[Congressional Record Volume 164, Number 39 (Tuesday, March 6, 2018)]
[Senate]
[Pages S1381-S1398]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2045. Mr. WICKER (for himself, Ms. Duckworth, Mr. Cochran, and Ms. 
Baldwin) submitted an amendment intended to be proposed by him to the 
bill S. 2155, to promote economic growth, provide tailored regulatory 
relief, and enhance consumer protections, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. TREATMENT OF CERTAIN NONSIGNIFICANT INVESTMENTS IN 
                   THE CAPITAL OF UNCONSOLIDATED FINANCIAL 
                   INSTITUTIONS.

       (a) In General.--Section 18 of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828), as amended by section 403(a), 
     is amended by adding at the end the following:
       ``(bb) Treatment of Nonsignificant Investments in the 
     Capital of Unconsolidated Financial Institutions.--For 
     purposes of the final rules titled `Regulatory Capital Rules: 
     Regulatory Capital, Implementation of Basel III, Capital 
     Adequacy, Transition Provisions, Prompt Corrective Action, 
     Standardized Approach for Risk-weighted Assets, Market 
     Discipline and Disclosure Requirements, Advanced Approaches 
     Risk-Based Capital Rule, and Market Risk Capital Rule' (78 
     Fed. Reg. 62018; published Oct. 11, 2013 and 79 Fed. Reg. 
     20754; published April 14, 2014) and any other regulation 
     which incorporates a definition of the term `nonsignificant 
     investments in the capital of unconsolidated financial 
     institutions', the appropriate Federal banking agencies shall 
     provide that investments in trust preferred securities 
     (pooled and individual instruments) by a depository 
     institution with assets of less than $15,000,000,000 as of 
     July 21, 2010, or a depository institution holding company 
     with assets of less than $15,000,000,000 as of July 21, 2010, 
     shall not be subject to deduction from the regulatory capital 
     of such depository institution or depository institution 
     holding company or any depository institution holding company 
     of such an institution, provided such investments were held 
     prior to July 21, 2010.''.
       (b) Amendment to Basel III Capital Regulations.--Not later 
     than the end of the 3-month period beginning on the date of 
     the enactment of this Act, the Federal Deposit Insurance 
     Corporation, the Board of Governors of the Federal Reserve 
     System, and the Comptroller of the Currency shall amend the 
     final rules titled ``Regulatory Capital Rules: Regulatory 
     Capital, Implementation of Basel III, Capital Adequacy, 
     Transition Provisions, Prompt Corrective Action, Standardized 
     Approach for Risk-weighted Assets, Market Discipline and 
     Disclosure Requirements, Advanced Approaches Risk-Based 
     Capital Rule, and Market Risk Capital Rule'' (78 Fed. Reg. 
     62018; published Oct. 11, 2013 and 79 Fed. Reg. 20754; 
     published April 14, 2014) to implement the amendments made by 
     this Act.
                                 ______
                                 
  SA 2046. Mr. PAUL (for himself, Mr. Blunt, Mr. Heller, Mr. Scott, and 
Mr. Daines) submitted an amendment intended to be proposed by him to 
the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. 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 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 the 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''.
                                 ______
                                 
  SA 2047. Mr. ENZI submitted an amendment intended to be proposed by

[[Page S1382]]

him to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. RATE OF PAY FOR EMPLOYEES OF THE BUREAU OF CONSUMER 
                   FINANCIAL PROTECTION.

       (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 Bureau 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 Bureau of 
     Consumer Financial Protection following the 90-day period 
     beginning on the date of enactment of this Act.
                                 ______
                                 
  SA 2048. Mr. RUBIO submitted an amendment intended to be proposed by 
him to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title V, add the following:

     SEC. ___. GAO REPORT ON PUERTO RICO FORECLOSURES.

       Not later than 1 year after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives a report on foreclosures in 
     the Commonwealth of Puerto Rico, including--
       (1) the rate of foreclosures in the Commonwealth of Puerto 
     Rico before and after Hurricane Maria
       (2) the rate of return for housing developers in the 
     Commonwealth of Puerto Rico before and after Hurricane Maria;
       (3) the rate of delinquency in the Commonwealth of Puerto 
     Rico before and after Hurricane Maria;
       (4) the rate of homeownership in the Commonwealth of Puerto 
     Rico before and after Hurricane Maria;
       (5) the rate of defaults on federally insured mortgages in 
     the Commonwealth of Puerto Rico before and after Hurricane 
     Maria; and
       (6) policy recommendations to address adverse impacts of 
     Hurricane Maria on the rates of foreclosure, delinquency, 
     homeownership, and default rates in the Commonwealth of 
     Puerto Rico.
                                 ______
                                 
  SA 2049. Mr. RUBIO submitted an amendment intended to be proposed by 
him to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title V, add the following:

     SEC. 504. REPORT ON FOREIGN INVESTMENT IN REAL ESTATE IN THE 
                   UNITED STATES.

       (a) In General.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of the Treasury, in 
     consultation with the Secretary of Commerce, shall submit to 
     the appropriate congressional committees a report on foreign 
     investment in real estate in the United States that includes 
     the following:
       (1) For each of the 30 years preceding such date of 
     enactment, an estimate of the following:
       (A) The total amount of foreign investment in real estate 
     in the United States.
       (B) The amount of investment described in subparagraph (A), 
     disaggregated by--
       (i) each of the 10 foreign countries from which the most 
     such investment originates;
       (ii) each covered foreign country; and
       (iii) investment by public and private entities.
       (C) The total amount of foreign investment in real estate 
     in the United States in the 20 metropolitan statistical areas 
     with the most such investment.
       (D) The amount of investment described in subparagraph (C), 
     disaggregated by--
       (i) each of the metropolitan statistical areas described in 
     that subparagraph;
       (ii) each covered foreign country; and
       (iii) investment by public and private entities.
       (E) The total amount of foreign investment in real estate 
     in the United States in the 10 States with the most such 
     investment.
       (F) The amount of investment described in subparagraph (E), 
     disaggregated by--
       (i) each of the States described in that subparagraph;
       (ii) each covered foreign country; and
       (iii) investment by public and private entities.
       (2) An estimate of the percentage of the average home price 
     in the metropolitan statistical areas described in paragraph 
     (1)(C) attributable to foreign investment in real estate.
       (3) An estimate of the percentage of the average home price 
     in the States described in paragraph (1)(E) attributable to 
     foreign investment in real estate.
       (b) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Banking, Housing, and Urban Affairs 
     and the Committee on Foreign Relations of the Senate; and
       (B) the Committee on Financial Services and the Committee 
     on Foreign Affairs of the House of Representatives.
       (2) Covered country.--The term ``covered country'' means--
       (A) Argentina;
       (B) Brazil;
       (C) Canada;
       (D) Colombia;
       (E) Germany;
       (F) Japan;
       (G) Norway;
       (H) the People's Republic of China;
       (I) Singapore;
       (J) South Korea;
       (K) Switzerland;
       (L) the United Arab Emirates; and
       (M) Venezuela.
       (3) Metropolitan statistical area.--The term ``metropolitan 
     statistical area'' has the meaning given that term by the 
     Office of Management and Budget.
                                 ______
                                 
  SA 2050. Mr. NELSON (for himself and Mr. Rubio) submitted an 
amendment intended to be proposed by him to the bill S. 2155, to 
promote economic growth, provide tailored regulatory relief, and 
enhance consumer protections, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. STANDARDS FOR PHYSICAL CONDITION AND MANAGEMENT OF 
                   HOUSING RECEIVING ASSISTANCE PAYMENTS.

       (a) In General.--Section 8 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f) is amended by inserting after 
     subsection (v) the following:
       ``(w) Standards for Physical Condition and Management of 
     Housing Receiving Assistance Payments.--
       ``(1) Standards for physical condition and management of 
     housing.--Any entity receiving assistance payments under this 
     section shall maintain decent, safe, and sanitary conditions, 
     as determined by the Secretary, for any structure covered 
     under a housing assistance payment contract.
       ``(2) Survey of tenants.--The Secretary shall develop a 
     process by which a Performance-Based Contract Administrator 
     shall, on a semiannual basis, conduct a survey of the tenants 
     of each structure covered under a housing assistance payment 
     contract for the purpose of identifying consistent or 
     persistent problems with the physical condition of the 
     structure or performance of the manager of the structure.
       ``(3) Remediation.--A structure covered under a housing 
     assistance payment contract shall be referred to the 
     Secretary for remediation if a Performance-Based Contract 
     Administrator identifies a consistent or persistent problem 
     with the structure or the management of the structure based 
     on--
       ``(A) a survey conducted under paragraph (2); or
       ``(B) any other observation made by the Performance-Based 
     Contract Administrator during the normal course of business.
       ``(4) Penalty for failure to uphold standards.--
       ``(A) In general.--The Secretary may impose a penalty on 
     any owner of a structure covered under a housing assistance 
     payment contract if the Secretary finds that the structure or 
     manager of the structure--
       ``(i) did not satisfactorily meet the requirements under 
     paragraph (1); or
       ``(ii) is repeatedly referred to the Secretary for 
     remediation by a Performance Based Contract Administrator 
     through the process established under paragraph (3).
       ``(B) Amount.--A penalty imposed under subparagraph (A) 
     shall be in an amount equal to not less than 1 percent of the 
     annual budget authority the owner is allocated under a 
     housing assistance payment contract.
       ``(C) Use of amounts.--Any amounts collected under this 
     paragraph shall be used solely for the purpose of supporting 
     safe and sanitary conditions at applicable structures or for 
     tenant relocation, as designated by the Secretary, with 
     priority given to the tenants of the structure that led to 
     the penalty.
       ``(5) Applicability.--This subsection shall not apply to 
     any property assisted under subsection (o).''.
       (b) Issuance of Report.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary of Housing and 
     Urban Development shall submit to Congress a report that--
       (1) examines the adequacy of capital reserves for each 
     structure covered under a housing assistance payment contract 
     under section 8 of the United States Housing Act of 1937 (42 
     U.S.C. 1437f);
       (2) examines the use of funds derived from a housing 
     assistance payment contract for purposes unrelated to the 
     maintenance and capitalization of the structure covered under 
     the contract; and
       (3) includes any administrative or legislative 
     recommendations to further improve the living conditions at 
     those structures.

[[Page S1383]]

  

                                 ______
                                 
  SA 2051. Ms. STABENOW submitted an amendment intended to be proposed 
by her to the bill S. 2155, to promote economic growth, provide 
tailored regulatory relief, and enhance consumer protections, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROHIBITION ON FEDERAL CONTRACTS IN EVENT OF DATA 
                   BREACH.

       (a) In General.--No entity that has been subject to a data 
     breach impacting over 10,000,000 individuals may be awarded 
     any Federal contract until the Federal Trade Commission 
     certifies, after appropriate consultation with the entity, 
     that the issues or failures to adequately protect consumer 
     data that led to the breach have been adequately resolved.
       (b) Policies.--
       (1) In general.--Effective December 31, 2018, no entity 
     shall be eligible to be awarded any Federal contract unless 
     they have a policy in place to notify consumers within 30 
     days of being subject to a data breach.
       (2) Regulations.--The Administrator for Federal Procurement 
     Policy shall promulgate regulations that carry out this 
     subsection.
                                 ______
                                 
  SA 2052. Ms. STABENOW submitted an amendment intended to be proposed 
by her to the bill S. 2155, to promote economic growth, provide 
tailored regulatory relief, and enhance consumer protections, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REQUIREMENT TO INVESTIGATE SIGNIFICANT VIOLATIONS 
                   AND DATA BREACHES.

       In the case of a potential violation of laws or regulations 
     within its jurisdiction known to affect or reasonably 
     believed to affect at least 1,000,000 consumers, or a data 
     breach known to affect or reasonably believed to affect at 
     least 1,000,000 consumers, the Bureau of Consumer Financial 
     Protection shall investigate the incident and promptly submit 
     to Congress a report detailing why the Bureau of Consumer 
     Financial Protection did or did not assess fines and 
     penalties or take other corrective actions. Such report shall 
     be posted contemporaneously on the website of the Bureau of 
     Consumer Financial Protection at a location that is 
     conspicuous and available to the public.
                                 ______
                                 
  SA 2053. Ms. STABENOW submitted an amendment intended to be proposed 
by her to the bill S. 2155, to promote economic growth, provide 
tailored regulatory relief, and enhance consumer protections, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. INCREASED CIVIL PENALTIES FOR CERTAIN FALSE 
                   CERTIFICATIONS TO SECRETARY OF VETERANS AFFAIRS 
                   REGARDING HOME LOANS TO BE GUARANTEED OR 
                   INSURED BY DEPARTMENT OF VETERANS AFFAIRS.

       (a) In General.--Subchapter III of chapter 37 of title 38, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 3737. Civil penalties for lenders making false 
       certifications regarding home loans

       ``(a) In General.--Notwithstanding section 3802 of title 
     31, any lender who knowingly and willfully makes a false 
     certification under section 36.4340(k)(2) of title 38, Code 
     of Federal Regulations, or successor regulation, shall be 
     liable to the United States Government for a civil penalty 
     equal to four times the amount of the Secretary's loss on the 
     loan involved or another appropriate amount, not to exceed 
     $50,000, whichever is greater.
       ``(b) Pattern or Practice.--(1) In any case in which a 
     lender described in paragraph (2) makes a false certification 
     under section 36.4340(k)(2) of title 38, Code of Federal 
     Regulations, or successor regulation, that is a part of a 
     pattern or practice of knowingly and willfully making false 
     certifications under such section that has had an effect on 
     500 or more veterans, the lender shall be liable to the 
     United States Government for a civil penalty equal to 
     $1,000,000 per veteran affected in addition to any amounts 
     the lender may be liable for under subsection (a).
       ``(2) A lender described in this paragraph is a lender 
     which has been identified as a global systematically 
     important BHC under section 217.402 of title 12, Code of 
     Federal Regulations, or successor regulation, or subject to a 
     determination under section 113 of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5323).
       ``(c) Additional Remedies.--Any assessment under this 
     section may be in addition to other remedies available to the 
     Secretary.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 37 of such title is amended by inserting 
     after the item relating to section 3736 the following new 
     item:

``3737. Civil penalties for lenders making false certifications 
              regarding home loans.''.
                                 ______
                                 
  SA 2054. Ms. WARREN (for herself and Mrs. Feinstein) submitted an 
amendment intended to be proposed by her to the bill S. 2155, to 
promote economic growth, provide tailored regulatory relief, and 
enhance consumer protections, and for other purposes; which was ordered 
to lie on the table; as follows:

       In section 303(a)(2)(A), in the matter preceding clause 
     (i), insert ``under section 502 of the Gramm-Leach-Bliley Act 
     (15 U.S.C. 6802)'' after ``shall not be liable''.
       In section 303(a)(2)(B), in the matter preceding clause 
     (i), insert ``under section 502 of the Gramm-Leach-Bliley Act 
     (15 U.S.C. 6802)'' after ``shall not be liable''.
                                 ______
                                 
  SA 2055. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       In section 401(a)(1), strike subparagraph (B) and insert 
     the following:
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``$50,000,000,000'' 
     and inserting ``the applicable threshold''; and
       (ii) by adding at the end the following:
                                 ______
                                 
  SA 2056. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of section 401, add the following:
       (g) TARP Funds.--Any financial institution that received 
     more than $1,000,000,000 from any funds made available under 
     the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 
     5201 et seq.) shall be subject to the provisions amended by 
     this section in effect on the day before the date of 
     enactment of this Act.
                                 ______
                                 
  SA 2057. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. USE OF CREDIT CHECKS PROHIBITED FOR EMPLOYMENT 
                   PURPOSES.

       (a) Prohibition for Employment and Adverse Action.--Section 
     604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is 
     amended--
       (1) in subsection (a)(3)(B), by inserting ``within the 
     restrictions set forth in subsection (b)'' after 
     ``purposes'';
       (2) by redesignating subsections (b) through (g) as 
     subsections (c) through (h), respectively; and
       (3) by inserting after subsection (a) the following:
       ``(b) Use of Certain Consumer Report Prohibited for 
     Employment Purposes or Adverse Action.--
       ``(1) General prohibition.--Except as provided in paragraph 
     (3), a person, including a prospective employer or current 
     employer, may not use a consumer report or investigative 
     consumer report, or cause a consumer report or investigative 
     consumer report to be procured, with respect to any consumer 
     where any information contained in the report bears on the 
     creditworthiness, credit standing, or credit capacity of the 
     consumer--
       ``(A) for employment purposes; or
       ``(B) for making an adverse action, as described in section 
     603(k)(1)(B)(ii).
       ``(2) Source of consumer report irrelevant.--The 
     prohibition described in paragraph (1) shall apply even if 
     the consumer consents or otherwise authorizes the procurement 
     or use of a consumer report for employment purposes or in 
     connection with an adverse action with respect to the 
     consumer.
       ``(3) Exceptions.--Notwithstanding the prohibitions set 
     forth in this subsection, and consistent with the other 
     sections of this Act, an employer may use a consumer report 
     with respect to a consumer in the following situations:
       ``(A) When the consumer applies for, or currently holds, 
     employment that requires national security clearance.
       ``(B) When otherwise required by law.
       ``(4) Effect on disclosure and notification requirements.--
     The exceptions described in paragraph (3) shall have no 
     effect upon the other requirements of this Act, including 
     requirements in regards to disclosure and notification to a 
     consumer when permissibly using a consumer report for 
     employment purposes or for making an adverse action against 
     the consumer.''.
       (b) Conforming Amendments and Cross References.--The Fair 
     Credit Reporting Act (15 U.S.C. 1681 et seq.) is further 
     amended as follows:
       (1) In section 603 (15 U.S.C. 1681a)--
       (A) in subsection (d)(3), by striking ``604(g)(3)'' and 
     inserting ``604(h)(3)''; and
       (B) in subsection (o), by striking ``A'' and inserting 
     ``Subject to the restrictions set forth in subsection 604(b), 
     a''.

