inserting ``in consultation with the Small Business Capital
Formation Advisory Committee established under section 40,
submit'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``and'';
(ii) in subparagraph (D)(iv), by striking the period at the
end and inserting ``; and''; and
(iii) by adding at the end the following:
``(E) a member of the Small Business Capital Formation
Advisory Committee who shall be a nonvoting member.'';
(B) by amending paragraph (2) to read as follows:
``(2) Term.--
``(A) Length of term for members of the committee.--Each
member of the Committee appointed under paragraph (1), other
than the Investor Advocate, shall serve for a term of 4
years.
``(B) Limitation on multiple terms.--A member of the
Committee may not serve for more than one term, except for
the Investor Advocate, a representative of State securities
commissions, and the member of the Small Business Capital
Formation Advisory Committee.''; and
(C) in paragraph (3), by striking ``paragraph (1)(B)'' and
inserting ``paragraph (1)'';
(3) in subsection (c), by amending paragraph (2) to read as
follows:
``(2) Term.--
``(A) Length of term.--Each member elected under paragraph
(1) shall serve for a term of 3 years in the capacity for
which the member was elected under paragraph (1).
``(B) Limitation on multiple terms.--A member elected under
paragraph (1) may not serve for more than one term in the
capacity for which the member was elected under paragraph
(1).''; and
(4) by striking subsections (i) and (j).
SEC. 811. DUTIES OF INVESTOR ADVOCATE.
Section 4(g)(4) of the Securities Exchange Act of 1934 (15
U.S.C. 78d(g)(4)) is amended--
(1) in subparagraph (D)(ii), by striking ``and'';
(2) in subparagraph (E), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(F) not take a position on any legislation pending before
Congress other than a legislative change proposed by the
Investor Advocate pursuant to subparagraph (E);
``(G) consult with the Advocate for Small Business Capital
Formation on proposed recommendations made under subparagraph
(E); and
``(H) advise the Advocate for Small Business Capital
Formation on issues related to small business investors.''.
SEC. 812. ELIMINATION OF EXEMPTION OF SMALL BUSINESS CAPITAL
FORMATION ADVISORY COMMITTEE FROM FEDERAL
ADVISORY COMMITTEE ACT.
Section 40 of the Securities Exchange Act of 1934 (as added
by Public Law 114-284) is amended by striking subsection (h).
SEC. 813. INTERNAL RISK CONTROLS.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
is amended--
(1) by inserting after section 4G, as added by this Act,
the following:
``SEC. 4H. INTERNAL RISK CONTROLS.
``(a) In General.--Each of the following entities, in
consultation with the Chief Economist, shall develop
comprehensive internal risk control mechanisms to safeguard
and govern the storage of all market data by such entity, all
market data sharing agreements of such entity, and all
academic research performed at such entity using market data:
``(1) The Commission.
``(2) Each national security association required to
register under section 15A.
``(b) Consolidated Audit Trail.--The Commission may not
approve a national market system plan pursuant to part
242.613 of title 17, Code of Federal Regulations (or any
successor regulation), unless the operator of the
consolidated audit trail created by such plan has developed,
in consultation with the Chief Economist, comprehensive
internal risk control mechanisms to safeguard and govern the
storage of all market data by such operator, all market data
sharing agreements of such operator, and all academic
research performed at such operator using market data.'';
(2) in section 3(a), by redesignating the second paragraph
(80) (relating to funding portals) as paragraph (81); and
(3) in section 3(a), by adding at the end the following:
``(82) Chief economist.--The term `Chief Economist' means
the Director of the Division of Economic and Risk Analysis,
or an employee of the Commission with comparable authority,
as determined by the Commission.''.
SEC. 814. APPLICABILITY OF NOTICE AND COMMENT REQUIREMENTS OF
THE ADMINISTRATIVE PROCEDURE ACT TO GUIDANCE
VOTED ON BY THE COMMISSION.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
is amended by inserting after section 4H, as added by this
Act, the following:
``SEC. 4I. APPLICABILITY OF NOTICE AND COMMENT REQUIREMENTS
OF THE ADMINISTRATIVE PROCEDURE ACT TO GUIDANCE
VOTED ON BY THE COMMISSION.
``The notice and comment requirements of section 553 of
title 5, United States Code, shall also apply with respect to
any Commission statement or guidance, including interpretive
rules, general statements of policy, or rules of Commission
organization, procedure, or practice, that has the effect of
implementing, interpreting, or prescribing law or policy and
that is voted on by the Commission.''.
SEC. 815. LIMITATION ON PILOT PROGRAMS.
(a) In General.--Section 4 of the Securities Exchange Act
of 1934 (15 U.S.C. 78d), as amended by section 371(e), is
further amended by adding at the end the following:
``(l) Limitation on Pilot Programs.--
``(1) In general.--Any pilot program established by self-
regulatory organizations, either individually or jointly, and
filed with the Commission, including under section 11A or 19,
shall terminate after the end of the 5-year period beginning
on the date that the Commission approved such program, unless
the Commission issues a rule to permanently continue such
program or approves such program on a permanent basis.
``(2) Extension.--With respect to a particular pilot
program described under paragraph (1), the Commission may
extend the 5-year period described under such paragraph for
an additional 3 years if the Commission determines such
extension is necessary or appropriate in the public interest
or for the protection of investors.
``(3) Lack of statutory authority.--If, with respect to a
pilot program described under paragraph (1), the Commission
determines that the pilot program should continue
permanently, but the Commission lacks sufficient statutory
authority to permanently continue the program, the Commission
shall, not later than 1 year before such pilot program is
scheduled to terminate pursuant to paragraph (1), notify the
Committee on Financial Services of the House of
[[Page H4774]]
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate that the Commission believes the
program should continue permanently but does not have
sufficient statutory authority to continue the program.''.
(b) Treatment of Existing Pilot Programs.--For purposes of
section 4(k) of Securities Exchange Act of 1934, as added by
subsection (a), the date on which the Commission approved a
pilot program that was in existence on the date of the
enactment of this Act shall be deemed to be the date of the
enactment of this Act.
SEC. 816. PROCEDURE FOR OBTAINING CERTAIN INTELLECTUAL
PROPERTY.
(a) Persons Under Securities Act of 1933.--Section 8 of the
Securities Act of 1933 (15 U.S.C. 77h) is amended by adding
at the end the following:
``(g) Procedure for Obtaining Certain Intellectual
Property.--The Commission is not authorized to compel under
this title a person to produce or furnish source code,
including algorithmic trading source code or similar
intellectual property, to the Commission unless the
Commission first issues a subpoena.''.
(b) Persons Under the Securities Exchange Act of 1934.--
Section 23 of the Securities Exchange Act of 1934 (15 U.S.C.
78w), as amended by section 802, is further amended by adding
at the end the following:
``(f) Procedure for Obtaining Certain Intellectual
Property.--The Commission is not authorized to compel under
this title a person to produce or furnish source code,
including algorithmic trading source code or similar
intellectual property, to the Commission unless the
Commission first issues a subpoena.''.
(c) Investment Companies.--Section 31 of the Investment
Company Act of 1940 (15 U.S.C. 80a-30) is amended by adding
at the end the following:
``(e) Procedure for Obtaining Certain Intellectual
Property.--The Commission is not authorized to compel under
this title an investment company to produce or furnish source
code, including algorithmic trading source code or similar
intellectual property, to the Commission unless the
Commission first issues a subpoena.''.
(d) Investment Advisers.--Section 204 of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-4) is amended--
(1) by adding at the end the following:
``(f) Procedure for Obtaining Certain Intellectual
Property.--The Commission is not authorized to compel under
this title an investment adviser to produce or furnish source
code, including algorithmic trading source code or similar
intellectual property, to the Commission unless the
Commission first issues a subpoena.''; and
(2) in the second subsection (d), by striking ``(d)'' and
inserting ``(e)''.
SEC. 817. PROCESS FOR CLOSING INVESTIGATIONS.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Securities and Exchange
Commission shall establish a process for closing
investigations (including preliminary or informal
investigations) that is designed to ensure that the
Commission, in a timely manner--
(1) makes a determination of whether or not to institute an
administrative or judicial action in a matter or refer the
matter to the Attorney General for potential criminal
prosecution; and
(2) if the Commission determines not to institute such an
action or refer the matter to the Attorney General, informs
the persons who are the subject of the investigation that the
investigation is closed.
(b) Rule of Construction.--Nothing in this section shall be
construed to affect the authority of the Commission to re-
open an investigation if the Commission obtains new evidence
after the investigation is closed, subject to any applicable
statute of limitations.
SEC. 818. ENFORCEMENT OMBUDSMAN.
(a) In General.--Section 4 of the Securities Exchange Act
of 1934 (15 U.S.C. 78d), as amended by section 803, is
further amended by inserting after subsection (h) the
following:
``(i) Enforcement Ombudsman.--
``(1) Establishment.--The Commission shall have an
Enforcement Ombudsman, who shall be appointed by and report
directly to the Commission.
``(2) Duties.--The Enforcement Ombudsman shall--
``(A) act as a liaison between the Commission and any
person who is the subject of an investigation (including a
preliminary or informal investigation) by the Commission or
an administrative or judicial action brought by the
Commission in resolving problems that such persons may have
with the Commission or the conduct of Commission staff; and
``(B) establish safeguards to maintain the confidentiality
of communications between the persons described in
subparagraph (A) and the Enforcement Ombudsman.
``(3) Limitation.--In carrying out the duties of the
Enforcement Ombudsman under paragraph (2), the Enforcement
Ombudsman shall utilize personnel of the Commission to the
extent practicable. Nothing in this subsection shall be
construed as replacing, altering, or diminishing the
activities of any ombudsman or similar office of any other
agency.
``(4) Report.--The Enforcement Ombudsman shall submit to
the Commission and to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate an annual report
that describes the activities and evaluates the effectiveness
of the Enforcement Ombudsman during the preceding year.''.
(b) Deadline for Initial Appointment.--The Securities and
Exchange Commission shall appoint the initial Enforcement
Ombudsman under subsection (i) of section 4 of the Securities
Exchange Act of 1934, as added by subsection (a), not later
than 180 days after the date of the enactment of this Act.
SEC. 819. ADEQUATE NOTICE.
Section 21 of the Securities Exchange Act of 1934 (15
U.S.C. 78u) is amended by adding at the end the following:
``(j) Adequate Notice Required Before Bringing an
Enforcement Action.--
``(1) In general.--No person shall be subject to an
enforcement action by the Commission for an alleged violation
of the securities laws or the rules and regulations issued
thereunder if such person did not have adequate notice of
such law, rule, or regulation.
``(2) Publishing of interpretation deemed adequate
notice.--With respect to an enforcement action, adequate
notice of a securities law or a rule or regulation issued
thereunder shall be deemed to have been provided to a person
if the Commission approved a statement or guidance, in
accordance with section 4I, with respect to the conduct that
is the subject of the enforcement action, prior to the time
that the person engaged in the conduct that is the subject of
the enforcement action.''.
SEC. 820. ADVISORY COMMITTEE ON COMMISSION'S ENFORCEMENT
POLICIES AND PRACTICES.
(a) Establishment.--Not later than 6 months after the date
of the enactment of this Act, the Chairman shall establish an
advisory committee on the Commission's enforcement policies
and practices (in this section referred to as the
``Committee'').
(b) Duties.--
(1) Analysis and recommendations.--
(A) In general.--The Committee shall conduct an analysis of
the policies and practices of the Commission relating to the
enforcement of the securities laws and make recommendations
to the Commission regarding changes to such policies and
practices.
(B) Specific matters included.--In carrying out
subparagraph (A), the Committee shall analyze and make
recommendations to the Commission regarding matters including
the following:
(i) How the Commission's enforcement objectives and
strategies may be more effective.
(ii) The Commission's enforcement practices and procedures
from the point of view of due process, the relationship of
enforcement action to notice of legal requirements, the
attribution of responsibility for violations, and the
protection of reputation and rights of privacy.
(iii) The Commission's enforcement policies and practices
in light of its statutory responsibility to protect
investors, maintain fair, orderly, and efficient markets, and
facilitate capital formation.
(iv) The appropriate blend of regulation, publicity, and
formal enforcement action and on methods of furthering
voluntary compliance.
(v) Criteria for the selection and disposition of
enforcement actions, the adequacy of sanctions authorized by
law, and the suitability and effectiveness of sanctions
imposed by the Commission proceedings.
(2) Report.--Not later than 1 year after the establishment
of the Committee under subsection (a), the Committee shall
submit to the Commission and the appropriate congressional
committees a report containing the results of the analysis
and the recommendations required by paragraph (1)(A).
(c) Membership.--
(1) Number and appointment.--The Committee shall be
composed of not less than 3 and not greater than 7 members
appointed by the Chairman.
(2) Chairperson.--The Chairperson of the Committee shall be
designated by the Chairman at the time of appointment of the
members.
(d) Support.--The Commission shall provide the Committee
with the administrative, professional, and technical support
required by the Committee to carry out its responsibilities
under this section.
(e) Termination of Committee.--The Committee established by
subsection (a) shall terminate on the date that the report
required by subsection (b)(2) is submitted.
(f) Consideration and Adoption of Recommendations by
Commission.--Not later than 180 days after the Committee
submits the report required by subsection (b)(2), the
Commission shall--
(1) consider the analysis and recommendations included in
such report;
(2) adopt such recommendations, with any modifications, as
the Commission considers appropriate; and
(3) submit to the appropriate congressional committees a
report that--
(A) lists each recommendation included in such report that
the Commission does not adopt or adopts with material
modifications; and
(B) for each recommendation listed under subparagraph (A),
explains why the Commission does not consider it appropriate
or does not have sufficient authority to adopt the
recommendation or to adopt the recommendation without
material modification.
(g) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) Chairman.--The term ``Chairman'' means the Chairman of
the Commission.
(3) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(4) Securities laws.--The term ``securities laws'' has the
meaning given such term in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).
(h) Application of the Federal Advisory Committee Act.--The
Committee is an advisory
[[Page H4775]]
committee for purposes of the Federal Advisory Committee Act
(5 U.S.C. App.).
SEC. 821. PROCESS TO PERMIT RECIPIENT OF WELLS NOTIFICATION
TO APPEAR BEFORE COMMISSION STAFF IN-PERSON.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Securities and Exchange
Commission shall establish a process under which, in any
instance in which the Commission staff provides a written
Wells notification to an individual informing the individual
that the Commission staff has made a preliminary
determination to recommend that the Commission bring an
administrative or judicial action against the individual, the
individual shall have the right to make an in-person
presentation before the Commission staff concerning such
recommendation and to be represented by counsel at such
presentation, at the individual's own expense.
(b) Attendance by Commissioners.--Such process shall
provide that each Commissioner of the Commission, or a
designee of the Commissioner, may attend any such
presentation.
(c) Report by Commission Staff.--Such process shall provide
that, before any Commission vote on whether to bring the
administrative or judicial action against the individual, the
Commission staff shall provide to each Commissioner a written
report on any such presentation, including any factual or
legal arguments made by the individual and any supporting
documents provided by the individual.
SEC. 822. PUBLICATION OF ENFORCEMENT MANUAL.
(a) In General.--Not later than 1 year after the date of
the enactment of this Act, the Securities and Exchange
Commission shall approve, by vote of the Commission, and
publish an updated manual that sets forth the policies and
practices that the Commission will follow in the enforcement
of the securities laws (as defined in section 3(a) of the
Securities Exchange Act of 1934 (15 U.S.C. 78c(a))). Such
manual shall include policies and practices required by this
Act, and by the amendments made by this Act, and shall be
developed so as to ensure transparency in such enforcement
and uniform application of such laws by the Commission.
(b) Enforcement Plan and Report.--Beginning on the date
that is one year after the date of enactment of this Act, and
each year thereafter, the Securities and Exchange Commission
shall transmit to Congress and publish on its Internet
website an annual enforcement plan and report that shall--
(1) detail the priorities of the Commission with regard to
enforcement and examination activities for the forthcoming
year;
(2) report on the Commission's enforcement and examination
activities for the previous year, including an assessment of
how such activities comported with the priorities identified
for that year pursuant to paragraph (1);
(3) contain an analysis of litigated decisions found not in
favor of the Commission over the preceding year;
(4) contain a description of any emerging trends the
Commission has focused on as part of its enforcement program,
including whether and how the Commission has alerted or
communicated with those who may be subject to the
Commission's regulation of emerging trends;
(5) contain a description of legal theories or standards
employed by the Commission in enforcement over the preceding
year that had not previously been employed, and a summary
justifying each such theory or standard; and
(6) provide an opportunity and mechanism for public
comment.
SEC. 823. PRIVATE PARTIES AUTHORIZED TO COMPEL THE SECURITIES
AND EXCHANGE COMMISSION TO SEEK SANCTIONS BY
FILING CIVIL ACTIONS.
Title I of the Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.) is amended by adding at the end the following:
``SEC. 41. PRIVATE PARTIES AUTHORIZED TO COMPEL THE
COMMISSION TO SEEK SANCTIONS BY FILING CIVIL
ACTIONS.
``(a) Termination of Administrative Proceeding.--In the
case of any person who is a party to a proceeding brought by
the Commission under a securities law, to which section 554
of title 5, United States Code, applies, and against whom an
order imposing a cease and desist order and a penalty may be
issued at the conclusion of the proceeding, that person may,
not later than 20 days after receiving notice of such
proceeding, and at that person's discretion, require the
Commission to terminate the proceeding.
``(b) Civil Action Authorized.--If a person requires the
Commission to terminate a proceeding pursuant to subsection
(a), the Commission may bring a civil action against that
person for the same remedy that might be imposed.
``(c) Standard of Proof in Administrative Proceeding.--
Notwithstanding any other provision of law, in the case of a
proceeding brought by the Commission under a securities law,
to which section 554 of title 5, United States Code, applies,
a legal or equitable remedy may be imposed on the person
against whom the proceeding was brought only on a showing by
the Commission of clear and convincing evidence that the
person has violated the relevant provision of law.''.
SEC. 824. CERTAIN FINDINGS REQUIRED TO APPROVE CIVIL MONEY
PENALTIES AGAINST ISSUERS.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
is amended by inserting after section 4E the following:
``SEC. 4F. CERTAIN FINDINGS REQUIRED TO APPROVE CIVIL MONEY
PENALTIES AGAINST ISSUERS.
``The Commission may not seek against or impose on an
issuer a civil money penalty for violation of the securities
laws unless the publicly available text of the order
approving the seeking or imposition of such penalty contains
findings, supported by an analysis by the Division of
Economic and Risk Analysis and certified by the Chief
Economist, of whether--
``(1) the alleged violation resulted in direct economic
benefit to the issuer; and
``(2) the penalty will harm the shareholders of the
issuer.''.
SEC. 825. REPEAL OF AUTHORITY OF THE COMMISSION TO PROHIBIT
PERSONS FROM SERVING AS OFFICERS OR DIRECTORS.
(a) Under Securities Act of 1933.--Subsection (f) of
section 8A of the Securities Act of 1933 (15 U.S.C. 77h-1) is
repealed.
(b) Under Securities Exchange Act of 1934.--Subsection (f)
of section 21C of the Securities Exchange Act of 1934 (15
U.S.C. 78u-3) is repealed.
SEC. 826. SUBPOENA DURATION AND RENEWAL.
Section 21(b) of the Securities Exchange Act of 1934 (15
U.S.C. 78u(b)) is amended--
(1) by inserting ``Subpoena.--'' after the enumerator;
(2) by striking ``For the purpose of'' and inserting the
following:
``(1) In general.--For the purpose of''; and
(3) by adding at the end the following:
``(2) Omnibus orders of investigation.--
``(A) Duration and renewal.--An omnibus order of
investigation shall not be for an indefinite duration and may
be renewed only by Commission action.
``(B) Definition.--In subparagraph (A), the term `omnibus
order of investigation' means an order of the Commission
authorizing 1 or more members of the Commission or its staff
to issue subpoenas under paragraph (1) to multiple persons in
relation to a particular subject matter area.''.
SEC. 827. ELIMINATION OF AUTOMATIC DISQUALIFICATIONS.
The Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.), as amended by this Act, is further amended by
inserting after section 4F the following:
``SEC. 4G. ELIMINATION OF AUTOMATIC DISQUALIFICATIONS.
``(a) In General.--Notwithstanding any other provision of
law, a non-natural person may not be disqualified or
otherwise made ineligible to use an exemption or registration
provision, engage in an activity, or qualify for any similar
treatment under a provision of the securities laws or the
rules issued by the Commission under the securities laws by
reason of having, or a person described in subsection (b)
having, been convicted of any felony or misdemeanor or made
the subject of any judicial or administrative order,
judgment, or decree arising out of a governmental action
(including an order, judgment, or decree agreed to in a
settlement), or having, or a person described in subsection
(b) having, been suspended or expelled from membership in, or
suspended or barred from association with a member of, a
registered national securities exchange or a registered
national or affiliated securities association for any act or
omission to act constituting conduct inconsistent with just
and equitable principles of trade, unless the Commission, by
order, on the record after notice and an opportunity for
hearing, makes a determination that such non-natural person
should be so disqualified or otherwise made ineligible for
purposes of such provision.
``(b) Person Described.--A person is described in this
subsection if the person is--
``(1) a natural person who is a director, officer,
employee, partner, member, or shareholder of the non-natural
person referred to in subsection (a) or is otherwise
associated or affiliated with such non-natural person in any
way; or
``(2) a non-natural person who is associated or affiliated
with the non-natural person referred to in subsection (a) in
any way.
``(c) Rule of Construction.--Nothing in this section shall
be construed to limit any authority of the Commission, by
order, on the record after notice and an opportunity for
hearing, to prohibit a person from using an exemption or
registration provision, engaging in an activity, or
qualifying for any similar treatment under a provision of the
securities laws, or the rules issued by the Commission under
the securities laws, by reason of a circumstance referred to
in subsection (a) or any similar circumstance.''.
SEC. 828. DENIAL OF AWARD TO CULPABLE WHISTLEBLOWERS.
Section 21F(c) of the Securities Exchange Act of 1934 (15
U.S.C. 78u-6(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (C), by striking ``or'' at the end;
(B) in subparagraph (D), by striking the period and
inserting ``; or''; and
(C) by adding at the end the following:
``(E) to any whistleblower who is responsible for, or
complicit in, the violation of the securities laws for which
the whistleblower provided information to the Commission.'';
and
(2) by adding at the end the following:
``(3) Definition.--For purposes of paragraph (2)(E), a
person is responsible for, or complicit in, a violation of
the securities laws if, with the intent to promote or assist
the violation, the person--
``(A) procures, induces, or causes another person to commit
the offense;
``(B) aids or abets another person in committing the
offense; or
``(C) having a duty to prevent the violation, fails to make
an effort the person is required to make.''.
SEC. 829. CLARIFICATION OF AUTHORITY TO IMPOSE SANCTIONS ON
PERSONS ASSOCIATED WITH A BROKER OR DEALER.
Section 15(b)(6)(A)(i) of the Securities Exchange Act of
1934 (15 U.S.C. 78o(b)(6)(A)(i)) is amended by striking
``enumerated'' and all that
[[Page H4776]]
follows and inserting ``enumerated in subparagraph (A), (D),
(E), (G), or (H) of paragraph (4) of this subsection;''.
SEC. 830. COMPLAINT AND BURDEN OF PROOF REQUIREMENTS FOR
CERTAIN ACTIONS FOR BREACH OF FIDUCIARY DUTY.
Section 36(b) of the Investment Company Act of 1940 (15
U.S.C. 80a-35(b)) is amended by adding at the end the
following:
``(7) In any such action brought by a security holder of a
registered investment company on behalf of such company--
``(A) the complaint shall state with particularity all
facts establishing a breach of fiduciary duty, and, if an
allegation of any such facts is based on information and
belief, the complaint shall state with particularity all
facts on which that belief is formed; and
``(B) such security holder shall have the burden of proving
a breach of fiduciary duty by clear and convincing
evidence.''.
SEC. 831. CONGRESSIONAL ACCESS TO INFORMATION HELD BY THE
PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD.
Section 105(b)(5) of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7215(b)(5)) is amended--
(1) in subparagraph (A), by striking ``subparagraphs (B)
and (C)'' and inserting ``subparagraphs (B), (C), and (D)'';
and
(2) by adding at the end the following:
``(D) Availability to the congressional committees.--The
Board shall make available to the Committees specified under
section 101(h)--
``(i) such information as the Committees shall request; and
``(ii) with respect to any confidential or privileged
information provided in response to a request under clause
(i), including any information subject to section 104(g) and
subparagraph (A), or any confidential or privileged
information provided orally in response to such a request,
such information shall maintain the protections provided in
subparagraph (A), and shall retain its confidential and
privileged status in the hands of the Board and the
Committees.''.
SEC. 832. ABOLISHING INVESTOR ADVISORY GROUP.
The Public Company Accounting Oversight Board shall abolish
the Investor Advisory Group.
SEC. 833. REPEAL OF REQUIREMENT FOR PUBLIC COMPANY ACCOUNTING
OVERSIGHT BOARD TO USE CERTAIN FUNDS FOR MERIT
SCHOLARSHIP PROGRAM.
(a) In General.--Section 109(c) of the Sarbanes-Oxley Act
of 2002 (15 U.S.C. 7219(c)) is amended by striking paragraph
(2).
(b) Conforming Amendments.--Section 109 of the Sarbanes-
Oxley Act of 2002 (15 U.S.C. 7219) is amended--
(1) in subsection (c), by striking ``Uses of Funds'' and
all that follows through ``The budget'' and inserting ``Uses
of Funds.--The budget''; and
(2) in subsection (f), by striking ``subsection (c)(1)''
and inserting ``subsection (c)''.
SEC. 834. REALLOCATION OF FINES FOR VIOLATIONS OF RULES OF
MUNICIPAL SECURITIES RULEMAKING BOARD.
(a) In General.--Section 15B(c)(9) of the Securities
Exchange Act of 1934 (15 U.S.C. 78o-4(c)(9)) is amended to
read as follows:
``(9) Fines collected for violations of the rules of the
Board shall be deposited and credited as general revenue of
the Treasury, except as otherwise provided in section 308 of
the Sarbanes-Oxley Act of 2002 or section 21F of this
title.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to fines collected after the date of enactment of
this Act.
Subtitle B--Eliminating Excessive Government Intrusion in the Capital
Markets
SEC. 841. REPEAL OF DEPARTMENT OF LABOR FIDUCIARY RULE AND
REQUIREMENTS PRIOR TO RULEMAKING RELATING TO
STANDARDS OF CONDUCT FOR BROKERS AND DEALERS.
(a) Repeal of Department of Labor Fiduciary Rule.--The
final rule of the Department of Labor titled ``Definition of
the Term `Fiduciary'; Conflict of Interest Rule--Retirement
Investment Advice'' and related prohibited transaction
exemptions published April 8, 2016 (81 Fed. Reg. 20946) shall
have no force or effect.
(b) Stay on Rules Defining Certain Fiduciaries.--After the
date of enactment of this Act, the Secretary of Labor shall
not prescribe any regulation under the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et seq.) defining
the circumstances under which an individual is considered a
fiduciary until the date that is 60 days after the Securities
and Exchange Commission issues a final rule relating to
standards of conduct for brokers and dealers pursuant to the
second subsection (k) of section 15 of the Securities
Exchange Act of 1934 (15 U.S.C. 78o(k)).
(c) Requirements Prior to Rulemaking Relating to Standards
of Conduct for Brokers and Dealers.--The second subsection
(k) of section 15 of the Securities Exchange Act of 1934 (15
U.S.C. 78o(k)), as added by section 913(g)(1) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5301 et seq.), is amended by adding at the end the
following:
``(3) Requirements prior to rulemaking.--The Commission
shall not promulgate a rule pursuant to paragraph (1) before
providing a report to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate and making such
report available on the Commission's website describing
whether--
``(A) retail investors (and such other customers as the
Commission may provide) are being harmed due to brokers or
dealers operating under different standards of conduct than
those that apply to investment advisors under section 211 of
the Investment Advisers Act of 1940 (15 U.S.C. 80b-11);
``(B) alternative remedies will reduce any confusion or
harm to retail investors due to brokers or dealers operating
under different standards of conduct than those standards
that apply to investment advisors under section 211 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-11),
including--
``(i) simplifying the titles used by brokers, dealers, and
investment advisers; and
``(ii) enhancing disclosure surrounding the different
standards of conduct currently applicable to brokers,
dealers, and investment advisers;
``(C) the adoption of a uniform fiduciary standard of
conduct for brokers, dealers, and investment advisors would
adversely impact the commissions of brokers and dealers, the
availability of proprietary products offered by brokers and
dealers, and the ability of brokers and dealers to engage in
principal transactions with customers; and
``(D) the adoption of a uniform fiduciary standard of
conduct for brokers or dealers and investment advisors would
adversely impact retail investor access to personalized and
cost-effective investment advice, recommendations about
securities, or the availability of such advice and
recommendations.