[[Page S1384]]

       (2) In section 604 (15 U.S.C. 1681b)--
       (A) in subsection (a), by striking ``subsection (c)'' and 
     inserting ``subsection (d)'';
       (B) in subsection (c), as redesignated by subsection (a)(2) 
     of this section--
       (i) in paragraph (2)(A), by inserting ``and subject to the 
     restrictions set forth in subsection (b)'' after 
     ``subparagraph (B)''; and
       (ii) in paragraph (3)(A), by inserting ``and subject to the 
     restrictions set forth in subsection (b)'' after 
     ``subparagraph (B)'';
       (C) in subsection (d)(1), as redesignated by subsection 
     (a)(2) of this section, by striking ``subsection (e)'' each 
     place that term appears and inserting ``subsection (f)''; and
       (D) in subsection (f), as redesignated by subsection (a)(2) 
     of this section--
       (i) in paragraph (1), by striking ``subsection (c)(1)(B)'' 
     and inserting ``subsection (d)(1)(B)''; and
       (ii) in paragraph (5), by striking ``subsection (c)(1)(B)'' 
     and inserting ``subsection (d)(1)(B)''.
       (3) In section 607(e)(3)(A) (15 U.S.C. 1681e(e)(3)(A)), by 
     striking ``604(b)(4)(E)(i)'' and inserting 
     ``604(c)(4)(E)(i)''.
       (4) In section 609(a)(3)(C) (15 U.S.C. 1681g(a)(3)(C))--
       (A) in clause (i), by striking ``604(b)(4)(E)(i)'' and 
     inserting ``604(c)(4)(E)(i)''; and
       (B) in clause (ii), by striking ``604(b)(4)(A)'' and 
     inserting ``604(c)(4)(A)''.
       (5) In section 613(b) (15 U.S.C. 1681k(b)), by striking 
     section ``604(b)(4)(A)'' and inserting ``section 
     604(c)(4)(A)''.
       (6) In section 615(d) (15 U.S.C. 1681m(d))--
       (A) in paragraph (1)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``section 604(c)(1)(B)'' and inserting ``section 
     604(d)(1)(B)''; and
       (ii) in subparagraph (E), by striking ``section 604(e)'' 
     and inserting ``section 604(f)''; and
       (B) in paragraph (2)(A), by striking ``section 604(e)'' and 
     inserting ``section 604(f)''.
                                 ______
                                 
  SA 2058. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of section 401, add the following:
       (g) Restriction on Certain Bank Holding Companies.--
       (1) Definition.--In this subsection, the term ``covered 
     bank holding company'' means a bank holding company that--
       (A) on the day before the date of enactment of this Act, 
     was subject to the prudential standards under section 165 of 
     the Financial Stability Act of 2010 (12 U.S.C. 5365); and
       (B) on or after the date of enactment of this Act, is no 
     longer subject to the prudential standards described in 
     subparagraph (A).
       (2) Restriction.--During the 5-year period beginning on the 
     date on which a covered bank holding company is no longer 
     subject to the prudential standards described in paragraph 
     (1)(A), a covered bank holding company may not merge with or 
     acquire another bank holding company.
                                 ______
                                 
  SA 2059. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title III, add the following:

     SEC. 3__. PREDISPUTE ARBITRATION.

       Section 128(e) of the Truth in Lending Act (15 U.S.C. 
     1638(e)) is amended by adding at the end the following:
       ``(12) Predispute agreements and waivers.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Postsecondary education loan.--The term 
     `postsecondary education loan'--

       ``(I) means a loan that is--

       ``(aa) made, insured, or guaranteed under part B, D, or E 
     of title IV of the Higher Education Act of 1965 (20 U.S.C. 
     1071 et seq., 1087a et seq., 1087aa et seq.); or
       ``(bb) issued or made by a postsecondary education lender 
     and is--
       ``(AA) extended to a borrower with the expectation that the 
     amounts extended will be used in whole or in part to pay 
     postsecondary education expenses; or
       ``(BB) extended for the purpose of refinancing or 
     consolidating 1 or more loans described in item (aa) or (bb);

       ``(II) includes a private education loan; and
       ``(III) does not include a loan--

       ``(aa) made under an open-end credit plan; or
       ``(bb) that is secured by real property.
       ``(ii) Student loan servicer.--The term `student loan 
     servicer'--

       ``(I) means a person who performs student loan servicing;
       ``(II) includes a person performing student loan servicing 
     for a postsecondary education loan on behalf of an 
     institution of higher education or the Secretary of Education 
     under a contract or other agreement;
       ``(III) does not include the Secretary of Education to the 
     extent the Secretary directly performs student loan servicing 
     for a postsecondary education loan; and
       ``(IV) does not include an institution of higher education, 
     to the extent that the institution directly performs student 
     loan servicing for a Federal Perkins Loan made by the 
     institution.

       ``(B) No waiver.--
       ``(i) In general.--A borrower may not waive any right or 
     remedy relating to a private education loan that is available 
     to the borrower against a private educational lender, 
     postsecondary education lender, loan holder, or student loan 
     servicer before the dispute as to which the right or remedy 
     relates arises.
       ``(ii) No force or effect.--Any waiver described in clause 
     (i) agreed to before, on, or after the date of enactment of 
     this paragraph shall not be enforceable and shall have no 
     force or effect.
       ``(C) Predispute arbitration agreements.--An agreement 
     entered before, on, or after the date of enactment of this 
     paragraph to arbitrate a dispute relating to a private 
     education loan that had not arisen at the time the agreement 
     was entered shall not be enforceable and shall have no force 
     or effect.''.
                                 ______
                                 
  SA 2060. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       In section 401, add at the end the following:
       (g) Prohibition on Stock Buybacks.--
       (1) Definitions.--In this subsection--
       (A) the terms ``bank holding company'' and ``nonbank 
     financial company supervised by the Board of Governors'' have 
     the meanings given the terms in section 102(a) of the 
     Financial Stability Act of 2010 (12 U.S.C. 5311(a)); and
       (B) the term ``covered entity'' means a bank holding 
     company or a nonbank financial company supervised by the 
     Board of Governors that is not subject to prudential 
     standards under section 165 of the Financial Stability Act of 
     2010 (12 U.S.C. 5365) because of the amendments made by this 
     section.
       (2) Prohibition.--During the 5-year period beginning on the 
     date of enactment of this Act, no covered entity may buy back 
     the stock of that covered entity.
                                 ______
                                 
  SA 2061. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of section 401, add the following:
       (_) Outsourcing of Jobs.--
       (1) In general.--Any financial institution that has 
     outsourced more than 50 jobs in any given year during the 5-
     year period ending on the date of enactment of this Act shall 
     be subject to the provisions amended by this section in 
     effect on the day before the date of enactment of this Act.
       (2) Study and rulemaking.--Not later than 180 days after 
     the date of enactment of this Act, the Board of Governors of 
     the Federal Reserve System, in consultation with the 
     Secretary of Labor, shall publish a list of financial 
     institutions that have outsourced more than 50 jobs in any 
     given year during the 5-year period ending on the date of 
     enactment of this Act.
                                 ______
                                 
  SA 2062. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title III, add the following:

     SEC. 3__. REVENUE SHARING AND DISCLOSURE OF AFFILIATION.

       Chapter 2 of title I of the Truth in Lending Act (15 U.S.C. 
     1631 et seq.) is amended by adding at the end the following:

     ``SEC. 140B. PREVENTING UNFAIR AND DECEPTIVE MARKETING OF 
                   CONSUMER FINANCIAL PRODUCTS AND SERVICES TO 
                   STUDENTS OF INSTITUTIONS OF HIGHER EDUCATION.

       ``(a) Definitions.--In this section:
       ``(1) Affiliate.--The term `affiliate' means any person 
     that controls, is controlled by, or is under common control 
     with another person.
       ``(2) Affiliated.--
       ``(A) In general.--The term `affiliated', when used with 
     respect to a consumer financial product or service and an 
     institution of higher education, means an association between 
     such institution and product or service resulting from--
       ``(i) the name, emblem, mascot, or logo of the institution 
     being used with respect to such product or service; or
       ``(ii) some other word, picture, or symbol readily 
     identified with the institution in the marketing of the 
     consumer financial product or service in any way that implies 
     that the institution endorses the consumer financial product 
     or service.
       ``(B) Rule of construction.--Nothing in subparagraph (A) 
     shall be construed to deem an association between an 
     institution of higher education and a consumer financial 
     product or service to be affiliated if such association is 
     solely based on an advertisement

[[Page S1385]]

     by a financial institution that is delivered to a wide and 
     general audience consisting of more than enrolled students at 
     the institution of higher education.
       ``(3) Consumer financial product or service.--The term 
     `consumer financial product or service' has the meaning given 
     the term in section 1002 of the Consumer Financial Protection 
     Act of 2010 (12 U.S.C. 5481).
       ``(4) Financial institution.--The term `financial 
     institution' means--
       ``(A) any person that engages in offering or providing a 
     consumer financial product or service; and
       ``(B) any affiliate of such person described in 
     subparagraph (A) if such affiliate acts as a service provider 
     to such person.
       ``(5) Institution of higher education.--The term 
     `institution of higher education' has the meaning given that 
     term in section 102 of the Higher Education Act of 1965 (20 
     U.S.C. 1002).
       ``(6) Person.--The term `person' means an individual, 
     partnership, company, corporation, association (incorporated 
     or unincorporated), trust, estate, cooperative organization, 
     or other entity.
       ``(7) Revenue-sharing arrangement.--The term `revenue-
     sharing arrangement'--
       ``(A) means an arrangement between an institution of higher 
     education and a financial institution under which--
       ``(i) a financial institution provides or issues a consumer 
     financial product or service to college students attending 
     the institution of higher education;
       ``(ii) the institution of higher education recommends, 
     promotes, sponsors, or otherwise endorses the financial 
     institution, or the consumer financial products or services 
     offered by the financial institution; and
       ``(iii) the financial institution pays a fee or provides 
     other material benefits, including revenue or profit sharing, 
     to the institution of higher education, or to an officer, 
     employee, or agent of the institution of higher education, in 
     connection with the consumer financial products and services 
     provided to college students attending the institution of 
     higher education; and
       ``(B) does not include an arrangement solely based on a 
     financial institution paying a fair market price to an 
     institution of higher education for the institution of higher 
     education to advertise or market the financial institution to 
     the general public.
       ``(8) Service provider.--The term `service provider'--
       ``(A) means any person that provides a material service to 
     another person in connection with the offering or provision 
     by such other person of a consumer financial product or 
     service, including a person that--
       ``(i) participates in designing, operating, or maintaining 
     the consumer financial product or service; or
       ``(ii) processes transactions relating to the consumer 
     financial product or service (other than unknowingly or 
     incidentally transmitting or processing financial data in a 
     manner that such data is undifferentiated from other types of 
     data of the same form as the person transmits or processes); 
     and
       ``(B) does not include a person solely by virtue of such 
     person offering or providing to another person--
       ``(i) a support service of a type provided to businesses 
     generally or a similar ministerial service; or
       ``(ii) time or space for an advertisement for a consumer 
     financial product or service through print, newspaper, or 
     electronic media.
       ``(b) Disclosure of Affiliation.--
       ``(1) Reports by financial institutions.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this Act, and annually thereafter, each 
     financial institution shall submit a report to the Bureau 
     containing the terms and conditions of all business, 
     marketing, and promotional agreements that the financial 
     institution has with any institution of higher education, or 
     an alumni organization or foundation that is an affiliate of 
     or related to an institution of higher education, relating to 
     any consumer financial product or service offered to college 
     students at institutions of higher education.
       ``(B) Details of report.--The information required to be 
     reported by a financial institution under subparagraph (A) 
     includes--
       ``(i) any memorandum of understanding between or among the 
     financial institution and an institution of higher education, 
     alumni association, or foundation that directly or indirectly 
     relates to any aspect of an agreement referred to in 
     subparagraph (A) or controls or directs any obligations or 
     distribution of benefits between or among the entities; and
       ``(ii) the number and dollar amount outstanding of consumer 
     financial products or services accounts covered by any such 
     agreement that were originated during the period covered by 
     the report, and the total number and dollar amount of 
     consumer financial products or services accounts covered by 
     the agreement that were outstanding at the end of such 
     period.
       ``(C) Aggregation by institution.--The information required 
     to be reported under subparagraph (A) shall be aggregated 
     with respect to each institution of higher education or 
     alumni organization or foundation that is an affiliate of or 
     related to the institution of higher education.
       ``(2) Reports by bureau.--The Bureau shall submit to 
     Congress, and make available to the public, an annual report 
     that lists the information submitted to the Bureau under 
     paragraph (1).
       ``(3) Electronic disclosures.--
       ``(A) Posting agreements.--Each financial institution shall 
     establish and maintain an Internet site on which the 
     financial institution shall post the written agreement 
     between the financial institution and the institution of 
     higher education for each affiliated consumer financial 
     product or service.
       ``(B) Financial institution to provide contracts to the 
     bureau.--Each financial institution shall provide to the 
     Bureau, in electronic format, the written agreements that it 
     publishes on its Internet site pursuant to this paragraph.
       ``(C) Record repository.--The Bureau shall establish and 
     maintain on its publicly available Internet site a central 
     repository of the agreements received from financial 
     institutions pursuant to this paragraph, and such agreements 
     shall be easily accessible and retrievable by the public.
       ``(D) Exception.--This paragraph shall not apply to 
     individually negotiated changes to contractual terms, such as 
     individually modified workouts or renegotiations of amounts 
     owed by an institution of higher education.
       ``(c) Consumer Financial Products or Service 
     Requirements.--A financial institution or service provider 
     that offers a consumer financial product or service that is 
     affiliated with an institution of higher education shall--
       ``(1) work with the institution of higher education to 
     obtain a student's consent to offer a consumer financial 
     product or service before a consumer financial product or 
     service is provided to the student;
       ``(2) ensure that any personally identifiable information 
     about a student that is received by the financial institution 
     or service provider--
       ``(A) is used solely for activities in the written 
     agreement between the financial institution and the 
     institution of higher education for each affiliated consumer 
     financial product or service; and
       ``(B) is not shared with any other affiliate, person, or 
     entity except for the purpose described in subparagraph (A);
       ``(3) inform the student of the terms and conditions of the 
     consumer financial product or service, before the student 
     uses the consumer financial product or service;
       ``(4) not charge the student any cost for using the 
     consumer financial product or service for any purpose, 
     including when the student conducts point-of-sale 
     transactions, a balance inquiry, or withdrawal of funds; and
       ``(5) ensure that--
       ``(A) consumer financial product or service is not marketed 
     or portrayed as, or converted into, a credit card; and
       ``(B) no credit is extended or associated with the consumer 
     financial product or service, and no fee is charged to the 
     student for any transaction or withdrawal.
       ``(d) Prohibition of Revenue-sharing Arrangement.--A 
     financial institution that offers a consumer financial 
     product or service that is affiliated with an institution of 
     higher education may not enter into a revenue-sharing 
     arrangement with the institution of higher education.
       ``(e) Student's Best Financial Interest.--
       ``(1) In general.--A financial institution or service 
     provider that offers a consumer financial product or service 
     that is affiliated with an institution of higher education 
     shall ensure that the terms and conditions of all agreements 
     that the financial institution has with any institution of 
     higher education, or an alumni organization or foundation 
     that is an affiliate of or related to an institution of 
     higher education, relating to any consumer financial product 
     or service offered to college students at institutions of 
     higher education are consistent with the best financial 
     interests of the students using the consumer financial 
     product or service, as described in paragraph (2).
       ``(2) Student's best interest.--A financial institution or 
     service provider shall be considered to meet the requirement 
     described in paragraph (1) if that financial institution--
       ``(A) ensures that all agreements that the financial 
     institution has with any institution of higher education 
     relating to any consumer financial product or service offered 
     to college students enrolled at institutions of higher 
     education--
       ``(i) make provisions for termination of the arrangement by 
     the institution of higher education based on complaints 
     received from students enrolled at the institution; and
       ``(ii) do not require students enrolled at the institution 
     of higher education to use consumer financial products or 
     services offered by the financial institution in order to 
     receive Federal student aid financial assistance funding 
     authorized by title IV of the Higher Education Act of 1965;
       ``(B) ensures that requirements of this section are met.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to prohibit a financial institution from 
     establishing a consumer product or service affiliated with an 
     institution of higher education if--
       ``(1) the consumer product or service will--
       ``(A) assist college students in reducing costs or fees 
     associated with the use of consumer financial products or 
     services;
       ``(B) increase consumer choice; and
       ``(C) enhance consumer protections; and
       ``(2) the financial institution is in compliance with the 
     requirements of this Act.''.
                                 ______
                                 
  SA 2063. Ms. WARREN submitted an amendment intended to be proposed by

[[Page S1386]]

her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       In section 401, add at the end the following:
       (g) Application.--
       (1) Definitions.--In this subsection--
       (A) the terms ``bank holding company'' and ``nonbank 
     financial company supervised by the Board of Governors'' have 
     the meanings given the terms in section 102(a) of the 
     Financial Stability Act of 2010 (12 U.S.C. 5311(a)); and
       (B) the term ``covered entity'' means a bank holding 
     company or a nonbank financial company supervised by the 
     Board of Governors--
       (i) that would not be subject to prudential standards under 
     section 165 of the Financial Stability Act of 2010 (12 U.S.C. 
     5365) because of the amendments made by this section; and
       (ii) on which the Attorney General, or the head of any 
     other Federal agency, has imposed more than $10,000,000 in 
     fines during the 10-year period preceding the date of 
     enactment of this Act.
       (2) Application to certain financial institutions.--This 
     section, and the amendments made by this section, shall not 
     apply with respect to a covered entity.
                                 ______
                                 
  SA 2064. Ms. WARREN (for herself and Mr. Durbin) submitted an 
amendment intended to be proposed by her to the bill S. 2155, to 
promote economic growth, provide tailored regulatory relief, and 
enhance consumer protections, and for other purposes; which was ordered 
to lie on the table; as follows:

       In section 401, add at the end the following:
       (g) Application.--
       (1) Definitions.--In this subsection--
       (A) the terms ``bank holding company'' and ``nonbank 
     financial company supervised by the Board of Governors'' have 
     the meanings given the terms in section 102(a) of the 
     Financial Stability Act of 2010 (12 U.S.C. 5311(a)); and
       (B) the term ``covered entity'' means a bank holding 
     company or a nonbank financial company supervised by the 
     Board of Governors--
       (i) that is not subject to prudential standards under 
     section 165 of the Financial Stability Act of 2010 (12 U.S.C. 
     5365) because of the amendments made by this section; and
       (ii)(I) that is subject to a consent decree or a deferred 
     prosecution agreement; or
       (II) with respect to which a monitor has been appointed 
     pursuant to a settlement with the Federal Government or a 
     State agency.
       (2) Application to certain financial institutions.--This 
     section, and the amendments made by this section, shall not 
     apply with respect to a covered entity.
                                 ______
                                 
  SA 2065. Ms. WARREN (for herself, Mr. Warner, and Mrs. Shaheen) 
submitted an amendment intended to be proposed by her to the bill S. 
2155, to promote economic growth, provide tailored regulatory relief, 
and enhance consumer protections, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end, add the following:

           TITLE VI--DATA BREACH PREVENTION AND COMPENSATION

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Data Breach Prevention and 
     Compensation Act of 2018''.