``(4) Economic analysis.--The Commission's conclusions
contained in the report described in paragraph (3) shall be
supported by economic analysis.
``(5) Requirements for promulgating a rule.--The Commission
shall publish in the Federal Register alongside the rule
promulgated pursuant to paragraph (1) formal findings that
such rule would reduce confusion or harm to retail customers
(and such other customers as the Commission may by rule
provide) due to different standards of conduct applicable to
brokers, dealers, and investment advisors.
``(6) Requirements under investment advisers act of 1940.--
In proposing rules under paragraph (1) for brokers or
dealers, the Commission shall consider the differences in the
registration, supervision, and examination requirements
applicable to brokers, dealers, and investment advisors.''.
SEC. 842. EXEMPTION FROM RISK RETENTION REQUIREMENTS FOR
NONRESIDENTIAL MORTGAGE.
(a) In General.--Section 15G of the Securities Exchange Act
of 1934 (15 U.S.C. 78o-11) is amended--
(1) in subsection (a)--
(A) in paragraph (3)(B), by striking ``and'' at the end;
(B) in paragraph (4)(B), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) the term `asset-backed security' refers only to an
asset-backed security that is comprised wholly of residential
mortgages.'';
(2) in subsection (b)--
(A) by striking paragraph (1); and
(B) by striking ``(2) Residential mortgages.--'';
(3) by striking subsection (h) and redesignating subsection
(i) as subsection (h); and
(4) in subsection (h) (as so redesignated)--
(A) by striking ``effective--'' and all that follows
through ``(1) with respect to'' and inserting ``effective
with respect to'';
(B) in paragraph (1), by striking ``; and'' and inserting a
period; and
(C) by striking paragraph (2).
(b) Conforming Amendment.--Section 941 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act is amended by
striking subsection (c).
SEC. 843. FREQUENCY OF SHAREHOLDER APPROVAL OF EXECUTIVE
COMPENSATION.
Section 14A(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78n-1(a)) is amended--
(1) in paragraph (1), by striking ``Not less frequently
than once every 3 years'' and inserting ``Each year in which
there has been a material change to the compensation of
executives of an issuer from the previous year''; and
(2) by striking paragraph (2) and redesignating paragraph
(3) as paragraph (2).
SEC. 844. SHAREHOLDER PROPOSALS.
(a) Resubmission Thresholds.--The Securities and Exchange
Commission shall revise section 240.14a-8(i)(12) of title 17,
Code of Federal Regulations to--
(1) in paragraph (i), adjust the 3 percent threshold to 6
percent;
(2) in paragraph (ii), adjust the 6 percent threshold to 15
percent; and
(3) in paragraph (iii), adjust the 10 percent threshold to
30 percent.
(b) Holding Requirement.--The Securities and Exchange
Commission shall revise the holding requirement for a
shareholder to be eligible to submit a shareholder proposal
to an issuer in section 240.14a-8(b)(1) of title 17, Code of
Federal Regulations, to--
(1) eliminate the option to satisfy the holding requirement
by holding a certain dollar amount;
(2) require the shareholder to hold 1 percent of the
issuer's securities entitled to be voted on the proposal, or
such greater percentage as determined by the Commission; and
(3) adjust the 1 year holding period to 3 years.
(c) Shareholder Proposals Issued by Proxies.--Section 14 of
the Securities Exchange Act of 1934 (15 U.S.C. 78n) is
amended by adding at the end the following:
``(j) Shareholder Proposals by Proxies Not Permitted.--An
issuer may not include in its proxy materials a shareholder
proposal submitted by a person in such person's capacity as
[[Page H4777]]
a proxy, representative, agent, or person otherwise acting on
behalf of a shareholder.''.
SEC. 845. PROHIBITION ON REQUIRING A SINGLE BALLOT.
Section 14 of the Securities Exchange Act of 1934 (15
U.S.C. 78n) is amended by adding at the end the following:
``(k) Prohibition on Requiring a Single Ballot.--The
Commission may not require that a solicitation of a proxy,
consent, or authorization to vote a security of an issuer in
an election of members of the board of directors of the
issuer be made using a single ballot or card that lists both
individuals nominated by (or on behalf of) the issuer and
individuals nominated by (or on behalf of) other proponents
and permits the person granting the proxy, consent, or
authorization to select from among individuals in both
groups.''.
SEC. 846. REQUIREMENT FOR MUNICIPAL ADVISOR FOR ISSUERS OF
MUNICIPAL SECURITIES.
Section 15B(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78o-4(d)) is amended by adding at the end the
following:
``(3) An issuer of municipal securities shall not be
required to retain a municipal advisor prior to issuing any
such securities.''.
SEC. 847. SMALL ISSUER EXEMPTION FROM INTERNAL CONTROL
EVALUATION.
Section 404(c) of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7262(c)) is amended to read as follows:
``(c) Exemption for Smaller Issuers.--Subsection (b) shall
not apply with respect to any audit report prepared for an
issuer that has total market capitalization of less than
$500,000,000, nor to any issuer that is a depository
institution with assets of less than $1,000,000,000.''.
SEC. 848. STREAMLINING OF APPLICATIONS FOR AN EXEMPTION FROM
THE INVESTMENT COMPANY ACT OF 1940.
Section 6(c) of the Investment Company Act of 1940 (15
U.S.C. 80a-6(c)) is amended--
(1) by striking ``(c) The Commission'' and inserting the
following:
``(c) General Exemptive Authority.--
``(1) In general.--The Commission''; and
(2) by adding at the end the following:
``(2) Application process.--
``(A) In general.--A person who wishes to receive an
exemption from the Commission pursuant to paragraph (1) shall
file an application with the Commission in such form and
manner and containing such information as the Commission may
require.
``(B) Publication; rejection of invalid applications.--
``(i) In general.--Not later than the end of the 5-day
period beginning on the date that the Commission receives an
application under subparagraph (A), the Commission shall
either--
``(I) publish the application, including by publication on
the website of the Commission; or
``(II) if the Commission determines that the application
does not comply with the proper form, manner, or information
requirements described under subparagraph (A), reject such
application and notify the applicant of the specific reasons
the application was rejected.
``(ii) Failure to publish application.--If the Commission
does not reject an application under clause (i)(II), but
fails to publish the application by the end of the time
period specified under clause (i), such application shall be
deemed to have been published on the date that is the end of
such time period.
``(3) Determination by commission.--
``(A) In general.--Not later than 45 days after the date
that the Commission publishes an application pursuant to
paragraph (2)(B), the Commission shall, by order--
``(i) approve the application;
``(ii) if the Commission determines that the application
would have been approved had the applicant provided
additional supporting documentation or made certain
amendments to the application--
``(I) provide the applicant with the specific additional
supporting documentation or amendments that the Commission
believes are necessary for the applicant to provide in order
for the application to be approved; and
``(II) request that the applicant withdraw the application
and re-submit the application with such additional supporting
documentation and amendments; or
``(iii) deny the application.
``(B) Extension of time period.--The Commission may extend
the time period described under subparagraph (A) by not more
than an additional 45 days, if--
``(i) the Commission determines that a longer period is
appropriate and publishes the reasons for such determination;
or
``(ii) the applicant consents to the longer period.
``(C) Time period for withdrawal.--If the Commission makes
a request under subparagraph (A)(ii) for an applicant to
withdraw an application, such application shall be deemed to
be denied if the applicant informs the Commission that the
applicant will not withdraw the application or if the
applicant does not withdraw the application before the end of
the 30-day period beginning on the date the Commission makes
such request.
``(4) Proceedings; notice and hearing.--If an application
is denied pursuant to paragraph (3), the Commission shall
provide the applicant with--
``(A) a written explanation for why the application was not
approved; and
``(B) an opportunity for hearing, if requested by the
applicant not later than 20 days after the date of such
denial, with such hearing to be commenced not later than 30
days after the date of such denial.
``(5) Result of failure to institute or commence
proceedings.--An application shall be deemed to have been
approved by the Commission, if--
``(A) the Commission fails to either approve, request the
withdrawal of, or deny the application, as required under
paragraph (3)(A), within the time period required under
paragraph (3)(A), as such time period may have been extended
pursuant to paragraph (3)(B); or
``(B) the applicant requests an opportunity for hearing,
pursuant to paragraph (4)(B), but the Commission does not
commence such hearing within the time period required under
paragraph (4)(B).
``(6) Rulemaking.--Not later than 180 days after the date
of enactment of this paragraph, the Commission shall issue
rules to carry out this subsection.''.
SEC. 849. RESTRICTION ON RECOVERY OF ERRONEOUSLY AWARDED
COMPENSATION.
Section 10D(b)(2) of the Securities Exchange Act of 1934
(15 U.S.C. 78j-4(b)(2)) is amended by inserting before the
period the following: ``, where such executive officer had
control or authority over the financial reporting that
resulted in the accounting restatement''.
SEC. 850. EXEMPTIVE AUTHORITY FOR CERTAIN PROVISIONS RELATING
TO REGISTRATION OF NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATIONS.
Section 15E of the Securities Exchange Act of 1934 (15
U.S.C. 78o-7) is amended by adding at the end the following:
``(w) Commission Exemptive Authority.--The Commission, by
rules and regulations upon its own motion, or by order upon
application, may conditionally or unconditionally exempt any
person from any provision or provisions of this title or of
any rule or regulation thereunder, if and to the extent it
determines that such rule, regulation, or requirement is
creating a barrier to entry into the market for nationally
recognized statistical rating organizations or impeding
competition among such organizations, or that such an
exemption is necessary or appropriate in the public interest
and is consistent with the protection of investors.''.
SEC. 851. RISK-BASED EXAMINATIONS OF NATIONALLY RECOGNIZED
STATISTICAL RATING ORGANIZATIONS.
Section 15E(p)(3) of the Securities Exchange Act of 1934
(15 U.S.C. 78o-7(p)(3)) is amended--
(1) in subparagraph (A)--
(A) in the heading, by striking ``Annual'' and inserting
``Risk-based'';
(B) by striking ``an examination'' and inserting
``examinations''; and
(C) by striking ``at least annually''; and
(2) in subparagraph (B), in the matter preceding clause
(i), by inserting ``, as appropriate,'' after ``Each
examination under subparagraph (A) shall include''.
SEC. 852. TRANSPARENCY OF CREDIT RATING METHODOLOGIES.
Section 15E(s) of the Securities Exchange Act of 1934 (15
U.S.C. 78o-7(s)) is amended--
(1) in paragraph (2)(B), by inserting before the semicolon
the following: ``rated by the nationally recognized
statistical rating agency''; and
(2) in paragraph (3)--
(A) in subparagraph (A)(ix), by inserting before the period
the following: ``, except that the Commission may not require
the inclusion of references to statutory or regulatory
requirements or statutory provision headings or enumerators
for any specific disclosure'';
(B) in subparagraph (B)(iv), by inserting before the period
the following: ``, except that the Commission may not require
the inclusion of references to statutory or regulatory
requirements or statutory provision headings or enumerators
for any specific disclosure''; and
(C) by adding at the end the following:
``(C) No mandate on the organization of disclosures.--The
Commission may not mandate the specific organization of the
disclosures required under this paragraph.''.
SEC. 853. REPEAL OF CERTAIN ATTESTATION REQUIREMENTS RELATING
TO CREDIT RATINGS.
Section 15E of the Securities Exchange Act of 1934 (15
U.S.C. 78o-7) is amended--
(1) in subsection (c)(3)(B)--
(A) in clause (i), by adding ``and'' at the end;
(B) in clause (ii), by striking ``; and'' and inserting a
period; and
(C) by striking clause (iii); and
(2) in subsection (q)(2)--
(A) in subparagraph (D), by adding ``and'' at the end;
(B) in subparagraph (E), by striking ``; and'' and
inserting a period; and
(C) by striking subparagraph (F).
SEC. 854. LOOK-BACK REVIEW BY NRSRO.
Section 15E(h)(4)(A) of the Securities Exchange Act of 1934
(15 U.S.C. 78o-7(h)(4)(A)) is amended--
(1) by striking ``Each nationally'' and inserting the
following:
``(i) In general.--Each nationally'';
(2) by striking ``underwriter'' and inserting ``lead
underwriter'';
(3) by striking ``in any capacity'';
(4) by striking ``during the 1-year period preceding the
date an action was taken with respect to the credit rating'';
(5) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and adjusting the margin of such
subclauses accordingly;
(6) in subclause (I), as so redesignated, by inserting
before the semicolon the following: ``during the 1-year
period preceding the departure of the employee from the
nationally recognized statistical rating organization''; and
(7) by adding at the end the following:
``(ii) Maintenance of ratings actions.--In the case of
maintenance of ratings actions, the requirement under clause
(i) shall only apply to employees of a person subject to a
credit rating
[[Page H4778]]
of the nationally recognized statistical rating organization
or an issuer of a security or money market instrument subject
to a credit rating of the nationally recognized statistical
rating organization.''.
SEC. 855. APPROVAL OF CREDIT RATING PROCEDURES AND
METHODOLOGIES.
Section 15E(r)(1)(A) of the Securities Exchange Act of 1934
(15 U.S.C. 78o-7(r)(1)(A)) is amended by inserting ``, or the
Chief Credit Officer'' after ``performing a function similar
to that of a board''.
SEC. 856. EXCEPTION FOR PROVIDING CERTAIN MATERIAL
INFORMATION RELATING TO A CREDIT RATING.
Section 15E(h)(3) of the Securities Exchange Act of 1934
(15 U.S.C. 78o-7(h)(3)) is amended by adding at the end the
following:
``(C) Exception for providing certain material
information.--Rules issued under this paragraph may not
prohibit a person who participates in sales or marketing of a
product or service of a nationally recognized statistical
rating organization from providing material information, or
information believed in good faith to be material, to the
issuance or maintenance of a credit rating to a person who
participates in determining or monitoring the credit rating,
or developing or approving procedures or methodologies used
for determining the credit rating, so long as the information
provided is not intended to influence the determination of a
credit rating, or the procedures or methodologies used to
determine credit ratings.''.
SEC. 857. REPEALS.
(a) Repeals.--The following provisions of title IX of the
Dodd-Frank Wall Street Reform and Consumer Protection Act are
repealed, and the provisions of law amended or repealed by
such sections are restored or revived as if such sections had
not been enacted:
(1) Section 912.
(2) Section 914.
(3) Section 917.
(4) Section 918.
(5) Section 919A.
(6) Section 919B.
(7) Section 919C.
(8) Section 921.
(9) Section 929T.
(10) Section 929X.
(11) Section 929Y.
(12) Section 929Z.
(13) Section 931.
(14) Section 933.
(15) Section 937.
(16) Section 939B.
(17) Section 939C.
(18) Section 939D.
(19) Section 939E.
(20) Section 939F.
(21) Section 939G.
(22) Section 939H.
(23) Section 946.
(24) Subsection (b) of section 953.
(25) Section 955.
(26) Section 956.
(27) Section 964.
(28) Section 965.
(29) Section 968.
(30) Section 971.
(31) Section 972.
(32) Section 976.
(33) Section 977.
(34) Section 978.
(35) Section 984.
(36) Section 989.
(37) Section 989A.
(38) Section 989F.
(39) Subsection (b) of section 989G.
(40) Section 989I.
(b) Conforming Amendments.--The Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5301) is
amended--
(1) in the table of contents in section 1(b), by striking
the items relating to the sections described under paragraphs
(1) through (23), (25) through (38), and (40) of subsection
(a);
(2) in section 953, by striking ``(a) Disclosure of Pay
Versus Performance.--''; and
(3) in section 989G, by striking ``(a) Exemption.--''.
SEC. 858. EXEMPTION OF AND REPORTING BY PRIVATE EQUITY FUND
ADVISERS.
Section 203 of the Investment Advisers Act of 1940 (15
U.S.C. 80b-3) is amended by adding at the end the following:
``(o) Exemption of and Reporting by Private Equity Fund
Advisers.--
``(1) In general.--Except as provided in this subsection,
no investment adviser shall be subject to the registration or
reporting requirements of this title with respect to the
provision of investment advice relating to a private equity
fund.
``(2) Maintenance of records and access by commission.--Not
later than 6 months after the date of enactment of this
subsection, the Commission shall issue final rules--
``(A) to require investment advisers described in paragraph
(1) to maintain such records and provide to the Commission
such annual or other reports as the Commission, taking into
account fund size, governance, investment strategy, risk, and
other factors, determines necessary and appropriate in the
public interest and for the protection of investors; and
``(B) to define the term `private equity fund' for purposes
of this subsection.''.
SEC. 859. RECORDS AND REPORTS OF PRIVATE FUNDS.
The Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et
seq.) is amended--
(1) in section 204(b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``investors,'' and all
that follows and inserting ``investors.'';
(ii) by striking subparagraph (B); and
(iii) by striking ``this title--'' and all that follows
through ``to maintain'' and inserting ``this title to
maintain'';
(B) in paragraph (3)(H)--
(i) by striking ``, in consultation with the Council,'';
and
(ii) by striking ``or for the assessment of systemic
risk'';
(C) in paragraph (4), by striking ``, or for the assessment
of systemic risk'';
(D) in paragraph (5), by striking ``or for the assessment
of systemic risk'';
(E) in paragraph (6)(A)(ii), by striking ``, or for the
assessment of systemic risk'';
(F) by striking paragraph (7) and redesignating paragraphs
(8) through (11) as paragraphs (7) through (10),
respectively; and
(G) in paragraph (8) (as so redesignated), by striking
``paragraph (8)'' and inserting ``paragraph (7)''; and
(2) in section 211(e)--
(A) by striking ``after consultation with the Council
but''; and
(B) by striking ``subsection 204(b)'' and inserting
``section 204(b)''.
SEC. 860. DEFINITION OF ACCREDITED INVESTOR.
(a) In General.--Section 2(a)(15) of the Securities Act of
1933 (15 U.S.C. 77b(a)(15)) is amended--
(1) by redesignating clauses (i) and (ii) as subparagraphs
(A) and (G), respectively; and
(2) in subparagraph (A) (as so redesignated), by striking
``; or'' at the end and inserting a semicolon, and inserting
after such subparagraph the following:
``(B) any natural person whose individual net worth, or
joint net worth with that person's spouse, exceeds $1,000,000
(which amount, along with the amounts set forth in
subparagraph (C), shall be adjusted for inflation by the
Commission every 5 years to the nearest $10,000 to reflect
the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics) where,
for purposes of calculating net worth under this
subparagraph--
``(i) the person's primary residence shall not be included
as an asset;
``(ii) indebtedness that is secured by the person's primary
residence, up to the estimated fair market value of the
primary residence at the time of the sale of securities,
shall not be included as a liability (except that if the
amount of such indebtedness outstanding at the time of sale
of securities exceeds the amount outstanding 60 days before
such time, other than as a result of the acquisition of the
primary residence, the amount of such excess shall be
included as a liability); and
``(iii) indebtedness that is secured by the person's
primary residence in excess of the estimated fair market
value of the primary residence at the time of the sale of
securities shall be included as a liability;
``(C) any natural person who had an individual income in
excess of $200,000 in each of the 2 most recent years or
joint income with that person's spouse in excess of $300,000
in each of those years and has a reasonable expectation of
reaching the same income level in the current year;
``(D) any natural person who, by reason of their net worth
or income, is an accredited investor under section 230.215 of
title 17, Code of Federal Regulations (as in effect on the
day before the date of enactment of this subparagraph);
``(E) any natural person who is currently licensed or
registered as a broker or investment adviser by the
Commission, the Financial Industry Regulatory Authority, or
an equivalent self-regulatory organization (as defined in
section 3(a)(26) of the Securities Exchange Act of 1934), or
the securities division of a State or the equivalent State
division responsible for licensing or registration of
individuals in connection with securities activities;
``(F) any natural person the Commission determines, by
regulation, to have demonstrable education or job experience
to qualify such person as having professional knowledge of a
subject related to a particular investment, and whose
education or job experience is verified by the Financial
Industry Regulatory Authority or an equivalent self-
regulatory organization (as defined in section 3(a)(26) of
the Securities Exchange Act of 1934); or''.
(b) Repeal.--Section 413 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Public Law 111-203) is
hereby repealed.
SEC. 861. REPEAL OF CERTAIN PROVISIONS REQUIRING A STUDY AND
REPORT TO CONGRESS.
The following provisions of the Dodd-Frank Wall Street
Reform and Consumer Protection Act are repealed:
(1) Section 412.
(2) Section 415.
(3) Section 416.
(4) Section 417.
SEC. 862. REPEAL.
(a) Repeal.--The following sections of title XV of the
Dodd-Frank Wall Street Reform and Consumer Protection Act are
repealed, and the provisions of law amended or repealed by
such sections are restored or revived as if such sections had
not been enacted:
(1) Section 1502.
(2) Section 1503.
(3) Section 1504.
(4) Section 1505.
(5) Section 1506.
(b) Clerical Amendment.--The table of contents in section
1(b) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act is amended by striking the items relating to
sections 1502, 1503, 1504, 1505, and 1506.
Subtitle C--Harmonization of Derivatives Rules
SEC. 871. COMMISSIONS REVIEW AND HARMONIZATION OF RULES
RELATING TO THE REGULATION OF OVER-THE-COUNTER
SWAPS MARKETS.
The Securities and Exchange Commission and the Commodity
Futures Trading Commission
[[Page H4779]]
shall review each rule, order, and interpretive guidance
issued by either such Commission pursuant to title VII of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (15
U.S.C. 8301 et seq.) and, where the Commissions find
inconsistencies in any such rules, orders, or interpretive
guidance, shall jointly issue new rules, orders, or
interpretive guidance to resolve such inconsistencies.
SEC. 872. TREATMENT OF TRANSACTIONS BETWEEN AFFILIATES.
(a) Commodity Exchange Act.--Section 1a(47) of the
Commodity Exchange Act (7 U.S.C. 1a(47)) is amended by adding
at the end the following:
``(G) Treatment of swap transactions between affiliates.--
``(i) Exemption from swap rules.--Except as provided under
clause (ii), the Commission may not regulate a swap under
this Act if all of the following apply to such swap:
``(I) Affiliation.--One counterparty, directly or
indirectly, holds a majority ownership interest in the other
counterparty, or a third party, directly or indirectly, holds
a majority ownership interest in both counterparties.
``(II) Financial statements.--The affiliated counterparty
that holds the majority interest in the other counterparty or
the third party that, directly or indirectly, holds the
majority interests in both affiliated counterparties, reports
its financial statements on a consolidated basis under
generally accepted accounting principles or International
Financial Reporting Standards, or other similar standards,
and the financial statements include the financial results of
the majority-owned affiliated counterparty or counterparties.
``(ii) Requirements for exempted swaps.--With respect to a
swap described under clause (i):
``(I) Reporting requirement.--If at least one counterparty
is a swap dealer or major swap participant, that counterparty
shall report the swap pursuant to section 4r, within such
time period as the Commission may by rule or regulation
prescribe--
``(aa) to a swap data repository; or
``(bb) if there is no swap data repository that would
accept the agreement, contract or transaction, to the
Commission.
``(II) Risk management requirement.--If at least one
counterparty is a swap dealer or major swap participant, the
swap shall be subject to a centralized risk management
program pursuant to section 4s(j) that is reasonably designed
to monitor and to manage the risks associated with the swap.
``(III) Anti-evasion requirement.--The swap shall not be
structured to evade the Dodd-Frank Wall Street Reform and
Consumer Protection Act in violation of any rule promulgated
by the Commission pursuant to section 721(c) of such Act.''.
(b) Securities Exchange Act of 1934.--Section 3(a)(68) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(68)) is
amended by adding at the end the following:
``(F) Treatment of security-based swap transactions between
affiliates.--
``(i) Exemption from security-based swap rules.--Except as
provided under clause (ii), the Commission may not regulate a
security-based swap under this Act if all of the following
apply to such security-based swap:
``(I) Affiliation.--One counterparty, directly or
indirectly, holds a majority ownership interest in the other
counterparty, or a third party, directly or indirectly, holds
a majority ownership interest in both counterparties.
``(II) Financial statements.--The affiliated counterparty
that holds the majority interest in the other counterparty or
the third party that, directly or indirectly, holds the
majority interests in both affiliated counterparties, reports
its financial statements on a consolidated basis under
generally accepted accounting principles or International
Financial Reporting Standards, or other similar standards,
and the financial statements include the financial results of
the majority-owned affiliated counterparty or counterparties.
``(ii) Requirements for exempted security-based swaps.--
With respect to a security-based swap described under clause
(i):
``(I) Reporting requirement.--If at least one counterparty
is a security-based swap dealer or major security-based swap
participant, that counterparty shall report the security-
based swap pursuant to section 13A, within such time period
as the Commission may by rule or regulation prescribe--
``(aa) to a security-based swap data repository; or
``(bb) if there is no security-based swap data repository
that would accept the agreement, contract or transaction, to
the Commission.
``(II) Risk management requirement.--If at least one
counterparty is a security-based swap dealer or major
security-based swap participant, the security-based swap
shall be subject to a centralized risk management program
pursuant to section 15F(j) that is reasonably designed to
monitor and to manage the risks associated with the security-
based swap.
``(III) Anti-evasion requirement.--The security-based swap
shall not be structured to evade the Dodd-Frank Wall Street
Reform and Consumer Protection Act in violation of any rule
promulgated by the Commission pursuant to section 761(b)(3)
of such Act.''.
TITLE IX--REPEAL OF THE VOLCKER RULE AND OTHER PROVISIONS
SEC. 901. REPEALS.
(a) In General.--The following sections of title VI of the
Dodd-Frank Wall Street Reform and Consumer Protection Act are
repealed, and the provisions of law amended or repealed by
such sections are restored or revived as if such sections had
not been enacted:
(1) Section 603.
(2) Section 618.
(3) Section 619.
(4) Section 620.
(5) Section 621.
(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 striking the items
relating to sections 603, 618, 619, 620, and 621.
TITLE X--FED OVERSIGHT REFORM AND MODERNIZATION
SEC. 1001. REQUIREMENTS FOR POLICY RULES OF THE FEDERAL OPEN
MARKET COMMITTEE.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended
by inserting after section 2B the following new section:
``SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL OPEN MARKET
COMMITTEE.
``(a) Definitions.--In this section the following
definitions shall apply:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
``(2) Directive policy rule.--The term `Directive Policy
Rule' means a policy rule developed by the Federal Open
Market Committee that meets the requirements of subsection
(c) and that provides the basis for the Open Market
Operations Directive.
``(3) GDP.--The term `GDP' means the gross domestic product
of the United States as computed and published by the
Department of Commerce.
``(4) Intermediate policy input.--The term `Intermediate
Policy Input'--
``(A) may include any variable determined by the Federal
Open Market Committee as a necessary input to guide open-
market operations;
``(B) shall include an estimate of, and the method of
calculation for, the current rate of inflation or current
inflation expectations; and
``(C) shall include, specifying whether the variable or
estimate is historical, current, or a forecast and the method
of calculation, at least one of--
``(i) an estimate of real GDP, nominal GDP, or potential
GDP;
``(ii) an estimate of the monetary aggregate compiled by
the Board of Governors of the Federal Reserve System and
Federal reserve banks; or
``(iii) an interactive variable or a net estimate composed
of the estimates described in clauses (i) and (ii).
``(5) Legislative day.--The term `legislative day' means a
day on which either House of Congress is in session.
``(6) Open market operations directive.--The term `Open
Market Operations Directive' means an order to achieve a
specified Policy Instrument Target provided to the Federal
Reserve Bank of New York by the Federal Open Market Committee
pursuant to powers authorized under section 14 of this Act
that guide open-market operations.
``(7) Policy instrument.--The term `Policy Instrument'
means--
``(A) the nominal Federal funds rate;
``(B) the nominal rate of interest paid on nonborrowed
reserves; or
``(C) the discount window primary credit interest rate most
recently published on the Federal Reserve Statistical Release
on selected interest rates (daily or weekly), commonly
referred to as the H.15 release.
``(8) Policy instrument target.--The term `Policy
Instrument Target' means the target for the Policy Instrument
specified in the Open Market Operations Directive.
``(9) Reference policy rule.--The term `Reference Policy
Rule' means a calculation of the nominal Federal funds rate
as equal to the sum of the following:
``(A) The rate of inflation over the previous four
quarters.