     SEC. 602. DEFINITIONS.

       In this title:
       (1) Career appointee.--The term ``career appointee'' has 
     the meaning given the term in section 3132(a) of title 5, 
     United States Code.
       (2) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (3) Covered breach.--The term ``covered breach'' means any 
     instance in which at least 1 piece of personally identifying 
     information is exposed or is reasonably likely to have been 
     exposed to an unauthorized party.
       (4) Covered consumer reporting agency.--The term ``covered 
     consumer reporting agency'' means--
       (A) a consumer reporting agency described in section 603(p) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); or
       (B) a consumer reporting agency that earns not less than 
     $7,000,000 in annual revenue from the sales of consumer 
     reports.
       (5) Director.--The term ``Director'' means the Director of 
     the Office of Cybersecurity.
       (6) Detail.--The term ``detail'' means a temporary 
     assignment of an employee to a different position for a 
     specified period, with the employee returning to his or her 
     regular duties at the end of the detail.
       (7) Personally identifying information.--The term 
     ``personally identifying information'' means--
       (A) a Social Security number;
       (B) a driver's license number;
       (C) a passport number;
       (D) an alien registration number or other government-issued 
     unique identification number;
       (E) unique biometric data, such as faceprint, fingerprint, 
     voice print, iris image, or other unique physical 
     representations;
       (F) an individual's first and last name or first initial 
     and last name in combination with any information that 
     relates to the individual's past, present, or future physical 
     or mental health or condition, or to the provision of health 
     care to or diagnosis of the individual;
       (G)(i) a financial account number, debit card number, or 
     credit card number of the consumer; or
       (ii) any passcode required to access an account described 
     in clause (i); and
       (H) such additional information, as determined by the 
     Director.

     SEC. 603. CYBERSECURITY STANDARDS AND FTC AUTHORITY.

       (a) Establishment.--There is established in the Commission 
     an Office of Cybersecurity, which shall be headed by a 
     Director, who shall be a career appointee.
       (b) Duties.--The Office of Cybersecurity--
       (1) shall--
       (A) supervise covered consumer reporting agencies with 
     respect to data security;
       (B) promulgate regulations for effective data security for 
     covered consumer reporting agencies, including regulations 
     that require covered consumer reporting agencies to--
       (i) provide the Commission with descriptions of technical 
     and organizational security measures, including--

       (I) system and network security measures, including--

       (aa) asset management, including--
       (AA) an inventory of authorized and unauthorized devices;
       (BB) an inventory of authorized and unauthorized software, 
     including application whitelisting; and
       (CC) secure configurations for hardware and software;
       (bb) network management and monitoring, including--
       (AA) mapped data flows, including functional mission 
     mapping;
       (BB) maintenance, monitoring, and analysis of audit logs;
       (CC) network segmentation; and
       (DD) local and remote access privileges, defined and 
     managed; and
       (cc) application management, including--
       (AA) continuous vulnerability assessment and remediation;
       (BB) server application hardening;
       (CC) vulnerability handling such as coordinated 
     vulnerability disclosure policy; and
       (DD) patch management, including at, or near, real-time 
     dashboards of patch implementation across network hosts; and

       (II) data security, including--

       (aa) data-centric security mechanisms such as format-
     preserving encryption, cryptographic data-splitting, and 
     data-tagging and lineage;
       (bb) encryption for data at rest;
       (cc) encryption for data in transit;
       (dd) systemwide data minimization evaluations and policies; 
     and
       (ee) data recovery capability; and
       (ii) create and maintain documentation demonstrating that 
     the covered consumer reporting agency is employing reasonable 
     technical measures and corporate governance processes for 
     continuous monitoring of data, intrusion detection, and 
     continuous evaluation and timely patching of vulnerabilities;
       (C) annually examine the data security measures of covered 
     consumer reporting agencies for compliance with the standards 
     promulgated under subparagraph (B);
       (D) investigate any covered consumer reporting agency if 
     the Office has reason to suspect a potential covered breach 
     or noncompliance with the standards promulgated under 
     subparagraph (B);
       (E) after consultation with members of the technical and 
     academic communities, develop a rigorous, repeatable 
     methodology for evaluating, testing, and measuring effective 
     data security practices of covered consumer reporting 
     agencies, that employs forms of static and dynamic software 
     analysis and penetration testing;
       (F) submit to Congress an annual report on the findings on 
     any investigation under subparagraph (C);
       (G) determine whether covered consumer reporting agencies 
     are complying with the regulations promulgated under 
     subparagraph (B); and
       (H) coordinate with the National Institute of Standards and 
     Technology and the National Cybersecurity and Communications 
     Integration Center of the Department of Homeland Security; 
     and
       (2) may--
       (A) investigate any breach to determine if the covered 
     consumer reporting agency was in compliance with the 
     regulations promulgated under paragraph (1)(B); and
       (B) if the Commission has reason to believe that any 
     covered consumer reporting agency is violating, or is about 
     to violate, a regulation promulgated under paragraph (1)(B), 
     bring a suit in a district court of the United States to 
     enjoin any such act or practice.
       (c) Staff.--
       (1) In general.--The Director shall, without regard to the 
     civil service laws and regulations, appoint such personnel, 
     including computer security researchers and practitioners 
     with technical expertise in computer science, engineering, 
     and cybersecurity, as the Director determines are necessary 
     to carry out the duties of the Office.

[[Page S1387]]

       (2) Details.--An employee of the National Institute of 
     Standards and Technology, the Bureau of Consumer Financial 
     Protection, or the National Cybersecurity and Communications 
     Integration Center of the Department of Homeland Security may 
     be detailed to the Office, without reimbursement, and such 
     detail shall be without interruption or loss of civil service 
     status or privilege.

     SEC. 604. NOTIFICATION AND ENFORCEMENT.

       (a) Notification.--Not later than 10 days after a covered 
     breach, the covered consumer reporting agency that was 
     subject to the covered breach shall notify the Commission of 
     the covered breach.
       (b) Penalty.--
       (1) In general.--In the event of a covered breach, the 
     Commission shall, not later than 30 days after the date on 
     which the Commission receives notification of the covered 
     breach, commence a civil action to recover a civil penalty in 
     a district court of the United States against the covered 
     consumer reporting agency that was subject to the covered 
     breach.
       (2) Determining penalty amount.--
       (A) In general.--Except as provided in subparagraph (B), in 
     determining the amount of a civil penalty under paragraph 
     (1), the court shall impose a civil penalty on a covered 
     consumer reporting agency of--
       (i) $100 for each consumer whose first and last name, or 
     first initial and last name, and at least 1 item of 
     personally identifying information was compromised; and
       (ii) an additional $50 for each additional item of 
     personally identifying information compromised for each 
     consumer.
       (B) Exception.--
       (i) In general.--Except as provided in clause (ii), a court 
     may not impose a civil penalty under this subsection in an 
     amount greater than 50 percent of the gross revenue of the 
     covered consumer reporting agency for the previous fiscal 
     year before the date on which the covered consumer reporting 
     agency became aware of the covered breach.
       (ii) Penalty doubled.--A court shall impose a civil penalty 
     on a covered consumer reporting agency double the penalty 
     described in subparagraph (A), but not greater than 75 
     percent of the gross revenue of the covered consumer 
     reporting agency for the previous fiscal year before the date 
     on which the covered consumer reporting agency became aware 
     of the covered breach if--

       (I) the covered consumer reporting agency fails to notify 
     the Commission of a covered breach before the deadline 
     established under subsection (a); or
       (II) the covered consumer reporting agency violates any 
     regulation promulgated under section 603(b)(1)(C).

       (3) Proceeds of the penalties.--Of the penalties assessed 
     under this subsection--
       (A) 50 percent shall be used for cybersecurity research and 
     inspections by the Office of Cybersecurity; and
       (B) 50 percent shall be used by the Commission to be 
     divided fairly among consumers affected by the covered 
     breach.
       (4) No preemption.--Nothing in this subsection shall 
     preclude an action by a consumer under State or other Federal 
     law.
       (c) Injunctive Relief.--The Commission may bring suit in a 
     district court of the United States or in the United States 
     court of any Territory to enjoin a covered consumer reporting 
     agency to implement or correct a particular security measure 
     in order to promote effective security.

     SEC. 605. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $100,000,000 to 
     carry out this title, to remain available until expended.
                                 ______
                                 
  SA 2066. Ms. WARREN (for herself and Mr. Durbin) submitted an 
amendment intended to be proposed by her to the bill S. 2155, to 
promote economic growth, provide tailored regulatory relief, and 
enhance consumer protections, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISCLOSURE OF PAYMENTS FOR SETTLEMENTS OF DISPUTES 
                   REGARDING SEXUAL ABUSE AND CERTAIN TYPES OF 
                   HARASSMENT AND DISCRIMINATION.

       Section 13 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m) is amended by adding at the end the following:
       ``(s) Disclosure of Certain Activities Regarding 
     Settlements of Disputes Relating to Sexual Abuse and Certain 
     Types of Harassment or Discrimination.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `covered discrimination' means--
       ``(i) discrimination described in any of clauses (i) 
     through (vi) of subparagraph (B); or
       ``(ii)(I) a violation of section 704(a) of the Civil Rights 
     Act of 1964 (42 U.S.C. 2000e-3(a)) that is related to 
     discrimination described in subparagraph (B)(i) or 
     (B)(vi)(I);
       ``(II) a violation of section 4(d) of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 623(d)) 
     that is related to discrimination described in subparagraph 
     (B)(ii);
       ``(III) a violation of subsection (a) or (b) of section 503 
     of the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12203) that is related to discrimination described in 
     subparagraph (B)(iii);
       ``(IV) a violation of section 207(f) of the Genetic 
     Information Nondiscrimination Act of 2008 (42 U.S.C. 2000ff-
     6(f)) that is related to discrimination described in 
     subparagraph (B)(iv);
       ``(V) a violation of section 4311(b) of title 38, United 
     States Code, that is related to discrimination described in 
     subparagraph (B)(v); and
       ``(VI) a violation of section 40002(b)(13)(A) of the 
     Violence Against Women Act of 1994 (34 U.S.C. 
     12291(b)(13)(A)) that--

       ``(aa) may cover retaliation described in a provision 
     specified in any of subclauses (I) through (V); and
       ``(bb) is related to discrimination described in 
     subparagraph (B)(vi)(II);

       ``(B) the term `covered harassment' means harassment that 
     is--
       ``(i) discrimination because of race, color, religion, sex, 
     or national origin under title VII of the Civil Rights Act of 
     1964 (42 U.S.C. 2000e et seq.);
       ``(ii) discrimination because of age under the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 621 et 
     seq.);
       ``(iii) discrimination on the basis of disability under--

       ``(I) title I of the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12111 et seq.); or
       ``(II) section 501 of the Rehabilitation Act of 1973 (29 
     U.S.C. 791);

       ``(iv) discrimination because of genetic information under 
     title II of the Genetic Information Nondiscrimination Act of 
     2008 (42 U.S.C. 2000ff et seq.);
       ``(v) discrimination on the basis of status concerning 
     service in a uniformed service under section 4311(a) of title 
     38, United States Code; or
       ``(vi) discrimination because of sexual orientation or 
     gender identity under--

       ``(I) title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.); or
       ``(II) section 40002(b)(13)(A) of the Violence Against 
     Women Act of 1994 (34 U.S.C. 12291(b)(13)(A));

       ``(C) the term `covered issuer' means an issuer that is 
     required to file Form 10-K;
       ``(D) the term `Form 10-K' means the form described in 
     section 249.310 of title 17, Code of Federal Regulations, as 
     in effect on the date of enactment of this subsection;
       ``(E) the term `gender identity' means the gender-related 
     identity, appearance, mannerisms, or other gender-related 
     characteristics of an individual, regardless of the 
     designated sex of the individual at birth;
       ``(F) the term `settlement' means any commitment or 
     agreement--
       ``(i) without regard to whether the commitment or 
     agreement, as applicable, is in writing; and
       ``(ii) under which an issuer directly or indirectly--

       ``(I) provides to an individual compensation or other 
     consideration because of an allegation that the individual 
     has been a victim of covered harassment, covered 
     discrimination, or sexual abuse; or
       ``(II) establishes conditions that affect the terms of the 
     employment, including by terminating the employment, of the 
     individual with the issuer--

       ``(aa) because of the experience of the individual with, or 
     the participation of the individual in, an alleged act of 
     covered harassment, covered discrimination, or sexual abuse; 
     and
       ``(bb) in exchange for which the individual agrees or 
     commits not to--
       ``(AA) bring legal, administrative, or any other type of 
     action against the issuer; or
       ``(BB) publicly disclose, for a period of time of any 
     length, any portion of the alleged act described in item (aa) 
     on which the commitment or agreement, as applicable, is 
     based;
       ``(G) the term `sexual abuse' means any type of sexual 
     contact or behavior that occurs without the explicit consent 
     of the recipient, including forced sexual intercourse, 
     forcible sodomy, child molestation, incest, fondling, and 
     attempted rape; and
       ``(H) the term `sexual orientation' means homosexuality, 
     heterosexuality, or bisexuality.
       ``(2) Disclosure requirements.--
       ``(A) In general.--Beginning in the first fiscal year that 
     begins after the date of enactment of this subsection, each 
     covered issuer shall disclose annually on Form 10-K, to 
     shareholders of the covered issuer, and to the public--
       ``(i) with respect to the previous year--

       ``(I) the total number of settlements entered into by the 
     covered issuer, a subsidiary, contractor, or subcontractor of 
     the covered issuer, or a corporate executive of the covered 
     issuer that relate to any alleged act of sexual abuse, 
     covered harassment, or covered discrimination that--

       ``(aa) occurred in the workplace of the covered issuer or a 
     subsidiary, contractor, or subcontractor of the covered 
     issuer; or
       ``(bb) involves the behavior of an employee of the covered 
     issuer, or a subsidiary, contractor, or subcontractor of the 
     covered issuer, toward another such employee, without regard 
     to whether that behavior occurred in the workplace of the 
     covered issuer or the subsidiary, contractor, or 
     subcontractor, as applicable;

       ``(II) the total dollar amount paid with respect to the 
     settlements described in subclause (I);
       ``(III) the total number of settlements entered into by the 
     covered issuer, a subsidiary, contractor, or subcontractor of 
     the covered issuer, or a corporate executive of the covered 
     issuer that relate to any alleged act of sexual abuse, 
     covered harassment, or covered discrimination that--

       ``(aa) was committed by a corporate executive of--

[[Page S1388]]

       ``(AA) the covered issuer; or
       ``(BB) a subsidiary, contractor, or subcontractor of the 
     covered issuer; and
       ``(bb)(AA) occurred in the workplace of the covered issuer 
     or a subsidiary, contractor, or subcontractor of the covered 
     issuer, as applicable; or
       ``(BB) involved the behavior of a corporate executive 
     described in item (aa) toward another employee of the covered 
     issuer or a subsidiary, contractor, or subcontractor of the 
     covered issuer, as applicable, without regard to whether that 
     behavior occurred in the workplace of the covered issuer or a 
     subsidiary, contractor, or subcontractor of the covered 
     issuer;

       ``(IV) the total dollar amount with respect to the 
     settlements described in subclause (III); and
       ``(V) the average length of time required for the covered 
     issuer to resolve a complaint relating to covered 
     discrimination, covered harassment, or sexual abuse; and

       ``(ii) as of the date on which the disclosure is made, the 
     total number of complaints relating to covered 
     discrimination, covered harassment, and sexual abuse that the 
     covered issuer is working to resolve through--

       ``(I) processes that are internal to the covered issuer; 
     and
       ``(II) litigation.

       ``(B) Categories.--Subject to subparagraph (C), in each 
     disclosure required under subparagraph (A), a covered issuer 
     shall report the total number of settlements in subclauses 
     (I) and (III) of subparagraph (A)(i) and the total dollar 
     amounts in subclauses (II) and (IV) of subparagraph (A)(i) in 
     the aggregate and list each such settlement by any of the 
     following categories that apply to the settlement:
       ``(i) Settlements relating to sexual abuse, covered 
     discrimination, or covered harassment because of sex.
       ``(ii) Settlements relating to covered discrimination or 
     covered harassment because of race, color, or national 
     origin.
       ``(iii) Settlements relating to covered discrimination or 
     covered harassment because of religion.
       ``(iv) Settlements relating to covered discrimination or 
     covered harassment because of age.
       ``(v) Settlements relating to covered discrimination or 
     covered harassment on the basis of disability.
       ``(vi) Settlements relating to covered discrimination or 
     covered harassment because of genetic information.
       ``(vii) Settlements relating to covered discrimination or 
     covered harassment on the basis of status concerning service 
     in a uniformed service.
       ``(viii) Settlements relating to covered discrimination or 
     covered harassment because of sexual orientation or gender 
     identity.
       ``(C) Prohibitions on certain disclosures.--
       ``(i) Prohibition on disclosures by covered issuers.--

       ``(I) In general.--A covered issuer may not--

       ``(aa) in any disclosure made under subparagraph (A), or in 
     any other public disclosure, disclose the name of a victim of 
     an alleged act of sexual abuse, covered harassment, or 
     covered discrimination on which a settlement or complaint, as 
     applicable, described in subparagraph (A) is based; or
       ``(bb) under subparagraph (B), categorize a settlement 
     described in subclause (I) or (III) of subparagraph (A)(i) if 
     the victim of the alleged act of sexual abuse, covered 
     harassment, or covered discrimination on which the settlement 
     is based objects to that categorization.

       ``(II) Indication of objection.--A covered issuer shall 
     indicate in any disclosure made under subparagraph (A) 
     whether any objection has been made under subclause (I)(bb) 
     of this clause.