``(B) One-half of the percentage deviation of the real GDP
from an estimate of potential GDP.
``(C) One-half of the difference between the rate of
inflation over the previous four quarters and two percent.
``(D) Two percent.
``(b) Submitting a Directive Policy Rule.--Not later than
48 hours after the end of a meeting of the Federal Open
Market Committee, the Chairman of the Federal Open Market
Committee shall submit to the appropriate congressional
committees and the Comptroller General of the United States a
Directive Policy Rule and a statement that identifies the
members of the Federal Open Market Committee who voted in
favor of the Directive Policy Rule.
``(c) Requirements for a Directive Policy Rule.--A
Directive Policy Rule shall--
``(1) identify the Policy Instrument the Directive Policy
Rule is designed to target;
``(2) describe the strategy or rule of the Federal Open
Market Committee for the systematic quantitative adjustment
of the Policy Instrument Target to respond to a change in the
Intermediate Policy Inputs;
``(3) include a function that comprehensively models the
interactive relationship between the Intermediate Policy
Inputs;
``(4) include the coefficients of the Directive Policy Rule
that generate the current Policy Instrument Target and a
range of predicted future values for the Policy Instrument
Target if changes occur in any Intermediate Policy Input;
``(5) describe the procedure for adjusting the supply of
bank reserves to achieve the Policy Instrument Target;
``(6) include a statement as to whether the Directive
Policy Rule substantially conforms to the Reference Policy
Rule and, if applicable--
``(A) an explanation of the extent to which it departs from
the Reference Policy Rule;
``(B) a detailed justification for that departure; and
[[Page H4780]]
``(C) a description of the circumstances under which the
Directive Policy Rule may be amended in the future;
``(7) include a certification that the Directive Policy
Rule is expected to support the economy in achieving stable
prices and maximum natural employment over the long term;
``(8) include a calculation that describes with
mathematical precision the expected annual inflation rate
over a 5-year period; and
``(9) include a plan to use the most accurate data, subject
to all historical revisions, for inputs into the Directive
Policy Rule and the Reference Policy Rule.
``(d) GAO Report.--The Comptroller General of the United
States shall compare the Directive Policy Rule submitted
under subsection (b) with the rule that was most recently
submitted to determine whether the Directive Policy Rule has
materially changed. If the Directive Policy Rule has
materially changed, the Comptroller General shall, not later
than 7 days after each meeting of the Federal Open Market
Committee, prepare and submit a compliance report to the
appropriate congressional committees specifying whether the
Directive Policy Rule submitted after that meeting and the
Federal Open Market Committee are in compliance with this
section.
``(e) Changing Market Conditions.--
``(1) Rule of construction.--Nothing in this Act shall be
construed to require that the plans with respect to the
systematic quantitative adjustment of the Policy Instrument
Target described under subsection (c)(2) be implemented if
the Federal Open Market Committee determines that such plans
cannot or should not be achieved due to changing market
conditions.
``(2) GAO approval of update.--Upon determining that plans
described in paragraph (1) cannot or should not be achieved,
the Federal Open Market Committee shall submit an explanation
for that determination and an updated version of the
Directive Policy Rule to the Comptroller General of the
United States and the appropriate congressional committees
not later than 48 hours after making the determination. The
Comptroller General shall, not later than 48 hours after
receiving such updated version, prepare and submit to the
appropriate congressional committees a compliance report
determining whether such updated version and the Federal Open
Market Committee are in compliance with this section.
``(f) Directive Policy Rule and Federal Open Market
Committee Not in Compliance.--
``(1) In general.--If the Comptroller General of the United
States determines that the Directive Policy Rule and the
Federal Open Market Committee are not in compliance with this
section in the report submitted pursuant to subsection (d),
or that the updated version of the Directive Policy Rule and
the Federal Open Market Committee are not in compliance with
this section in the report submitted pursuant to subsection
(e)(2), the Chairman of the Board of Governors of the Federal
Reserve System shall, if requested by the chairman of either
of the appropriate congressional committees, not later than 7
legislative days after such request, testify before such
committee as to why the Directive Policy Rule, the updated
version, or the Federal Open Market Committee is not in
compliance.
``(2) GAO audit.--Notwithstanding subsection (b) of section
714 of title 31, United States Code, upon submitting a report
of noncompliance pursuant to subsection (d) or subsection
(e)(2) and after the period of 7 legislative days described
in paragraph (1), the Comptroller General shall audit the
conduct of monetary policy by the Board of Governors of the
Federal Reserve System and the Federal Open Market Committee
upon request of the appropriate congressional committee. Such
committee may specify the parameters of such audit.
``(g) Congressional Hearings.--The Chairman of the Board of
Governors of the Federal Reserve System shall, if requested
by the chairman of either of the appropriate congressional
committees and not later than 7 legislative days after such
request, appear before such committee to explain any change
to the Directive Policy Rule.''.
SEC. 1002. FEDERAL OPEN MARKET COMMITTEE BLACKOUT PERIOD.
Section 12A of the Federal Reserve Act (12 U.S.C. 263) is
amended by adding at the end the following new subsection:
``(d) Blackout Period.--
``(1) In general.--During a blackout period, the only
public communications that may be made by members and staff
of the Committee with respect to macroeconomic or financial
developments or about current or prospective monetary policy
issues are the following:
``(A) The dissemination of published data, surveys, and
reports that have been cleared for publication by the Board
of Governors of the Federal Reserve System.
``(B) Answers to technical questions specific to a data
release.
``(C) Communications with respect to the prudential or
supervisory functions of the Board of Governors.
``(2) Blackout period defined.--For purposes of this
subsection, and with respect to a meeting of the Committee
described under subsection (a), the term `blackout period'
means the time period that--
``(A) begins immediately after midnight on the day that is
one week prior to the date on which such meeting takes place;
and
``(B) ends at midnight on the day after the date on which
such meeting takes place.
``(3) Exemption for chairman of the board of governors.--
Nothing in this section shall prohibit the Chairman of the
Board of Governors of the Federal Reserve System from
participating in or issuing public communications.''.
SEC. 1003. PUBLIC TRANSCRIPTS OF FOMC MEETINGS.
Section 12A of the Federal Reserve Act (12 U.S.C. 263), as
amended by section 1002, is further amended by adding at the
end the following:
``(e) Public Transcripts of Meetings.--The Committee
shall--
``(1) record all meetings of the Committee; and
``(2) make the full transcript of such meetings available
to the public.''.
SEC. 1004. MEMBERSHIP OF FEDERAL OPEN MARKET COMMITTEE.
Section 12A(a) of the Federal Reserve Act (12 U.S.C.
263(a)) is amended--
(1) in the first sentence, by striking ``five'' and
inserting ``six'';
(2) in the second sentence, by striking ``One by the board
of directors'' and all that follows through the period at the
end and inserting the following: ``One by the boards of
directors of the Federal Reserve Banks of New York and
Boston; one by the boards of directors of the Federal Reserve
Banks of Philadelphia and Cleveland; one by the boards of
directors of the Federal Reserve Banks of Richmond and
Atlanta; one by the boards of directors of the Federal
Reserve Banks of Chicago and St. Louis; one by the boards of
directors of the Federal Reserve Banks of Minneapolis and
Kansas City; and one by the boards of directors of the
Federal Reserve Banks of Dallas and San Francisco.''; and
(3) by inserting after the second sentence the following:
``In odd numbered calendar years, one representative shall be
elected from each of the Federal Reserve Banks of Boston,
Philadelphia, Richmond, Chicago, Minneapolis, and Dallas. In
even-numbered calendar years, one representative shall be
elected from each of the Federal Reserve Banks of New York,
Cleveland, Atlanta, St. Louis, Kansas City, and San
Francisco.''.
SEC. 1005. FREQUENCY OF TESTIMONY OF THE CHAIRMAN OF THE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM TO CONGRESS.
(a) In General.--Section 2B of the Federal Reserve Act (12
U.S.C. 225b) is amended--
(1) by striking ``semi-annual'' each place it appears and
inserting ``quarterly''; and
(2) in subsection (a)(2)--
(A) by inserting ``and October 20'' after ``July 20'' each
place it appears; and
(B) by inserting ``and May 20'' after ``February 20'' each
place it appears.
(b) Conforming Amendment.--Paragraph (12) of section 10 of
the Federal Reserve Act (12 U.S.C. 247b(12)) is amended by
striking ``semi-annual'' and inserting ``quarterly''.
SEC. 1006. VICE CHAIRMAN FOR SUPERVISION REPORT REQUIREMENT.
Paragraph (12) of section 10 of the Federal Reserve Act (12
U.S.C. 247(b)) is amended--
(1) by redesignating such paragraph as paragraph (11); and
(2) in such paragraph, by adding at the end the following:
``In each such appearance, the Vice Chairman for Supervision
shall provide written testimony that includes the status of
all pending and anticipated rulemakings that are being made
by the Board of Governors of the Federal Reserve System. If,
at the time of any appearance described in this paragraph,
the position of Vice Chairman for Supervision is vacant, the
Vice Chairman for the Board of Governors of the Federal
Reserve System (who has the responsibility to serve in the
absence of the Chairman) shall appear instead and provide the
required written testimony. If, at the time of any appearance
described in this paragraph, both Vice Chairman positions are
vacant, the Chairman of the Board of Governors of the Federal
Reserve System shall appear instead and provide the required
written testimony.''.
SEC. 1007. SALARIES, FINANCIAL DISCLOSURES, AND OFFICE STAFF
OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
(a) In General.--Section 11 of the Federal Reserve Act (12
U.S.C. 248) is amended--
(1) by redesignating the second subsection (s) (relating to
``Assessments, Fees, and Other Charges for Certain
Companies'') as subsection (t); and
(2) by inserting before subsection (w), as added by section
371(a), the following new subsections:
``(u) Ethics Standards for Members and Employees.--
``(1) Prohibited and restricted financial interests and
transactions.--The members and employees of the Board of
Governors of the Federal Reserve System shall be subject to
the provisions under section 4401.102 of title 5, Code of
Federal Regulations, to the same extent as such provisions
apply to an employee of the Securities and Exchange
Commission.
``(2) Treatment of brokerage accounts and availability of
account statements.--The members and employees of the Board
of Governors of the Federal Reserve System shall--
``(A) disclose all brokerage accounts that the member or
employee maintains, as well as any accounts in which the
member or employee controls trading or has a financial
interest (including managed accounts, trust accounts,
investment club accounts, and accounts of spouses or minor
children who live with the member or employee); and
``(B) with respect to any securities account that the
member or employee is required to disclose to the Board of
Governors, authorize the brokers and dealers of such account
to send duplicate account statements directly to Board of
Governors.
``(3) Prohibitions related to outside employment and
activities.--The members and employees of the Board of
Governors of the Federal Reserve System shall be subject to
the prohibitions related to outside employment and activities
described under section 4401.103(c) of title 5, Code of
Federal Regulations, to the same extent as such prohibitions
apply to an employee of the Securities and Exchange
Commission.
[[Page H4781]]
``(4) Additional ethics standards.--The members and
employees of the Board of Governors of the Federal Reserve
System shall be subject to--
``(A) the employee responsibilities and conduct regulations
of the Office of Personnel Management under part 735 of title
5, Code of Federal Regulations;
``(B) the canons of ethics contained in subpart C of part
200 of title 17, Code of Federal Regulations, to the same
extent as such subpart applies to the employees of the
Securities and Exchange Commission; and
``(C) the regulations concerning the conduct of members and
employees and former members and employees contained in
subpart M of part 200 of title 17, Code of Federal
Regulations, to the same extent as such subpart applies to
the employees of the Securities and Exchange Commission.
``(v) Disclosure of Staff Salaries and Financial
Information.--The Board of Governors of the Federal Reserve
System shall make publicly available, on the website of the
Board of Governors, a searchable database that contains the
names of all members, officers, and employees of the Board of
Governors who receive an annual salary in excess of the
annual rate of basic pay for GS-15 of the General Schedule,
and--
``(1) the yearly salary information for such individuals,
along with any nonsalary compensation received by such
individuals; and
``(2) any financial disclosures required to be made by such
individuals.''.
(b) Office Staff for Each Member of the Board of
Governors.--Subsection (l) of section 11 of the Federal
Reserve Act (12 U.S.C. 248) is amended by adding at the end
the following: ``Each member of the Board of Governors of the
Federal Reserve System may employ, at a minimum, 2
individuals, with such individuals selected by such member
and the salaries of such individuals set by such member. A
member may employ additional individuals as determined
necessary by the Board of Governors.''.
SEC. 1008. AMENDMENTS TO POWERS OF THE BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM.
(a) In General.--Section 13(3) of the Federal Reserve Act
(12 U.S.C. 343(3)), as amended by section 111(b)(3), is
further amended--
(1) in subparagraph (A)--
(A) by inserting ``that pose a threat to the financial
stability of the United States'' after ``unusual and exigent
circumstances''; and
(B) by inserting ``and by the affirmative vote of not less
than nine presidents of the Federal reserve banks'' after
``five members'';
(2) in subparagraph (B)--
(A) in clause (i), by inserting at the end the following:
``Federal reserve banks may not accept equity securities
issued by the recipient of any loan or other financial
assistance under this paragraph as collateral. Not later than
6 months after the date of enactment of this sentence, the
Board shall, by rule, establish--
``(I) a method for determining the sufficiency of the
collateral required under this paragraph;
``(II) acceptable classes of collateral;
``(III) the amount of any discount on the value of the
collateral that the Federal reserve banks will apply for
purposes of calculating the sufficiency of collateral under
this paragraph; and
``(IV) a method for obtaining independent appraisals of the
value of collateral the Federal reserve banks receive.''; and
(B) in clause (ii)--
(i) by striking the second sentence; and
(ii) by inserting after the first sentence the following:
``A borrower shall not be eligible to borrow from any
emergency lending program or facility unless the Board and
all Federal banking regulators with jurisdiction over the
borrower certify that, at the time the borrower initially
borrows under the program or facility, the borrower is not
insolvent.'';
(3) by inserting ``financial institution'' before
``participant'' each place such term appears;
(4) in subparagraph (D)(i), by inserting ``financial
institution'' before ``participants''; and
(5) by adding at the end the following new subparagraphs:
``(E) Penalty rate.--
``(i) In general.--Not later than 6 months after the date
of enactment of this subparagraph, the Board shall, with
respect to a recipient of any loan or other financial
assistance under this paragraph, establish by rule a minimum
interest rate on the principal amount of any loan or other
financial assistance.
``(ii) Minimum interest rate defined.--In this
subparagraph, the term `minimum interest rate' shall mean the
sum of--
``(I) the average of the secondary discount rate of all
Federal Reserve banks over the most recent 90-day period; and
``(II) the average of the difference between a distressed
corporate bond yield index (as defined by rule of the Board)
and a bond yield index of debt issued by the United States
(as defined by rule of the Board) over the most recent 90-day
period.
``(F) Financial institution participant defined.--For
purposes of this paragraph, the term `financial institution
participant'--
``(i) means a company that is predominantly engaged in
financial activities (as defined in section 102(a) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5311(a))); and
``(ii) does not include an agency described in subparagraph
(W) of section 5312(a)(2) of title 31, United States Code, or
an entity controlled or sponsored by such an agency.''.
(b) Conforming Amendment.--Section 11(r)(2)(A) of the
Federal Reserve Act (12 U.S.C. 248(r)(2)(A)) is amended--
(1) in clause (ii)(IV), by striking ``; and'' and inserting
a semicolon;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new clause:
``(iv) the available members secure the affirmative vote of
not less than nine presidents of the Federal reserve
banks.''.
SEC. 1009. INTEREST RATES ON BALANCES MAINTAINED AT A FEDERAL
RESERVE BANK BY DEPOSITORY INSTITUTIONS
ESTABLISHED BY FEDERAL OPEN MARKET COMMITTEE.
Subparagraph (A) of section 19(b)(12) of the Federal
Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by inserting
``established by the Federal Open Market Committee'' after
``rate or rates''.
SEC. 1010. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General.--Notwithstanding section 714 of title 31,
United States Code, or any other provision of law, the
Comptroller General of the United States shall annually
complete an audit of the Board of Governors of the Federal
Reserve System and the Federal reserve banks under subsection
(b) of such section 714 within 12 months after the date of
the enactment of this Act.
(b) Report.--
(1) In general.--Not later than 90 days after each audit
required pursuant to subsection (a) is completed, the
Comptroller General--
(A) shall submit to Congress a report on such audit; and
(B) shall make such report available to the Speaker of the
House, the majority and minority leaders of the House of
Representatives, the majority and minority leaders of the
Senate, the Chairman and Ranking Member of the committee and
each subcommittee of jurisdiction in the House of
Representatives and the Senate, and any other Member of
Congress who requests the report.
(2) Contents.--The report under paragraph (1) shall include
a detailed description of the findings and conclusion of the
Comptroller General with respect to the audit that is the
subject of the report, together with such recommendations for
legislative or administrative action as the Comptroller
General may determine to be appropriate.
(c) Repeal of Certain Limitations.--Subsection (b) of
section 714 of title 31, United States Code, is amended by
striking the second sentence.
(d) Technical and Conforming Amendments.--
(1) In general.--Section 714 of title 31, United States
Code, is amended--
(A) in subsection (d)(3), by striking ``or (f)'' each place
such term appears;
(B) in subsection (e), by striking ``the third undesignated
paragraph of section 13'' and inserting ``section 13(3)'';
and
(C) by striking subsection (f).
(2) Federal reserve act.--Subsection (s) (relating to
``Federal Reserve Transparency and Release of Information'')
of section 11 of the Federal Reserve Act (12 U.S.C. 248) is
amended--
(A) in paragraph (4)(A), by striking ``has the same meaning
as in section 714(f)(1)(A) of title 31, United States Code''
and inserting ``means a program or facility, including any
special purpose vehicle or other entity established by or on
behalf of the Board of Governors of the Federal Reserve
System or a Federal reserve bank, authorized by the Board of
Governors under section 13(3), that is not subject to audit
under section 714(e) of title 31, United States Code'';
(B) in paragraph (6), by striking ``or in section
714(f)(3)(C) of title 31, United States Code, the information
described in paragraph (1) and information concerning the
transactions described in section 714(f) of such title,'' and
inserting ``the information described in paragraph (1)''; and
(C) in paragraph (7), by striking ``and section 13(3)(C),
section 714(f)(3)(C) of title 31, United States Code, and''
and inserting ``, section 13(3)(C), and''.
SEC. 1011. ESTABLISHMENT OF A CENTENNIAL MONETARY COMMISSION.
(a) Findings.--Congress finds the following:
(1) The Constitution endows Congress with the power ``to
coin money, regulate the value thereof''.
(2) Following the financial crisis known as the Panic of
1907, Congress established the National Monetary Commission
to provide recommendations for the reform of the financial
and monetary systems of the United States.
(3) Incorporating several of the recommendations of the
National Monetary Commission, Congress created the Federal
Reserve System in 1913. As currently organized, the Federal
Reserve System consists of the Board of Governors in
Washington, District of Columbia, and the Federal reserve
banks organized into 12 districts around the United States.
The stockholders of the 12 Federal reserve banks include
national and certain State-chartered commercial banks, which
operate on a fractional reserve basis.
(4) Originally, Congress gave the Federal Reserve System a
monetary mandate to provide an elastic currency, within the
context of a gold standard, in response to seasonal
fluctuations in the demand for currency.
(5) Congress also gave the Federal Reserve System a
financial stability mandate to serve as the lender of last
resort to solvent but illiquid banks during a financial
crisis.
(6) In 1977, Congress changed the monetary mandate of the
Federal Reserve System to a dual mandate for maximum
employment and stable prices.
(7) Empirical studies and historical evidence, both within
the United States and in other countries, demonstrate that
price stability is desirable because both inflation and
deflation damage the economy.
(8) The economic challenge of recent years--most notably
the bursting of the housing bubble,
[[Page H4782]]
the financial crisis of 2008, and the ensuing anemic
recovery--have occurred at great cost in terms of lost jobs
and output.
(9) Policymakers are reexamining the structure and
functioning of financial institutions and markets to
determine what, if any, changes need to be made to place the
financial system on a stronger, more sustainable path going
forward.
(10) The Federal Reserve System has taken extraordinary
actions in response to the recent economic challenges.
(11) The Federal Open Market Committee has engaged in
multiple rounds of quantitative easing, providing
unprecedented liquidity to financial markets, while
committing to holding short-term interest rates low for a
seemingly indefinite period, and pursuing a policy of credit
allocation by purchasing Federal agency debt and mortgage-
backed securities.
(12) In the wake of the recent extraordinary actions of the
Federal Reserve System, Congress--consistent with its
constitutional responsibilities and as it has done
periodically throughout the history of the United States--has
once again renewed its examination of monetary policy.
(13) Central in such examination has been a renewed look at
what is the most proper mandate for the Federal Reserve
System to conduct monetary policy in the 21st century.
(b) Establishment of a Centennial Monetary Commission.--
There is established a commission to be known as the
``Centennial Monetary Commission'' (in this section referred
to as the ``Commission'').
(c) Study and Report on Monetary Policy.--
(1) Study.--The Commission shall--
(A) examine how United States monetary policy since the
creation of the Board of Governors of the Federal Reserve
System in 1913 has affected the performance of the United
States economy in terms of output, employment, prices, and
financial stability over time;
(B) evaluate various operational regimes under which the
Board of Governors of the Federal Reserve System and the
Federal Open Market Committee may conduct monetary policy in
terms achieving the maximum sustainable level of output and
employment and price stability over the long term,
including--
(i) discretion in determining monetary policy without an
operational regime;
(ii) price level targeting;
(iii) inflation rate targeting;
(iv) nominal gross domestic product targeting (both level
and growth rate);
(v) the use of monetary policy rules; and
(vi) the gold standard;
(C) evaluate the use of macro-prudential supervision and
regulation as a tool of monetary policy in terms of achieving
the maximum sustainable level of output and employment and
price stability over the long term;
(D) evaluate the use of the lender-of-last-resort function
of the Board of Governors of the Federal Reserve System as a
tool of monetary policy in terms of achieving the maximum
sustainable level of output and employment and price
stability over the long term;
(E) recommend a course for United States monetary policy
going forward, including--
(i) the legislative mandate;
(ii) the operational regime;
(iii) the securities used in open-market operations; and
(iv) transparency issues; and
(F) consider the effects of the GDP output and employment
targets of the ``dual mandate'' (both from the creation of
the dual mandate in 1977 until the present time and estimates
of the future effect of the dual mandate ) on--
(i) United States economic activity;
(ii) actions of the Board of Governors of the Federal
Reserve System; and
(iii) Federal debt.
(2) Report.--Not later than 1 year after the date of the
enactment of this section, the Commission shall submit to
Congress and make publicly available a report containing a
statement of the findings and conclusions of the Commission
in carrying out the study under paragraph (1), together with
the recommendations the Commission considers appropriate. In
making such report, the Commission shall specifically report
on the considerations required under paragraph (1)(F).
(d) Membership.--
(1) Number and appointment.--
(A) Appointed voting members.--The Commission shall contain
12 voting members as follows:
(i) Six members appointed by the Speaker of the House of
Representatives, with four members from the majority party
and two members from the minority party.
(ii) Six members appointed by the President Pro Tempore of
the Senate, with four members from the majority party and two
members from the minority party.
(B) Chairman.--The Speaker of the House of Representatives
and the majority leader of the Senate shall jointly designate
one of the members of the Commission as Chairman.
(C) Non-voting members.--The Commission shall contain 2
non-voting members as follows:
(i) One member appointed by the Secretary of the Treasury.
(ii) One member who is the president of a district Federal
reserve bank appointed by the Chair of the Board of Governors
of the Federal Reserve System.
(2) Period of appointment.--Each member shall be appointed
for the life of the Commission.
(3) Timing of appointment.--All members of the Commission
shall be appointed not later than 30 days after the date of
the enactment of this section.
(4) Vacancies.--A vacancy in the Commission shall not
affect its powers, and shall be filled in the manner in which
the original appointment was made.
(5) Meetings.--
(A) Initial meeting.--The Commission shall hold its initial
meeting and begin the operations of the Commission as soon as
is practicable.
(B) Further meetings.--The Commission shall meet upon the
call of the Chair or a majority of its members.
(6) Quorum.--Seven voting members of the Commission shall
constitute a quorum but a lesser number may hold hearings.
(7) Member of congress defined.--In this subsection, the
term ``Member of Congress'' means a Senator or a
Representative in, or Delegate or Resident Commissioner to,
the Congress.
(e) Powers.--
(1) Hearings and sessions.--The Commission or, on the
authority of the Commission, any subcommittee or member
thereof, may, for the purpose of carrying out this section,
hold hearings, sit and act at times and places, take
testimony, receive evidence, or administer oaths as the
Commission or such subcommittee or member thereof considers
appropriate.
(2) Contract authority.--To the extent or in the amounts
provided in advance in appropriation Acts, the Commission may
contract with and compensate government and private agencies
or persons to enable the Commission to discharge its duties
under this section, without regard to section 3709 of the
Revised Statutes (41 U.S.C. 5).
(3) Obtaining official data.--
(A) In general.--The Commission is authorized to secure
directly from any executive department, bureau, agency,
board, commission, office, independent establishment, or
instrumentality of the Government, any information, including
suggestions, estimates, or statistics, for the purposes of
this section.
(B) Requesting official data.--The head of such department,
bureau, agency, board, commission, office, independent
establishment, or instrumentality of the government shall, to
the extent authorized by law, furnish such information upon
request made by--
(i) the Chair;
(ii) the Chair of any subcommittee created by a majority of
the Commission; or
(iii) any member of the Commission designated by a majority
of the commission to request such information.
(4) Assistance from federal agencies.--
(A) General services administration.--The Administrator of
General Services shall provide to the Commission on a
reimbursable basis administrative support and other services
for the performance of the functions of the Commission.
(B) Other departments and agencies.--In addition to the
assistance prescribed in subparagraph (A), at the request of
the Commission, departments and agencies of the United States
shall provide such services, funds, facilities, staff, and
other support services as may be authorized by law.
(5) Postal service.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the United States.
(f) Commission Personnel.--
(1) Appointment and compensation of staff.--
(A) In general.--Subject to rules prescribed by the
Commission, the Chair may appoint and fix the pay of the
executive director and other personnel as the Chair considers
appropriate.
(B) Applicability of civil service laws.--The staff of the
Commission may be appointed without regard to the provisions
of title 5, United States Code, governing appointments in the
competitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of level V of the Executive Schedule.
(2) Consultants.--The Commission may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, but at rates for individuals not to
exceed the daily equivalent of the rate of pay for a person
occupying a position at level IV of the Executive Schedule.
(3) Staff of federal agencies.--Upon request of the
Commission, the head of any Federal department or agency may
detail, on a reimbursable basis, any of the personnel of such
department or agency to the Commission to assist it in
carrying out its duties under this section.
(g) Termination of Commission.--
(1) In general.--The Commission shall terminate 6 months
after the date on which the report is submitted under
subsection (c)(2).
(2) Administrative activities before termination.--The
Commission may use the period between the submission of its
report and its termination for the purpose of concluding its
activities, including providing testimony to the committee of
Congress concerning its report.
(h) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000,
which shall remain available until the date on which the
Commission terminates.
TITLE XI--IMPROVING INSURANCE COORDINATION THROUGH AN INDEPENDENT
ADVOCATE
SEC. 1101. REPEAL OF THE FEDERAL INSURANCE OFFICE; CREATION
OF THE OFFICE OF THE INDEPENDENT INSURANCE
ADVOCATE.
(a) Establishment.--Section 313 of title 31, United States
Code, is amended to read as follows (and conforming the table
of contents for chapter 3 of such title accordingly):
``Sec. 313. Office of the Independent Insurance Advocate
``(a) Establishment.--There is established in the
Department of the Treasury a bureau to be
[[Page H4783]]
known as the Office of the Independent Insurance Advocate (in
this section referred to as the `Office').
``(b) Independent Insurance Advocate.--
``(1) Establishment of position.--The chief officer of the
Office of the Independent Insurance Advocate shall be known
as the Independent Insurance Advocate. The Independent
Insurance Advocate shall perform the duties of such office
under the general direction of the Secretary of the Treasury.
``(2) Appointment.--The Independent Insurance Advocate
shall be appointed by the President, by and with the advice
and consent of the Senate, from among persons having
insurance expertise.
``(3) Term.--
``(A) In general.--The Independent Insurance Advocate shall
serve a term of 6 years, unless sooner removed by the
President upon reasons which shall be communicated to the
Senate.
``(B) Service after expiration.--If a successor is not
nominated and confirmed by the end of the term of service of
the Independent Insurance Advocate, the person serving as
Independent Insurance Advocate shall continue to serve until
such time a successor is appointed and confirmed.
``(C) Vacancy.--An Independent Insurance Advocate who is
appointed to serve the remainder of a predecessor's
uncompleted term shall be eligible thereafter to be appointed
to a full 6 year term.
``(D) Acting official on financial stability oversight
council.--In the event of a vacancy in the office of the
Independent Insurance Advocate, and pending the appointment
and confirmation of a successor, or during the absence or
disability of the Independent Insurance Advocate, the
Independent Member shall appoint a federal official appointed
by the President and confirmed by the Senate from a member
agency of the Financial Stability Oversight Council, not
otherwise serving on the Council, who shall serve as a member
of the Council and act in the place of the Independent
Insurance Advocate until such vacancy, absence, or disability
concludes.
``(4) Employment.--The Independent Insurance Advocate shall
be an employee of the Federal Government within the
definition of employee under section 2105 of title 5, United
States Code.
``(c) Independence; Oversight.--
``(1) Independence.--The Secretary of the Treasury may not
delay or prevent the issuance of any rule or the promulgation
of any regulation by the Independent Insurance Advocate, and
may not intervene in any matter or proceeding before the
Independent Insurance Advocate, unless otherwise specifically
provided by law.
``(2) Oversight by inspector general.--The Office of the
Independent Insurance Advocate shall be an office in the
establishment of the Department of the Treasury for purposes
of the Inspector General Act of 1978 (5 U.S.C. App.).
``(d) Retention of Existing State Regulatory Authority.--
Nothing in this section or section 314 shall be construed to
establish or provide the Office or the Department of the
Treasury with general supervisory or regulatory authority
over the business of insurance.
``(e) Budget.--
``(1) Annual transmittal.--For each fiscal year, the
Independent Insurance Advocate shall transmit a budget
estimate and request to the Secretary of the Treasury, which
shall specify the aggregate amount of funds requested for
such fiscal year for the operations of the Office of the
Independent Insurance Advocate.
``(2) Inclusions.--In transmitting the proposed budget to
the President for approval, the Secretary of the Treasury
shall include--
``(A) an aggregate request for the Independent Insurance
Advocate; and
``(B) any comments of the Independent Insurance Advocate
with respect to the proposal.
``(3) President's budget.--The President shall include in
each budget of the United States Government submitted to the
Congress--
``(A) a separate statement of the budget estimate prepared
in accordance with paragraph (1);
``(B) the amount requested by the President for the
Independent Insurance Advocate; and
``(C) any comments of the Independent Insurance Advocate
with respect to the proposal if the Independent Insurance
Advocate concludes that the budget submitted by the President
would substantially inhibit the Independent Insurance
Advocate from performing the duties of the office.
``(f) Assistance.--The Secretary of the Treasury shall
provide the Independent Insurance Advocate such services,
funds, facilities and other support services as the
Independent Insurance Advocate may request and as the
Secretary may approve.
``(g) Personnel.--
``(1) Employees.--The Independent Insurance Advocate may
fix the number of, and appoint and direct, the employees of
the Office, in accordance with the applicable provisions of
title 5, United States Code. The Independent Insurance
Advocate is authorized to employ attorneys, analysts,
economists, and other employees as may be deemed necessary to
assist the Independent Insurance Advocate to carry out the
duties and functions of the Office. Unless otherwise provided
expressly by law, any individual appointed under this
paragraph shall be an employee as defined in section 2105 of
title 5, United States Code, and subject to the provisions of
such title and other laws generally applicable to the
employees of the Executive Branch.
``(2) Compensation.--Employees of the Office shall be paid
in accordance with the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code,
relating to classification and General Schedule pay rates.
``(3) Procurement of temporary and intermittent services.--
The Independent Insurance Advocate may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for Level V of the Executive Schedule under
section 5316 of such title.
``(4) Details.--Any employee of the Federal Government may
be detailed to the Office with or without reimbursement, and
such detail shall be without interruption or loss of civil
service status or privilege. An employee of the Federal
Government detailed to the Office shall report to and be
subject to oversight by the Independent Insurance Advocate
during the assignment to the office, and may be compensated
by the branch, department, or agency from which the employee
was detailed.
``(5) Intergovernmental personnel.--The Independent
Insurance Advocate may enter into agreements under subchapter
VI of chapter 33 of title 5, United States Code, with State
and local governments, institutions of higher education,
Indian tribal governments, and other eligible organizations
for the assignment of intermittent, part-time, and full-time
personnel, on a reimbursable or non-reimbursable basis.
``(h) Ethics.--
``(1) Designated ethics official.--The Legal Counsel of the
Financial Stability Oversight Council, or in the absence of a
Legal Counsel of the Council, the designated ethics official
of any Council member agency, as chosen by the Independent
Insurance Advocate, shall be the ethics official for the
Independent Insurance Advocate.
``(2) Restriction on representation.--In addition to any
restriction under section 205(c) of title18, United States
Code, except as provided in subsections (d) through (i) of
section 205 of such title, the Independent Insurance Advocate
(except in the proper discharge of official duties) shall
not, with or without compensation, represent anyone to or
before any officer or employee of--
``(A) the Financial Stability Oversight Council on any
matter; or
``(B) the Department of Justice with respect to litigation
involving a matter described in subparagraph (A).
``(3) Compensation for services provided by another.--For
purposes of section 203 of title 18, United States Code, and
if a special government employee--
``(A) the Independent Insurance Advocate shall not be
subject to the restrictions of subsection (a)(1) of section
203,of title 18, United States Code, for sharing in
compensation earned by another for representations on matters
covered by such section; and
``(B) a person shall not be subject to the restrictions of
subsection (a)(2) of such section for sharing such
compensation with the Independent Insurance Advocate.
``(i) Advisory, Technical, and Professional Committees.--
The Independent Insurance Advocate may appoint such special
advisory, technical, or professional committees as may be
useful in carrying out the functions of the Office and the
members of such committees may be staff of the Office, or
other persons, or both.
``(j) Mission and Functions.--
``(1) Mission.--In carrying out the functions under this
subsection, the mission of the Office shall be to act as an
independent advocate on behalf of the interests of United
States policyholders on prudential aspects of insurance
matters of importance, and to provide perspective on
protecting their interests, separate and apart from any other
Federal agency or State insurance regulator.
``(2) Office.--The Office shall have the authority--
``(A) to coordinate Federal efforts on prudential aspects
of international insurance matters, including representing
the United States, as appropriate, in the International
Association of Insurance Supervisors (or a successor entity)
and assisting the Secretary in negotiating covered agreements
(as such term is defined in subsection (q)) in coordination
with States (including State insurance commissioners) and the
United States Trade Representative;
``(B) to consult with the States (including State insurance
regulators) regarding insurance matters of national
importance and prudential insurance matters of international
importance;
``(C) to assist the Secretary in administering the
Terrorism Insurance Program established in the Department of
the Treasury under the Terrorism Risk Insurance Act of 2002
(15 U.S.C. 6701 note);
``(D) to observe all aspects of the insurance industry,
including identifying issues or gaps in the regulation of
insurers that could contribute to a systemic crisis in the
insurance industry or the United States financial system; and
``(E) to make determinations and exercise the authority
under subsection (m) with respect to covered agreements and
State insurance measures.
``(3) Membership on financial stability oversight
council.--
``(A) In general.--The Independent Insurance Advocate shall
serve, pursuant to section 111(b)(1)(J) of the Financial
Stability Act of 2010 (12 U.S.C. 5321(b)(1)(J)), as a member
on the Financial Stability Oversight Council.
``(B) Authority.--To assist the Financial Stability
Oversight Council with its responsibilities to monitor
international insurance developments, advise the Congress,
and make recommendations, the Independent Insurance Advocate
shall have the authority--
``(i) to regularly consult with international insurance
supervisors and international financial stability
counterparts;
``(ii) to consult with the Board of Governors of the
Federal Reserve System and the States with respect to
representing the United States, as appropriate, in the
International Association of
[[Page H4784]]
Insurance Supervisors (including to become a non-voting
member thereof), particularly on matters of systemic risk;
``(iii) to participate at the Financial Stability Board of
The Group of Twenty and to join with other members from the
United States including on matters related to insurance; and
``(iv) to participate with the United States delegation to
the Organization for Economic Cooperation and Development and
observe and participate at the Insurance and Private Pensions
Committee.
``(4) Limitations on participation in supervisory
colleges.--The Office may not engage in any activities that
it is not specifically authorized to engage in under this
section or any other provision of law, including
participation in any supervisory college or other meetings or
fora for cooperation and communication between the involved
insurance supervisors established for the fundamental purpose
of facilitating the effectiveness of supervision of entities
which belong to an insurance group.
``(k) Scope.--The authority of the Office as specified and
limited in this section shall extend to all lines of
insurance except--
``(1) health insurance, as determined by the Secretary in
coordination with the Secretary of Health and Human Services
based on section 2791 of the Public Health Service Act (42
U.S.C. 300gg-91);
``(2) long-term care insurance, except long-term care
insurance that is included with life or annuity insurance
components, as determined by the Secretary in coordination
with the Secretary of Health and Human Services, and in the
case of long-term care insurance that is included with such
components, the Secretary shall coordinate with the Secretary
of Health and Human Services in performing the functions of
the Office; and
``(3) crop insurance, as established by the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.).
``(l) Access to Information.--In carrying out the functions
required under subsection (j), the Office may coordinate with
any relevant Federal agency and any State insurance regulator
(or other relevant Federal or State regulatory agency, if
any, in the case of an affiliate of an insurer) and any
publicly available sources for the provision to the Office of
publicly available information. Notwithstanding any other
provision of law, each such relevant Federal agency and State
insurance regulator or other Federal or State regulatory
agency is authorized to provide to the Office such data or
information.
``(m) Preemption Pursuant to Covered Agreements.--
``(1) Standards.--A State insurance measure shall be
preempted pursuant to this section or section 314 if, and
only to the extent that the Independent Insurance Advocate
determines, in accordance with this subsection, that the
measure--
``(A) results in less favorable treatment of a non-United
States insurer domiciled in a foreign jurisdiction that is
subject to a covered agreement than a United States insurer
domiciled, licensed, or otherwise admitted in that State; and
``(B) is inconsistent with a covered agreement.
``(2) Determination.--
``(A) Notice of potential inconsistency.--Before making any
determination under paragraph (1), the Independent Insurance
Advocate shall--
``(i) notify and consult with the appropriate State
regarding any potential inconsistency or preemption;
``(ii) notify and consult with the United States Trade
Representative regarding any potential inconsistency or
preemption;
``(iii) cause to be published in the Federal Register
notice of the issue regarding the potential inconsistency or
preemption, including a description of each State insurance
measure at issue and any applicable covered agreement;
``(iv) provide interested parties a reasonable opportunity
to submit written comments to the Office; and
``(v) consider any comments received.
``(B) Scope of review.--For purposes of this subsection,
any determination of the Independent Insurance Advocate
regarding State insurance measures, and any preemption under
paragraph (1) as a result of such determination, shall be
limited to the subject matter contained within the covered
agreement involved and shall achieve a level of protection
for insurance or reinsurance consumers that is substantially
equivalent to the level of protection achieved under State
insurance or reinsurance regulation.
``(C) Notice of determination of inconsistency.--Upon
making any determination under paragraph (1), the Director
shall--
``(i) notify the appropriate State of the determination and
the extent of the inconsistency;
``(ii) establish a reasonable period of time, which shall
not be less than 30 days, before the determination shall
become effective; and
``(iii) notify the Committees on Financial Services and
Ways and Means of the House of Representatives and the
Committees on Banking, Housing, and Urban Affairs and Finance
of the Senate.
``(3) Notice of effectiveness.--Upon the conclusion of the
period referred to in paragraph (2)(C)(ii), if the basis for
such determination still exists, the determination shall
become effective and the Independent Insurance Advocate
shall--
``(A) cause to be published a notice in the Federal
Register that the preemption has become effective, as well as
the effective date; and
``(B) notify the appropriate State.
``(4) Limitation.--No State may enforce a State insurance
measure to the extent that such measure has been preempted
under this subsection.
``(5) Applicability of administrative procedures act.--
Determinations of inconsistency made pursuant to paragraph
(2) shall be subject to the applicable provisions of
subchapter II of chapter 5 of title 5, United States Code
(relating to administrative procedure), and chapter 7 of such
title (relating to judicial review), except that in any
action for judicial review of a determination of
inconsistency, the court shall determine the matter de novo.
``(n) Consultation.--The Independent Insurance Advocate
shall consult with State insurance regulators, individually
or collectively, to the extent the Independent Insurance
Advocate determines appropriate, in carrying out the
functions of the Office.
``(o) Notices and Requests for Comment.--In addition to the
other functions and duties specified in this section, the
Independent Insurance Advocate may prescribe such notices and
requests for comment in the Federal Register as are deemed
necessary related to and governing the manner in which the
duties and authorities of the Independent Insurance Advocate
are carried out;
``(p) Savings Provisions.--Nothing in this section shall--
``(1) preempt--
``(A) any State insurance measure that governs any
insurer's rates, premiums, underwriting, or sales practices;
``(B) any State coverage requirements for insurance;
``(C) the application of the antitrust laws of any State to
the business of insurance; or
``(D) any State insurance measure governing the capital or
solvency of an insurer, except to the extent that such State
insurance measure results in less favorable treatment of a
non-United State insurer than a United States insurer; or
``(2) affect the preemption of any State insurance measure
otherwise inconsistent with and preempted by Federal law.
``(q) Retention of Authority of Federal Financial
Regulatory Agencies.--Nothing in this section or section 314
shall be construed to limit the authority of any Federal
financial regulatory agency, including the authority to
develop and coordinate policy, negotiate, and enter into
agreements with foreign governments, authorities, regulators,
and multinational regulatory committees and to preempt State
measures to affect uniformity with international regulatory
agreements.
``(r) Retention of Authority of United States Trade
Representative.--Nothing in this section or section 314 shall
be construed to affect the authority of the Office of the
United States Trade Representative pursuant to section 141 of
the Trade Act of 1974 (19 U.S.C. 2171) or any other provision
of law, including authority over the development and
coordination of United States international trade policy and
the administration of the United States trade agreements
program.
``(s) Congressional Testimony.--The Independent Insurance
Advocate shall appear before the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs at semi-annual hearings
and shall provide testimony, which shall include submitting
written testimony in advance of such appearances to such
committees and to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate, on the following matters:
``(1) Office activities.--The efforts, activities,
objectives, and plans of the Office.
``(2) Section 313(l) actions.--Any actions taken by the
Office pursuant to subsection (l) (regarding preemption
pursuant to covered agreements).
``(3) Insurance industry.--The state of, and developments
in, the insurance industry.
``(4) U.S. and global insurance and reinsurance markets.--
The breadth and scope of the global insurance and reinsurance
markets and the critical role such markets plays in
supporting insurance in the United States and the ongoing
impacts of part II of the Nonadmitted and Reinsurance Reform
Act of 2010 on the ability of State regulators to access
reinsurance information for regulated companies in their
jurisdictions.
``(5) Other.--Any other matters as deemed relevant by the
Independent Insurance Advocate or requested by such
Committees.
``(t) Report Upon End of Term of Office.--Not later than
two months prior to the expiration of the term of office, or
discontinuation of service, of each individual serving as the
Independent Insurance Advocate, the Independent Insurance
Advocate shall submit a report to the Committees on Financial
Services and Ways and Means of the House of Representatives
and the Committees on Banking, Housing, and Urban Affairs and
Finance of the Senate setting forth recommendations regarding
the Financial Stability Oversight Council and the role,
duties, and functions of the Independent Insurance Advocate.
``(u) Definitions.--In this section and section 314, the
following definitions shall apply:
``(1) Affiliate.--The term `affiliate' means, with respect
to an insurer, any person who controls, is controlled by, or
is under common control with the insurer.
``(2) Covered agreement.--The term `covered agreement'
means a written bilateral or multilateral agreement regarding
prudential measures with respect to the business of insurance
or reinsurance that--
``(A) is entered into between the United States and one or
more foreign governments, authorities, or regulatory
entities; and
``(B) relates to the recognition of prudential measures
with respect to the business of insurance or reinsurance that
achieves a level of protection for insurance or reinsurance
consumers that is substantially equivalent to the level of
protection achieved under State insurance or reinsurance
regulation.
[[Page H4785]]
``(3) Insurer.--The term `insurer' means any person engaged
in the business of insurance, including reinsurance.
``(4) Federal financial regulatory agency.--The term
`Federal financial regulatory agency' means the Department of
the Treasury, the Board of Governors of the Federal Reserve
System, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, the Securities and Exchange
Commission, the Commodity Futures Trading Commission, the
Federal Deposit Insurance Corporation, the Federal Housing
Finance Agency, or the National Credit Union Administration.
``(5) Financial stability oversight council.--The term
`Financial Stability Oversight Council ' means the Financial
Stability Oversight Council established under section 111(a)
of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (12 U.S.C. 5321(a)).
``(6) Member agency.--The term `member agency' has the
meaning given such term in section 111(a) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C.
5321(a)).
``(7) Non-united states insurer.--The term `non-United
States insurer' means an insurer that is organized under the
laws of a jurisdiction other than a State, but does not
include any United States branch of such an insurer.
``(8) Office.--The term `Office' means the Office of the
Independent Insurance Advocate established by this section.
``(9) State insurance measure.--The term `State insurance
measure' means any State law, regulation, administrative
ruling, bulletin, guideline, or practice relating to or
affecting prudential measures applicable to insurance or
reinsurance.
``(10) State insurance regulator.--The term `State
insurance regulator' means any State regulatory authority
responsible for the supervision of insurers.
``(11) Substantially equivalent to the level of protection
achieved.--The term `substantially equivalent to the level of
protection achieved' means the prudential measures of a
foreign government, authority, or regulatory entity achieve a
similar outcome in consumer protection as the outcome
achieved under State insurance or reinsurance regulation.
``(12) United states insurer.--The term `United States
insurer' means--
``(A) an insurer that is organized under the laws of a
State; or
``(B) a United States branch of a non-United States
insurer.''.
(b) Pay at Level III of Executive Schedule.--Section 5314
of title 5, United States Code, is amended by adding at the
end the following new item:
``Independent Insurance Advocate, Department of the
Treasury.''.
(c) Independence.--Section 111 of Public Law 93-495 (12
U.S.C. 250) is amended--
(1) by inserting ``the Independent Insurance Advocate of
the Department of the Treasury,'' after ``Federal Housing
Finance Agency,''; and
(2) by inserting ``or official'' before ``submitting
them''.
(d) Transfer of Employees.--All employees of the Department
of Treasury who are performing staff functions for the
independent member of the Financial Stability Oversight
Council under section 111(b)(2)(J) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C.
5321(b)(2)(J)) on a full-time equivalent basis as of the date
of enactment of this Act shall be eligible for transfer to
the Office of the Independent Insurance Advocate established
pursuant to the amendment made by subsection (a) of this
section for appointment as an employee and shall be
transferred at the joint discretion of the Independent
Insurance Advocate and the eligible employee. Any employee
eligible for transfer that is not appointed within 360 days
from the date of enactment of this Act shall be eligible for
detail under section 313(f)(4) of title 31, United States
Code.
(e) Temporary Service; Transition.--Notwithstanding the
amendment made by subsection (a) of this section, during the
period beginning on the date of the enactment of this Act and
ending on the date on which the Independent Insurance
Advocate is appointed and confirmed pursuant to section
313(b)(2) of title 31, United States Code, as amended by such
amendment, the person serving, on such date of enactment, as
the independent member of the Financial Stability Oversight
Council pursuant to section 111(b)(1)(J) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C.
5321(b)(1)(J)) shall act for all purposes as, and with the
full powers of, the Independent Insurance Advocate.
(f) Comparability in Compensation Schedules.--Subsection
(a) of section 1206 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b(a)),
as amended by section 711(c)(11)(D), is further amended by
inserting ``the Office of the Independent Insurance Advocate
of the Department of the Treasury,'' before ``and the Farm
Credit Administration,''.
(g) Senior Executives.--Subparagraph (D) of section
3132(a)(1) of title 5, United States Code, is amended by
inserting ``the Office of the Independent Insurance Advocate
of the Department of the Treasury,'' after ``Finance
Agency,''.
SEC. 1102. TREATMENT OF COVERED AGREEMENTS.
Subsection (c) of section 314 of title 31, United States
Code is amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(2) by inserting before paragraph (2), as so redesignated,
the following new paragraph:
``(1) the Secretary of the Treasury and the United States
Trade Representative have caused to be published in the
Federal Register, and made available for public comment for a
period of not fewer than 30 days and not greater than 90 days
(which period may run concurrently with the 90-day period for
the covered agreement referred to in paragraph (3)), the
proposed text of the covered agreement;''.
TITLE XII--TECHNICAL CORRECTIONS
SEC. 1201. TABLE OF CONTENTS; DEFINITIONAL CORRECTIONS.
(a) Table of Contents.--The table of contents for the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Public
Law 111-203; 124 Stat. 1376) is amended by striking the items
relating to sections 407 through 414 and inserting the
following:
``Sec. 407. Exemption of and reporting by venture capital fund
advisers.
``Sec. 408. Exemption of and reporting by certain private fund
advisers.
``Sec. 409. Family offices.
``Sec. 410. State and Federal responsibilities; asset threshold for
Federal registration of investment advisers.
``Sec. 411. Custody of client assets.
``Sec. 414. Rule of construction relating to the Commodity Exchange
Act.
``Sec. 418. Qualified client standard.
``Sec. 419. Transition period.''.
(b) Definitions.--Section 2 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5301) is
amended--
(1) in paragraph (1)--
(A) by striking ``section 3'' and inserting ``section
3(w)''; and
(B) by striking ``(12 U.S.C. 1813)'' and inserting ``(12
U.S.C. 1813(w))'';
(2) in paragraph (6), by striking ``1 et seq.'' and
inserting ``1a''; and
(3) in paragraph (18)(A)--
(A) by striking `` `bank holding company',''; and
(B) by inserting `` `includes','' before `` `including',''.
SEC. 1202. ANTITRUST SAVINGS CLAUSE CORRECTIONS.
Section 6 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5303) is amended, in the second
sentence--
(1) by inserting ``(15 U.S.C. 12(a))'' after ``Clayton
Act''; and
(2) by striking ``Act, to'' and inserting ``Act (15 U.S.C.
45) to''.
SEC. 1203. TITLE I CORRECTIONS.
Title I of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5311 et seq.) is amended--
(1) in section 102(a)(6) (12 U.S.C. 5311(a)(6)), by
inserting ``(12 U.S.C. 1843(k))'' after ``of 1956'' each
place that term appears;
(2) in section 111(c)(3) (12 U.S.C. 5321(c)(3)), by
striking ``that agency or department head'' and inserting
``the head of that member agency or department'';
(3) in section 112 (12 U.S.C. 5322)--
(A) in subsection (a)(2)--
(i) in subparagraph (C) (as redesignated by section 151)--
(I) by striking ``to monitor'' and inserting ``monitor'';
and
(II) by striking ``to advise'' and inserting ``advise'';
(ii) in subparagraph (H) (as redesignated by section 151),
by striking ``may''; and
(B) in subsection (d)(5), by striking ``subsection and
subtitle B'' each place such term appears and inserting
``subtitle''; and
(4) in section 171(b)(4)(D) (12 U.S.C. 5371(b)(4)(D)), by
adding a period at the end.
SEC. 1204. TITLE III CORRECTIONS.
(a) In General.--Title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5401 et seq.)
is amended--
(1) in section 327(b)(5) (12 U.S.C. 5437(b)(5)), by
striking ``in'' and inserting ``into'';
(2) in section 333(b)(2) (124 Stat. 1539), by inserting
``the second place that term appears'' before ``and
inserting''; and
(3) in section 369(5) (124 Stat. 1559)--
(A) in subparagraph (D)(i)--
(i) in subclause (III), by redesignating items (aa), (bb),
and (cc) as subitems (AA), (BB), and (CC), respectively, and
adjusting the margins accordingly;
(ii) in subclause (IV), by redesignating items (aa) and
(bb) as subitems (AA) and (BB), respectively, and adjusting
the margins accordingly;
(iii) in subclause (V), by redesignating items (aa), (bb),
and (cc) as subitems (AA), (BB), and (CC), respectively, and
adjusting the margins accordingly; and
(iv) by redesignating subclauses (III), (IV), and (V) as
items (bb), (cc), and (dd), respectively, and adjusting the
margins accordingly;
(B) in subparagraph (F)--
(i) in clause (ii), by adding ``and'' at the end;
(ii) in clause (iii), by striking ``and'' at the end and
inserting a semicolon; and
(iii) by striking clause (iv); and
(C) in subparagraph (G)(i), by inserting ``each place such
term appears'' before ``and inserting''.
(b) Effective Dates.--
(1) Section 333.--The amendment made by subsection (a)(2)
of this section shall take effect as though enacted as part
of subtitle C of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (124 Stat. 1538).
(2) Section 369.--The amendments made by subsection (a)(3)
of this section shall take effect as though enacted as part
of subtitle E of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (124 Stat. 1546).
SEC. 1205. TITLE IV CORRECTION.
Section 414 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (124 Stat. 1578) is amended in the
section heading by striking ``COMMODITIES'' and inserting
``COMMODITY''.
SEC. 1206. TITLE VI CORRECTIONS.
(a) In General.--Section 610 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (124 Stat. 1596) is
amended--
(1) by striking subsection (b); and
(2) by redesignating subsection (c) as subsection (b).
[[Page H4786]]
(b) Effective Date.--The amendments made by subsection (a)
of this section shall take effect as though enacted as part
of section 610 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (124 Stat. 1611).
SEC. 1207. TITLE VII CORRECTIONS.
(a) In General.--Title VII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (15 U.S.C. 8301 et seq.)
is amended--
(1) in section 719(c)(1)(B) (15 U.S.C. 8307(c)(1)(B)), by
adding a period at the end;
(2) in section 723(a)(1)(B) (124 Stat. 1675), by inserting
``, as added by section 107 of the Commodity Futures
Modernization Act of 2000 (Appendix E of Public Law 106-554;
114 Stat. 2763A-382),'' after ``subsection (i)'';
(3) in section 724(a), by striking ``adding at the end''
and inserting ``inserting after subsection (e)'';
(4) in section 734(b)(1) (124 Stat. 1718), by striking ``is
amended'' and all that follows through ``(B) in'' and
inserting ``is amended in'';
(5) in section 741(b)(10) (124 Stat. 1732), by striking
``1a(19)(A)(iv)(II)'' each place it appears and inserting
``1a(18)(A)(iv)(II)''; and
(6) in section 749 (124 Stat. 1746)--
(A) in subsection (a)(2), by striking ``adding at the end''
and inserting ``inserting after subsection (f)''; and
(B) in subsection (h)(1)(B), by inserting ``the second
place that term appears'' before the semicolon.
(b) Effective Date.--The amendments made by paragraphs (3),
(4), (5), and (6) of subsection (a) of this section shall
take effect as though enacted as part of part II of subtitle
A of title VII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (124 Stat. 1658).
SEC. 1208. TITLE IX CORRECTIONS.
Section 939(h)(1) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (124 Stat. 1887) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``The'' before ``Commission''; and
(2) by striking ``feasability'' and inserting
``feasibility''.
SEC. 1209. TITLE X CORRECTIONS.
(a) In General.--Title X of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5481 et seq.)
is amended--
(1) in section 1002(12)(G) (12 U.S.C. 5481(12)(G)), by
striking ``Home Owners'' and inserting ``Homeowners'';
(2) in section 1013(a)(1)(C) (12 U.S.C. 5493(a)(1)(C)), by
striking ``section 11(1) of the Federal Reserve Act (12
U.S.C. 248(1))'' and inserting ``subsection (l) of section 11
of the Federal Reserve Act (12 U.S.C. 248(l)'';
(3) in section 1017(a)(2) (as so redesignated by section
712) (12 U.S.C. 5497(a)(5))--
(A) in subparagraph (A), in the last sentence by striking
``716(c) of title 31, United States Code'' and inserting
``716 of title 31, United States Code''; and
(B) in subparagraph (C), by striking ``section 3709 of the
Revised Statutes of the United States (41 U.S.C. 5)'' and
inserting ``section 6101 of title 41, United States Code'';
(4) in section 1027(d)(1)(B) (12 U.S.C. 5517(d)(1)(B)), by
inserting a comma after ``(A)'';
(5) in section 1029(d) (12 U.S.C. 5519(d)), by striking the
period after ``Commission Act'';
(6) in section 1061(b)(7) (12 U.S.C. 5581(b)(7))--
(A) by striking ``Secretary of the Department of Housing
and Urban Development'' each place that term appears and
inserting ``Department of Housing and Urban Development'';
and
(B) in subparagraph (A), by striking ``(12 U.S.C. 5102 et
seq.)'' and inserting ``(12 U.S.C. 5101 et seq.)'';
(7) in section 1063 (12 U.S.C. 5583)--
(A) in subsection (f)(1)(B), by striking ``that''; and
(B) in subsection (g)(1)(A)--
(i) by striking ``(12 U.S.C. 5102 et seq.)'' and inserting
``(12 U.S.C. 5101 et seq.)''; and
(ii) by striking ``seq)'' and inserting ``seq.)'';
(8) in section 1064(i)(1)(A)(iii) (12 U.S.C.