       ``(ii) Prohibition on disclosures by the commission.--The 
     Commission may not disclose the name of a victim of an 
     alleged act of sexual abuse, covered harassment, or covered 
     discrimination on which a settlement or complaint, as 
     applicable, described in subparagraph (A) is based.
       ``(D) Prevention of sexual abuse, covered harassment, and 
     covered discrimination.--In each disclosure required under 
     subparagraph (A), the covered issuer making the disclosure 
     shall include a description of the measures taken by the 
     covered issuer and any subsidiary, contractor, or 
     subcontractor of the covered issuer to prevent employees of 
     the covered issuer and any subsidiary, contractor, or 
     subcontractor of the covered issuer from committing or 
     engaging in sexual abuse, covered harassment, or covered 
     discrimination.
       ``(3) Regulations.--The Commission may promulgate such 
     regulations as the Commission considers necessary to 
     implement the requirements under paragraph (2).''.
                                 ______
                                 
  SA 2067. Ms. WARREN (for herself, Mr. Blumenthal, and Mrs. Shaheen) 
submitted an amendment intended to be proposed by her to the bill S. 
2155, to promote economic growth, provide tailored regulatory relief, 
and enhance consumer protections, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike section 301 and insert the following:

     SEC. 301. PROTECTING CONSUMERS' CREDIT.

       (a) Definition of Credit Freeze.--Section 603(q) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681a(q)) is amended by 
     adding at the end the following:
       ``(6) Credit freeze.--
       ``(A) In general.--The term `credit freeze' means a 
     restriction placed at the request of a consumer or a personal 
     representative of the consumer, on the consumer report of the 
     consumer, that prohibits a consumer reporting agency from 
     releasing the consumer report for a purpose relating to the 
     extension of credit without the express authorization of the 
     consumer.
       ``(B) Exception.--A credit freeze shall not apply to the 
     use of a consumer report by any of the following:
       ``(i) A person, or the subsidiary, affiliate, agent, 
     subcontractor, or assignee of the person, with whom the 
     consumer has, or prior to assignment had, an account, 
     contract, or debtor-creditor relationship for the purposes of 
     reviewing the active account or collecting the financial 
     obligation owed on the account, contract, or debt.
       ``(ii) A person, or the subsidiary, affiliate, agent, 
     subcontractor, or assignee of the person, to whom access has 
     been granted pursuant to a request by the consumer described 
     under section 605A(i)(1)(B), for purposes of facilitating the 
     extension of credit or other permissible use.
       ``(iii) Any person acting pursuant to a court order, 
     warrant, or subpoena.
       ``(iv) A Federal, State, or local government, or an agent 
     or assignee thereof.
       ``(v) Any person for the sole purpose of providing a credit 
     monitoring or identity theft protection service to which the 
     consumer has subscribed.
       ``(vi) Any person for the purpose of providing a consumer 
     with a copy of the consumer report or credit score of the 
     consumer upon request by the consumer.
       ``(vii) Any person or entity for insurance purposes, 
     including use in setting or adjusting a rate, adjusting a 
     claim, or underwriting.
       ``(viii) Any person acting pursuant to an authorization 
     from a consumer to use their consumer report for employment 
     purposes.''.
       (b) Enhancement of Fraud Alert Protections.--Section 605A 
     of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) is 
     amended--
       (1) in subsection (a)--
       (A) in the subsection heading, by striking ``One-Call'' and 
     inserting ``One-Year'';
       (B) in paragraph (1)--
       (i) in the paragraph heading, by striking ``Initial 
     alerts'' and inserting ``In general'';
       (ii) in the matter preceding subparagraph (A), by inserting 
     ``or harmed by the unauthorized disclosure of the financial 
     or personally identifiable information of the consumer,'' 
     after ``identity theft,'';
       (iii) in subparagraph (A)--

       (I) by striking ``90 days'' and inserting ``1 year''; and
       (II) by striking ``and'' at the end;

       (iv) in subparagraph (B)--

       (I) by inserting ``1-year'' before ``fraud alert''; and
       (II) by striking the period at the end and inserting ``; 
     and''; and

       (v) by adding at the end the following:
       ``(C) upon the expiration of the 1-year period described in 
     subparagraph (A) or a subsequent 1-year period, and in 
     response to a direct request by the consumer or such 
     representative, continue the fraud alert for an additional 
     period of 1 year if the information asserted in this 
     paragraph remains applicable.''; and
       (C) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``1-year'' before ``fraud alert''; and
       (ii) in subparagraph (B), by striking ``any request 
     described in subparagraph (A)'' and inserting ``the consumer 
     reporting agency includes the 1-year fraud alert in the file 
     of the consumer'';
       (2) in subsection (b)--
       (A) in the subsection heading, by striking ``Extended'' and 
     inserting ``Seven-Year'';
       (B) in paragraph (1)--
       (i) in subparagraph (B)--

       (I) by striking ``5-year period beginning on the date of 
     such request'' and inserting ``the 7-year period described in 
     subparagraph (A)''; and
       (II) by striking ``and'' at the end;

       (ii) in subparagraph (C)--

       (I) by striking ``extended'' and inserting ``7-year''; and
       (II) by striking the period at the end and inserting ``; 
     and''; and

       (iii) by adding at the end the following:
       ``(D) upon the expiration of the 7-year period described in 
     subparagraph (A) or a subsequent 7-year period, and in 
     response to a direct request by the consumer or such 
     representative, continue the fraud alert for an additional 
     period of 7 years if the consumer or such representative 
     submits an updated identity theft report.''; and
       (C) in paragraph (2), by amending subparagraph (A) to read 
     as follows:
       ``(A) disclose to the consumer that the consumer may 
     request a free copy of the file of the consumer pursuant to 
     section 612(d) during each 12-month period beginning on the 
     date on which the 7-year fraud alert was included in the file 
     and ending on the date of the last day that the 7-year fraud 
     alert applies to the file of the consumer; and'';
       (3) in subsection (c)--
       (A) by redesignating paragraphs (1), (2), and (3), as 
     subparagraphs (A), (B), and (C), respectively, and adjusting 
     the margins accordingly;
       (B) in the matter preceding subparagraph (A), as so 
     redesignated, by striking ``Upon the direct request'' and 
     inserting the following:

[[Page S1389]]

       ``(1) In general.--Upon the direct request''; and
       (C) by adding at the end the following:
       ``(2) Access to free reports.--If a consumer reporting 
     agency includes an active duty alert in the file of an active 
     duty military consumer, the consumer reporting agency shall--
       ``(A) disclose to the active duty military consumer that 
     the active duty military consumer may request a free copy of 
     the file of the active duty military consumer pursuant to 
     section 612(d), during each 12-month period beginning on the 
     date on which the activity duty military alert is requested 
     and ending on the date of the last day that the active duty 
     alert applies to the file of the active duty military 
     consumer; and
       ``(B) not later than 3 business days after the date on 
     which the active duty military consumer makes a request 
     described in subparagraph (A), provide to the active duty 
     military consumer all disclosures required to be made under 
     section 609, without charge to the active duty military 
     consumer.'';
       (4) by amending subsection (d) to read as follows:
       ``(d) Procedures.--Each consumer reporting agency described 
     in section 603(p) shall establish and make available to the 
     public on the Internet website of the consumer reporting 
     agency policies and procedures to comply with this section, 
     including policies and procedures--
       ``(1) that inform consumers of the availability of 1-year 
     fraud alerts, 7-year fraud alerts, active duty alerts, and 
     credit freezes, as applicable;
       ``(2) that allow consumers to request 1-year fraud alerts, 
     7-year fraud alerts, and active duty alerts, as applicable, 
     and to place, temporarily lift, or fully remove a credit 
     freeze in a simple and easy manner; and
       ``(3) for asserting in good faith a suspicion that the 
     consumer has been or is about to become a victim of identity 
     theft, fraud, or a related crime, or harmed by the 
     unauthorized disclosure of the financial or personally 
     identifiable information of the consumer, for a consumer 
     seeking a 1-year fraud alert or credit freeze.'';
       (5) in subsection (e), in the matter preceding paragraph 
     (1), by inserting ``1-year or 7-year'' before ``fraud 
     alert'';
       (6) in subsection (f), by striking ``or active duty alert'' 
     and inserting ``active duty alert, or credit freeze, as 
     applicable,'';
       (7) in subsection (g)--
       (A) by inserting ``or has been harmed by the unauthorized 
     disclosure of the financial or personally identifiable 
     information of the consumer,'' after ``identity theft,''; and
       (B) by inserting ``or credit freezes'' after ``request 
     alerts''; and
       (8) in subsection (h)--
       (A) in paragraph (1)--
       (i) in the paragraph heading, by striking ``initial'' and 
     inserting ``1-year'';
       (ii) in subparagraph (A), by striking ``initial'' and 
     inserting ``1-year''; and
       (iii) in subparagraph (B)(i), by striking ``an initial'' 
     and inserting ``a 1-year''; and
       (B) in paragraph (2)--
       (i) in the paragraph heading, by striking ``extended'' and 
     inserting ``7-year'';
       (ii) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``extended'' and inserting ``7-year''; and
       (iii) in subparagraph (B), by striking ``an extended'' and 
     inserting ``a 7-year''.
       (c) Providing Free Access to Credit Freezes.--Section 605A 
     of the Fair Credit Reporting Act (15 U.S.C. 1681c-1) is 
     amended by adding at the end the following:
       ``(i) Credit Freezes.--
       ``(1) In general.--Upon the direct request of a consumer, 
     or an individual acting on behalf of or as a personal 
     representative of a consumer, a consumer reporting agency 
     that maintains a file on the consumer and has received 
     appropriate proof of the identity of the requester (as 
     described in section 1022.123 of title 12, Code of Federal 
     Regulations, or any successor thereto) shall--
       ``(A)(i) not later than 1 business day after receiving the 
     request sent by postal mail, toll-free telephone, or secure 
     electronic means as established by the agency, place a credit 
     freeze on the file of the consumer;
       ``(ii) not later than 5 business days after placing a 
     credit freeze described in clause (i), provide the consumer 
     with written confirmation of the credit freeze and a unique 
     personal identification number or password (other than the 
     social security number of the consumer) for use to authorize 
     the release of the file of the consumer for a specific period 
     of time; and
       ``(iii) disclose all relevant information to the consumer 
     relating to the procedures for temporarily lifting and fully 
     removing a credit freeze, including a statement about the 
     maximum amount of time given to an agency to conduct those 
     actions;
       ``(B) if the consumer provides a correct personal 
     identification number or password, temporarily lift an 
     existing credit freeze from the file of the consumer for a 
     period of time specified by the consumer for a specific user 
     or category of users, as determined by the consumer--
       ``(i) not later than 1 business day after receiving the 
     request by postal mail; or
       ``(ii) not later than 15 minutes after receiving the 
     request by toll-free telephone number or secure electronic 
     means established by the agency, if the request is received 
     during regular business hours, except if the ability of the 
     consumer reporting agency to temporarily lift the credit 
     freeze is prevented by--

       ``(I) an act of God, including earthquakes, hurricanes, 
     storms, or similar natural disaster or phenomenon, or fire;
       ``(II) unauthorized or illegal acts by a third party 
     including terrorism, sabotage, riot, vandalism, labor strikes 
     or disputes disrupting operations, or a similar occurrence;
       ``(III) an operational interruption, including electrical 
     failure, unanticipated delay in equipment or replacement part 
     delivery, computer hardware or software failures inhibiting 
     response time, or a similar disruption;
       ``(IV) governmental action, including emergency orders or 
     regulations, judicial or law enforcement action, or a similar 
     directive;
       ``(V) regularly scheduled maintenance or updates to the 
     systems of the consumer reporting agency occurring outside of 
     normal business hours; or
       ``(VI) commercially reasonable maintenance of, or repair 
     to, the systems of the consumer reporting agency that is 
     unexpected or unscheduled; or

       ``(C) if the consumer provides a correct personal 
     identification number or password, fully remove an existing 
     credit freeze from the file of the consumer not later than 21 
     business days after receiving the request by postal mail, 
     toll-free telephone, or secure electronic means established 
     by the consumer reporting agency.
       ``(2) No fee.--A consumer reporting agency may not charge a 
     consumer a fee to place, temporarily lift, or fully remove a 
     credit freeze.
       ``(3) Exclusion from third-party lists.--During the period 
     beginning on the date on which a consumer or a representative 
     of the consumer requests to place a credit freeze and ending 
     the date on which the consumer or representative requests to 
     fully remove a credit freeze, a consumer reporting agency 
     shall exclude the consumer from any list of consumers 
     prepared by the consumer reporting agency and provided to any 
     third party to offer credit or insurance to the consumer as 
     part of a transaction that was not initiated by the consumer, 
     unless the consumer or that representative requests that the 
     exclusion be rescinded before end of the period.''.
       (d) Additional Free Consumer Report.--Section 612 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681j) is amended--
       (1) in subsection (f)(1), in the matter preceding 
     subparagraph (A), by inserting ``or subsection (h)'' after 
     ``through (d)''; and
       (2) by adding at the end the following:
       ``(h) Free Disclosures in Connection With Credit Freeze.--
     In addition to the free annual disclosure required under 
     subsection (a)(1)(A), each consumer reporting agency that 
     maintains a file on a consumer who requests a credit freeze 
     under section 605A(i) shall make all disclosures pursuant to 
     section 609 once during any 12-month period without charge to 
     the consumer if the consumer makes a request under section 
     609.''.
       (e) Refunds.--
       (1) Definitions.--In this section, the terms ``consumer'', 
     ``consumer reporting agency'', and ``credit freeze'' have the 
     meanings given those terms in section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a), as amended by subsection 
     (a).
       (2) Refunds.--With respect to any consumer who requested a 
     credit freeze from a consumer reporting agency during the 
     period beginning on September 7, 2017, and ending on the day 
     before the date of enactment of this Act, the consumer 
     reporting agency--
       (A) shall issue a refund to the consumer for any fees 
     charged to the consumer relating to the request for a credit 
     freeze; and
       (B) may not impose a fee on the consumer to temporarily 
     lift or fully remove the credit freeze.
                                 ______
                                 
  SA 2068. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title III, add the following:

     SEC. 308. IMPROVED CONSUMER PROTECTIONS FOR PRIVATE EDUCATION 
                   LOANS.

       (a) In General.--Section 128(e) of the Truth in Lending Act 
     (15 U.S.C. 1638(e)) is amended by adding at the end the 
     following:
       ``(12) Discharge of private education loans in the event of 
     death or disability of the borrower.--Each private education 
     loan shall include terms that provide that the liability to 
     repay the loan shall be cancelled--
       ``(A) upon the death of the borrower;
       ``(B) if the borrower becomes permanently and totally 
     disabled, as determined under paragraph (1) or (3) of section 
     437(a) of the Higher Education Act of 1965 (20 U.S.C. 
     1087(a)) and the regulations promulgated by the Secretary of 
     Education under that section; and
       ``(C) if the Secretary of Veterans Affairs or the Secretary 
     of Defense determines that the borrower is unemployable due 
     to a service-connected condition or disability, in accordance 
     with the requirements of section 437(a)(2) of that Act and 
     the regulations promulgated by the Secretary of Education 
     under that section.
       ``(13) Transfer of servicing.--
       ``(A) Disclosure to applicant relating to transfer of 
     servicing.--A private education lender shall disclose to each 
     person who applies for a private education loan, at

[[Page S1390]]

     the time of application for the private education loan, 
     whether there may be a transfer of servicing of the private 
     education loan at any time during which the private education 
     loan is outstanding.
       ``(B) Notice by transferor servicer at time of transfer of 
     servicing.--
       ``(i) Notice requirement.--A transferor servicer shall 
     notify the borrower under a private education loan, in 
     writing, of any transfer of student loan servicing for the 
     private education loan (with respect to which such notice is 
     made).
       ``(ii) Time of notice.--

       ``(I) In general.--Except as provided under subclause (II), 
     the notice required under clause (i) shall be made to the 
     borrower not less than 15 days before the effective date of 
     transfer of the student loan servicing of the private 
     education loan.
       ``(II) Exception for certain proceedings.--The notice 
     required under clause (i) shall be made to the borrower not 
     more than 30 days after the effective date of transfer of the 
     student loan servicing of the borrower's private education 
     loan if the transfer of student loan servicing is preceded 
     by--

       ``(aa) termination of the contract for student loan 
     servicing of the private education loan for cause;
       ``(bb) commencement of bankruptcy proceedings of the 
     transferor servicer; or
       ``(cc) any other situation in which the Bureau determines 
     that such exception is warranted.
       ``(C) Contents of notice.--The notice required under 
     subparagraph (B) shall--
       ``(i) be made in writing and, if the transferor servicer 
     has an email address for the borrower, by email; and
       ``(ii) include--

       ``(I) the effective date of the transfer;
       ``(II) the name, address, website, and toll-free or 
     collect-call telephone number of the transferee servicer;
       ``(III) a toll-free or collect-call telephone number for an 
     individual employed by the transferor servicer, or the office 
     or department of, the transferor servicer that can be 
     contacted by the borrower to answer inquiries relating to the 
     transfer of servicing;
       ``(IV) the name and toll-free or collect-call telephone 
     number for an individual employed by the transferee servicer, 
     or the office or department of, the transferee servicer that 
     can be contacted by the borrower to answer inquiries relating 
     to the transfer of servicing;
       ``(V) the date on which the transferor servicer will cease 
     to accept payments relating to the borrower's private 
     education loan and the date on which the transferee servicer 
     will begin to accept such payments;
       ``(VI) a statement that the transfer of student loan 
     servicing of the private education loan does not affect any 
     term or condition of the private education loan other than 
     terms directly related to the student loan servicing of the 
     private education loan;
       ``(VII) a statement disclosing--

       ``(aa) whether borrower authorization for recurring 
     electronic funds transfers will be transferred to the 
     transferee servicer; and
       ``(bb) if any such recurring electronic funds transfers 
     cannot be transferred, information as to how the borrower may 
     establish new recurring electronic funds transfers in 
     connection with transfer of servicing to the transferee 
     servicer;

       ``(VIII) a statement disclosing--

       ``(aa) the application of all payments and charges relating 
     to the borrower's private education loan as of the effective 
     date of the transfer, including--
       ``(AA) the date the last payment of the borrower was 
     received;
       ``(BB) the date the last late fee, arrearages, or other 
     charge was applied; and
       ``(CC) the amount of the last payment allocated to 
     principal, interest, and other charges;
       ``(bb) the status of the borrower's private education loan 
     as of the effective date of the transfer, including whether 
     the loan is in default;
       ``(cc) whether any application for an alternative repayment 
     arrangement submitted by the borrower is pending; and
       ``(dd) an itemization and explanation for all arrearages 
     claimed to be due as of the effective date of the transfer;

       ``(IX) a detailed description of any benefit, alternative 
     repayment arrangement, or other term or condition arranged 
     between the transferor servicer and the borrower that is not 
     included in the terms of the promissory note;
       ``(X) a detailed description of any item identified under 
     subclause (VIII) that will cease to apply upon transfer, 
     including an explanation; and
       ``(XI) information on how to file a complaint with the 
     Bureau.

       ``(D) Notice by transferee servicer at time of transfer of 
     servicing.--
       ``(i) Notice requirement.--A transferee servicer shall 
     notify the borrower under a private education loan, in 
     writing, of any transfer of servicing of the private 
     education loan.
       ``(ii) Time of notice.--

       ``(I) In general.--Except as provided in subclause (II), 
     the notice required under clause (i) shall be made to the 
     borrower not more than 15 days after the effective date of 
     transfer of the student loan servicing of the borrower's 
     private education loan.
       ``(II) Exception for certain proceedings.--The notice 
     required under clause (i) shall be made to the borrower not 
     more than 30 days after the effective date of transfer of the 
     student loan servicing of the student loan servicing of 
     borrower's private education loan if the transfer of 
     servicing is preceded by--

       ``(aa) termination of the contract for student loan 
     servicing the private education loan for cause;
       ``(bb) commencement of bankruptcy proceedings of the 
     transferor servicer; or
       ``(cc) any other situation in which the Bureau determines 
     that such exception is warranted.
       ``(E) Method of notification.--The notification required 
     under this subsection shall be provided in writing.
       ``(F) Treatment of loan payments during transfer period.--
       ``(i) In general.--During the 60-day period beginning on 
     the effective date of transfer relating to a borrower's 
     private education loan, a late fee may not be imposed on the 
     borrower with respect to any payment on the private education 
     loan, and no such payment may be treated as late for any 
     other purposes, if the payment is received by the transferor 
     servicer (rather than the transferee servicer who should 
     properly receive payment) before the due date applicable to 
     such payment.
       ``(ii) Notice.--To the maximum extent practicable, a 
     transferor servicer shall notify a borrower, both in writing 
     and by telephone, regarding any payment received by the 
     transferor servicer (rather than the transferee servicer who 
     should properly receive payment).
       ``(G) Electronic fund transfer authority.--A transferee 
     servicer shall make available to a borrower whose student 
     loan servicing is transferred to the transferee servicer a 
     simple, online process through which the borrower may 
     transfer to the transferee servicer any existing authority 
     for an electronic fund transfer that the borrower had 
     provided to the transferor servicer.
       ``(14) Payments and fees.--
       ``(A) Prohibition on recommending default.--A loan holder 
     or student loan servicer may not recommend or encourage 
     default or delinquency on an existing private education loan 
     prior to and in connection with the process of qualifying for 
     or enrolling in an alternative repayment arrangement, 
     including the origination of a new private education loan 
     that refinances all or any portion of such existing loan or 
     debt.
       ``(B) Late fees.--
       ``(i) In general.--A late fee may not be charged to a 
     borrower under a private education loan under any of the 
     following circumstances, either individually or in 
     combination:

       ``(I) On a per-loan basis when a borrower has multiple 
     private education loans in a billing group.
       ``(II) In an amount greater than 4 percent of the amount of 
     the payment past due.
       ``(III) Before the end of the 15-day period beginning on 
     the date the payment is due.
       ``(IV) More than once with respect to a single late 
     payment.
       ``(V) The borrower fails to make a singular, non successive 
     regularly-scheduled payment on the private education loan.

       ``(ii) Coordination with subsequent late fees.--No late fee 
     may be charged to a borrower under a private education loan 
     relating to an insufficient payment if the payment is made on 
     or before the due date of the payment, or within any 
     applicable grace period for the payment, if the insufficiency 
     is attributable only to a late fee relating to an earlier 
     payment, and the payment is otherwise a full payment for the 
     applicable period.
       ``(15)  Modification and deferral fees prohibited.--A loan 
     holder or student loan servicer may not charge a borrower any 
     fee to modify, renew, extend, or amend a private education 
     loan, or to defer any payment due under the terms of a 
     private education loan.''.
       (b) Prohibition of Acceleration of Payments on Private 
     Education Loans.--
       (1) In general.--Except as provided in paragraph (2), a 
     private education loan (as defined in section 140(a) of the 
     Truth in Lending Act (15 U.S.C. 1650(a)) executed after the 
     date of enactment of this Act may not include a provision 
     that permits the loan holder or student loan servicer to 
     accelerate, in whole or in part, payments on the private 
     education loan.
       (2) Acceleration caused by a payment default.--A private 
     education loan may include a provision that permits 
     acceleration of the loan in cases of payment default.
                                 ______
                                 
  SA 2069. Ms. WARREN (for herself and Ms. Cantwell) submitted an 
amendment intended to be proposed by her to the bill S. 2155, to 
promote economic growth, provide tailored regulatory relief, and 
enhance consumer protections, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end add the following:

                        TITLE VI--MISCELLANEOUS

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``21st Century Glass-
     Steagall Act of 2017''.

     SEC. 602. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) in response to a financial crisis and the ensuing Great 
     Depression, Congress enacted the Banking Act of 1933, known 
     as the ``Glass-Steagall Act'', to prohibit commercial banks 
     from offering investment banking and insurance services;
       (2) a series of deregulatory decisions by the Board of 
     Governors of the Federal Reserve

[[Page S1391]]

     System and the Office of the Comptroller of the Currency, in 
     addition to decisions by Federal courts, permitted commercial 
     banks to engage in an increasing number of risky financial 
     activities that had previously been restricted under the 
     Glass-Steagall Act, and also vastly expanded the meaning of 
     the ``business of banking'' and ``closely related 
     activities'' in banking law;
       (3) in 1999, Congress enacted the ``Gramm-Leach-Bliley 
     Act'', which repealed the Glass-Steagall Act separation 
     between commercial and investment banking and allowed for 
     complex cross-subsidies and interconnections between 
     commercial and investment banks;
       (4) former Kansas City Federal Reserve President Thomas 
     Hoenig observed that ``with the elimination of Glass-
     Steagall, the largest institutions with the greatest ability 
     to leverage their balance sheets increased their risk profile 
     by getting into trading, market making, and hedge fund 
     activities, adding ever greater complexity to their balance 
     sheets.'';
       (5) the Financial Crisis Inquiry Report issued by the 
     Financial Crisis Inquiry Commission concluded that, in the 
     years between the passage of the Gramm-Leach Bliley Act and 
     the global financial crisis, ``regulation and supervision of 
     traditional banking had been weakened significantly, allowing 
     commercial banks and thrifts to operate with fewer 
     constraints and to engage in a wider range of financial 
     activities, including activities in the shadow banking 
     system.''. The Commission also concluded that ``[t]his 
     deregulation made the financial system especially vulnerable 
     to the financial crisis and exacerbated its effects.'';
       (6) a report by the Financial Stability Oversight Council 
     pursuant to section 123 of the Dodd-Frank Wall Street Reform 
     and Consumer Protection Act (12 U.S.C. 5333) states that 
     increased complexity and diversity of financial activities at 
     financial institutions may ``shift institutions towards more 
     risk-taking, increase the level of interconnectedness among 
     financial firms, and therefore may increase systemic default 
     risk. These potential costs may be exacerbated in cases where 
     the market perceives diverse and complex financial 
     institutions as `too big to fail,' which may lead to 
     excessive risk taking and concerns about moral hazard.'';
       (7) the Senate Permanent Subcommittee on Investigations 
     report, ``Wall Street and the Financial Crisis: Anatomy of a 
     Financial Collapse'', states that repeal of the Glass-
     Steagall Act ``made it more difficult for regulators to 
     distinguish between activities intended to benefit customers 
     versus the financial institution itself. The expanded set of 
     financial services investment banks were allowed to offer 
     also contributed to the multiple and significant conflicts of 
     interest that arose between some investment banks and their 
     clients during the financial crisis.'';
       (8) the Senate Permanent Subcommittee on Investigations 
     report, ``JPMorgan Chase Whale Trades: A Case History of 
     Derivatives Risks and Abuses'', describes how traders at 
     JPMorgan Chase made risky bets using excess deposits that 
     were partly insured by the Federal Government;
       (9) in Europe, the Vickers Independent Commission on 
     Banking (for the United Kingdom) and the Liikanen Report (for 
     the Euro area) have both found that there is no inherent 
     reason to bundle ``retail banking'' with ``investment 
     banking'' or other forms of relatively high risk securities 
     trading, and European countries are set on a path of 
     separating various activities that are currently bundled 
     together in the business of banking;
       (10) private sector actors prefer having access to 
     underpriced public sector insurance, whether explicit (for 
     insured deposits) or implicit (for ``too big to fail'' 
     financial institutions), to subsidize dangerous levels of 
     risk-taking, which, from a broader social perspective, is not 
     an advantageous arrangement; and
       (11) the financial crisis, and the regulatory response to 
     the crisis, has led to more mergers between financial 
     institutions, creating greater financial sector consolidation 
     and increasing the dominance of a few large, complex 
     financial institutions that are generally considered to be 
     ``too big to fail'', and therefore are perceived by the 
     markets as having an implicit guarantee from the Federal 
     Government to bail them out in the event of their failure.
       (b) Purposes.--The purposes of this title are--
       (1) to reduce risks to the financial system by limiting the 
     ability of banks to engage in activities other than socially 
     valuable core banking activities;
       (2) to protect taxpayers and reduce moral hazard by 
     removing explicit and implicit government guarantees for 
     high-risk activities outside of the core business of banking; 
     and
       (3) to eliminate any conflict of interest that arises from 
     banks engaging in activities from which their profits are 
     earned at the expense of their customers or clients.

     SEC. 603. DEFINITIONS.

       In this title--
       (1) the term ``bank holding company'' has the meaning given 
     the term in section 2 of the Bank Holding Company Act of 1956 
     (12 U.S.C. 1841); and
       (2) the terms ``insurance company'', ``insured depository 
     institution'', ``securities entity'', and ``swaps entity'' 
     have the meanings given those terms in section 18(s)(6)(D) of 
     the Federal Deposit Insurance Act, as added by section 604(a) 
     of this title.

     SEC. 604. SAFE AND SOUND BANKING.

       (a) Insured Depository Institutions.--Section 18(s) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828(s)) is amended 
     by adding at the end the following:
       ``(6) Limitations on banking affiliations.--
       ``(A) Prohibition on affiliations with nondepository 
     entities.--An insured depository institution may not--
       ``(i) be or become an affiliate of any insurance company, 
     securities entity, or swaps entity;
       ``(ii) be in common ownership or control with any insurance 
     company, securities entity, or swaps entity; or
       ``(iii) engage in any activity that would cause the insured 
     depository institution to qualify as an insurance company, 
     securities entity, or swaps entity.
       ``(B) Individuals eligible to serve on boards of depository 
     institutions.--
       ``(i) In general.--An individual who is an officer, 
     director, partner, or employee of any securities entity, 
     insurance company, or swaps entity may not serve at the same 
     time as an officer, director, employee, or other institution-
     affiliated party of any insured depository institution.
       ``(ii) Exception.--Clause (i) shall not apply with respect 
     to service by any individual which is otherwise prohibited 
     under clause (i), if the appropriate Federal banking agency 
     determines, by regulation with respect to a limited number of 
     cases, that service by such an individual as an officer, 
     director, employee, or other institution-affiliated party of 
     an insured depository institution would not unduly 
     influence--

       ``(I) the investment policies of the depository 
     institution; or
       ``(II) the advice that the institution provides to 
     customers.

       ``(iii) Termination of service.--Subject to a determination 
     under clause (i), any individual described in clause (i) who, 
     as of the date of enactment of the 21st Century Glass-
     Steagall Act of 2017, is serving as an officer, director, 
     employee, or other institution-affiliated party of any 
     insured depository institution shall terminate such service 
     as soon as is practicable after such date of enactment, and 
     in no event, later than the end of the 60-day period 
     beginning on that date of enactment.
       ``(C) Termination of existing affiliations and 
     activities.--
       ``(i) Orderly termination of existing affiliations and 
     activities.--Any affiliation, common ownership or control, or 
     activity of an insured depository institution with any 
     securities entity, insurance company, swaps entity, or any 
     other person, as of the date of enactment of the 21st Century 
     Glass-Steagall Act of 2017, which is prohibited under 
     subparagraph (A) shall be terminated as soon as is 
     practicable, and in no event later than the end of the 5-year 
     period beginning on that date of enactment.
       ``(ii) Early termination.--The appropriate Federal banking 
     agency, at any time after opportunity for hearing, may order 
     termination of an affiliation, common ownership or control, 
     or activity prohibited by clause (i) before the end of the 5-
     year period described in clause (i), if the agency determines 
     that such action--

       ``(I) is necessary to prevent undue concentration of 
     resources, decreased or unfair competition, conflicts of 
     interest, or unsound banking practices; and
       ``(II) is in the public interest.

       ``(iii) Extension.--Subject to a determination under clause 
     (ii), an appropriate Federal banking agency may extend the 5-
     year period described in clause (i) as to any particular 
     insured depository institution for not more than an 
     additional 6 months at a time, if--

       ``(I) the agency certifies that such extension would 
     promote the public interest and would not pose a significant 
     threat to the stability of the banking system or financial 
     markets in the United States; and
       ``(II) such extension, in the aggregate, does not exceed 1 
     year for any single insured depository institution.

       ``(iv) Requirements for entities receiving an extension.--
     Upon receipt of an extension under clause (iii), the insured 
     depository institution shall notify shareholders of the 
     insured depository institution and the general public that it 
     has failed to comply with the requirements of clause (i).
       ``(D) Definitions.--For purposes of this paragraph, the 
     following definitions shall apply:
       ``(i) Insurance company.--The term `insurance company' has 
     the meaning given the term in section 2(q) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841(q)).
       ``(ii) Insured depository institution.--The term `insured 
     depository institution'--

       ``(I) has the meaning given the term in section 3(c)(2); 
     and
       ``(II) does not include a savings association controlled by 
     a savings and loan holding company, as described in section 
     10(c)(9)(C) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(c)(9)(C)).

       ``(iii) Securities entity.--The term `securities entity'--

       ``(I) includes any entity engaged in--

       ``(aa) the issue, flotation, underwriting, public sale, or 
     distribution of stocks, bonds, debentures, notes, or other 
     securities;
       ``(bb) market making;
       ``(cc) activities of a broker or dealer, as those terms are 
     defined in section 3(a) of the

[[Page S1392]]

     Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
       ``(dd) activities of a futures commission merchant;
       ``(ee) activities of an investment adviser or investment 
     company, as those terms are defined in section 202(a) of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)) and 
     section 3(a)(1) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-3(a)(1)), respectively; or
       ``(ff) hedge fund or private equity investments in the 
     securities of either privately or publicly held companies; 
     and

       ``(II) does not include a bank that, pursuant to its 
     authorized trust and fiduciary activities--

       ``(aa) purchases and sells investments for the account of 
     its customers; or
       ``(bb) provides financial or investment advice to its 
     customers.
       ``(iv) Swaps entity.--The term `swaps entity' means any 
     swap dealer, security-based swap dealer, major swap 
     participant, or major security-based swap participant, that 
     is registered under--

       ``(I) the Commodity Exchange Act (7 U.S.C. 1 et seq.); or
       ``(II) the Securities Exchange Act of 1934 (15 U.S.C. 78a 
     et seq.).''.

       (b) Limitation on Banking Activities.--Section 21 of the 
     Banking Act of 1933 (12 U.S.C. 378) is amended by adding at 
     the end the following:
       ``(c) Business of Receiving Deposits.--For purposes of this 
     section, the term `business of receiving deposits' includes 
     the establishment and maintenance of any transaction account 
     (as defined in section 19(b)(1)(C) of the Federal Reserve Act 
     (12 U.S.C. 461(b)(1)(C))).''.
       (c) Permitted Activities of National Banks.--The paragraph 
     designated as ``Seventh'' of section 24 of the Revised 
     Statutes (12 U.S.C. 24) is amended to read as follows:
       ``Seventh. (A) To exercise by its board of directors or 
     duly authorized officers or agents, subject to law, all such 
     powers as are necessary to carry on the business of banking.
       ``(B) As used in this paragraph, the term `business of 
     banking' shall be limited to the following core banking 
     services:
       ``(i) Receiving deposits.--A national banking association 
     may engage in the business of receiving deposits.
       ``(ii) Extensions of credit.--A national banking 
     association may--
       ``(I) extend credit to individuals, businesses, not for 
     profit organizations, and other entities;
       ``(II) discount and negotiate promissory notes, drafts, 
     bills of exchange, and other evidences of debt; and
       ``(III) loan money on personal security.
       ``(iii) Payment systems.--A national banking association 
     may participate in payment systems, defined as instruments, 
     banking procedures, and interbank funds transfer systems that 
     ensure the circulation of money.
       ``(iv) Coin and bullion.--A national banking association 
     may buy, sell, and exchange coin and bullion.
       ``(v) Investments in securities.--
       ``(I) In general.--A national banking association may 
     invest in investment securities, defined as marketable 
     obligations evidencing indebtedness of any person, 
     copartnership, association, or corporation in the form of 
     bonds, notes, or debentures (commonly known as `investment 
     securities'), obligations of the Federal Government, or any 
     State or subdivision thereof, and includes the definition of 
     `investment securities', as may be jointly prescribed by 
     regulation by--

       ``(aa) the Comptroller of the Currency;
       ``(bb) the Federal Deposit Insurance Corporation; and
       ``(cc) the Board of Governors of the Federal Reserve 
     System.

       ``(II) Limitations.--The business of dealing in securities 
     and stock by the association shall be limited to--

       ``(aa) purchasing and selling such securities and stock 
     without recourse, solely upon the order, and for the account 
     of, customers, and in no case for its own account, and the 
     association shall not underwrite any issue of securities or 
     stock; and
       ``(bb) purchasing for its own account investment securities 
     under such limitations and restrictions as the Comptroller of 
     the Currency, the Federal Deposit Insurance Corporation, and 
     the Board of Governors of the Federal Reserve System may 
     jointly prescribe, by regulation.