5584(i)(1)(A)(iii)), by inserting a period before ``If an'';
(9) in section 1073(c)(2) (12 U.S.C. 5601(c)(2))--
(A) in the paragraph heading, by inserting ``and
education'' after ``financial literacy''; and
(B) by striking ``its duties'' and inserting ``their
duties'';
(10) in section 1076(b)(1) (12 U.S.C. 5602(b)(1)), by
inserting before the period at the end the following: ``, the
Agency may, after notice and opportunity for comment,
prescribe regulations'';
(11) in section 1077(b)(4)(F) (124 Stat. 2076), by striking
``associates'' and inserting ``associate's'';
(12) in section 1084(1) (124 Stat. 2081), by inserting a
comma after ``2009)'';
(13) in section 1089 (124 Stat. 2092)--
(A) in paragraph (3)--
(i) in subparagraph (A), by striking ``and'' at the end;
and
(ii) in subparagraph (B)(vi), by striking the period at the
end and inserting ``; and''; and
(B) by redesignating paragraph (4) as subparagraph (C) and
adjusting the margins accordingly; and
(14) in section 1098(6) (124 Stat. 2104), by inserting
``the first place that term appears'' before ``and''.
(b) Effective Date.--The amendments made by paragraphs
(11), (12), (13), (14), and (15) of subsection (a) shall take
effect as though enacted as part of subtitle H of title X of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
(124 Stat. 2080).
SEC. 1210. TITLE XII CORRECTION.
Title XII of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (124 Stat. 2129) is amended, in section
1208(b) (12 U.S.C. 5626(b)), by inserting ``, as defined in
section 103(10) of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4702(10)),''
after ``appropriated to the Fund''.
SEC. 1211. TITLE XIV CORRECTION.
Title XIV of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (124 Stat. 2136) is amended, in section
1451(c) (12 U.S.C. 1701x-1(c)), by striking ``pursuant''.
SEC. 1212. TECHNICAL CORRECTIONS TO OTHER STATUTES.
(a) Alternative Mortgage Transaction Parity Act of 1982.--
The Alternative Mortgage Transaction Parity Act of 1982 (12
U.S.C. 3801 et seq.) is amended--
(1) in section 802(a)(3) (12 U.S.C. 3801(a)(3)), by
striking ``the Director of the Office of Thrift Supervision''
and inserting ``the Consumer Law Enforcement Agency'';
(2) in section 804 (12 U.S.C. 3803)--
(A) in subsection (a), by striking ``the Director of the
Office of Thrift Supervision'' each place such term appears
and inserting ``the Comptroller of the Currency''; and
(B) in subsection (d)(1), by striking the comma after
``Administration''.
(b) Bank Holding Company Act Amendments of 1970.--Section
106(b)(1) of the Bank Holding Company Act Amendments of 1970
(12 U.S.C. 1972(1)) is amended, in the undesignated matter at
the end, by striking ``Federal Deposit Insurance Company''
and inserting ``Federal Deposit Insurance Corporation''.
(c) Balanced Budget and Emergency Deficit Control Act.--
Section 255(g)(1)(A) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is
amended by striking ``Office of Thrift Supervision (20-4108-
0-3-373).''.
(d) Bretton Woods Agreements Act.--Section 68(a)(1) of the
Bretton Woods Agreements Act (22 U.S.C. 286tt(a)(1)) is
amended by striking ``Fund ,'' and inserting ``Fund,''.
(e) CAN-SPAM Act of 2003.--Section 7(b)(1)(D) of the CAN-
SPAM Act of 2003 (15 U.S.C. 7706(b)(1)(D)) is amended by
striking ``Director of the Office of Thrift Supervision'' and
inserting ``Comptroller of the Currency or the Board of
Directors of Federal Deposit Insurance Corporation, as
applicable''.
(f) Children's Online Privacy Protection Act of 1998.--
Section 1306(b)(2) of the Children's Online Privacy
Protection Act of 1998 (15 U.S.C. 6505(b)(2)) is amended by
striking ``Director of the Office of Thrift Supervision'' and
inserting ``Comptroller of the Currency or the Board of
Directors of Federal Deposit Insurance Corporation, as
applicable''.
(g) Community Reinvestment Act of 1977.--The Community
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended--
(1) in section 803(1)(C) (12 U.S.C. 2902(1)(C)), by
striking the period at the end and inserting a semicolon; and
(2) in section 806 (12 U.S.C. 2905), by striking
``companies,,'' and inserting ``companies,''.
(h) Credit Repair Organizations Act.--Section 403(4) of the
Credit Repair Organizations Act (15 U.S.C. 1679a(4)) is
amended by striking ``103(e)'' and inserting ``103(f)''.
(i) Depository Institution Management Interlocks Act.--
Section 205(9) of the Depository Institution Management
Interlocks Act (12 U.S.C. 3204(9)) is amended by striking
``Director of the Office of Thrift Supervision'' and
inserting ``appropriate Federal banking agency''.
(j) Economic Growth and Regulatory Paperwork Reduction Act
of 1996.--Section 2227(a)(1) of the Economic Growth and
Regulatory Paperwork Reduction Act of 1996 (12 U.S.C.
252(a)(1)) is amended by striking ``the Director of the
Office of Thrift Supervision,''.
(k) Electronic Fund Transfer Act.--The Electronic Fund
Transfer Act (15 U.S.C. 1693 et seq.) is amended--
(1) in section 903 (15 U.S.C. 1693a)--
(A) in paragraph (2), by striking ``103(i)'' and inserting
``103(j)''; and
(B) by redesignating the first paragraph designated as
paragraph (4) (defining the term ``Board''), as paragraph
(3);
(2) in section 904(a) (15 U.S.C. 1693b(a))--
(A) by redesignating the second paragraph designated as
paragraph (1) (relating to consultation with other agencies),
the second paragraph designated as paragraph (2) (relating to
the preparation of an analysis of economic impact), paragraph
(3), and paragraph (4), as subparagraphs (A), (B), (C), and
(D), respectively, and adjusting the margins accordingly;
(B) by striking ``In prescribing such regulations, the
Board shall:'' and inserting the following:
``(3) Regulations.--In prescribing regulations under this
subsection, the Agency and the Board shall--'';
(C) in paragraph (3)(C), as so redesignated, by striking
``the Board shall''; and
(D) in paragraph (3)(D), as so redesignated--
(i) by inserting ``send promptly'' before ``any''; and
(ii) by striking ``shall be sent promptly to Congress by
the Board'' and inserting ``to Congress'';
(3) in section 909(c) (15 U.S.C. 1693g(c)), by striking
``103(e)'' and inserting ``103(f)'';
(4) in section 918(a)(4) (15 U.S.C. 1693o(a)(4), by
striking ``Act and'' and inserting ``Act; and'';
(5) by redesignating the section added by section 1073(4)
of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (relating to remittance transfers) (15 U.S.C. 1693o-1) as
section 920 of the Electronic Fund Transfer Act;
(6) by redesignating the section headed ``Reasonable fees
and rules for payment card transaction'' (15 U.S.C. 1693o-2)
as section 921 of the Electronic Fund Transfer Act;
(7) by redesignating the section headed ``Relation to State
laws'' (15 U.S.C. 1693q) as section 922 of the Electronic
Fund Transfer Act;
(8) by redesignating the section headed ``Exemption for
State regulation'' (15 U.S.C. 1693r)
[[Page H4787]]
as section 923 of the Electronic Fund Transfer Act; and
(9) by redesignating the section headed ``Effective date''
(15 U.S.C. 1693 note) as section 924 of the Electronic Fund
Transfer Act.
(l) Emergency Economic Stabilization Act of 2008.--Section
101(b) of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5211(b)) is amended by striking ``the Director of
the Office of Thrift Supervision,''.
(m) Equal Credit Opportunity Act.--The Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.) is amended--
(1) in section 703 (15 U.S.C. 1691b)--
(A) in each of subsections (c) and (d), by striking
``paragraph'' each place that term appears and inserting
``subsection''; and
(B) in subsection (g), by adding a period at the end;
(2) in section 704 (15 U.S.C. 1691c)--
(A) in subsection (a)--
(i) by striking ``Consumer Protection Financial Protection
Act of 2010 with'' and inserting ``Consumer Financial
Protection Act of 2010, compliance with'';
(ii) in paragraph (1)--
(I) by striking ``section 8'' and inserting ``Section 8'';
and
(II) in subparagraph (C), by striking ``banks;'' and
inserting ``banks.'';
(iii) in each of paragraphs (6) and (7), by striking the
semicolon at the end and inserting a period; and
(iv) in paragraph (8), by striking ``; and'' and inserting
a period; and
(B) in subsection (c), in the second sentence, by striking
``subchapter'' and inserting ``title''; and
(3) in section 706(k) (15 U.S.C. 1691e(k)), by striking ``,
(2), or (3)'' and inserting ``or (2)''.
(n) Expedited Funds Availability Act.--The Expedited Funds
Availability Act (12 U.S.C. 4001 et seq.) is amended--
(1) in section 605(f)(2)(A) (12 U.S.C. 4004(f)(2)(A)), by
striking ``,,'' and inserting a semicolon; and
(2) in section 610(a)(2) (12 U.S.C. 4009(a)(2)), by
striking ``Director of the Office of Thrift Supervision'' and
inserting ``Comptroller of the Currency and the Board of
Directors of the Federal Deposit Insurance Corporation, as
appropriate,''.
(o) Fair Credit Reporting Act.--The Fair Credit Reporting
Act (15 U.S.C. 1681 et seq.) is amended--
(1) in section 603 (15 U.S.C. 1681a)--
(A) in subsection (d)(2)(D), by striking ``(x)'' and
inserting ``(y)'';
(B) in subsection (q)(5), by striking ``103(i)'' and
inserting ``103(j)''; and
(C) in subsection (v), by striking ``Bureau'' and inserting
``Federal Trade Commission'';
(2) in section 604 (15 U.S.C. 1681b)--
(A) in subsection (b)--
(i) in paragraph (2)(B)(i), by striking ``section
615(a)(3)'' and inserting ``section 615(a)(4)'';
(ii) in paragraph (3)(B)(ii), by striking ``clause
(B)(i)(IV)'' and inserting ``clause (i)(IV)'';
(iii) in paragraph (4)(A)(ii), by inserting ``and'' after
the semicolon; and
(iv) by striking ``section 609(c)(3)'' each place that term
appears and inserting ``section 609(c)''; and
(B) in subsection (g)(5), by striking ``paragraph (2).--''
and all that follows through ``The Bureau'' and inserting
``paragraph (2).--The Agency'';
(3) in section 605 (15 U.S.C. 1681c)--
(A) in subsection (f), by striking ``who'' and inserting
``which''; and
(B) in subsection (h)(2)(A)--
(i) by striking ``shall,,'' and inserting ``shall,''; and
(ii) by striking ``Commission,,'' and inserting
``Commission,'';
(4) in paragraphs (1)(A), (1)(B)(i), (2)(A)(i), and (2)(B)
of section 605A(h) (15 U.S.C. 1681c-1(h))--
(A) by striking ``103(i)'' each place that term appears and
inserting ``103(j)'' ; and
(B) by striking ``open-end'' each place that term appears
and inserting ``open end'';
(5) in section 607(e)(3)(A) (15 U.S.C. 1681e(e)(3)(A)), by
striking ``section 604(b)(4)(E)(i)'' and inserting ``section
604(b)(4)(D)(i)'';
(6) in section 609 (15 U.S.C. 1681g)--
(A) in subsection (a)(3)(C)(i), by striking ``section
604(b)(4)(E)(i)'' and inserting ``section 604(b)(4)(D)(i)'';
(B) in subsection (c)(1)--
(i) in the paragraph heading, by striking ``Commission''
and inserting ``Bureau''; and
(ii) in subparagraph (B)(vi), by striking ``603(w)'' and
inserting ``603(x)'';
(C) in subsection (e)(2)(B)(ii)(II), by striking ``an'';
and
(D) by striking ``The Commission'' each place that term
appears and inserting ``The Bureau'';
(7) in section 610 (15 U.S.C. 1681h)--
(A) in subsection (b)(1), by inserting ``section'' after
``under''; and
(B) in subsection (e), by inserting a comma after ``on the
report'';
(8) in section 611 (15 U.S.C. 1681i), by striking ``The
Commission'' each place that term appears and inserting ``The
Agency'';
(9) in section 612 (15 U.S.C. 1681j)--
(A) in subsection (a)(1)--
(i) by striking ``(w)'' and inserting ``(x)''; and
(ii) in subparagraph (C), by striking ``603(w)'' each place
that term appears and inserting ``603(x)'';
(B) in subsection (g), by striking ``televison'' and
inserting ``television''; and
(C) by striking ``The Commission'' each place that term
appears and inserting ``The Bureau'';
(10) in section 621 (15 U.S.C. 1681s)--
(A) in subsection (a)(1), in the first sentence, by
striking ``, subsection (b)'';
(B) in subsection (e)(2), by inserting a period after
``provisions of this title''; and
(C) in subsection (f)(2), by striking ``The Commission''
and inserting ``The Agency'' and
(11) in section 623(a)(5) (15 U.S.C. 1681s-2(a)(5)), by
striking ``of accounts.--(A) in general.--A person'' and
inserting ``of accounts.--
``(A) In general.--A person''.
(p) Federal Credit Union Act.--Section 206(g)(7)(D)(iv) of
the Federal Credit Union Act (12 U.S.C. 1786(g)(7)(D)(iv)) is
amended by striking the semicolon at the end and inserting a
period.
(q) Federal Deposit Insurance Act.--The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(1) in section 3(q)(2)(C) (12 U.S.C. 1813(q)(2)(C)), by
adding ``and'' at the end;
(2) in section 7 (12 U.S.C. 1817)--
(A) in subsection (b)(2)--
(i) in subparagraph (A), by striking ``(D)'' and inserting
``(C)''; and
(ii) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(B) in subsection (e)(2)(C), by adding a period at the end;
(3) in section 8 (12 U.S.C. 1818)--
(A) in subsection (b)(3), by striking ``Act))'' and
inserting ``Act)''; and
(B) in subsection (t)(2)(C), by striking ``depositors or''
and inserting ``depositors; or'';
(4) in section 11 (12 U.S.C. 1821)--
(A) in subsection (d)(2)(I)(ii), by striking ``and section
21A(b)(4)''; and
(B) in subsection (m), in each of paragraphs (16) and (18),
by striking the comma after ``Comptroller of the Currency''
each place it appears; and
(5) in section 26(a) (12 U.S.C. 1831c(a)), by striking
``Holding Company Act'' each place that term appears and
inserting ``Holding Company Act of 1956''.
(r) Federal Fire Prevention and Control Act of 1974.--
Section 31(a)(5)(B) of the Federal Fire Prevention and
Control Act of 1974 (15 U.S.C. 2227(a)(5)(B)) is amended by
striking ``the Federal Deposit Insurance Corporation'' and
all that follows through the period and inserting ``or the
Federal Deposit Insurance Corporation under the affordable
housing program under section 40 of the Federal Deposit
Insurance Act.''.
(s) Federal Home Loan Bank Act.--The Federal Home Loan Bank
Act (12 U.S.C. 1421 et seq.) is amended--
(1) in section 10(h)(1) (12 U.S.C. 1430(h)(1)), by striking
``Director of the Office of Thrift Supervision'' and
inserting ``Comptroller of the Currency or the Board of
Directors of the Federal Deposit Insurance Corporation, as
applicable''; and
(2) in section 22(a) (12 U.S.C. 1442(a))--
(A) in the matter preceding paragraph (1), by striking
``Comptroller of the Currency'' and all that follows through
``Supervision'' and inserting ``Comptroller of the Currency,
the Chairman of the Board of Governors of the Federal Reserve
System, the Chairperson of the Federal Deposit Insurance
Corporation, and the Chairman of the National Credit Union
Administration''; and
(B) in the undesignated matter following paragraph (2), by
striking ``Comptroller of the Currency'' and all that follows
through ``Supervision'' and inserting ``Comptroller of the
Currency, the Chairman of the Board of Governors of the
Federal Reserve System, and the Chairman of the National
Credit Union Administration''.
(t) Federal Reserve Act.--Paragraph (8)(B) of section 11(s)
of the Federal Reserve Act (headed ``Federal Reserve
Transparency and Release of Information'') (12 U.S.C. 248) is
amended by striking ``this section'' and inserting ``this
subsection''.
(u) Financial Institutions Reform, Recovery, and
Enforcement Act of 1989.--The Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (Public Law 101-73; 103
Stat. 183) is amended in section 1121(6) (12 U.S.C. 3350(6)),
by striking ``the Office of Thrift Supervision,''.
(v) Gramm-Leach-Bliley Act.--The Gramm-Leach-Bliley Act
(Public Law 106-102; 113 Stat. 1338) is amended--
(1) in section 132(a) (12 U.S.C. 1828b(a)), by striking
``the Director of the Office of Thrift Supervision,'';
(2) in section 206(a) (15 U.S.C. 78c note), by striking
``Except as provided in subsection (e), for'' and inserting
``For'';
(3) in section 502(e)(5) (15 U.S.C. 6802(e)(5)), by
striking ``a Federal'' and inserting ``, a Federal'';
(4) in section 504(a)(2) (15 U.S.C. 6804(a)(2)), by
striking ``and, as appropriate, and with'' and inserting
``and, as appropriate, with'';
(5) in section 509(2) (15 U.S.C. 6809(2))--
(A) by striking subparagraph (D); and
(B) by redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively; and
(6) in section 522(b)(1)(A)(iv) (15 U.S.C.
6822(b)(1)(A)(iv)), by striking ``Director of the Office of
Thrift Supervision'' and inserting ``Comptroller of the
Currency and the Board of Directors of the Federal Deposit
Insurance Corporation, as appropriate''.
(w) Helping Families Save Their Homes Act of 2009.--Section
104 of the Helping Families Save Their Homes Act of 2009 (12
U.S.C. 1715z-25) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``and the Director of the Office of Thrift
Supervision, shall jointly'' and inserting ``shall'';
(ii) by striking ``Senate,'' and inserting ``Senate and'';
(iii) by striking ``and the Office of Thrift Supervision'';
and
(iv) by striking ``each such'' and inserting ``such''; and
[[Page H4788]]
(B) in paragraph (1), by striking ``and the Office of
Thrift Supervision''; and
(2) in subsection (b)(1)--
(A) in subparagraph (A)--
(i) in the first sentence--
(I) by striking ``and the Director of the Office of Thrift
Supervision,''; and
(II) by striking ``or the Director''; and
(ii) in the second sentence, by striking ``and the Director
of the Office of Thrift Supervision''; and
(B) in subparagraph (B), by striking ``and the Director of
the Office of Thrift Supervision''.
(x) Home Mortgage Disclosure Act of 1975.--The Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is
amended--
(1) in section 304--
(A) in subsection (b)(5)(A), by striking ``15 U.S.C.
1602(aa)(4)'' and inserting ``section 103(aa)(4) of the Truth
in Lending Act''; and
(B) in subsection (j)(3) (12 U.S.C. 2803(j)(3)), by adding
a period at the end; and
(2) in section 305(b)(1)(A) (12 U.S.C. 2804(b)(1)(A))--
(A) in the matter preceding clause (i), by inserting ``by''
before ``the appropriate Federal banking agency''; and
(B) in clause (iii), by striking ``bank as,'' and inserting
``bank, as''.
(y) Home Owners' Loan Act.--The Home Owners' Loan Act (12
U.S.C. 1461 et seq.) is amended--
(1) in section 5 (12 U.S.C. 1464)--
(A) in subsection (d)(2)(E)(ii)--
(i) in the first sentence, by striking ``Except as provided
in section 21A of the Federal Home Loan Bank Act, the'' and
inserting ``The''; and
(ii) by striking ``, at the Director's discretion,'';
(B) in subsection (i)(6), by striking ``the Office of
Thrift Supervision or'';
(C) in subsection (m), by striking ``Director's'' each
place that term appears and inserting ``appropriate Federal
banking agency's'';
(D) in subsection (n)(9)(B), by striking ``Director's'' and
inserting ``Comptroller's''; and
(E) in subsection (s)--
(i) in paragraph (1)--
(I) in the matter preceding subparagraph (A), by striking
``of such Act)'' and all that follows through ``shall
require'' and inserting ``of such Act), the appropriate
Federal banking agency shall require''; and
(II) in subparagraph (B), by striking ``other methods'' and
all that follows through ``determines'' and inserting ``other
methods as the appropriate Federal banking agency
determines'';
(ii) in paragraph (2)--
(I) by striking ``determined'' and all that follows through
``may, consistent'' and inserting ``determined by appropriate
federal banking agency case-by-case.--The appropriate Federal
banking agency may, consistent''; and
(II) by striking ``capital-to-assets'' and all that follows
through ``determines to be necessary'' and inserting
``capital-to-assets as the appropriate Federal banking agency
determines to be necessary''; and
(iii) in paragraph (3)--
(I) by striking ``agency, may'' and inserting ``agency
may''; and
(II) by striking ``the Comptroller'' and inserting ``the
appropriate Federal banking agency'';
(2) in section 6(c) (12 U.S.C. 1465(c)), by striking
``sections'' and inserting ``section'';
(3) in section 10 (12 U.S.C. 1467a)--
(A) in subsection (b)(6), by striking ``time'' and all that
follows through ``release'' and inserting ``time, upon the
motion or application of the Board, release'';
(B) in subsection (c)(2)(H)--
(i) in the matter preceding clause (i)--
(I) by striking ``1841(p))'' and inserting ``1841(p)))'';
and
(II) by inserting ``(12 U.S.C. 1843(k))'' before ``if--'';
and
(ii) in clause (i), by inserting ``of 1956 (12 U.S.C.
1843(l) and (m))'' after ``Company Act''; and
(C) in subsection (e)(7)(B)(iii)--
(i) by striking ``Board of the Office of Thrift
Supervision'' and inserting ``Director of the Office of
Thrift Supervision''; and
(ii) by inserting ``, as defined in section 2 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5301)'' after ``transfer date''; and
(4) in section 13 (12 U.S.C. 1468b), by striking ``the a''
and inserting ``a''.
(z) Housing Act of 1948.--Section 502(c)(3) of the Housing
Act of 1948 (12 U.S.C. 1701c(c)(3)) is amended by striking
``Federal Home Loan Bank Agency'' and inserting ``Federal
Housing Finance Agency''.
(aa) Housing and Urban Development Act of 1968.--Section
106(h)(5) of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701x(h)(5)) is amended by striking ``authorised''
and inserting ``authorized''.
(bb) International Banking Act of 1978.--Section 15 of the
International Banking Act of 1978 (12 U.S.C. 3109) is
amended--
(1) in each of subsections (a) and (b)--
(A) by striking ``, and Director of the Office of Thrift
Supervision'' each place that term appears; and
(B) by inserting ``and'' before ``Federal Deposit'' each
place that term appears;
(2) in subsection (a), by striking ``Comptroller,
Corporation, or Director'' and inserting ``Comptroller of the
Currency, or Corporation''; and
(3) in subsection (c)(4)--
(A) by inserting ``and'' before ``the Federal Deposit'';
and
(B) by striking ``, and the Director of the Office of
Thrift Supervision''.
(cc) International Lending Supervision Act of 1983.--
Section 912 of the International Lending Supervision Act of
1983 (12 U.S.C. 3911) is amended--
(1) by amending the section heading to read as follows:
``EQUAL REPRESENTATION FOR FEDERAL DEPOSIT INSURANCE
CORPORATION'';
(2) by striking ``(a) In General.--'';
(3) by striking subsection (b); and
(4) by striking ``4'' and inserting ``3''.
(dd) Interstate Land Sales Full Disclosure Act.--The
Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701 et
seq.) is amended in each of section 1411(b) (15 U.S.C.
1710(b)) and subsections (b)(4) and (d) of section 1418a (15
U.S.C. 1717a), by striking ``Secretary's'' each place that
term appears and inserting ``Director's''.
(ee) Investment Advisers Act of 1940.--Section 224 of the
Investment Company Act of 1940 (15 U.S.C. 80b-18c) is amended
in the heading of the section by striking ``COMMODITIES'' and
inserting ``COMMODITY''.
(ff) Legal Certainty for Bank Products Act of 2000.--
Section 403(b)(1) of the Legal Certainty for Bank Products
Act of 2000 (7 U.S.C. 27a(b)(1)) is amended by striking
``that section'' and inserting ``section''.
(gg) Public Law 93-495.--Section 111 of Public Law 93-495
(12 U.S.C. 250) is amended by striking ``the Director of the
Office of Thrift Supervision,''.
(hh) Revised Statutes of the United States.--Section
5136C(i) of the Revised Statutes of the United States (12
U.S.C. 25b(i)) is amended by striking ``Powers.--'' and all
that follows through ``In accordance'' and inserting
``Powers.--In accordance''.
(ii) Riegle Community Development and Regulatory
Improvement Act of 1994.--Section 117(e) of the Riegle
Community Development and Regulatory Improvement Act of 1994
(12 U.S.C. 4716(e)) is amended by striking ``the Director of
the Office of Thrift Supervision,''.
(jj) S.A.F.E. Mortgage Licensing Act of 2008.--Section 1514
of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C.
5113) is amended in each of subsections (b)(5) and (c)(4)(C),
by striking ``Secretary's'' each place that term appears and
inserting ``Director's''.
(kk) Securities Exchange Act of 1934.--The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
(1) in section 3D(d)(10)(A) (15 U.S.C. 78c-4(d)(10)(A)), by
striking ``taking'' and inserting ``take'';
(2) in section 3E(b)(1) (15 U.S.C. 78c-5(b)(1)), by
striking ``though'' and inserting ``through'';
(3) in section 4(g)(8)(A) (15 U.S.C. 78d(g)(8)(A)), by
striking ``(2)(A)(i)'' and inserting ``(2)(A)(ii)'';
(4) in section 15 (15 U.S.C. 78o)--
(A) in each of subparagraphs (B)(ii) and (C) of subsection
(b)(4), by striking ``dealer municipal advisor,,'' and
inserting ``dealer, municipal advisor,'';
(B) by redesignating subsection (j) (relating to the
authority of the Commission) as subsection (p) and moving
that subsection after subsection (o);
(C) as amended by section 841(d), by redesignating the
second subsection (k) and second subsection (l) (relating to
standard of conduct and other matters, respectively), as
added by section 913(g)(1) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (124 Stat. 1828), as
subsections (q) and (r), respectively and moving those
subsections to the end; and
(D) in subsection (m), by inserting ``the'' before ``same
extent'';
(5) in section 15F(h) (15 U.S.C. 78o-10(h))--
(A) in paragraph (2)--
(i) in subparagraph (A), by inserting ``a'' after ``that
acts as an advisor to''; and
(ii) in subparagraph (B), by inserting ``a'' after ``offers
to enter into''; and
(B) in paragraph (5)(A)(i)--
(i) by inserting ``(A)'' after ``(18)''; and
(ii) in subclause (VII), by striking ``act of'' and
inserting ``Act of'';
(6) in section 15G (15 U.S.C. 78o-11)--
(A) in subsection (e)(4)(A), by striking ``subsection'' and
inserting ``section'';
(B) in subsection (e)(4)(C)--
(i) by striking ``129C(c)(2)'' and inserting
``129C(b)(2)(A)''; and
(ii) by inserting ``(15 U.S.C. 1639c(b)(2)(A))'' after
``Lending Act''; and
(C) in subsection (e)(5), by striking ``subsection'' and
inserting ``section''; and
(7) in section 17A (15 U.S.C. 78q-1), by redesignating
subsection (g), as added by section 929W of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (relating to
due diligence for the delivery of dividends, interest, and
other valuable property rights) as subsection (n) and moving
that subsection to the end.