       ``(III) Prohibition on amount of investment.--In no event 
     shall the total amount of the investment securities of any 
     single obligor or maker, held by the association for its own 
     account, exceed 10 percent of its capital stock actually paid 
     in and unimpaired and 10 percent of its unimpaired surplus 
     fund, except that such limitation shall not require any 
     association to dispose of any securities lawfully held by it 
     on August 23, 1935.
       ``(C) Prohibition against transactions involving structured 
     or synthetic products.--A national banking association may 
     not--
       ``(i) invest in a structured or synthetic product, a 
     financial instrument in which a return is calculated based on 
     the value of, or by reference to the performance of, a 
     security, commodity, swap, other asset, or an entity, or any 
     index or basket composed of securities, commodities, swaps, 
     other assets, or entities, other than customarily determined 
     interest rates; or
       ``(ii) otherwise engage in the business of receiving 
     deposits or extending credit for transactions involving 
     structured or synthetic products.''.
       (d) Permitted Activities of Federal Savings Associations.--
     Section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C. 
     1464(c)(1)) is amended--
       (1) by striking subparagraph (Q); and
       (2) by redesignating subparagraphs (R) through (U) as 
     subparagraphs (Q) through (T), respectively.
       (e) Closely Related Activities.--Section 4(c) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1843(c)) is amended--
       (1) in paragraph (8), by striking ``had been determined'' 
     and all that follows through the end and inserting the 
     following: ``are so closely related to banking so as to be a 
     proper incident thereto, as provided under this paragraph or 
     any rule or regulation issued by the Board under this 
     paragraph, provided that for purposes of this paragraph, 
     closely related shall not be considered to include--
       ``(A) serving as an investment adviser (as defined in 
     section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 
     80a-2(a))) to an investment company registered under that 
     Act, including sponsoring, organizing, and managing a closed-
     end investment company;
       ``(B) agency transactional services for customer 
     investments, except that this subparagraph may not be 
     construed as prohibiting purchases and sales of investments 
     for the account of customers conducted by a bank (or 
     subsidiary thereof) pursuant to the bank's trust and 
     fiduciary powers;
       ``(C) investment transactions as principal, except for 
     activities specifically allowed by paragraph (14); and
       ``(D) management consulting and counseling activities;'';
       (2) in paragraph (13), by striking ``or'' at the end;
       (3) by redesignating paragraph (14) as paragraph (15); and
       (4) by inserting after paragraph (13) the following:
       ``(14) purchasing, as an end user, any swap, to the extent 
     that--
       ``(A) the purchase of any such swap occurs 
     contemporaneously with the underlying hedged item or hedged 
     transaction;
       ``(B) there is formal documentation identifying the hedging 
     relationship with particularity at the inception of the 
     hedge; and
       ``(C) the swap is being used to hedge against exposure to--
       ``(i) changes in the value of an individual recognized 
     asset or liability or an identified portion thereof that is 
     attributable to a particular risk;
       ``(ii) changes in interest rates; or
       ``(iii) changes in the value of currency; or''.
       (f) Prohibited Activities.--Section 4(a) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1843(a)) is amended--
       (1) in paragraph (1), by striking ``, or'' and inserting a 
     semicolon;
       (2) in paragraph (2), by striking the ``requirements of 
     this Act.'' and inserting ``requirements of this Act; or''; 
     and
       (3) by inserting before the undesignated matter following 
     paragraph (2) the following:
       ``(3) with the exception of the activities permitted under 
     subsection (c), engage in the business of a `securities 
     entity' or a `swaps entity', as those terms are defined in 
     section 18(s)(6)(D) of the Federal Deposit Insurance Act (12 
     U.S.C. 1828(s)(6)(D)), including dealing or making markets in 
     securities, repurchase agreements, exchange traded and over-
     the-counter swaps, as defined by the Commodity Futures 
     Trading Commission and the Securities and Exchange 
     Commission, or structured or synthetic products, as defined 
     in the paragraph designated as `Seventh' of section 24 of the 
     Revised Statutes (12 U.S.C. 24), or any other over-the-
     counter securities, swaps, contracts, or any other agreement 
     that derives its value from, or takes on the form of, such 
     securities, derivatives, or contracts;
       ``(4) engage in proprietary trading, as provided by section 
     13, or any rule or regulation under that section;
       ``(5) own, sponsor, or invest in a hedge fund, or private 
     equity fund, or any other fund, as provided by section 13, or 
     any rule or regulation under that section, or any other fund 
     that exhibits the characteristics of a fund that takes on 
     proprietary trading activities or positions;
       ``(6) hold ineligible securities or derivatives;
       ``(7) engage in market-making; or
       ``(8) engage in prime brokerage activities.''.
       (g) Anti-Evasion.--
       (1) In general.--Any attempt to structure any contract, 
     investment, instrument, or product in such a manner that the 
     purpose or effect of such contract, investment, instrument, 
     or product is to evade or attempt to evade the prohibitions 
     described in section 18(s)(6) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1828(s)(6)), section 21(c) of the 
     Banking Act of 1933 (12 U.S.C. 378(c)), the paragraph 
     designated as ``Seventh'' of section 24 of the Revised 
     Statutes (12 U.S.C. 24), section 5(c)(1) of the Home Owners' 
     Loan Act (12 U.S.C. 1464(c)(1)), or section 4(a) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1843(a)), as added or 
     amended by this section, shall be considered a violation of 
     the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), 
     the Banking Act of 1933 (Public Law 73-66; 48 Stat. 162), 
     section 24 of the Revised Statutes (12 U.S.C. 24), the Home 
     Owners' Loan Act (12 U.S.C. 1461 et seq.), and the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1841 et seq.), 
     respectively.
       (2) Termination.--
       (A) In general.--Notwithstanding any other provision of 
     law, if a Federal agency

[[Page S1393]]

     has reasonable cause to believe that an insured depository 
     institution, securities entity, swaps entity, insurance 
     company, bank holding company, or other entity over which 
     that Federal agency has regulatory authority has made an 
     investment or engaged in an activity in a manner that 
     functions as an evasion of the prohibitions described in 
     paragraph (1) (including through an abuse of any permitted 
     activity) or otherwise violates such prohibitions, the 
     Federal agency shall--
       (i) order, after due notice and opportunity for hearing, 
     the entity to terminate the activity and, as relevant, 
     dispose of the investment;
       (ii) order, after the procedures described in clause (i), 
     the entity to pay a penalty equal to 10 percent of the 
     entity's net profits, averaged over the previous 3 years, 
     into the Treasury of the United States; and
       (iii) initiate proceedings described in section 8(e) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1818(e)) for 
     individuals involved in evading the prohibitions described in 
     paragraph (1).
       (B) Construction.--Nothing in this paragraph shall be 
     construed to limit the inherent authority of any Federal 
     agency or State regulatory authority to further restrict any 
     investments or activities under otherwise applicable 
     provisions of law.
       (3) Reporting requirement.--
       (A) In general.--Not later than 1 year after the date of 
     enactment of this Act, and every year thereafter, each 
     Federal agency having regulatory authority over any entity 
     described in paragraph (2)(A) shall 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 make available to the public a report, 
     which shall identify--
       (i) the number and character of any activities that took 
     place in the preceding year that function as an evasion of 
     the prohibitions described in paragraph (1);
       (ii) the names of the particular entities engaged in those 
     activities; and
       (iii) the actions of the Federal agency taken under 
     paragraph (2).
       (h) Attestation.--Section 4 of the Bank Holding Company Act 
     of 1956 (12 U.S.C. 1843), as amended by section 604(a)(1) of 
     this title, is amended by adding at the end the following:
       ``(k) Attestation.--Executives of any bank holding company 
     or its affiliate shall attest in writing, under penalty of 
     perjury, that the bank holding company or affiliate is not 
     engaged in any activity that is prohibited under subsection 
     (a), except to the extent that such activity is permitted 
     under subsection (c).''.

     SEC. 605. REPEAL OF GRAMM-LEACH-BLILEY ACT PROVISIONS.

       (a) Termination of Financial Holding Company Designation.--
       (1) In general.--Section 4 of the Bank Holding Company Act 
     of 1956 (12 U.S.C. 1843) is amended by striking subsections 
     (k), (l), (m), (n), and (o).
       (2) Transition.--
       (A) Orderly termination of existing affiliation.--In the 
     case of a bank holding company which, pursuant to the 
     amendments made by paragraph (1), is no longer authorized to 
     control or be affiliated with any entity that was permissible 
     for a financial holding company on the day before the date of 
     enactment of this Act, any affiliation, ownership or control, 
     or activity by the bank holding company that is not permitted 
     for a bank holding company shall be terminated as soon as is 
     practicable, and in no event later than the end of the 5-year 
     period beginning on the date of enactment of this Act.
       (B) Early termination.--The Board of Governors of the 
     Federal Reserve System (in this section referred to as the 
     ``Board''), after opportunity for hearing, at any time, may 
     terminate an affiliation prohibited by subparagraph (A) 
     before the end of the 5-year period described in subparagraph 
     (A) if the Board determines that such action--
       (i) is necessary to prevent undue concentration of 
     resources, decreased or unfair competition, conflicts of 
     interest, or unsound banking practices; and
       (ii) is in the public interest.
       (C) Extension.--Subject to a determination under 
     subparagraph (B), the Board may extend the 5-year period 
     described in subparagraph (A), as to any particular bank 
     holding company, for not more than an additional 6 months at 
     a time, if--
       (i) the Board certifies that such extension would promote 
     the public interest and would not pose a significant risk to 
     the stability of the banking system or financial markets of 
     the United States; and
       (ii) such extension, in the aggregate, does not exceed 1 
     year for any single bank holding company.
       (D) Requirements for entities receiving an extension.--Upon 
     receipt of an extension under subparagraph (C), a bank 
     holding company shall notify the shareholders of the bank 
     holding company and the general public that the bank holding 
     company has failed to comply with the requirements of 
     subparagraph (A).
       (b) Financial Subsidiaries of National Banks Disallowed.--
       (1) In general.--Section 5136A of the Revised Statutes (12 
     U.S.C. 24a) is repealed.
       (2) Transition.--
       (A) Orderly termination of existing affiliation.--In the 
     case of a national bank which, pursuant to the amendment made 
     by paragraph (1), is no longer authorized to control or be 
     affiliated with a financial subsidiary as of the date of 
     enactment of this Act, such affiliation, ownership or 
     control, or activity shall be terminated as soon as is 
     practicable, and in no event later than the end of the 5-year 
     period beginning on the date of enactment of this Act.
       (B) Early termination.--The Comptroller of the Currency (in 
     this section referred to as the ``Comptroller''), after 
     opportunity for hearing, at any time, may terminate an 
     affiliation prohibited by subparagraph (A) before the end of 
     the 5-year period described in subparagraph (A) if the 
     Comptroller determines, having due regard for the purposes of 
     this title, that such action--
       (i) is necessary to prevent undue concentration of 
     resources, decreased or unfair competition, conflicts of 
     interest, or unsound banking practices; and
       (ii) is in the public interest.
       (C) Extension.--Subject to a determination under 
     subparagraph (B), the Comptroller may extend the 5-year 
     period described in subparagraph (A) as to any particular 
     national bank for not more than an additional 6 months at a 
     time, if--
       (i) the Comptroller certifies that such extension would 
     promote the public interest and would not pose a significant 
     risk to the stability of the banking system or financial 
     markets of the United States; and
       (ii) such extension, in the aggregate, does not exceed 1 
     year for any single national bank.
       (D) Requirements for entities receiving an extension.--Upon 
     receipt of an extension under subparagraph (C), a national 
     bank shall notify the shareholders of the national bank and 
     the general public that the national bank has failed to 
     comply with the requirements described in subparagraph (A).
       (3) Clerical amendment.--The table of sections for chapter 
     one of title LXII of the Revised Statutes is amended by 
     striking the item relating to section 5136A.
       (c) Repeal of Provision Relating to Foreign Banks Filing as 
     Financial Holding Companies.--Section 8(c) of the 
     International Banking Act of 1978 (12 U.S.C. 3106(c)) is 
     amended by striking paragraph (3).

     SEC. 606. REPEAL OF BANKRUPTCY PROVISIONS.

       Title 11, United States Code, is amended by repealing 
     sections 555, 559, 560, and 562.

     SEC. 607. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Bank Holding Company Act of 1956.--The Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
       (1) in section 2 (12 U.S.C. 1841)--
       (A) by striking subsection (p); and
       (B) by redesignating subsection (q) as subsection (p); and
       (2) in section 5 (12 U.S.C. 1844)--
       (A) in subsection (a), by striking the last sentence;
       (B) in subsection (c), by striking paragraphs (3), (4), and 
     (5); and
       (C) by striking subsection (g).
       (b) Bank Holding Company Act Amendments of 1970.--Section 
     106(a) of the Bank Holding Company Act Amendments of 1970 (12 
     U.S.C. 1971(a)) is amended by striking the last sentence.
       (c) Clayton Act.--Section 7A(c) of the Clayton Act (15 
     U.S.C. 18a(c)) is amended--
       (1) in paragraph (7), by striking ``, except that'' and all 
     that follows and inserting a semicolon; and
       (2) in paragraph (8), by striking ``, except that'' and all 
     that follows and inserting a semicolon.
       (d) Commodity Exchange Act.--The Commodity Exchange Act (7 
     U.S.C. 1 et seq.) is amended--
       (1) in section 1a(21)(G) (7 U.S.C. 1a(21)(G)), by striking 
     ``(as defined in section 2 of the Bank Holding Company Act of 
     1956)'';
       (2) in section 2(c)(2)(B)(i)(II)(dd) (7 U.S.C. 
     2(c)(2)(B)(i)(II)(dd)), by striking ``(as defined in section 
     2 of the Bank Holding Company Act of 1956)''; and
       (3) in section 2(h)(7)(C)(i)(VIII) (7 U.S.C. 
     2(h)(7)(C)(i)(VIII)), by striking ``, as defined in section 
     4(k) of the Bank Holding Company Act of 1956''.
       (e) Community Reinvestment Act of 1977.--Section 804 of the 
     Community Reinvestment Act of 1977 (12 U.S.C. 2903) is 
     amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       (f) Dodd-Frank Wall Street Reform and Consumer Protection 
     Act.--Section 201(a)(11)(B) of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5381(a)(11)(B)) 
     is amended by striking ``for purposes of section 4(k) of the 
     Bank Holding Company Act of 1956 (12 U.S.C. 1843(k))'' each 
     place that term appears.
       (g) Federal Deposit Insurance Act.--The Federal Deposit 
     Insurance Act (12 U.S.C. 1811 et seq.) is amended--
       (1) in section 8(b)(3) (12 U.S.C. 1818(b)(3)), by striking 
     ``section 50'' and inserting ``section 48'';
       (2) in section 18(u)(1)(B) (12 U.S.C. 1828(u)(1)(B)), by 
     striking ``or section 45 of this Act'';
       (3) by striking sections 45 and 46 (12 U.S.C. 1831v and 
     1831w); and
       (4) by redesignating sections 47 through 50 as sections 45 
     through 48, respectively.
       (h) Federal Reserve Act.--The Federal Reserve Act (12 
     U.S.C. 221 et seq.) is amended--
       (1) in the 20th undesignated paragraph of section 9 (12 
     U.S.C. 335), by striking the last sentence; and
       (2) in section 23A (12 U.S.C. 371c)--

[[Page S1394]]

       (A) in subsection (b)(11), by striking ``subparagraph (H) 
     or (I) of section 4(k)(4) of the Bank Holding Company Act of 
     1956 or'';
       (B) by striking subsection (e); and
       (C) by redesignating subsection (f) as subsection (e).
       (i) Financial Stability Act of 2010.--The Financial 
     Stability Act of 2010 (12 U.S.C. 5301 et seq.) is amended--
       (1) in section 113(c)(5) (12 U.S.C. 5323(c)(5)), by 
     striking ``(as defined in section 4(k) of the Bank Holding 
     Company Act of 1956)'';
       (2) in section 163 (12 U.S.C. 5363)--
       (A) by striking subsection (b); and
       (B) in subsection (a), by striking ``(a)'' and all that 
     follows through ``For purposes'' and inserting ``For 
     purposes'';
       (3) in section 167(b) (12 U.S.C. 5367(b)), by striking 
     ``under section 4(k) of the Bank Holding Company Act of 
     1956'' each place that term appears; and
       (4) in section 171(b) (12 U.S.C. 5371(b))--
       (A) by striking paragraph (3); and
       (B) by redesignating paragraphs (4) through (7) as 
     paragraphs (3) through (6), respectively.
       (j) Gramm-Leach-Bliley Act.--The Gramm-Leach-Bliley Act 
     (Public Law 106-102; 113 Stat. 1338) is amended--
       (1) by striking section 115 (12 U.S.C. 1820a);
       (2) in section 307(f) (15 U.S.C. 6715(f)), by amending 
     paragraph (2) to read as follows:
       ``(2) Board.--The term `Board' has the meaning given the 
     term in section 2 of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841).'';
       (3) in section 505(c) (15 U.S.C. 6805(c))--
       (A) by striking ``section 47(g)(2)(B)(iii) of the Federal 
     Deposit Insurance Act'' and inserting ``section 
     45(g)(2)(B)(iii) of the Federal Deposit Insurance Act''; and
       (B) by striking ``section 47(a)'' and inserting ``section 
     45(a)''; and
       (4) in section 509(3)(A) (15 U.S.C. 6809(3)(A)), by 
     striking ``as described in section 4(k) of the Bank Holding 
     Company Act of 1956''.
       (k) Home Owners' Loan Act.--Section 10(c) of the Home 
     Owners' Loan Act (12 U.S.C. 1467a(c)) is amended--
       (1) in paragraph (2), by striking subparagraph (H); and
       (2) in paragraph (9)(A), by striking ``permitted'' and all 
     that follows and inserting ``permitted under paragraph (1)(C) 
     or (2) of this subsection.''.
       (l) Internal Revenue Code.--Section 864(f)(4)(C)(ii) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``(within the meaning of section 2(p) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(p))''.
       (m) Payment, Clearing, and Settlement Supervision Act of 
     2010.--Section 803(5)(A) of the Payment, Clearing, and 
     Settlement Supervision Act of 2010 (12 U.S.C. 5462(5)(A)) is 
     amended--
       (1) in clause (viii), by adding ``and'' at the end;
       (2) in clause (ix), by striking ``; and'' and inserting a 
     period; and
       (3) by striking clause (x).
       (n) Securities Exchange Act of 1934.--The Securities 
     Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
       (1) in section 3(a)(4)(B)(vi)(II) (15 U.S.C. 
     78c(a)(4)(B)(vi)(II)), by striking ``other than'' and all 
     that follows and inserting ``other than a registered broker 
     or dealer.''; and
       (2) in section 3C(g)(3)(A) (15 U.S.C. 78c-3(g)(3)(A))--
       (A) in clause (vi), by adding ``and'' at the end;
       (B) in clause (vii), by striking the semicolon and 
     inserting a period; and
       (C) by striking clause (viii).
       (o) Title 11.--Title 11, United States Code, is amended--
       (1) in section 101--
       (A) in paragraph (25)(E), by striking ``, measured in 
     accordance with section 562'';
       (B) in paragraph (47)(A)(v), by striking ``, measured in 
     accordance with section 562 of this title''; and
       (C) in paragraph (53B)(A)(vi), by striking ``, measured in 
     accordance with section 562'';
       (2) in section 103(a), by striking ``555 through 557, and 
     559 through 562'' and inserting ``556, 557, and 561'';
       (3) in section 362(b)--
       (A) in paragraph (6), by striking ``555 or'' each place 
     that term appears;
       (B) in paragraph (7), by striking ``(as defined in section 
     559)'' each place that term appears;
       (C) in paragraph (17), by striking ``(as defined in section 
     560)'' each place that term appears; and
       (D) in paragraph (27), by striking ``(as defined in section 
     555, 556, 559, or 560)'' each place that term appears and 
     inserting ``(as defined in section 556)'';
       (4) in section 502(g)--
       (A) by striking ``(1)'' before ``A claim''; and
       (B) by striking paragraph (2);
       (5) in section 553--
       (A) in subsection (a)--
       (i) in paragraph (2)(B)(ii), by striking ``555, 556, 559, 
     560, or 561'' and inserting ``556 or 561''; and
       (ii) in paragraph (3)(C), by striking ``555, 556, 559, 560, 
     or 561'' and inserting ``556 or 561''; and
       (B) in subsection (b)(1), by striking ``555, 556, 559, 560, 
     561'' and inserting ``556, 561'';
       (6) in section 561(b)(1), by striking ``555, 556, 559, or 
     560'' and inserting ``556'';
       (7) in section 741(7)(A)(xi), by striking ``, measured in 
     accordance with section 562'';
       (8) in section 761(4)(J), by striking ``, measured in 
     accordance with section 562''; and
       (9) in section 901(a), by striking ``555, 556, 557, 559, 
     560, 561, 562'' and inserting ``556, 557, 561''.
                                 ______
                                 
  SA 2070. Ms. WARREN submitted an amendment intended to be proposed by 
her to the bill S. 2155, to promote economic growth, provide tailored 
regulatory relief, and enhance consumer protections, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of title III, add the following:

     SEC. 308. IMPROVED CONSUMER PROTECTIONS FOR STUDENT LOAN 
                   SERVICING.

       (a) In General.--The Truth in Lending Act (15 U.S.C. 1601 
     et seq.) is amended by adding at the end the following new 
     chapter:

               ``CHAPTER 6--POSTSECONDARY EDUCATION LOANS

``Sec.
``188. Definitions.
``189. Servicing of postsecondary education loans.
``190. Payments and fees.
``191. Authority of Bureau.
``192. State laws unaffected; inconsistent Federal and State 
              provisions.

     ``Sec. 188. Definitions

       ``In this chapter:
       ``(1) Alternative repayment arrangement.--The term 
     `alternative repayment arrangement' means an agreed upon 
     arrangement between a loan holder (or, for a Federal Direct 
     Loan or a Federal Perkins Loan, the Secretary of Education or 
     the institution of higher education that made such loan, 
     respectively) or student loan servicer and a borrower--
       ``(A) that is different than the terms under an existing 
     postsecondary education loan; and
       ``(B) pursuant to which remittance of a monthly payment--
       ``(i) satisfies the terms of the postsecondary education 
     loan; or
       ``(ii) is not required for a period of 1 or more months in 
     order to satisfy the terms of the postsecondary education 
     loan.
       ``(2) Billing group.--The term `billing group' means a 
     postsecondary education loan account that--
       ``(A) is serviced by a student loan servicer; and
       ``(B) includes 2 or more postsecondary education loans that 
     are in repayment status.
       ``(3) Bureau.--The term `Bureau' means the Bureau of 
     Consumer Financial Protection.
       ``(4) Effective date of transfer.--The term `effective date 
     of transfer' means the date on which the first payment is due 
     to a transferee servicer from a borrower under a 
     postsecondary education loan.
       ``(5) Federal direct loan.--The term `Federal Direct Loan' 
     means a loan made under part D of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1087a et seq.).
       ``(6) Federal perkins loan.--The term `Federal Perkins 
     Loan' means a loan made under part E of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.).
       ``(7) Institution of higher education.--The term 
     `institution of higher education' has the meaning given that 
     term in section 102 of the Higher Education Act of 1965 (20 
     U.S.C. 1002).
       ``(8) Late fee.--The term `late fee' means a late fee, 
     penalty, or adjustment to principal, imposed because of a 
     late payment or delinquency by the borrower under a 
     postsecondary education loan.
       ``(9) Loan holder.--The term `loan holder' means a person 
     who owns the title to or promissory note for a postsecondary 
     education loan (except for a Federal Direct Loan or a Federal 
     Perkins Loan).
       ``(10) Open end credit plan.--The term `open end credit 
     plan' has the meaning given that term in section 103.
       ``(11) Postsecondary education expense.--The term 
     `postsecondary education expense' means any expense that is 
     included as part of the cost of attendance (as that term is 
     defined in section 472 of the Higher Education Act of 1965 
     (20 U.S.C. 1087ll)) of a student.
       ``(12) Postsecondary education lender.--The term 
     `postsecondary education lender'--
       ``(A) means --
       ``(i) a financial institution, as defined in section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813) that 
     solicits, makes, or extends postsecondary education loans;
       ``(ii) a Federal credit union, as defined in section 101 of 
     the Federal Credit Union Act (12 U.S.C. 1752) that solicits, 
     makes, or extends postsecondary education loans; and
       ``(iii) any other person engaged in the business of 
     soliciting, making, or extending postsecondary education 
     loans; and
       ``(B) does not include--
       ``(i) the Secretary of Education; or
       ``(ii) an institution of higher education with respect to 
     any Federal Perkins Loan made by the institution.
       ``(13) Postsecondary education loan.--The term 
     `postsecondary education loan'--
       ``(A) means a loan that is--
       ``(i) made, insured, or guaranteed under part B, D, or E of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 
     et seq., 1087a et seq., 1087aa et seq.); or
       ``(ii) issued or made by a postsecondary education lender 
     and is--

       ``(I) extended to a borrower with the expectation that the 
     amounts extended will be used in whole or in part to pay 
     postsecondary education expenses; or
       ``(II) extended for the purpose of refinancing or 
     consolidating 1 or more loans described in subclause (I) or 
     clause (i);

       ``(B) includes a private education loan; and
       ``(C) does not include a loan--

[[Page S1395]]

       ``(i) made under an open-end credit plan; or
       ``(ii) that is secured by real property.
       ``(14) Private education loan.--The term `private education 
     loan' has the meaning given the term in section 140(a).
       ``(15) Qualified written request.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `qualified written request' means a written correspondence of 
     a borrower (other than notice on a payment medium supplied by 
     the student loan servicer) transmitted by mail, facsimile, or 
     electronically through an email address or website designated 
     by the student loan servicer to receive communications from 
     borrowers that--
       ``(i) includes, or otherwise enables the student loan 
     servicer to identify, the name and account of the borrower; 
     and
       ``(ii) includes, to the extent applicable--

       ``(I) sufficient detail regarding the information sought by 
     the borrower; or
       ``(II) a statement of the reasons for the belief of the 
     borrower that there is an error regarding the account of the 
     borrower.

       ``(B) Correspondence delivered to other addresses.--
       ``(i) In general.--A written correspondence of a borrower 
     is a qualified written request if the written 
     correspondence--

       ``(I) meets the requirements under clauses (i) and (ii) of 
     subparagraph (A); and
       ``(II) is transmitted to and received by a student loan 
     servicer at a mailing address, facsimile number, email 
     address, or website address other than the address or number 
     designated by that student loan servicer to receive 
     communications from borrowers.

       ``(ii) Duty to transfer.--A student loan servicer shall, 
     within a reasonable period of time, transfer a written 
     correspondence of a borrower received by the student loan 
     servicer at a mailing address, facsimile number, email 
     address, or website address other than the address or number 
     designated by that student loan servicer to receive 
     communications from borrowers to the correct address or 
     appropriate office or other unit of the student loan 
     servicer.
       ``(iii) Date of receipt.--A written correspondence of a 
     borrower transferred in accordance with clause (ii) shall be 
     deemed to be received by the student loan servicer on the 
     date on which the written correspondence is transferred to 
     the correct address or appropriate office or other unit of 
     the student loan servicer.
       ``(16) Student loan servicer.--The term `student loan 
     servicer'--
       ``(A) means a person who performs student loan servicing;
       ``(B) includes a person performing student loan servicing 
     for a postsecondary education loan on behalf of an 
     institution of higher education or the Secretary of Education 
     under a contract or other agreement;
       ``(C) does not include the Secretary of Education to the 
     extent the Secretary directly performs student loan servicing 
     for a postsecondary education loan; and
       ``(D) does not include an institution of higher education, 
     to the extent that the institution directly performs student 
     loan servicing for a Federal Perkins Loan made by the 
     institution.
       ``(17) Student loan servicing.--The term `student loan 
     servicing' includes any of the following activities:
       ``(A) Receiving any scheduled periodic payments from a 
     borrower under a postsecondary education loan (or 
     notification of such payments).
       ``(B) Applying payments described in subparagraph (A) to an 
     account of the borrower pursuant to the terms of the 
     postsecondary education loan or of the contract governing the 
     servicing of the postsecondary education loan.
       ``(C) During a period in which no payment is required on 
     the postsecondary education loan--
       ``(i) maintaining account records for the postsecondary 
     education loan; and
       ``(ii) communicating with the borrower on behalf of the 
     loan holder or, with respect to a Federal Direct Loan or 
     Federal Perkins Loan, the Secretary of Education or the 
     institution of higher education that made the loan, 
     respectively.
       ``(D) Interacting with a borrower to facilitate the 
     activities described in subparagraphs (A), (B), and (C), 
     including activities to help prevent default by the borrower 
     of the obligations arising from the postsecondary education 
     loan.
       ``(18) Transfer of servicing.--The term `transfer of 
     servicing' means the assignment, sale, or transfer of any 
     student loan servicing of a postsecondary education loan from 
     a transferor servicer to a transferee servicer.
       ``(19) Transferee servicer.--The term `transferee servicer' 
     means the person to whom any student loan servicing of a 
     postsecondary education loan is assigned, sold, or 
     transferred.
       ``(20) Transferor servicer.--The term `transferor servicer' 
     means the person who assigns, sells, or transfers any student 
     loan servicing of a postsecondary education loan to another 
     person.

     ``Sec. 189. Servicing of postsecondary education loans

       ``(a) Student Loan Servicer Requirements.--A student loan 
     servicer may not--
       ``(1) charge a fee for responding to a qualified written 
     request under this chapter;
       ``(2) fail to take timely action to respond to a qualified 
     written request from a borrower to correct an error relating 
     to an allocation of payment or the payoff amount of the 
     postsecondary education loan;
       ``(3) fail to take reasonable steps to avail the borrower 
     of all possible alternative repayment arrangements to avoid 
     default;
       ``(4) fail to perform the obligations required under title 
     IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
     seq.);
       ``(5) fail to respond within 10 business days to a request 
     from a borrower to provide the name, address, and other 
     relevant contact information of the loan holder of the 
     borrower's postsecondary education loan or, for a Federal 
     Direct Loan or a Federal Perkins Loan, the Secretary of 
     Education or the institution of higher education who made the 
     loan, respectively;
       ``(6) fail to comply with any applicable requirement of the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.);
       ``(7) fail to comply with any other obligation that the 
     Bureau, by regulation, has determined to be appropriate to 
     carry out the consumer protection purposes of this chapter; 
     or
       ``(8) fail to perform other standard servicer's duties.
       ``(b) Borrower Inquiries.--
       ``(1) Duty of student loan servicers to respond to borrower 
     inquiries.--
       ``(A) Notice of receipt of request.--If a borrower under a 
     postsecondary education loan submits a qualified written 
     request to the student loan servicer for information relating 
     to the student loan servicing of the postsecondary education 
     loan, the student loan servicer shall provide a written 
     response acknowledging receipt of the qualified written 
     request within 5 business days unless any action requested by 
     the borrower is taken within such period.
       ``(B) Action with respect to inquiry.--Not later than 30 
     business days after the receipt from any borrower of any 
     qualified written request under subparagraph (A) and, if 
     applicable, before taking any action with respect to the 
     qualified written request of the borrower, the student loan 
     servicer shall--
       ``(i) make appropriate corrections in the account of the 
     borrower, including the crediting of any late fees, and 
     transmit to the borrower a written notification of such 
     correction (which shall include the name and toll-free or 
     collect-call telephone number of a representative of the 
     student loan servicer who can provide assistance to the 
     borrower);
       ``(ii) after conducting an investigation, provide the 
     borrower with a written explanation or clarification that 
     includes--

       ``(I) to the extent applicable, a statement of the reasons 
     for which the student loan servicer believes the account of 
     the borrower is correct as determined by the student loan 
     servicer; and
       ``(II) the name and toll-free or collect-call telephone 
     number of an individual employed by, or the office or 
     department of, the student loan servicer who can provide 
     assistance to the borrower; or

       ``(iii) after conducting an investigation, provide the 
     borrower with a written explanation or clarification that 
     includes--

       ``(I) information requested by the borrower or an 
     explanation of why the information requested is unavailable 
     or cannot be obtained by the student loan servicer; and
       ``(II) the name and toll-free or collect-call telephone 
     number of an individual employed by, or the office or 
     department of, the student loan servicer who can provide 
     assistance to the borrower.

       ``(C) Limited extension of response time.--
       ``(i) In general.--There may be 1 extension of the 30-day 
     period described in subparagraph (B) of not more than 15 days 
     if, before the end of such 30-day period, the student loan 
     servicer notifies the borrower of the extension and the 
     reasons for the delay in responding.
       ``(ii) Reports to bureau.--Each student loan servicer 
     shall, on an annual basis, report to the Bureau the aggregate 
     number of extensions sought by the student loan servicer 
     under clause (i).
       ``(2) Protection of credit information.--During the 60-day 
     period beginning on the date on which a student loan servicer 
     receives a qualified written request from a borrower relating 
     to a dispute regarding payments by the borrower, a student 
     loan servicer may not provide negative credit information to 
     any consumer reporting agency (as defined in section 603 of 
     the Truth in Lending Act (15 U.S.C. 1681a)) relating to the 
     subject of the qualified written request or to such period, 
     including any information relating to a late payment or 
     payment owed by the borrower on the borrower's postsecondary 
     education loan.
       ``(3) High-touch student loan servicing.--A student loan 
     servicer shall designate an office or other unit of the 
     student loan servicer to act as a point of contact regarding 
     postsecondary education loans for borrowers considered to be 
     at risk of default, including--
       ``(A) any borrower who requests information related to 
     options to reduce or suspend his or her monthly payment, or 
     otherwise indicates that he or she is experiencing or is 
     about to experience financial hardship or distress;
       ``(B) any borrower who becomes 60 calendar days delinquent 
     on any loan;
       ``(C) any borrower who has not completed the program of 
     study for which the borrower received the loan;
       ``(D) any borrower who is enrolled in discretionary 
     forbearance for more than 9 months of the previous 12 months;
       ``(E) any borrower who has rehabilitated or consolidated 
     one or more student loans out of default within the prior 12 
     months;

[[Page S1396]]

       ``(F) a borrower under a private education loan who is 
     seeking to modify the terms of the repayment of the 
     postsecondary education loan because of hardship; and
       ``(G) any borrower or segment of borrowers determined by 
     the Director of the Bureau to be at risk of default.
       ``(c) Liaison for Members of the Armed Forces and 
     Veterans.--
       ``(1) Definition.--In this subsection, the term `veteran' 
     has the meaning given that term in section 101 of title 38, 
     United States Code.
       ``(2) Designation.--A student loan servicer shall designate 
     1 or more employees to act as a liaison for members of the 
     Armed Forces, veterans, and spouses and dependents of a 
     member of the Armed Forces or a veteran, who shall be--
       ``(A) responsible for answering inquiries relating to 
     postsecondary education loans from members of the Armed 
     Forces, veterans, and spouses and dependents of a member of 
     the Armed Forces or a veteran; and
       ``(B) specially trained on the benefits available to 
     members of the Armed Forces and veterans under the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) 
     and other Federal and State laws relating to postsecondary 
     education loans.
       ``(3) Toll free number.--A student loan servicer shall 
     establish and maintain a toll-free telephone number that--
       ``(A) may be used by a member of the Armed Forces, veteran, 
     or spouse or dependent of a member of the Armed Forces or a 
     veteran to connect directly to the liaison designated under 
     paragraph (2); and
       ``(B) shall be listed on the primary Internet website of 
     the student loan servicer and on monthly billing statements.