(ll) Telemarketing and Consumer Fraud and Abuse Prevention
Act.--Section 3(b) of the Telemarketing and Consumer Fraud
and Abuse Prevention Act (15 U.S.C. 6102(b)) is amended by
inserting before the period at the end the following: ``,
provided, however, nothing in this section shall conflict
with or supersede section 6 of the Federal Trade Commission
Act (15 U.S.C. 46)''.
(mm) Title 5.--Title 5, United States Code, is amended--
(1) in section 3132(a)(1)(D), as amended by section 711, by
striking ``the Office of Thrift Supervision,, the Resolution
Trust Corporation,''; and
(2) in section 5314, by striking ``Director of the Office
of Thrift Supervision.''.
(nn) Title 31.--
(1) Amendments.--Title 31, United States Code, is amended--
(A) by striking section 309; and
(B) in section 714(d)(3)(B) by striking ``a audit'' and
inserting ``an audit''.
(2) Analysis.--The analysis for subchapter I of chapter 3
of title 31, United States Code, is amended by striking the
item relating to section 309.
(oo) Truth in Lending Act.--The Truth in Lending Act (15
U.S.C. 1601 et seq.) is amended--
(1) in section 105 (15 U.S.C. 1604), by inserting
subsection (h), as added by section 1472(c) of the
[[Page H4789]]
Dodd-Frank Wall Street Reform and Consumer Protection Act
(124 Stat. 2187), before subsection (i), as added by section
1100A(7) of that Act (124 Stat. 2108);
(2) in section 106(f)(2)(B)(i) (15 U.S.C.
1605(f)(2)(B)(i)), by striking ``103(w)'' and inserting
``103(x)'';
(3) in section 121(b) (15 U.S.C. 1631(b)), by striking
``103(f)'' and inserting ``103(g)'';
(4) in section 122(d)(5) (15 U.S.C. 1632(d)(5)), by
striking ``section 603)'' and all that follows through
``promulgate'' and inserting ``section 603), may
promulgate'';
(5) in section 125(e)(1) (15 U.S.C. 1635(e)(1)), by
striking ``103(w)'' and inserting ``103(x)'';
(6) in section 129 (15 U.S.C. 1639)--
(A) in subsection (q), by striking ``(l)(2)'' and inserting
``(p)(2)''; and
(B) in subsection (u)(3), by striking ``Board'' each place
that term appears and inserting ``Agency'';
(7) in section 129C (15 U.S.C. 1639c)--
(A) in subsection (b)(2)(B), by striking the second period
at the end; and
(B) in subsection (c)(1)(B)(ii)(I), by striking ``a
original'' and inserting ``an original'';
(8) in section 148(d) (15 U.S.C. 1665c(d)), by striking
``Bureau'' and inserting ``Board'';
(9) in section 149 (15 U.S.C. 1665d)--
(A) by striking ``the Director of the Office of Thrift
Supervision,'' each place that term appears;
(B) by striking ``National Credit Union Administration
Bureau'' each place that term appears and inserting
``National Credit Union Administration Board''; and
(C) by striking ``Bureau of Directors of the Federal
Deposit Insurance Corporation'' each place that term appears
and inserting ``Board of Directors of the Federal Deposit
Insurance Corporation''; and
(10) in section 181(1) (15 U.S.C. 1667(1)), by striking
``103(g)'' and inserting ``103(h)''.
(pp) Truth in Savings Act.--The Truth in Savings Act (12
U.S.C. 4301 et seq.) is amended in each of sections 269(a)(4)
(12 U.S.C. 4308(a)(4)), 270(a)(2) (12 U.S.C. 4309(a)(2)), and
274(6) (12 U.S.C. 4313(6)), by striking ``Administration
Bureau'' each place that term appears and inserting
``Administration Board''.
The Acting CHAIR. No amendment to that amendment in the nature of a
substitute shall be in order except those printed in part B of House
Report 115-163. Each such amendment may be offered only in the order
printed in the report, by a Member designated in the report, shall be
considered read, shall be debatable for the time specified in the
report, equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be subject
to a demand for division of the question.
Amendment No. 1 Offered by Mr. Hensarling
The Acting CHAIR. It is now in order to consider amendment No. 1
printed in part B of House Report 115-163.
Mr. HENSARLING. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 48, beginning on line 15, strike ``meetings of the
Council, whether or not open to the public,'' and insert
``public meetings of the Council''.
Page 48, after line 19, insert the following (and
redesignate the subsequent paragraph accordingly):
``(5) Transcription requirement for non-public meetings.--
The Council shall create and preserve transcripts for all
non-public meetings of the Council.''.
Amend section 361 to read as follows:
SEC. 361. BRINGING THE FEDERAL DEPOSIT INSURANCE CORPORATION
INTO THE APPROPRIATIONS PROCESS.
(a) In General.--Section 10(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1820(a)) is amended--
(1) by striking ``(a) The'' and inserting the following:
``(a) Powers.--
``(1) In general.--The'';
(2) by inserting ``, subject to paragraph (2),'' after
``The Board of Directors of the Corporation''; and
(3) by adding at the end the following new paragraph:
``(2) Appropriations requirement.--Except as provided under
paragraph (3), the Corporation may, only to the extent as
provided in advance by appropriations Acts, cover the costs
incurred in carrying out the provisions of this Act,
including with respect to the administrative costs of the
Corporation and the costs of the examination and supervision
of insured depository institutions.
``(3) Exception for certain programs.--Paragraph (2) shall
not apply to the Corporation's Insurance Business Line
Programs and Receivership Management Business Line Programs,
as in existence on the date of enactment of this paragraph,
and the proportion of the administrative costs of the
Corporation related to such programs.''.
(b) Examination Fees.--Section 10(e)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1820(e)(1)) is amended by
striking ``to meet the expenses of the Corporation in
carrying out such examinations'' and inserting ``and may be
expended by the Board only to the extent as provided in
advance by appropriations Acts to cover the costs incurred in
carrying out such examinations''.
(c) Offset of Additional Fees.--The Federal Deposit
Insurance Corporation shall reduce the amount of insurance
premiums charged by the Corporation under the Federal Deposit
Insurance Act in an amount equal to any additional fees
charged by the Corporation by reason of the amendments made
by this section.
(d) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and fees collected
on or after October 1, 2017.
Amend section 363 to read as follows:
SEC. 363. BRINGING THE EXAMINATION AND SUPERVISION FUNCTIONS
OF THE NATIONAL CREDIT UNION ADMINISTRATION
INTO THE APPROPRIATIONS PROCESS.
(a) Operating Fees.--Section 105(d) of the Federal Credit
Union Act (12 U.S.C. 1755(d)) is amended--
(1) by striking ``All'' and inserting ``(1) All'';
(2) by striking ``for the account of the Administration and
may be expended by the Board to defray the expenses incurred
in carrying out the provisions of this Act including the
examination and supervision of Federal credit unions'' and
inserting ``and may be expended by the Board only to the
extent as provided in advance by appropriations Acts, to
cover the costs incurred in carrying out the provisions of
this Act with respect to the costs of the examination and
supervision of Federal credit unions and the proportion of
the administrative costs of the Board related to the
examination and supervision of Federal credit unions''; and
(3) by adding at the end the following:
``(2)(A) The Board may only use amounts in the NCUA
Operating Fund to the extent as provided in advance by
appropriations Acts, including to pay for the costs incurred
by the Board in carrying out the examination and supervision
of Federal credit unions and the proportion of the
administrative costs of the Board related to the examination
and supervision of Federal credit unions.
``(B) Subparagraph (A) shall not apply to the Board's
activities carried out pursuant to title II.''.
(b) Staff Funding.--Section 120(j)(3) of the Federal Credit
Union Act (12 U.S.C. 1766(j)(3)) is amended--
(1) by inserting ``related to the examination and
supervision of Federal credit unions under this Act and the
proportion of the administrative costs of the Board related
to the examination and supervision of Federal credit unions
under this Act'' before ``shall be paid''; and
(2) by striking ``insured credit unions under this Act''
and inserting ``Federal credit unions under this title, only
to the extent as provided in advance by appropriations
Acts''.
(c) Use of Deposit Funds.--Section 202(c)(1)(B)(iv) of the
Federal Credit Union Act (12 U.S.C. 1782(c)(1)(B)(iv)) is
amended--
(1) by striking ``The'' and inserting ``To the extent
provided for in advance by appropriations Acts, the''; and
(2) by adding at the end the following new sentence: ``This
clause shall not apply to the Board's activities carried out
pursuant to this title.''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to expenses paid and fees collected
on or after October 1, 2017.
Page 297, line 18, strike ``Council'' and insert
``Secretary of the Treasury''.
Page 326, line 6, strike ``A'' and insert ``P''.
Page 327, line 9, strike ``B'' and insert ``Q''.
Page 329, line 3, strike ``C'' and insert ``R''.
Page 330, line 5, strike ``D'' and insert ``S''.
Page 370, beginning on line 24, strike ``Deadline for
appointment.--Not later than 60 days after the date of the
enactment of this Act, the'' and insert ``Appointment.--
The''.
Page 527, line 2, strike ``Independent Member'' and insert
``President''.
The Acting CHAIR. Pursuant to House Resolution 375, the gentleman
from Texas (Mr. Hensarling) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Texas.
Mr. HENSARLING. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, this is an amendment that is purely technical in nature
that addresses a few discrete issues in the amendment in the nature of
a substitute.
Specifically, it clarifies the noninsurance-related functions of the
Federal Deposit Insurance Corporation and the National Credit Union
Administration subject to congressional appropriations.
This amendment will not--not--affect the ability of the NCUA to
determine the appropriate allocation of expenses between their
insurance and other functions for purpose of their overall funding, but
it will, for the first time, give Congress the power of the purse--our
constitutional power of the purse--over many of the FDIC and NCUA's
operating expenses.
Additionally, the amendment revises the vesting of the appointment
power for certain positions and clarifies congressional access to
nonpublic meetings of the Financial Stability Oversight Council.
[[Page H4790]]
Mr. Chairman, I urge my colleagues to support the amendment and to
support the underlying bill.
I reserve the balance of my time.
Mr. ELLISON. Mr. Chairman, I claim the time in opposition to the
amendment.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. ELLISON. Mr. Chairman, this amendment, which was filed late,
should be viewed as the first admission by the Republicans that H.R. 10
would be bad for our financial markets and our economy.
The amendment recognizes that it would be inappropriate for Members
of Congress to attend nonpublic meetings of the council charged with
reviewing sensitive financial information and discussing potential
threats to our economy.
I agree with the sponsor that this was one of many harmful provisions
in the ``Wrong'' CHOICE Act.
Here are a few more: the ``Wrong'' CHOICE Act eliminates the Office
of Financial Research, which is tasked with studying emerging risks to
our economy and informing the Financial Stability Oversight Council.
The ``Wrong'' CHOICE Act stops the council from taking actions to
prevent firms like AIG from threatening our economy. The ``Wrong''
CHOICE Act allows banks to choose the regulatory system that best suits
their bottom line, even if doing so is bad for the economy and
taxpayers.
Mr. Chairman, the amendment also recognizes the dangers of subjecting
our independent financial regulators to the partisan appropriations
process, by restoring the Federal Deposit Insurance Corporation's and
the National Credit Union Administration's independent funding when it
comes to their responsibilities for unwinding failed banks and credit
unions.
I agree, this is important, but do you know what is also important
and needing to be independent?
The authority to supervise those entities before they fail.
The bank and credit union regulators, including the Consumer
Financial Protection Bureau, have important yet sensitive
responsibilities to make sure that financial institutions follow rules
that are good for the economy, good for consumers, but which some
institutions would rather ignore.
Subjecting these decisions to the appropriations process will result
in fewer cops on the beat, weaker guardrails, and a greater likelihood
of financial catastrophe.
We have seen this happen before. One of the reasons for the failure
of the housing giants, Fannie Mae and Freddie Mac, was that they had a
woefully underfunded regulator without independent funding.
Democrats fixed this when we created the independently funded Federal
Housing Finance Agency in 2008. Since then, this agency has
successfully made tough decisions to right both GSEs by putting them
into conservatorship and cleaning up their businesses.
Ignoring this success and history, H.R. 10 would once again strip
away the independent funding of the GSE's regulator, as it would for
all of the financial regulators.
I am pleased that this amendment has recognized the problems taking
away independent funding for our regulators, but, unfortunately, it
doesn't go far enough. I oppose this amendment and I urge my colleagues
to reject it and the entire ``Wrong'' CHOICE Act.
Mr. Chairman, I reserve the balance of my time.
Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from
Ohio (Mr. Davidson).
Mr. DAVIDSON. Mr. Chairman, I thank the chairman and the work of the
committee for doing the work of the American people.
Prior to coming to Congress, as a small-business owner and small-
business leader, I was feeling the pain of the Dodd-Frank Act,
wondering whether anyone in Washington, D.C., was listening. Now that I
have had the opportunity to serve just this 1 year now in Congress, I
have gone around the district. I have gone around and talked to
businessowners, to farmers, and to community bankers who have been
suffering under this law.
One of the things that hasn't been talked about is how the Dodd-Frank
Act has harmed the SEC, how it has deprived people of due process. All
but the wealthiest Americans are trapped in a system where the SEC has
quasi-judicial hearings using administrative law judges. They have a 90
percent win rate because they have all the keys. They can block
discretion, they can block discovery, and they can limit the facts and
limit the debate.
So one of the good things that the Dodd-Frank reform--known as the
CHOICE Act--accomplishes is ending this process so that people do have
the right to due process in our courts.
Mr. Chairman, I urge my colleagues to vote ``yes'' on H.R. 10 and to
end the abuses of the previous era.
Mr. ELLISON. Mr. Chairman, the late poet Maya Angelou had a saying:
``When people show you who they really are, believe them.''
So when the chief lobbyist for the American Bankers Association leads
a pep rally before 1,500 bankers, we should pay attention. He probably
means what he is saying.
In March, he told ABA members about all the opportunities for banking
with a Republican Congress, he crowed: ``I don't want a seat at the
table. I want the table.''
If we read this bill, we know what it looks like to give the
financial services sector the whole table. We know they want the whole
table.
H.R. 10 is clever at undermining financial regulators, emboldening
Wall Street, and making it incredibly easy to delay regulators at every
step of the rulemaking process.
It is important for the people of America to understand that when
Republicans say they want to kill regulations, usually what they are
talking about is safety regulations, regulations that make the water
clean, the meat safe, and that financial product that you just bought
not blow up in your face. They don't like regulations because
regulations mean that the people who control some of these products
can't just do whatever they want to do.
But for the people in the United States, you should know that
financial regulators are going to keep money in your pocket, they are
going to stop people with way more resources than you have from picking
your pocket.
That is why we oppose this amendment. I think it is particularly
important for people to realize that the rhetoric that we use
denigrating regulation all the time is the same regulation that
protects us, and that includes in the financial services sector.
Mr. Chairman, how much time do I have remaining?
The Acting CHAIR. The gentleman from Minnesota has 15 seconds
remaining.
Mr. ELLISON. Mr. Chairman, I yield back the balance of my time.
Mr. HENSARLING. Mr. Chairman, may I inquire how much time I have
remaining?
The Acting CHAIR. The gentleman from Texas has 3 minutes remaining.
Mr. HENSARLING. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, I know that my friend and colleague from the other side
of the aisle spoke about rhetoric. Unfortunately, that is pretty well
all we have heard from my friends on the other side of the aisle.
I am absolutely fascinated, Mr. Chairman, how often Members on the
other side of the aisle say: I care so much about community banks; I
care so much about small business.
But, Mr. Chairman, do you know how many amendments that they filed on
H.R. 10?
Let me count them. Zero. Zero amendments.
Where is their bill to help small banks? Where is their bill to help
credit unions?
They don't have one, and they didn't offer any amendments, so that is
all we hear.
We hear the rhetoric about Wall Street, Mr. Chairman, but it is
fascinating to me--don't take my word for it, but according to The
Washington Post, The New York Times, and The Wall Street Journal, three
of the largest publications in our country, they all say the same
thing: Large, Wall Street banks support Dodd-Frank, and they oppose the
Financial CHOICE Act.
Now, why do they do that?
Maybe it is because my friends on the other side of the aisle are
only all too happy to preserve Wall Street bailouts. They wrote it into
the law. They codified it into the law; and then they took
[[Page H4791]]
the rest of us and created this thing called the orderly liquidation
authority, which is nothing more than a taxpayer-funded bailout system.
Trillions of dollars can be taken from taxpayers to bail out large
banks. And they defend it. No wonder the large banks, seemingly, are
satisfied with the Dodd-Frank Act.
But who supports the Financial CHOICE Act?
The credit unions support it and the community banks support it
because they are suffering and dying under the weight of the load of
the Dodd-Frank Act.
Again, if we want to get this economy moving again, if we want to
ensure that our hardworking constituents finally get the pay increase
they deserve, that they finally get the future that they deserve, we
must reject Dodd-Frank, and we must support not only this amendment,
but the underlying Financial CHOICE Act.
Mr. Chairman, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Texas (Mr. Hensarling).
The question was taken; and the Acting Chair announced that the ayes
appeared to have it.
Mr. ELLISON. Mr. Chairman, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Texas will
be postponed.
Amendment No. 2 Offered by Mr. Hollingsworth
The Acting CHAIR. It is now in order to consider amendment No. 2
printed in part B of House Report 115-163.
Mr. HOLLINGSWORTH. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of title IV, insert the following:
Subtitle X--Modernized Offering and Proxy Rules for Closed-End Funds
SEC. 499A. PARITY FOR CLOSED-END COMPANIES REGARDING OFFERING
AND PROXY RULES.
(a) Revision to Rules.--Not later than 1 year after the
date of enactment of this Act, the Securities and Exchange
Commission shall revise any rules to the extent necessary to
allow any closed-end company, as defined in section 5(a)(2)
of the Investment Company Act of 1940 (15 U.S.C. 80a-5), that
is registered as an investment company under such Act to use
the securities offering and proxy rules that are available to
other issuers that are required to file reports under section
13 or section 15(d) of the Securities Exchange Act of 1934
(15 U.S.C. 78m; 78o(d)). Any action that the Commission takes
pursuant to this subsection shall include the following:
(1) The Commission shall revise section 230.405 of title
17, Code of Federal Regulations, to--
(A) remove the exclusion of a registered closed-end company
from the definition of a well-known seasoned issuer provided
by that section; and
(B) add registration statements filed on Form N-2 to the
definition of automatic shelf registration statement provided
by that section.
(2) The Commission shall revise sections 230.168 and
230.169 of title 17, Code of Federal Regulations, to remove
the exclusion of a registered closed-end company from the
list of issuers that can use the exemptions provided by those
sections.
(3) The Commission shall revise sections 230.163 and
230.163A of title 17, Code of Federal Regulations, to remove
a registered closed-end company from the list of issuers that
are ineligible to use the exemptions provided by those
sections.
(4) The Commission shall revise section 230.134 of title
17, Code of Federal Regulations, to remove the exclusion of a
registered closed-end company from that section.
(5) The Commission shall revise sections 230.138 and
230.139 of title 17, Code of Federal Regulations, to
specifically include any registered closed-end company as an
issuer to which those sections apply.
(6) The Commission shall revise section 230.164 of title
17, Code of Federal Regulations, to remove a registered
closed-end company from the list of issuers that are excluded
from that section.
(7) The Commission shall revise section 230.433, of title
17, Code of Federal Regulations, to specifically include any
registered closed-end company that is a well-known seasoned
issuer as an issuer to which that section applies.
(8) The Commission shall revise section 230.415 of title
17, Code of Federal Regulations, to--
(A) state that the registration for securities provided by
that section includes securities registered by any registered
closed-end company on Form N-2; and
(B) eliminate the requirement that a Form N-2 registrant
must furnish the undertakings required by item 34.4 of Form
N-2.
(9) The Commission shall revise section 230.497 of title
17, Code of Federal Regulations, to include a process for any
registered closed-end company to file a form of prospectus
that is parallel to the process for filing a form of
prospectus under section 230.424(b) of such title.
(10) The Commission shall revise sections 230.172 and
230.173 of title 17, Code of Federal Regulations, to remove
the exclusion of an offering of any registered closed-end
company from those sections.
(11) The Commission shall revise section 230.418 of title
17, Code of Federal Regulations, to provide that any
registered closed-end company that would otherwise meet the
eligibility requirements of General Instruction I.A of Form
S-3 shall be exempt from paragraph (a)(3) of that section.
(12) The Commission shall revise section 240.14a-101 of
title 17, Code of Federal Regulations, to provide that any
registered closed-end company that would otherwise meet the
requirements of General Instruction I.A of Form S-3 shall be
deemed to meet the requirements of Form S-3 for purposes of
Schedule 14A.
(13) The Commission shall revise section 243.103 of title
17, Code of Federal Regulations, to provide that paragraph
(a) of that section applies for purposes of Form N-2.
(b) Revisions to Form N-2.--Not later than 1 year after the
date of enactment of this Act, the Commission shall revise
Form N-2 to--
(1) include an item or instruction that is similar to item
12 on Form S-3 to provide that any registered closed-end
company that would otherwise meet the requirements of Form S-
3 shall incorporate by reference its reports and documents
filed under the Securities Exchange Act of 1934 into its
registration statement filed on Form N-2; and
(2) include an item or instruction that is similar to the
instruction regarding automatic shelf offerings by well-known
seasoned issuers on Form S-3 to provide that any registered
closed-end company that is a well-known seasoned issuer may
file automatic shelf offerings on Form N-2.
(c) Treatment if Revisions Not Completed in a Timely
Manner.--If the Commission fails to complete the revisions
required by subsections (a) and (b) by the time required by
such subsections, any registered closed-end company shall be
entitled to treat such revisions as having been completed in
accordance with the actions required to be taken by the
Commission by such subsections until such time as such
revisions are completed by the Commission.
(d) Rules of Construction.--
(1) No effect on rule 482.--(1) Nothing in this section or
the amendments made by this section shall be construed to
impair or limit in any way a registered closed-end company
from using section 230.482 of title 17, Code of Federal
Regulations, to distribute sales material.
(2) References.--Any reference in this section to a section
of title 17, Code of Federal Regulations, or to any form or
schedule means such rule, section, form, or schedule, or any
successor to any such rule, section, form, or schedule.
The Acting CHAIR. Pursuant to House Resolution 375, the gentleman
from Indiana (Mr. Hollingsworth) and a Member opposed each will control
5 minutes.
The Chair recognizes the gentleman from Indiana.
Mr. HOLLINGSWORTH. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, I would like to commend the chairman of the Financial
Services Committee for his hard work, and the entire Financial Services
Committee for all the effort they have undertaken in today's debate of
the Financial CHOICE Act.
Mr. Chairman, I rise in support of my amendment to the Financial
CHOICE Act of 2017. This amendment would allow for certain closed-end
funds to be considered well-known seasoned issuers.
Ultimately, the proposed amendment is built upon the foundation of
lowering costs and increasing access for investors by allowing
companies that meet certain criteria to have the same equivalence as
bigger companies that also have access to capital markets by making
them available to those fast lanes that allow them to issue shares.
In 2005, the SEC put in place significant reforms that sought to
modernize registration, communication, and offering processes for
traditional operating companies. These reforms were designed to
streamline the registration process, especially those for large
reporting issuers or well-known seasoned issuers. Unfortunately, the
SEC excluded registered closed-end funds from those reforms.
A closed-end fund is nothing more than a pooled investment fund with
a fixed number of shares that is structured, listed, and traded just
like a stock on the stock exchange. Closed-end funds are crucial to
retirement
[[Page H4792]]
savings and investment vehicles that many retail investors use. About 3
million mom-and-pop investors rely on closed-end funds to meet their
investment needs. These funds serve as a long-term source of capital,
which, in turn, promotes job creation--something we can all agree needs
to happen more in this country.
Closed-end funds, though, are currently under attack by unfair
onerous filing and offering regulations. This commonsense amendment
would provide parity for these certain closed-end funds by streamlining
their registration process, offering and communications processes that
are currently available to other publicly traded companies. This unfair
exclusion of closed-end funds has created an unlevel playing field.
Giving qualifying closed-end funds the ability to enjoy well-known
seasoned issuer status would help those funds better evaluate and
assess the market for their offerings and would enable them to more
quickly access capital markets. Those closed-end funds, an important
vehicle for retail investors, would allow them to get capital to more
job creators.
There has been a steady decline in the number of closed-end funds and
the number of new closed-end funds offerings because of this unlevel
playing field. Since 2007, the number of closed-end funds has dropped
by 20 percent.
{time} 1500
In 2007, there were 42 new closed-end fund issuances; in 2016, there
were only 8. That is an 81 percent decline.
What we can all agree on is that Americans need access to capital.
They need access to the capital markets that will provide them the
capital to thrive as they have created new products. Retail investors
also need access to those investments in order to meet their particular
needs.
These closed-end funds should not have been hamstrung in their
ability to access the advantages afforded to operating companies. It is
time we provide parity in this marketplace by leveling the playing
field.
Mr. Chairman, I urge my colleagues to support this commonsense
amendment, and I reserve the balance of my time.
Mr. ELLISON. Mr. Chair, I rise in opposition.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. ELLISON. Mr. Chair, the Hollingsworth amendment seeks to insert a
totally new and unvetted set of exemptions from the security laws for
closed-end funds. These are the type of pooled investment vehicles that
typically issue a fixed number of shares that, unlike mutual funds, are
not redeemable on a daily basis by the fund, making them harder for
investors to sell.
The Financial Services Committee has had no hearings, no markups, no
debate on these issues until now. Perhaps that is why the amendment has
been mislabeled as only benefiting closed-end funds traded on an
exchange with well-known seasoned issuer status.
In fact, the amendment is much broader, as it would allow even
illiquid, nontraded funds to claim multiple exemptions. This effort
would make it harder for the Securities and Exchange Commission, or
SEC, to police these products for investors.
This last-minute, partisan approach is not the way that Congress
should proceed in making laws, but it is consistent with this bill.
Although Democrats conducted 41 hearings to develop Dodd-Frank,
Republicans planned only 1 hearing on this bill. It is not surprising,
then, that the ``Wrong'' CHOICE Act is a 600-page bill chock-full of
bad partisan ideas and special interest wish lists that will harm our
Nation's investors, consumers, and taxpayers.
For example, the bill would severely undermine the ability of the
SEC, our Wall Street cop on the beat, to protect investors and hold bad
actors accountable. Specifically, it would remove valuable law
enforcement tools, burden the SEC with onerous cost-benefit analysis,
and generate more and more endless litigation, tying the agency up.
Worse, the bill repeals the Department of Labor's fiduciary rule and
effectively prevents the DOL or the SEC from ever moving forward to
protect our Nation's investors and seniors from conflicted advice by
unscrupulous financial advisers.
I will say, most financial advisers are not unscrupulous, but for the
ones that are, there needs to be authority in the law to stop them. We
need the fiduciary rule. The ``Wrong'' CHOICE Act takes it away.
But this should come as no surprise, since the Republicans in
Congress have been relentless in their opposition to the DOL's
commonsense requirement that financial advisers put their clients'
interests ahead of their own when providing investment advice about
retirement products.
Their extreme partisan efforts to kill the fiduciary rule ignore the
facts that 9 in 10 Americans reportedly agree with the rule. An
overwhelming majority--65 percent--of Americans who voted for President
Trump appear to support the regulation.
Tellingly, just last week, after robust bipartisan debate, the
Republican Governor of Nevada signed into law a bill requiring
financial advisers to act in their clients' best interests.
The ``Wrong'' CHOICE Act continues this partisan slant by also
rolling back bipartisan efforts from this and past Congresses to craft
legislation that helps grow small business and protect investors.
Mr. Chair, we owe it to our constituents and the American people to
work together to address real problems with real solutions that are
thoroughly vetted. For that reason, I must oppose this bill and this
amendment.
I will add, my colleague on other side of the aisle, Mr. Chairman,
said: Where is our bill? That would be Dodd-Frank.
Mr. Chair, I reserve the balance of my time.
Mr. HOLLINGSWORTH. Mr. Chairman, may I inquire how much time I have
left?
The Acting CHAIR. The gentleman from Indiana has 2 minutes remaining.
Mr. HOLLINGSWORTH. Mr. Chair, I yield 1\1/2\ minutes to the gentleman
from Michigan (Mr. Huizenga), the subcommittee chair.
Mr. HUIZENGA. Mr. Chair, I support this amendment offered by
Congressman Hollingsworth, who is a great member of our committee.
But folks watching this, you have to understand what is going on. You
just heard about how we are trying to roll back things, roll back
bipartisan consensus. We have bipartisan consensus on this.