     ``Sec. 190. Payments and fees

       ``(a) Prohibition on Recommending Default.--A loan holder 
     or student loan servicer may not recommend or encourage 
     default or delinquency on an existing postsecondary education 
     loan prior to and in connection with the process of 
     qualifying for or enrolling in an alternative repayment 
     arrangement, including the origination of a new postsecondary 
     education loan that refinances all or any portion of such 
     existing loan or debt.
       ``(b) Late Fees.--
       ``(1) In general.--A late fee may not be charged to a 
     borrower under a postsecondary education loan under any of 
     the following circumstances, either individually or in 
     combination:
       ``(A) On a per-loan basis when a borrower has multiple 
     postsecondary education loans in a billing group.
       ``(B) In an amount greater than 4 percent of the amount of 
     the payment past due.
       ``(C) Before the end of the 15-day period beginning on the 
     date the payment is due.
       ``(D) More than once with respect to a single late payment.
       ``(E) The borrower fails to make a singular, non successive 
     regularly-scheduled payment on the postsecondary education 
     loan.
       ``(2) Coordination with subsequent late fees.--No late fee 
     may be charged to a borrower under a postsecondary education 
     loan relating to an insufficient payment if the payment is 
     made on or before the due date of the payment, or within any 
     applicable grace period for the payment, if the insufficiency 
     is attributable only to a late fee relating to an earlier 
     payment, and the payment is otherwise a full payment for the 
     applicable period.
       ``(c) Payoff Statement.--
       ``(1) Fees.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     or (D), a loan holder or student loan servicer may not charge 
     a fee for informing or transmitting to a borrower or a person 
     authorized by the borrower the balance due to pay off the 
     outstanding balance on a postsecondary education loan.
       ``(B) Transaction fee.--If a loan holder or student loan 
     servicer provides the information described in subparagraph 
     (A) by facsimile transmission or courier service, the loan 
     holder or student loan servicer may charge a processing fee 
     to cover the cost of such transmission or service in an 
     amount that is not more than a comparable fee imposed for 
     similar services provided in connection with consumer credit 
     transactions.
       ``(C) Fee disclosure.--A loan holder or student loan 
     servicer shall disclose to the borrower that payoff balances 
     are available for free pursuant to subparagraph (A) before 
     charging a transaction fee under subparagraph (B).
       ``(D) Multiple requests.--If a loan holder or student loan 
     servicer has provided the information described in 
     subparagraph (A) without charge, other than the transaction 
     fee permitted under subparagraph (B), on 4 or more occasions 
     during a calendar year, the loan holder or student loan 
     servicer may thereafter charge a reasonable fee for providing 
     such information during the remainder of the calendar year.
       ``(2) Prompt delivery.--A loan holder or a student loan 
     servicer that has received a request by a borrower or a 
     person authorized by a borrower for the information described 
     in paragraph (1)(A) shall provide such information to the 
     borrower or person authorized by the borrower not later than 
     5 business days after receiving such request.
       ``(d) Interest Rate and Term Changes for Certain 
     Postsecondary Education Loans.--
       ``(1) Notification requirements.--
       ``(A) In general.--Except as provided in paragraph (3), a 
     student loan servicer shall provide written notice to a 
     borrower of any material change in the terms of the 
     postsecondary education loan, including an increase in the 
     interest rate, not later than 45 days before the effective 
     date of the change or increase.
       ``(B) Material changes in terms.--The Bureau shall, by 
     regulation, establish guidelines for determining which 
     changes in terms are material under subparagraph (A).
       ``(2) Limits on interest rate and fee increases applicable 
     to outstanding balance.--Except as provided in paragraph (3), 
     a loan holder or student loan servicer may not increase the 
     interest rate or other fee applicable to an outstanding 
     balance on a postsecondary education loan.
       ``(3) Exceptions.--The requirements under paragraphs (1) 
     and (2) shall not apply to--
       ``(A) an increase in any applicable variable interest rate 
     incorporated in the terms of a postsecondary education loan 
     that provides for changes in the interest rate according to 
     operation of an index that is not under the control of the 
     loan holder or student loan servicer and is published for 
     viewing by the general public;
       ``(B) an increase in interest rate due to the completion of 
     a workout or temporary hardship arrangement by the borrower 
     or the failure of the borrower to comply with the terms of a 
     workout or temporary hardship arrangement if--
       ``(i) the interest rate applicable to a category of 
     transactions following any such increase does not exceed the 
     rate or fee that applied to that category of transactions 
     prior to commencement of the arrangement; and
       ``(ii) the loan holder or student loan servicer has 
     provided the borrower, prior to the commencement of such 
     arrangement, with clear and conspicuous disclosure of the 
     terms of the arrangement (including any increases due to such 
     completion or failure); and
       ``(C) an increase in interest rate due to a provision 
     included within the terms of a postsecondary education loan 
     that provides for a lower interest rate based on the 
     borrower's agreement to a prearranged plan that authorizes 
     recurring electronic funds transfers if--
       ``(i) the borrower withdraws the borrower's authorization 
     of the prearranged recurring electronic funds transfer plan; 
     and
       ``(ii) after withdrawal of the borrower's authorization and 
     prior to increasing the interest rate, the loan holder or 
     student loan servicer has provided the borrower with clear 
     and conspicuous disclosure of the impending change in 
     borrower's interest rate and a reasonable opportunity to 
     reauthorize the prearranged electronic funds transfers plan.
       ``(e) Prompt and Fair Crediting of Payments.--
       ``(1) Prompt crediting.--Payments received from a borrower 
     under a postsecondary education loan by the student loan 
     servicer shall be posted promptly to the account of the 
     borrower as specified in regulations of the Bureau. Such 
     regulations shall prevent a fee from being imposed on any 
     borrower if the student loan servicer has received the 
     borrower's payment in readily identifiable form, by 5:00 p.m. 
     on the date on which such payment is due, in the amount, 
     manner, and location specified by the student loan servicer.
       ``(2) Application of payments.--
       ``(A) In general.--
       ``(i) Treatments of prepayments.--A student loan servicer 
     that services a billing group of a borrower shall, upon 
     receipt of a payment from the borrower, apply amounts in 
     excess of the monthly payment amount first to the principal 
     of the postsecondary education loan bearing the highest 
     interest rate, and then to each successive principal balance 
     bearing the next highest interest rate until the payment is 
     exhausted, unless otherwise specified in writing by the 
     borrower.
       ``(ii) Treatment of underpayments.--

       ``(I) Regulations required.--Not later than 1 year after 
     the date of enactment of the Economic Growth, Regulatory 
     Relief, and Consumer Protection Act, the Bureau shall issue 
     regulations establishing the manner in which a student loan 
     servicer shall apply amounts less than the total payment due 
     during the billing cycle.
       ``(II) Considerations.--In issuing the regulations required 
     under subclause (I), the Bureau shall consider--

       ``(aa) the impact of the regulations on--
       ``(AA) outstanding debt of borrowers and the imposition of 
     late fees;
       ``(BB) credit ratings of borrowers; and
       ``(CC) continued availability of alternative repayment 
     arrangements; and
       ``(bb) any other factors the Bureau determines are 
     appropriate.
       ``(B) Changes by student loan servicer.--If a student loan 
     servicer makes a material change in the mailing address, 
     office, or procedures for handling borrower payments, and 
     such change causes a material delay in the crediting of a 
     payment made during the 60-day period following the date on 
     which such change took effect, the student loan servicer may 
     not impose any late fee for a late payment on the 
     postsecondary education loan to which such payment was 
     credited.
       ``(f) Additional Requirements for Prepayments.--
       ``(1) Advancement of date due.--A student loan servicer may 
     advance the date due of the next regularly scheduled 
     installment payment of a postsecondary education loan upon 
     remittance of a prepayment by the borrower, if--

[[Page S1397]]

       ``(A) the borrower's payment is sufficient to satisfy at 
     least 1 additional installment payment;
       ``(B) the number of billing cycles for which the date due 
     is advanced is equal to total number of installment payments 
     satisfied by the prepayment; and
       ``(C) upon receipt by the student loan servicer, the 
     prepayment is applied--
       ``(i) to the principal balance of the postsecondary 
     education loan; or
       ``(ii) if the student loan servicer services a billing 
     group of a borrower, to the principal balance of the 
     postsecondary education loan with the highest interest rate 
     in such billing group.
       ``(2) Borrower rights.--A student loan servicer shall 
     provide a clear, understandable and transparent means, 
     including through submission of an online form, for the 
     borrower to elect to--
       ``(A) instruct the servicer not to advance the date due of 
     future installment payments as described in paragraph (1); 
     and
       ``(B) voluntarily make payments in excess of the borrower's 
     regularly scheduled installment payment amount on a periodic 
     basis via recurring electronic funds transfers or other 
     automatic payment arrangement.
       ``(g) Timing of Payments.--A student loan servicer may not 
     treat a payment on a postsecondary education loan as late for 
     any purpose unless the student loan servicer has adopted 
     reasonable procedures designed to ensure that each billing 
     statement required under subsection (j)(1) is mailed or 
     delivered to the consumer not later than 21 days before the 
     payment due date.
       ``(h) Other Requirements for Postsecondary Education 
     Loans.--
       ``(1) Statement required with each billing cycle.--A 
     student loan servicer for each borrower's account that is 
     being serviced by that student loan servicer and that 
     includes a postsecondary education loan shall transmit to the 
     borrower, for each billing cycle at the end of which there is 
     an outstanding balance in that account, a statement that 
     includes--
       ``(A) the outstanding balance in the account at the 
     beginning of the billing cycle;
       ``(B) the total amount credited to the account during the 
     billing cycle;
       ``(C) the amount of any fee added to the account during the 
     billing cycle, itemized to show the amounts, if any, due to 
     the application of an increased interest rate, and the 
     amount, if any, imposed as a minimum or fixed charge;
       ``(D) the balance on which the fee described in 
     subparagraph (C) was computed and a statement of how the 
     balance was determined;
       ``(E) whether the balance described in subparagraph (D) was 
     determined without first deducting all payments and other 
     credits during the billing cycle, and the amount of any such 
     payments and credits;
       ``(F) the outstanding balance in the account at the end of 
     the billing cycle;
       ``(G) the date by which, or the period within which, 
     payment must be made to avoid late fees, if any;
       ``(H) the address of the student loan servicer to which the 
     borrower may direct billing inquiries;
       ``(I) the amount of any payments or other credits during 
     the billing cycle that was applied to pay down principal, and 
     the amount applied to interest;
       ``(J) in the case of a billing group, the allocation of any 
     payments or other credits during the billing cycle to each of 
     the postsecondary education loans in the billing group;
       ``(K) information on how to file a complaint with the 
     Bureau and with the ombudsman designated pursuant to section 
     1035 of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (12 U.S.C. 5535); and
       ``(L) any other information determined by the Bureau, which 
     may include information in the Bureau's Student Loan Payback 
     Playbook.
       ``(2) Payment deadlines and penalties.--
       ``(A) Disclosure of payment deadlines.--In the case of a 
     postsecondary education loan account under which a late fee 
     or charge may be imposed due to the failure of the borrower 
     to make payment on or before the due date for such payment, 
     the billing statement required under paragraph (1) with 
     respect to the account shall include, in a conspicuous 
     location on the billing statement, the date on which the 
     payment is due or, if different, the date on which a late fee 
     will be charged, together with the amount of the late fee to 
     be imposed if payment is made after that date.
       ``(B) Payments at local branches.--If the loan holder, in 
     the case of a postsecondary education loan account referred 
     to in subparagraph (A), is a financial institution that 
     maintains a branch or office at which payments on any such 
     account are accepted from the borrower in person, the date on 
     which the borrower makes a payment on the account at such 
     branch or office shall be considered to be the date on which 
     the payment is made for purposes of determining whether a 
     late fee may be imposed due to the failure of the borrower to 
     make payment on or before the due date for such payment.
       ``(i) Corrections and Unintentional Violations.--A loan 
     holder or student loan servicer who, when acting in good 
     faith, fails to comply with any requirement under this 
     section will to be deemed to have not violated such 
     requirement if the loan holder or student loan servicer 
     establishes that --
       ``(1) not later than 30 days after the date of execution of 
     the postsecondary education loan and prior to the institution 
     of any action under subtitle E of title X of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act (12 U.S.C. 
     5561 et seq.)--
       ``(A) the borrower is notified of or discovers the 
     compliance failure;
       ``(B) appropriate restitution to the borrower is made; and
       ``(C) necessary adjustments are made to the postsecondary 
     education loan that are necessary to bring the postsecondary 
     education loan into compliance with the requirements of this 
     section; or
       ``(2) not later than 60 days after the loan holder or 
     student loan servicer discovers or is notified of an 
     unintentional violation or bona fide error and prior to the 
     institution of any action under subtitle E of title X of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
     U.S.C. 5561 et seq.)--
       ``(A) the borrower is notified of the compliance failure;
       ``(B) appropriate restitution to the borrower is made; and
       ``(C) necessary adjustments are made to the postsecondary 
     education loan that are necessary to bring the postsecondary 
     education loan into compliance with the requirements of this 
     section.
       ``(j) Rule of Construction for Federal Postsecondary 
     Education Loans.--Nothing in this section shall be construed 
     to supercede any reporting or disclosure requirement required 
     for a postsecondary education loan that is made, issued, or 
     guaranteed under part B, D, or E of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.), if such 
     reporting requirement does not directly conflict with the 
     requirements of this section.

     ``Sec. 191. Authority of Bureau

       ``(a) Authorization.--The Bureau is authorized to prescribe 
     such rules and regulations, make such interpretations, and 
     grant such reasonable exemptions, in accordance with, and as 
     may be necessary to achieve the purposes of, this chapter.
       ``(b) Disclosure Requirements.--
       ``(1) In general.--The Bureau shall issue regulations 
     requiring disclosures to borrowers that clearly and 
     conspicuously inform borrowers of the protections afforded to 
     them under this chapter and under other provisions relating 
     to postsecondary education loans. The Bureau shall consider 
     whether special disclosures are required to accommodate the 
     unique needs of borrowers who are members of the Armed Forces 
     or veterans.
       ``(2) Regulations required.--The regulations issued under 
     paragraph (1) shall--
       ``(A) ensure that a borrower is made aware of--
       ``(i) all repayment options available to the borrower, 
     including the availability of refinancing products, and the 
     effect of each repayment option on the total amount owed 
     under, total cost of, and time to repay the postsecondary 
     education loan;
       ``(ii) the risks and costs associated with default; and
       ``(iii) the eligibility of certain borrowers for discharge 
     of certain postsecondary education loans; and
       ``(B) require provision of information about how a borrower 
     can file a complaint with the Bureau relating to an alleged 
     violation of this chapter.
       ``(3) Timing of disclosures.--The regulations issued under 
     paragraph (1) shall specify the timing of the disclosures 
     described in paragraph (2)(A). Such timing may include--
       ``(A) before the first payment is due under the 
     postsecondary education loan; or
       ``(B) when the borrower--
       ``(i) first exhibits difficulty in making payments under 
     the postsecondary education loan;
       ``(ii) is 30 days delinquent under the postsecondary 
     education loan;
       ``(iii) is 60 days delinquent under the postsecondary 
     education loan;
       ``(iv) notifies the student loan servicer of the intent of 
     the borrower to forbear or defer payment under the 
     postsecondary education loan;
       ``(v) inquires about or requests the refinancing or 
     consolidation of the postsecondary education loan; or
       ``(vi) informs the student loan servicer, or a 
     postsecondary education lender acting on behalf of the 
     borrower informs the student loan servicer, that the borrower 
     will be refinancing or consolidating the loan.
       ``(c) Unfair, Deceptive, and Abusive Acts or Lending 
     Practices.--The Bureau, by regulation or order, shall 
     prohibit acts or practices in connection with--
       ``(1) a postsecondary education loan that the Bureau finds 
     to be unfair, deceptive, or designed to evade the provisions 
     of this chapter; or
       ``(2) the refinancing of a postsecondary education loan, 
     including facilitation of refinancing or enrollment in an 
     alternative repayment arrangement, that the Bureau finds to 
     be associated with abusive lending practices, or that are 
     otherwise not in the interest of the borrower.
       ``(d) Consultation With Secretary of Education.--In order 
     to avoid duplication, to the extent practicable, the Bureau, 
     in consultation with the Secretary of Education, may consider 
     obligations of student loan servicers under title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

     ``Sec. 192. State laws unaffected; inconsistent Federal and 
       State provisions

       ``Nothing in this chapter shall annul, alter, or affect, or 
     exempt any person subject to

[[Page S1398]]

     the provisions of this chapter from complying with the laws 
     of any State with respect to student loan servicing 
     practices, fees on postsecondary education loans, or other 
     requirements relating to postsecondary education loans, 
     except to the extent that those laws are inconsistent with 
     any provision of this chapter, and then only to the extent of 
     the inconsistency. The Bureau is authorized to determine 
     whether such inconsistencies exist. The Bureau may not 
     determine that any State law is inconsistent with any 
     provision of this chapter if the Bureau determines that such 
     law gives greater protection to the consumer. In making these 
     determinations the Bureau shall consult with the appropriate 
     Federal agencies.''.
       (b) Exempted Transactions.--Section 104 of the Truth in 
     Lending Act (15 U.S.C. 1603) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``This title'' and inserting ``(a) In General.--This title''; 
     and
       (2) by adding at the end the following:
       ``(b) Rule of Construction.--Nothing in subsection (a) 
     shall prevent or be construed to prevent the provisions of 
     chapter 6 from applying to any postsecondary education 
     lender, loan holder, or student loan servicer (as those terms 
     are defined in section 188).''.
       (c) Civil Liability.--Section 130 of the Truth in Lending 
     Act (15 U.S.C. 1640) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and any postsecondary education lender, loan holder, or 
     student loan servicer (as such terms are defined in section 
     188) who fails to comply with any requirement imposed under 
     chapter 6 with respect to any person'' before ``is liable to 
     such person'';
       (B) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) by striking ``; or (iv)'' and inserting ``, or (iv)''; 
     and
       (II) by inserting ``, or (v) in the case of a postsecondary 
     education lender, loan holder, or student loan servicer (as 
     such terms are defined in section 188) who fails to comply 
     with any requirement imposed under chapter 6, not less than 
     $400 or greater than $4,000'' before the semicolon; and

       (ii) in subparagraph (B), by inserting ``, postsecondary 
     education lender, loan holder, or student loan servicer'' 
     after ``creditor'' each place it appears; and
       (C) in the matter following paragraph (4)--
       (i) in the first sentence--

       (I) by inserting ``, postsecondary education lender, loan 
     holder, or student loan servicer'' after ``creditor'' each 
     place it appears; and
       (II) by striking ``creditor's failure'' and inserting 
     ``failure by the creditor, postsecondary education lender, 
     loan holder, or student loan servicer'';

       (ii) in the fourth sentence, by inserting ``other than the 
     disclosures required under section 128(e)(12),'' after 
     ``referred to in section 128,''; and
       (iii) in the fifth sentence, by inserting ``, postsecondary 
     education lender, loan holder, or student loan servicer'' 
     after ``creditor'';
       (2) in subsection (c), by striking ``creditor or assignee'' 
     each place it appears and inserting ``creditor, assignee, 
     postsecondary education lender, loan holder, or student loan 
     servicer'';
       (3) in subsection (e)--
       (A) in the second sentence, by inserting ``or chapter 6'' 
     after ``section 129, 129B, or 129C''; and
       (B) in the fourth sentence, by inserting ``or chapter 6'' 
     after ``or 129H''; and
       (4) in subsection (h)--
       (A) by striking ``creditor or assignee'' and inserting 
     ``creditor, assignee, postsecondary education lender, loan 
     holder, or student loan servicer''; and
       (B) by striking ``creditor's or assignee's liability'' and 
     inserting ``liability of the creditor, assignee, 
     postsecondary education lender, loan holder, or student loan 
     servicer''.

                          ____________________