This very issue was in a bill that was proposed by current OMB
Director Mick Mulvaney. In fact, when it came out of committee, there
were 4 ``no'' votes against it. The ranking member herself voted for
this very issue in a Business Development Corporation bill, a BDC bill,
that had been sponsored the last Congress. In addition, the omnibus
bill that had passed had this very provision in it as well.
So what you are seeing is hypocrisy, at best. Gamesmanship and
politics really is probably what is going on.
This amendment builds upon a bipartisan provision in the CHOICE Act
that directs the SEC to do something that had been an oversight. It is
streamlining these securities-offering provisions.
I know it is complicated and very esoteric, but these well-known,
seasoned issuers, or WKSIs as they are known, really have been a secure
and safe way of investing for Joe and Janet retirement investor. That
is what I like to the call them. It is my mom and dad and your mom and
dad, us, and our brothers and sisters. It is retail investors. What
this amendment does is conforms the filing and offering regulations for
closed-end funds to those traditional operating companies.
With that, I offer my support and encourage support. Let's stop the
hypocrisy and politics.
Mr. HOLLINGSWORTH. Mr. Chair, I would just build on that to say that
every WKSI goes through the SEC review and comment period.
What we are doing here is removing the duplicative SEC review and
comment period, which only serves to delay capital getting out to
businesses, which only serves to add cost to retail investors that use
these pools.
So I support the amendment, and I support the Financial CHOICE Act of
2017.
Mr. Chairman, I yield back the balance of my time.
Mr. ELLISON. Mr. Chairman, we have discussed business development
[[Page H4793]]
funds. We have not talked about closed-end funds in committee. This
amendment introduces a new idea which has not been debated. For that
reason alone, we should vote it down.
We have got to have regular order around here. This is a complicated
issue. All the avenues and all the different perspectives that need to
be brought to bear should be done in committee, not right here.
Mr. Chairman, for those reasons alone, I would ask for a strong
``no'' vote on this particular amendment, and I yield back the balance
of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Indiana (Mr. Hollingsworth).
The question was taken; and the Acting Chair announced that the ayes
appeared to have it.
Mr. ELLISON. Mr. Chair, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Indiana will
be postponed.
Amendment No. 3 Offered by Mr. Smucker
The Acting CHAIR. It is now in order to consider amendment No. 3
printed in part B of House Report 115-163.
Mr. SMUCKER. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Add at the end of title V the following new subtitle:
Subtitle T--Protection of Consumer Information by Consumer Reporting
Agencies
SEC. 596. SENSE OF CONGRESS RELATED TO PROTECTION OF CONSUMER
INFORMATION BY CONSUMER REPORTING AGENCIES.
(a) In General.--It is the sense of the Congress that
consumer reporting agencies and subsidiaries of consumer
reporting agencies should, when providing access to consumers
to the information contained in the file of the consumer
maintained by the consumer reporting agency, use strong
multi-factor authentication procedures to verify the identity
of consumers.
(b) Definitions.--For purposes of this section, the terms
``consumer'', ``consumer reporting agency'', and ``file''
have the meanings given those terms in section 603 of the
Fair Credit Reporting Act (15 U.S.C. 1681a).
The Acting CHAIR. Pursuant to House Resolution 375, the gentleman
from Pennsylvania (Mr. Smucker) and a Member opposed each will control
5 minutes.
The Chair recognizes the gentleman from Pennsylvania.
Mr. SMUCKER. Mr. Chairman, I start by thanking Chairman Hensarling
and the committee and the staff for all the hard work that they have
done on this very important bill.
Mr. Chairman, protecting the personal information of Americans is
critical to maintaining financial stability. Many of our families,
friends, neighbors, and constituents have suffered from the threat of
their personal information. While private industry works hard to
implement strong protections for our online information, I believe that
Congress has the responsibility to stay informed on the threats facing
constituents in order to help protect those we represent from identity
theft and IRS fraud.
As you are aware, over the past few years, consumer reporting
agencies have experienced numerous breaches of information. High-
profile data breaches occurred in 2017, 2015, 2013, and 2011, among
others.
A recent cyber attack on a CRA subsidiary allowed thieves to access
taxpayer W-2s, giving them the ability to file fraudulent tax returns.
Another attack exposed the Social Security numbers of an estimated 200
million Americans.
Protecting consumers and the constituents I serve in Pennsylvania's
16th District is my duty in Congress, and this includes cyber activity.
In 2015, the IRS paid out $5.8 billion in fraudulent refunds to
identity thieves. While it is important to clarify that that is not
attributable fully to the hacks that I have already referenced, we
should work to improve consumer protections and help stop the wasteful
abuse of taxpayer dollars.
Our constituents rely on consumer reporting agencies to monitor their
credit for theft or nefarious activities. My amendment simply
encourages these agencies collecting our highly sensitive financial
information to do everything they deem feasible to adequately protect
our constituents from identity fraud that can wreak havoc on their
financial stability and personal matters.
CRAs collect large amounts of personal, confidential data. The facts
show these companies are under constant attack by cyber thieves.
Therefore, this language merely encourages them to use the strongest
protection for consumer data.
H.R. 10 takes critical steps to improving our consumer protections
while improving our economic and regulatory environment. My amendment
is about signaling our shared desire to protect our constituents and
their data.
Again, I would like to thank Chairman Hensarling for his work on this
bill and for his support of this amendment, and I urge my colleagues to
support this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. ELLISON. Mr. Chairman, I claim the time in opposition.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. ELLISON. Mr. Chairman, I believe that there might be some merit
to this amendment, but I still claim time in opposition.
Because it wasn't brought up in committee, I think that there is a
lot of hashing out of this particular amendment that could have
happened and we might have been able to agree, but at this point in the
process I have to claim time in opposition and I will explain why. I
will say that, if we can work on it later, we will see what happens,
but as now for now, we are urging a strong ``no.''
I think the amendment is well-intentioned because it purports to
address the growing problem of identity theft, something we all need to
be concerned about. However, I am concerned that it may make it harder
for some consumers who want to obtain their own reports, particularly
those using the website annualcreditreport.com, to access their free
annual consumer reports from nationwide credit reporting agencies, or
CRAs.
Also, the amendment purports to combat identity theft, but solely
focuses on tougher authentication requirements for consumers who want
to access their own files, not on all users who have access to consumer
reports like landlords or employers. I think that is a weakness.
The website annualcreditreport.com and reports maintained by the big
three require consumers to provide personally identifiable information
and to successfully answer several questions about information on the
consumer files before giving them access to reports online.
In a 2017 report, the Consumer Bureau noted that credit reporting
complaints are consistently among the top three types of consumer
complaints it handles. When consumers are denied online access, they
have to mail copies of sensitive identifying documents in order to
obtain their reports, which consumers note is time consuming as well as
potentially not secure. This amendment could make that situation even
worse.
I also find it a little confusing that the House is considering this
amendment to a bill that will hamstring the only Federal agency, the
Consumer Bureau, that has rulemaking, supervisory, and enforcement
authority over most consumer reporting agencies and has actually
addressed many credit reporting problems.
If Members support this amendment, then it simply does not make sense
to me for the same Members to support H.R. 10, which will gut the
Consumer Bureau's capacity to effectively address problems like
identity theft.
Before Dodd-Frank, the Federal Trade Commission was the only Federal
agency with enforcement authority over the CRAs, but there was no
entity with supervising authority. Dodd-Frank closed that gap by giving
the Consumer Bureau the supervisory power to monitor CRAs' operations.
Just this year, through the good work of the Consumer Bureau's
examiners, the Consumer Bureau issued enforcement orders against all of
the big three CRAs for misleading practices that harm consumers.
I urge colleagues to oppose the amendment and reject the ``Wrong''
[[Page H4794]]
CHOICE Act. I hope next time we can talk about this legislation before
it gets to the floor. That would be better and more proper.
Mr. Chairman, I reserve the balance of my time.
Mr. SMUCKER. Mr. Chairman, I yield 1 minute to the gentleman from
Missouri (Mr. Luetkemeyer).
Mr. LUETKEMEYER. I thank the gentleman for yielding.
Mr. Chair, it is not my intent today to oppose the amendment;
however, I do want to express my reservations over the amendment from
the gentleman from Pennsylvania. I think it is important that we set
the record straight on a few points.
The credit reporting agencies are not required to adhere to any sort
of thorough data security standard. Unlike many other industries, the
financial services industry has had Federal security requirements in
place for nearly 20 years.
{time} 1515
The amendment sponsor's press release last week said credit reporting
agencies do not have any Federal requirements for cybersecurity
practices. That is news to the House Banking Services Committee, which
has authored some of those requirements. So it simply isn't the case.
Credit reporting agencies are required to adhere to numerous data and
consumer protection laws, including the Fair Credit Reporting Act and
Gramm-Leach-Bliley Act, along with several Federal rules and standards
on data security.
I have some concerns that Congress should not be in the business of
dictating specific security methodologies. The multifactor
authentication procedures specified in the gentleman's amendment could
be right sometimes, even many times, but circumstances, innovation, and
the passage of time may indicate otherwise.
As chairman of the Financial Services Subcommittee on Financial
Institutions, we want to spend some time on trying to look at this
issue and hope that the gentleman works with our committee.
Mr. ELLISON. Mr. Chairman, I would like to talk about an issue
somewhat related that is critical in this debate and would go a long
way toward improving our economy and the chances of consumers.
I have a bill, H.R. 435, the Credit Access and Inclusion Act. My
amendment would help solve problems the Financial Services Committee
has been discussing for more than a decade. This is not an amendment
that I have submitted for disposition today, but I would like to bring
to the attention of the body that this Credit Access and Inclusion Act
was good legislation and should be taken up. It would address a problem
of access to credit that the leader of this bill says he wants to
solve.
My bill would allow utility, telecom, public and Section 8 housing
residents to build a credit score without debt. It provides affirmative
permission for utility, telecom, and housing providers to report on-
time payment information to credit reporting agencies.
I have introduced this bill in four consecutive Congresses. I
introduced this bill with Mr. Pittenger as a lead. It has the support
of many members of the committee, including Representatives Maloney,
Duffy, Green, Stivers, Meeks, Love, Capuano, and more, a truly
bipartisan piece of legislation.
Why am I committed to passing the bill? Because 1 in 10 Americans do
not have a credit score. These 26 million people are credit invisible,
and they can have trouble getting an apartment and might pay more for
insurance, and they will have a very hard time qualifying for a loan to
buy a car or a home. Another 19 million are not scorable because there
is too little information in their files. One in four African Americans
and one in four Latinos are credit invisible and not scorable.
Mr. Chair, I yield back the balance of my time.
Mr. SMUCKER. Mr. Chairman, I yield 30 seconds to the gentleman from
Texas (Mr. Hensarling).
Mr. HENSARLING. Mr. Chair, I thank the gentleman from Pennsylvania
for yielding me the time, and I thank him for his leadership.
Indeed, the whole issue of data security is so vital to our
constituents, so many of them have been victimized by identity theft.
So I appreciate his leadership on this issue, and I know that Chairman
Luetkemeyer in our committee will be leading on this issue. I support
this underlying amendment.
I do have some outstanding questions on what type of multifactor
authentication would be required. I want to ensure that we do not
specify the technology, that this is a sense of Congress provision. But
I look forward to working very closely with Congressman Smucker to
refine the concept as it goes forward, and I thank him for his
leadership.
Mr. SMUCKER. Mr. Chair, I thank both chairmen.
This does not, obviously, replace any work that they are doing. This
is a very, very important issue. This is a sense of Congress simply
saying that we are very concerned about the security of the data of our
constituents, and we are asking that to be looked at. But certainly
there is a lot of work to be done, and I look forward to working with
both the chairmen on this issue.
Mr. Chair, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Pennsylvania (Mr. Smucker).
The amendment was agreed to.
Amendment No. 4 Offered by Mr. Faso
The Acting CHAIR. It is now in order to consider amendment No. 4
printed in part B of House Report 115-163.
Mr. FASO. Mr. Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Add at the end of title V the following new subtitle:
Subtitle T--Dividend Waiver Authority for Mutual Holding Companies
SEC. 596. DIVIDEND WAIVER AUTHORITY FOR MUTUAL HOLDING
COMPANIES.
Section 10(o)(11) of the Home Owners' Loan Act (12 U.S.C.
1467a(o)(11)) is amended--
(1) in subparagraph (D)--
(A) in clause (i), by adding ``and'' at the end;
(B) in clause (ii), by striking ``; and'' and inserting a
period; and
(C) by striking clause (iii);
(2) by amending subparagraph (E) to read as follows:
``(E) Valuation.--The appropriate Federal banking agency
may not consider waived dividends in determining an
appropriate exchange ratio in the event of a full conversion
to stock form.''; and
(3) by adding at the end the following new subparagraph:
``(F) Rule of construction.--Nothing in this paragraph
shall be construed to authorize the appropriate Federal
banking agency to require a vote of members of a mutual
holding company to approve one or more dividend waivers or to
place any additional restrictions on dividend waivers by
mutual holding companies that are inconsistent with or exceed
the requirements set forth in this paragraph.''.
The Acting CHAIR. Pursuant to House Resolution 375, the gentleman
from New York (Mr. Faso) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from New York.
Mr. FASO. Mr. Chair, I yield myself such time as I may consume.
Mr. Chair, I rise today to express my support for the Financial
CHOICE Act, to express my appreciation to Chairman Hensarling and the
committee for all their fine work, and to offer an amendment that will
help small community banks, organized as mutual holding companies,
attract investors and maintain longevity in communities across America
and in upstate New York, which I represent.
Seven years since its enactment, it has become glaringly apparent
that Dodd-Frank has worked to advantage big banks on Wall Street; but
for many of my constituents, the most detrimental aspects of Dodd-Frank
to upstate New York aren't necessarily what is going on on Wall Street
but, rather, the damage it has inflicted upon small community banks and
Main Street.
As has been highlighted here today, the U.S. is losing community
banks at a rate of one per day. These disappearing institutions are
neighborhood banks that are willing to make loans to families for
mortgages or home equity, to small businesses to cover payroll and
investment, investing in our communities, sponsoring our kids' baseball
teams, and understanding the core principles of the communities that
they serve.
[[Page H4795]]
Mr. Chairman, my amendment is quite simple. It seeks to help all
community banks that elect to raise capital through a mutual holding
company, or an MHC, charter.
Dodd-Frank and the implementing Federal Reserve regulations came down
hard on these mutual holding companies, putting onerous, expensive
regulations on these mutual holding companies just for them to waive
the receipts of dividends, a practice which was common pre-Dodd-Frank,
and it worked very well.
In New York State, banks such as the Bank of Greene County, NorthEast
Community Bank, Lake Shore Savings Bank, and many others throughout the
Empire State and throughout the country have been burdened by Dodd-
Frank's nonsensical dividend waiver rules. My amendment cuts the red
tape, restores the dividend waiver process to what it was prior to
Dodd-Frank, and frees up capital to be reinvested in our communities.
I ask my colleagues to support my amendment, and I reserve the
balance of my time.
Mr. ELLISON. Mr. Chair, I claim the time in opposition.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. ELLISON. Mr. Chairman, this amendment is another example of
Republicans choosing to prioritize the interests of corporate insiders
over consumers, which is what the ``Wrong'' CHOICE Act really
symbolizes. We should not prevent regulators from addressing potential
conflicts of interest but, instead, let all shareholders have their
voice be heard.
While Democrats stand ready to work on targeted reforms to help
responsible community banks and credit unions, we will reject any
ideological legislation that puts our financial system and economy at
risk of another crash and that gives a leg up to Wall Street and
predatory lenders to rip off consumers all over again.
Republicans like to pretend that Wall Street reform destroyed our
financial system and economy, but the alternative facts have no basis
in reality. Thanks to Wall Street reform and other Democratic policies,
our economy has made significant gains since the depths of the
financial crisis.
Since Dodd-Frank became law, we have set a record, with 86
consecutive months of private sector job growth, during which the
economy created more than 16 million private sector jobs. Let me assure
you, much more work needs to be done, but this record is important and
must be noted.
Financial institutions are thriving since the passage of Dodd-Frank.
According to the FDIC, banks are posting record profits since the
crisis. Profits for community banks increased more than 10 percent in
the past year. In 2010, the banking industry set an all-time record
with $171 billion in profits. Business lending has increased 75 percent
since Dodd-Frank became law. Credit union membership has expanded by
more than 16 million members since 2010, an increase of 18 percent.
This has happened in part because we have a system that is fairer,
because bad actors are held accountable. The highly successful Consumer
Financial Protection Bureau was established and has returned nearly $12
billion to 29 million consumers who were ripped off by unfair,
deceptive, and abusive practices of bad actors. This tough consumer
enforcement approach has put the entire financial industry on notice to
follow the law and treat their consumers fairly or suffer the
consequences.
So the economy is doing well, financial institutions are doing well,
and consumers are finally being protected. The last thing we should do
is go back to a failed, weak regulatory model that gave us bank
bailouts and the Great Recession. But that is what the Republicans are
offering the American people with this bill.
I urge my colleagues to reject this amendment and the ``Wrong''
CHOICE Act, and I reserve the balance of my time.
Mr. FASO. Mr. Chair, how much time do I have remaining?
The Acting CHAIR. The gentleman from New York has 3 minutes
remaining.
Mr. FASO. Mr. Chair, I have listened to the statement of the
gentleman from Minnesota, and I have to say I am reminded of what
former Senator Moynihan said about we are all entitled to our own
opinion, but not our own facts, and here are the facts.
The banks that are organized as mutual holding companies organize
that way. They are owned by their depositors, and they have also been
able to sell publicly traded stock, but they keep a majority position
in the mutual holding company. Why? Because they want to maintain the
community involvement. They want to maintain the community ownership
and not have their bank taken over by a distanced series of investors.
That is what is exactly happening with the Bank of Greene County, for
instance, in my district.
The Bank of Greene County, as a mutual holding company, they own 55
percent of the bank. So it is owned by the depositors, the public
shareholders, 45 percent; but because of Dodd-Frank and because of the
change in the regulatory process that was eliminated in Dodd-Frank,
every time the mutual holding company has dividends, annually, to
waive, they must send a notice to every depositor. A depositor who
might have $5 in the account or $50,000, they have to mail a notice to
them. It costs them $150,000 a year that is simply wasted, and that
money can't be reinvested in our community.
Mr. Chair, I regret that the minority is misrepresenting what we are
trying to do here. We are defending the interests of small community
banks organized as mutual holding companies that want to keep their
ownership of their bank local. In fact, the bank that I am talking
about, they don't even securitize their mortgages. They underwrite and
they keep all their mortgages locally in their portfolio.
Mr. Chair, I reserve the balance of my time.
Mr. ELLISON. I yield 1 minute to the gentlewoman from California (Ms.
Pelosi), the minority leader.
Ms. PELOSI. Mr. Chair, I thank the gentleman for yielding. I thank
Mr. Ellison and our ranking member, Congresswoman Waters, for their
great leadership on behalf of American consumers, American investors,
and American taxpayers.
I rise in opposition to the amendment and to the bill.
Mr. Chair, today House Republicans are pushing a dangerous Wall
Street first bill that would drag us right back to the days of the
Great Recession. Eight years ago, unchecked recklessness on Wall Street
ignited a financial meltdown that devastated families in every State in
the Union: hundreds of thousands of people lost their jobs every month,
and the unemployment rate soared to 10 percent; more than 11 million
Americans lost their homes through foreclosure; $13 trillion in wealth,
including families' hard-earned retirement savings and college savings,
was destroyed.
On the night of Thursday, September 18, 2008, the Treasury Secretary
came to the Capitol for an emergency meeting with congressional
leaders, Democrats and Republicans from the House and the Senate, to
inform us of the financial meltdown. Secretary Paulson described the
financial meltdown, which was horrific. When I asked the Chairman of
the Federal Reserve, Mr. Bernanke, what he thought of what he was
telling us, Chairman Bernanke told us that, if we did not act
immediately, we would not have an economy by Monday.
We would not have an economy by Monday.
Tens of millions of middle class families across America still bear
the scars. You saw on the right the rise of the Tea Party, on the left,
Occupy Wall Street.
The Democratic Congress vowed that Main Street taxpayers must never
again pay the price for the recklessness of some on Wall Street. I
don't paint everybody there with the same brush, but many on Wall
Street, the predatory lenders and profiteers, had abused American
families for far too long.
With Dodd-Frank, Democrats enacted the strongest Wall Street consumer
financial protections in history, critical reforms to protect
hardworking Americans and to insist on accountability from Wall Street.
[[Page H4796]]
{time} 1530
The Consumer Financial Protection Bureau that the law created has
returned nearly $12 billion worth of compensation to 29 million wronged
Americans--many of them seniors, many of them servicemembers.
But with this bill, the Republicans will undo these safeguards,
eviscerate the Consumer Bureau, and take our country back to the days
of massive taxpayer bailouts. We cannot let that happen.
Our Republican colleagues have named this dreadful and dangerous
legislation, this Wall Street-first legislation, the Financial CHOICE
Act. The Financial CHOICE Act to prey on investors, to prey on
consumers, to prey on taxpayers. That is the choice they want to give
the financial institutions.
But let's look at the appalling choices it represents. Instead of
protecting consumers, Republicans choose to help those who try to cheat
consumers. Instead of protecting seniors, Republicans choose to help
those who prey on retirement savings. Instead of protecting men and
women in uniform, Republicans choose to help those who take advantage
of our servicemembers' families while our heroes are defending our
freedom on the battlefield. Instead of advancing an economy that works
for everyone, Republicans choose to help the special interests get
richer and to stick working people with a bill for a bailout when it
goes wrong.
They have always been handmaidens of the special interests. We know
that. But even for them, when we think we have seen it all, this really
takes them to a new low.
So they call it the Financial CHOICE Act, but these are not the
choices that the American people want. They are choices of the
Republican Party that puts Wall Street first, that are handmaidens of
special interests.
So while Director Comey testified in the Senate earlier today, on
this side of the Capitol, House Republicans are feeding working
families to the wolves on Wall Street.
As I said, I don't paint all on Wall Street with the same brush. The
pervasive incentives baked into the Republican bill will enable the
predatory to punish the honest.
Now, here we go. Think of it. We have a Consumer Financial Protection
Bureau, 29 million Americans benefitting from $12 billion in
compensation. Oh, they don't like that. They want to do away with that.
The Volcker Rule, which would prevent the financial institutions from
taking risk at taxpayers' expense, the classic Republican: privatize
the gain, nationalize the risk. If we win, the private sector and these
banks benefit. If we lose, the taxpayer pays the tab.
Something that had nothing to do with the Dodd-Frank bill, the
fiduciary rule, which only simply said that financial advisers should
have the interest of the investor they are advising at heart. This bill
says no. We are doing away with the very compromised, I might say,
fiduciary rule to protect investors.
So as I say, I don't paint all of Wall Street with the same brush.
The American people want to know who stands with them. I know you want
me not to talk about this because it is the truth about what you are
doing to the American people, but as the minority leader, I have the
right to speak on the floor. You had plenty of time to spread your
malicious legislation to hurt the American people. I am using my time
to speak the truth to them about what this bill does to their financial
stability.
The American people want to know who stands with them and who stands
with the special interests. My Republican colleagues, in the name of
hardworking American families, I use my time on behalf of America's
hardworking families, not on behalf of special interests.
I urge my colleagues to make the choice to reject this dastardly Wall
Street-first bill and to vote in support of our men and women in
uniform, our seniors who have built our country, in support of those
hardworking Americans who are saving for their children's education,
hoping to achieve the American Dream of homeownership, and do not want
to be preyed upon by Republicans in Congress.
Mr. FASO. Mr. Chairman, I yield the balance of my time to the
gentleman from Texas (Mr. Hensarling), the distinguished chairman of
the committee.
Mr. HENSARLING. May I inquire how much time is remaining, Mr.
Chairman?
The Acting CHAIR. The gentleman from New York has 1 minute remaining.
The gentleman from Minnesota has 1\1/2\ minutes remaining, and the
gentleman from Minnesota has the right to close.
Mr. HENSARLING. Mr. Chairman, the last time this body listened to the
minority leader and enacted Dodd-Frank, permanent Wall Street bailouts
were enshrined into law. That is what the gentlewoman represents, but
somehow we did not hear that in her speech. The last time we listened
to the gentlewoman from California, what we see is that working
Americans have not received a pay increase. Their paychecks are
stagnant and their savings remain decimated the last time we listened
to the gentlewoman from California, the minority leader. Since we
listened to her, we have seen that free checking has been cut in half,
bank fees have gone up, mortgages are more difficult to come by and
they are more expensive to close. That is the last time we listened to
the gentlewoman from California, the minority leader.
Her counsel must be rejected, as should the Washington elitism that
is represented by her philosophy must be rejected as well. It is why
Dodd-Frank must be rejected and why the Financial CHOICE Act must be
enacted.
Mr. Chairman, I support the amendment from the gentleman from New
York.
Mr. FASO. Mr. Chair, I yield back the balance of my time.
Mr. ELLISON. Mr. Chair, I don't know if it was the last time, but one
of the many times that we listened to Nancy Pelosi, we passed the Dodd-
Frank Act, which protected consumers to the tune of 29 million of them
to return $11.5 billion to $12 billion back to their families. I think
that Nancy Pelosi has a pretty good record of helping out consumers. I
think consumers of America would appreciate $11.5 billion returned to
their family budgets.
The last time we listened to Nancy Pelosi, we saw a Dodd-Frank which
has stabilized markets, which gave us 85 consecutive months of private
sector job growth.
But the last time we heard from these free-market, Ayn Randian
conservatives, oh, boy, these guys ran the economy straight into the
ditch with their deregulatory schemes and their hostility to any kind
of regulation on Big Business.
We saw unemployment rates well north of 10 percent in many parts of
this country; we saw home values plummet; and we saw mass foreclosures,
all because of the failed Ayn Randian, free-market fundamentalist
attitudes that we see so often on the other side of the aisle.
I will just note to my freshman friend that the minority leader can
talk as long as she wants. You might want to check the rules on that
one.
Mr. Chair, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from New York (Mr. Faso).
The question was taken; and the Acting Chair announced that the ayes
appeared to have it.
Mr. ELLISON. Mr. Chair, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from New York
will be postponed.
Amendment No. 5 Offered by Ms. McSally
The Acting CHAIR. It is now in order to consider amendment No. 5
printed in part B of House Report 115-163.
Ms. McSally. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
At the end of title V, add the following:
Subtitle T--Legitimate Financial Transactions Report
SEC. 596. TREASURY REPORT ON LEGITIMATE FINANCIAL
TRANSACTIONS.
Not later than the end of the 90-day period beginning on
the date of the enactment of this Act, the Secretary of the
Treasury shall issue a report to the Congress on--
(1) the Secretary's efforts to ensure that legitimate
financial transactions move freely and globally; and
[[Page H4797]]
(2) how the Secretary coordinates on such efforts with
Federal bank regulators, financial institutions, and money
service businesses.
The Acting CHAIR. Pursuant to House Resolution 375, the gentlewoman
from Arizona (Ms. McSally) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentlewoman from Arizona.
Ms. McSALLY. Mr. Chairman, I rise today in strong support of my
amendment to H.R. 10, the Financial CHOICE Act.
Since Dodd-Frank was signed into law, we have seen more than 1,900
community financial institutions in the U.S. close.
Additionally, rules promulgated to combat money laundering in
transnational organizations have had unintended consequences on
legitimate businesses along the border.
In my home State of Arizona, banks and legitimate businesses along
the U.S.-Mexico border have been particularly hard hit by ambiguous and
onerous regulations. In the last decade, Arizona has lost 70 percent of
its community banks.
These regulations, which were meant to minimize risk and combat money
laundering, have actually contributed to high transaction costs and
imposed substantial difficulties for legitimate companies engaged in
cash-intensive types of businesses, like ranchers and farmers.
Many banking institutions have closed their doors, and others have
dropped customers participating in cross-border commerce. As a result,
individuals and local businesses, some of them family-owned who have
been operating in the region for generations, have since lost access to
banking services and the capital they rely on.
I strongly support Federal efforts to combat money laundering and
illicit activities, and I understand how transnational criminal
organizations can exploit vulnerabilities in the financial system for
their own gain. However, limiting the availability of banking services
and hampering cross-border transactions to legitimate businesses has
negative impacts on communities in my district. Should this be the
result of regulations handed down by Washington, the Treasury
Department should examine ways to remove these unintended consequences.
As such, my amendment simply asks the Department of Treasury to
review existing regulations and submit a report to Congress regarding
its efforts to work with Federal bank regulators, financial
institutions, and money service businesses to ensure that legitimate
financial transactions can move freely and globally.
It is critical that the new administration engage with small
businesses and local stakeholders in the Southwest to ensure legitimate
cross-border commerce can continue to be a major contributor to our
economy. It is imperative we do everything we can to find a balance
between economic needs of border communities while maintaining strong
safeguards against illicit activities.
This amendment is supported by the Fresh Produce Association, the
Electronic Transactions Association, and the Arizona Bankers
Association.
Mr. Chairman, I urge my colleagues to support my amendment, and I
reserve the balance of my time.
Mr. ELLISON. Mr. Chair, I rise in opposition to the amendment.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. ELLISON. Mr. Chair, let me recognize that the problem that
Representative McSally is trying to address here is a legitimate
problem that we think needs to be focused on.
I must oppose it because it is inadequate and simply not enough. It
would be good if we could get together and try to come up with a
bipartisan solution to this problem that she has, I think, identified
as a legitimate issue.
But ensuring that legitimate financial transactions move freely and
globally, particularly key remittance channels for vulnerable
populations, is a subject of great importance and one on which I and my
Democratic colleagues remain focused.
Many of us represent districts with significant immigrant populations
from Central and South America, the Caribbean, Africa, all across the
globe. We have heard just how critical it is for immigrants here in the
United States to be able to send money that sustain their loved ones
back home.
While I am pleased that there is a bipartisan recognition about the
need to preserve critical remittance channels for legitimate
transactions, I must say that I am deeply concerned by some of the
rhetoric and proposals that we have seen from the Trump administration,
which make me fear that access to remittances, particularly for
vulnerable populations, may be in jeopardy.
Not only has the President been overtly anti-immigrant in his
rhetoric during the 2016 campaign and since, he put out an alarming
proposal about how he would force Mexico to pay for a wall on our
Southern border. He proposed cutting off access to remittance transfers
for anyone who couldn't document their immigration status until Mexico
agreed to pay an extortion payment of between $5 billion and $10
billion.
I also note that while it is essential that legitimate financial
transactions move freely and globally, it is equally important that
illegitimate and illicit transactions do not.
For this reason, I am concerned that the amendment before us falls
short in that it fails to call the administration to disclose how it
plans to curtail the flow of illicit funds, particularly funds which
may be coming from key adversaries like the Russian Federation.
One doesn't have to look far to see that, despite record fines and
numerous enforcement actions, global megabanks have continued to
facilitate shady transactions even when such transactions are highly
suspicious, have no economic rationale, and even likely involve money
laundering and tax evasion.
One example of concern, Deutsche Bank, which operates in the U.S. and
around the globe, was found by the Federal Reserve, New York State, and
the United Kingdom to have facilitated a massive fraudulent trading
scheme that allowed $10 billion to flow out of Russia to unknown
locales.
{time} 1545
In order to better understand the scheme, I recently joined with a
number of my colleagues in writing to the Treasury Secretary to ask for
any and all records of suspicious activity related to Deutsche Bank's
2011 scheme in the Department's possession, including the names and
identities of all parties who participated in, or benefited from, the
scheme.
But, like much of the oversight Democrats are conducting on this
administration, this request has apparently fallen on deaf ears.
So, again, I do appreciate the intent of the amendment--I even
commend Representative McSally for identifying this is an important
issue--it should have gone further in demanding that this
administration disclose how it will curtail well-known schemes being
used to facilitate fraud. So I must urge a ``no'' vote, but I look
forward to working with Representative McSally on this important issue.
Mr. Chairman, I yield back the balance of my time.
Ms. McSALLY. Mr. Chairman, I appreciate my colleague recognizing that
this is a problem and saying he agrees with it, but then doesn't
support the amendment because it is not enough. I don't understand
that. I had hoped that he would support the amendment, and then we
could continue to work together on other initiatives as well.
Mr. Chairman, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentlewoman from Arizona (Ms. McSally).
The amendment was agreed to.
Amendment No. 6 Offered by Mr. Buck
The Acting CHAIR. It is now in order to consider amendment No. 6
printed in part B of House Report 115-163.
Mr. BUCK. Mr. Chairman, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Page 400, line 22, insert ``(a) In General.--'' before
``Within''.
Page 401, after line 2, insert the following:
(b) GSA Study.--
(1) Study.--The Administrator of General Services shall
carry out a study to determine--
(A) the Consumer Law Enforcement Agency's office real
estate leasing needs, in light
[[Page H4798]]
of the changes to the Agency's structure made by this Act;
(B) whether the office space referenced in subsection (a)
is the most cost-effective use of taxpayer money in meeting
those needs, relative to alternative leasing options in the
Washington, D.C. Metropolitan Area; and
(C) if there is a Government department or agency that has
building needs that could be met by moving all or a portion
of the employees of such department or agency to the property
described under subsection (a).
(2) Report.--Not later than the end of the 6-month period
beginning on the date of the enactment of this Act, the
Administrator of General Services shall issue a report to the
Congress containing all findings and determinations made in
carrying out the study required under paragraph (1).
(3) Authority to sell property.--If, after carrying out the
study required under paragraph (1), the Administrator of
General Services determines that--
(A) the Consumer Law Enforcement Agency's office real
estate leasing needs have changed in light of the changes to
the Agency's structure made by this Act, and
(B) that there is no Government department or agency that
has building needs that could be met by moving all or a
portion of the employees of such department or agency to the
property described under subsection (a),
the Administrator may sell such property to the highest
bidder, so long as the revenue from the sale exceeds the
combined cost of building such property and the cost of the
most recently completed renovation of such property.
The Acting CHAIR. Pursuant to House Resolution 375, the gentleman
from Colorado (Mr. Buck) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Colorado.
Mr. BUCK. Mr. Chairman, I rise today to explain my amendment to the
Financial CHOICE Act.
Since the passage of Dodd-Frank, the Consumer Financial Protection
Bureau has been unaccountable to Congress and harmed small businesses
across this country. I am thankful for the work done by Chairman
Hensarling to rein in this out-of-control agency.
With the United States nearly $20 trillion in debt, we must do
everything possible to bring financial accountability to our Federal
Government. Spending at this rate will leave us not only financially
bankrupt but morally bankrupt as well. It is immoral to spend money we
don't have today and force our children to pay in the future.
Despite this, the Consumer Financial Protection Bureau decided it was
necessary to renovate their headquarters, estimated at more than $200
million, over $50 million more than the building is worth. Even in
their initial designs, a lavish two-story waterfall and four-story
glass staircase were more important than the financial prosperity of
our children.
The Financial CHOICE Act makes changes to the CFPB, which will likely
result in different real estate needs for the agency. My amendment is
simple: it will require an assessment of whether the current CFPB
building is a good use of taxpayer dollars. If not, it authorizes the
General Services Administration to sell the building to the highest
bidder, generating hundreds of millions of dollars by offloading a
property that is unnecessary for the Federal Government to own.
Just a few months ago, my first grandchild, nicknamed Bear, was born.
When he grows older, I want to tell him I did everything in my power to
fight the out-of-control spending that plagues our generation. This
amendment is part of that fight for Bear and all of our grandchildren.
This amendment requires our government to use taxpayer dollars
efficiently, and it reinforces a culture of fiscal restraint and
bureaucratic decisionmaking.
I encourage all of my colleagues to support this commonsense and
fiscally responsible amendment, and I reserve the balance of my time.
Mr. ELLISON. Mr. Chairman, I rise in opposition to the amendment.
The Acting CHAIR. The gentleman from Minnesota is recognized for 5
minutes.
Mr. ELLISON. Mr. Chairman, as if the CHOICE Act was not bad enough,
this amendment piles on to the Republicans' misguided attacks on the
highly successful Consumer Financial Protection Bureau.
I don't understand why my Republican friends don't get--29 million
people got $11.5 billion of their money back because unscrupulous
financial services firms unlawfully took their money. I would think we
could get together on that. I would think we could agree that that is
an important thing to work on. And now we are trying to mess with their
building, for the sake of the children, no less.
The Bureau's inspector general conducted a thorough investigation of
the Republican's made-up suggestion that the Consumer Financial
Protection Bureau's building renovations were inappropriate.
The inspector general released an audit back in 2015, that stated:
We determined that construction costs appear reasonable
based on comparisons to an independent cost estimate and the
costs of two comparable building renovations identified by
the U.S. General Services Administration. We also determined
that potential renovation costs are below the amount
previously budgeted and obligated for the renovation. . . .
Current controls for approving, managing, and documenting
renovation costs and project decisions are designed
appropriately. . . .
May we put this issue to bed that there is some nefarious plot going
on with the building? It wasn't legitimate when they first raised it.
It is not legitimate now. And trying to bring a big deal up about their
building, which is an issue that has been resolved, is not going to
benefit the children of tomorrow. I think it will benefit the children
for those 29 million families to get $12 billion back. Now, that might
help some kids. That might pay for some lunches, some school fees, and
a whole bunch of other things to help families. But just messing with
the CFPB over their building will not help anyone.
Even if the House Republicans are not willing to thank the Consumer
Financial Protection Bureau for all it has done, I am.
The Consumer Financial Protection Bureau has been a tough independent
watchdog, has done a great job on behalf of American consumers, and has
done a great job for American financial firms which do honest work.
Imagine, Mr. Chairman, being a financial services firm that is actually
selling a good product at a fair price and you have somebody down the
street cutting corners, ripping off consumers, and you are losing your
competitive advantage because you are honest. The Consumer Financial
Protection Bureau helps keep good financial firms good and not create
this pervasive sentence to drag them in the wrong direction.
The Consumer Financial Protection Bureau maintains a transparent
database that has collected over 1.1 million consumer complaints about
financial institutions, and 97 percent of those have received a timely
response.
The Consumer Financial Protection Bureau has demystified financial
transactions by requiring simple know-before-you-owe disclosures, and
providing educational and comparison shopping tools so that consumers
are empowered to make the right choice for them and their families.
Perhaps one of the Consumer Financial Protection Bureau's most
notable accomplishments to date was its investigation of Wells Fargo's
fraudulent account scandal. Let me tell you, Wells Fargo's fraudulent
account scandal definitely hurt families and kids in those families,
and the CFPB's good work helped those families.
Last September, the Consumer Financial Protection Bureau fined Wells
Fargo $100 million for secretly opening up 2 million unauthorized
accounts on behalf of its consumers and ordered the bank to compensate
customers it harmed. This marks the largest penalty the Consumer
Financial Protection Bureau has imposed to date. And that, Mr.
Chairman, has helped families and children.
I urge my colleagues to reject this amendment, to stop the petty
stuff about the building. This has been reviewed by independent people.
It is really just a waste of time.
Mr. Chairman, I urge a ``no'' vote, and I yield back the balance of
my time.
Mr. BUCK. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIR. The question is on the amendment offered by the
gentleman from Colorado (Mr. Buck).
The question was taken; and the Acting Chair announced that the ayes
appeared to have it.
Mr. ELLISON. Mr. Chairman, I demand a recorded vote.
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by
[[Page H4799]]
the gentleman from Colorado will be postponed.
Announcement by the Acting Chair
The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings
will now resume on those amendments printed in part B of House Report
115-163 on which further proceedings were postponed, in the following
order:
Amendment No. 1 by Mr. Hensarling of Texas.
Amendment No. 2 by Mr. Hollingsworth of Indiana.
Amendment No. 4 by Mr. Faso of New York.
Amendment No. 6 by Mr. Buck of Colorado.
The Chair will reduce to 2 minutes the minimum time for any
electronic vote after the first vote in this series.
Amendment No. 1 Offered by Mr. Hensarling
The Acting CHAIR. The unfinished business is the demand for a
recorded vote on the amendment offered by the gentleman from Texas (Mr.
Hensarling) on which further proceedings were postponed and on which
the ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIR. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 232,
noes 185, not voting 13, as follows:
[Roll No. 295]
AYES--232
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Chaffetz
Cheney
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Costello (PA)
Cramer
Crawford
Cuellar
Culberson
Curbelo (FL)
Davidson
Davis, Rodney
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Donovan
Duffy
Duncan (SC)
Duncan (TN)
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gaetz
Gallagher
Garrett
Gibbs
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
King (NY)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
Lamborn
Lance
Latta
Lewis (MN)
LoBiondo
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Murphy (PA)
Newhouse
Noem
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (MO)
Smith (NE)
Smith (NJ)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NOES--185
Adams
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Cohen
Connolly
Conyers
Cooper
Correa
Courtney
Crist
Crowley
Davis (CA)
Davis, Danny
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Doyle, Michael F.
Ellison
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Fudge
Gabbard
Gallego
Garamendi
Gonzalez (TX)
Gottheimer
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Sean
Matsui
McCollum
McEachin
McGovern
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree
Pocan
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--13
Aguilar
Clyburn
Costa
Cummings
DeFazio
Dunn
Engel
Johnson, Sam
LaMalfa
Maloney, Carolyn B.
Marino
Napolitano
Reichert
{time} 1616
Mrs. DINGELL, Mr. CARSON of Indiana, Ms. WASSERMAN SCHULTZ, Messrs.
BUTTERFIELD, RUPPERSBERGER, Mrs. MURPHY of Florida, and Mr. GOTTHEIMER
changed their vote from ``aye'' to ``no.''
So the amendment was agreed to.
The result of the vote was announced as above recorded.
Amendment No. 2 Offered by Mr. Hollingsworth
The Acting CHAIR. The unfinished business is the demand for a
recorded vote on the amendment offered by the gentleman from Indiana
(Mr. Hollingsworth) on which further proceedings were postponed and on
which the ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIR. A recorded vote has been demanded.
A recorded vote was ordered.
The Acting CHAIR. This is a 2-minute vote.
The vote was taken by electronic device, and there were--ayes 231,
noes 180, not voting 19, as follows:
[Roll No. 296]
AYES--231
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Chaffetz
Cheney
Coffman
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Cooper
Costello (PA)
Cramer
Crawford
Cuellar
Culberson
Curbelo (FL)
Davidson
Davis, Rodney
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Donovan
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gaetz
Gallagher
Garrett
Gibbs
Gohmert
Goodlatte
Gosar
Gottheimer
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
King (NY)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lance
Latta
Lewis (MN)
LoBiondo
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
[[Page H4800]]
McHenry
McKinley
McMorris Rodgers
McSally
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Murphy (PA)
Newhouse
Noem
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (MO)
Smith (NJ)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NOES--180
Adams
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Cohen
Connolly
Conyers
Correa
Courtney
Crist
Crowley
Davis (CA)
Davis, Danny
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Doyle, Michael F.
Ellison
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Fudge
Gabbard
Gallego
Garamendi
Gonzalez (TX)
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Maloney, Sean
Matsui
McCollum
McEachin
McGovern
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree
Pocan
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--19
Aguilar
Bishop (UT)
Clyburn
Cole
Costa
Cummings
DeFazio
Engel
Green, Al
Johnson, Sam
Lamborn
Lynch
Maloney, Carolyn B.
Marino
Meadows
Napolitano
Polis
Reichert
Smith (NE)
Announcement by the Acting Chair
The Acting CHAIR (during the vote). There is 1 minute remaining.
{time} 1620
So the amendment was agreed to.
The result of the vote was announced as above recorded.
Stated for:
Mr. SMITH of Nebraska. Mr. Chair, I was unavoidably detained. Had I
been present, I would have voted ``yea'' on rollcall No. 296.
Mr. COLE. Mr. Chair, I was unavoidably detained. Had I been present,
I would have voted ``yea'' on rollcall No. 296.
Amendment No. 4 Offered by Mr. Faso
The Acting CHAIR. The unfinished business is the demand for a
recorded vote on the amendment offered by the gentleman from New York
(Mr. Faso) on which further proceedings were postponed and on which the
ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIR. A recorded vote has been demanded.
A recorded vote was ordered.
The Acting CHAIR. This is a 2-minute vote.
The vote was taken by electronic device, and there were--ayes 235,
noes 184, not voting 11, as follows:
[Roll No. 297]
AYES--235
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Chaffetz
Cheney
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Costello (PA)
Cramer
Crawford
Cuellar
Culberson
Curbelo (FL)
Davidson
Davis, Rodney
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Donovan
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gaetz
Gallagher
Garrett
Gibbs
Gohmert
Gonzalez (TX)
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
King (NY)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lamborn
Lance
Latta
Lewis (MN)
LoBiondo
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Murphy (PA)
Newhouse
Noem
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (MO)
Smith (NE)
Smith (NJ)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NOES--184
Adams
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Cohen
Connolly
Conyers
Cooper
Correa
Courtney
Crist
Crowley
Davis (CA)
Davis, Danny
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Doyle, Michael F.
Ellison
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Fudge
Gabbard
Gallego
Garamendi
Gottheimer
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Sean
Matsui
McCollum
McEachin
McGovern
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree
Pocan
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman
[[Page H4801]]
Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--11
Aguilar
Clyburn
Costa
Cummings
DeFazio
Engel
Johnson, Sam
Maloney, Carolyn B.
Marino
Napolitano
Reichert
{time} 1624
So the amendment was agreed to.
The result of the vote was announced as above recorded.
Amendment No. 6 Offered by Mr. Buck
The Acting CHAIR. The unfinished business is the demand for a
recorded vote on the amendment offered by the gentleman from Colorado
(Mr. Buck) on which further proceedings were postponed and on which the
ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIR. A recorded vote has been demanded.
A recorded vote was ordered.
The Acting CHAIR. This is a 2-minute vote.
The vote was taken by electronic device, and there were--ayes 233,
noes 185, not voting 12, as follows:
[Roll No. 298]
AYES--233
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
Chaffetz
Cheney
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Costello (PA)
Cramer
Crawford
Cuellar
Culberson
Curbelo (FL)
Davidson
Davis, Rodney
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Donovan
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gaetz
Gallagher
Garrett
Gibbs
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
King (NY)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lamborn
Lance
Latta
Lewis (MN)
LoBiondo
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Murphy (PA)
Newhouse
Noem
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Simpson
Smith (MO)
Smith (NE)
Smith (NJ)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NOES--185
Adams
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Cohen
Connolly
Conyers
Cooper
Correa
Courtney
Crist
Crowley
Davis (CA)
Davis, Danny
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Doyle, Michael F.
Ellison
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Fudge
Gabbard
Gallego
Garamendi
Gonzalez (TX)
Gottheimer
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Sean
Matsui
McCollum
McEachin
McGovern
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree
Pocan
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--12
Aguilar
Clyburn
Costa
Cummings
DeFazio
Engel
Johnson, Sam
Maloney, Carolyn B.
Marino
Napolitano
Reichert
Shuster
{time} 1628
So the amendment was agreed to.
The result of the vote was announced as above recorded.
The Acting CHAIR. The question is on the amendment in the nature of a
substitute, as amended.
The amendment was agreed to.
The Acting CHAIR. Under the rule, the Committee rises.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Hultgren) having assumed the chair, Mr. Simpson, Acting Chair of the
Committee of the Whole House on the state of the Union, reported that
that Committee, having had under consideration the bill (H.R. 10) to
create hope and opportunity for investors, consumers, and entrepreneurs
by ending bailouts and Too Big to Fail, holding Washington and Wall
Street accountable, eliminating red tape to increase access to capital
and credit, and repealing the provisions of the Dodd-Frank Act that
make America less prosperous, less stable, and less free, and for other
purposes, and, pursuant to House Resolution 375, he reported the bill
back to the House with an amendment adopted in the Committee of the
Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment to the amendment
reported from the Committee of the Whole?
If not, the question is on the amendment in the nature of a
substitute, as amended.
The amendment was agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HENSARLING. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 5-
minute vote on passage of the bill will be followed by a 5-minute vote
on agreeing to the Speaker's approval of the Journal, if ordered.
The vote was taken by electronic device, and there were--yeas 233,
nays 186, not voting 11, as follows:
[Roll No. 299]
YEAS--233
Abraham
Aderholt
Allen
Amash
Amodei
Arrington
Babin
Bacon
Banks (IN)
Barletta
Barr
Barton
Bergman
Biggs
Bilirakis
Bishop (MI)
Bishop (UT)
Black
Blackburn
Blum
Bost
Brady (TX)
Brat
Bridenstine
Brooks (AL)
Brooks (IN)
Buchanan
Buck
Bucshon
Budd
Burgess
Byrne
Calvert
Carter (GA)
Carter (TX)
Chabot
[[Page H4802]]
Chaffetz
Cheney
Coffman
Cole
Collins (GA)
Collins (NY)
Comer
Comstock
Conaway
Cook
Costello (PA)
Cramer
Crawford
Culberson
Curbelo (FL)
Davidson
Davis, Rodney
Denham
Dent
DeSantis
DesJarlais
Diaz-Balart
Donovan
Duffy
Duncan (SC)
Duncan (TN)
Dunn
Emmer
Estes (KS)
Farenthold
Faso
Ferguson
Fitzpatrick
Fleischmann
Flores
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Gaetz
Gallagher
Garrett
Gibbs
Gohmert
Goodlatte
Gosar
Gowdy
Granger
Graves (GA)
Graves (LA)
Graves (MO)
Griffith
Grothman
Guthrie
Harper
Harris
Hartzler
Hensarling
Herrera Beutler
Hice, Jody B.
Higgins (LA)
Hill
Holding
Hollingsworth
Hudson
Huizenga
Hultgren
Hunter
Hurd
Issa
Jenkins (KS)
Jenkins (WV)
Johnson (LA)
Johnson (OH)
Jordan
Joyce (OH)
Katko
Kelly (MS)
Kelly (PA)
King (IA)
King (NY)
Kinzinger
Knight
Kustoff (TN)
Labrador
LaHood
LaMalfa
Lamborn
Lance
Latta
Lewis (MN)
LoBiondo
Long
Loudermilk
Love
Lucas
Luetkemeyer
MacArthur
Marchant
Marshall
Massie
Mast
McCarthy
McCaul
McClintock
McHenry
McKinley
McMorris Rodgers
McSally
Meadows
Meehan
Messer
Mitchell
Moolenaar
Mooney (WV)
Mullin
Murphy (PA)
Newhouse
Noem
Nunes
Olson
Palazzo
Palmer
Paulsen
Pearce
Perry
Pittenger
Poe (TX)
Poliquin
Posey
Ratcliffe
Reed
Renacci
Rice (SC)
Roby
Roe (TN)
Rogers (AL)
Rogers (KY)
Rohrabacher
Rokita
Rooney, Francis
Rooney, Thomas J.
Ros-Lehtinen
Roskam
Ross
Rothfus
Rouzer
Royce (CA)
Russell
Rutherford
Sanford
Scalise
Schweikert
Scott, Austin
Sensenbrenner
Sessions
Shimkus
Shuster
Simpson
Smith (MO)
Smith (NE)
Smith (NJ)
Smith (TX)
Smucker
Stefanik
Stewart
Stivers
Taylor
Tenney
Thompson (PA)
Thornberry
Tiberi
Tipton
Trott
Turner
Upton
Valadao
Wagner
Walberg
Walden
Walker
Walorski
Walters, Mimi
Weber (TX)
Webster (FL)
Wenstrup
Westerman
Williams
Wilson (SC)
Wittman
Womack
Woodall
Yoder
Yoho
Young (AK)
Young (IA)
Zeldin
NAYS--186
Adams
Barragan
Bass
Beatty
Bera
Beyer
Bishop (GA)
Blumenauer
Blunt Rochester
Bonamici
Boyle, Brendan F.
Brady (PA)
Brown (MD)
Brownley (CA)
Bustos
Butterfield
Capuano
Carbajal
Cardenas
Carson (IN)
Cartwright
Castor (FL)
Castro (TX)
Chu, Judy
Cicilline
Clark (MA)
Clarke (NY)
Clay
Cleaver
Cohen
Connolly
Conyers
Cooper
Correa
Courtney
Crist
Crowley
Cuellar
Davis (CA)
Davis, Danny
DeGette
Delaney
DeLauro
DelBene
Demings
DeSaulnier
Deutch
Dingell
Doggett
Doyle, Michael F.
Ellison
Eshoo
Espaillat
Esty (CT)
Evans
Foster
Frankel (FL)
Fudge
Gabbard
Gallego
Garamendi
Gonzalez (TX)
Gottheimer
Green, Al
Green, Gene
Grijalva
Gutierrez
Hanabusa
Hastings
Heck
Higgins (NY)
Himes
Hoyer
Huffman
Jackson Lee
Jayapal
Jeffries
Johnson (GA)
Johnson, E. B.
Jones
Kaptur
Keating
Kelly (IL)
Kennedy
Khanna
Kihuen
Kildee
Kilmer
Kind
Krishnamoorthi
Kuster (NH)
Langevin
Larsen (WA)
Larson (CT)
Lawrence
Lawson (FL)
Lee
Levin
Lewis (GA)
Lieu, Ted
Lipinski
Loebsack
Lofgren
Lowenthal
Lowey
Lujan Grisham, M.
Lujan, Ben Ray
Lynch
Maloney, Sean
Matsui
McCollum
McEachin
McGovern
McNerney
Meeks
Meng
Moore
Moulton
Murphy (FL)
Nadler
Neal
Nolan
Norcross
O'Halleran
O'Rourke
Pallone
Panetta
Pascrell
Payne
Pelosi
Perlmutter
Peters
Peterson
Pingree
Pocan
Polis
Price (NC)
Quigley
Raskin
Rice (NY)
Richmond
Rosen
Roybal-Allard
Ruiz
Ruppersberger
Rush
Ryan (OH)
Sanchez
Sarbanes
Schakowsky
Schiff
Schneider
Schrader
Scott (VA)
Scott, David
Serrano
Sewell (AL)
Shea-Porter
Sherman
Sinema
Sires
Slaughter
Smith (WA)
Soto
Speier
Suozzi
Swalwell (CA)
Takano
Thompson (CA)
Thompson (MS)
Titus
Tonko
Torres
Tsongas
Vargas
Veasey
Vela
Velazquez
Visclosky
Walz
Wasserman Schultz
Waters, Maxine
Watson Coleman
Welch
Wilson (FL)
Yarmuth
NOT VOTING--11
Aguilar
Clyburn
Costa
Cummings
DeFazio
Engel
Johnson, Sam
Maloney, Carolyn B.
Marino
Napolitano
Reichert
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). There are 2 minutes
remaining.
{time} 1638
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated for:
Mr. REICHERT. Mr. Speaker, on rollcall No. 299, I missed the vote due
to a personal illness. Had I been present, I would have voted ``yes.''
Stated against:
Mr. ENGEL. Mr. Speaker, I am unavoidably detained in my Congressional
District. Had I been present to vote on H.R. 10, the Financial CHOICE
Act of 2017, I would have voted ``no.''
PERSONAL EXPLANATION
Mrs. NAPOLITANO. Mr. Speaker, I was absent during rollcall votes No.
295, No. 296, No. 297, No. 298, and No. 299 due to my spouse's health
situation in California. Had I been present, I would have voted ``nay''
on the Hensarling Amendment. I would have also voted ``nay'' on the
Hollingsworth Amendment. I would have also voted ``nay'' on the Faso
Amendment. I would have also voted ``nay'' on the Buck Amendment. I
would have also voted ``nay'' on the Final Passage of H.R. 10--
Financial CHOICE Act of 2017.
PERSONAL EXPLANATION
Mr. COSTA. Mr. Speaker, I was unable to be present for rollcall votes
taken on the House floor on June 8, 2017 as I had to return to
California for medical reasons. Had I been present, I would have voted
``no'' on rollcall Vote No. 295, ``no'' on rollcall Vote No. 296,
``no'' on rollcall Vote No. 297, ``no'' on rollcall vote No. 298,
``no'' on rollcall Vote No. 299.
PERSONAL EXPLANATION
Mr. AGUILAR. Mr. Speaker, I was not present for votes on Thursday,
June 8, 2017 because of a family obligation. Had I been present, I
would have voted ``no'' on rollcall No. 295, on Agreeing to the
Hensarling Amendment; ``no'' on rollcall No. 296, on Agreeing to the
Hollingsworth Amendment; ``no'' on rollcall No. 297, on Agreeing to the
Faso Amendment; ``no'' on rollcall No. 298, on Agreeing to the Buck
Amendment; and ``no'' on rollcall No. 299, on Passage of H.R. 10, the
Financial Choice Act.
PERSONAL EXPLANATION
Mr. MARINO. Mr. Speaker, I was unable to attend votes on June 8,
2017, on account of attending my son's graduation. Had I been present,
I would have voted as follows: ``Yea'' for rollcall vote 295, ``yea''
for rollcall vote 296, ``yea'' for rollcall vote 297, ``yea'' for
rollcall vote 298, and ``yea'' for rollcall vote 299.
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