[Congressional Record (Bound Edition), Volume 163 (2017), Part 7]
[House]
[Pages 8908-8998]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      FINANCIAL CHOICE ACT OF 2017


                             General Leave

  Mr. HENSARLING. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and submit extraneous materials on the bill, H.R. 10, the Financial 
CHOICE Act of 2017.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The SPEAKER pro tempore. Pursuant to House Resolution 375 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 10.
  The Chair appoints the gentleman from Arkansas (Mr. Womack) to 
preside over the Committee of the Whole.

                              {time}  1237


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 10) to create hope and opportunity for investors, consumers, and 
entrepreneurs by ending bailouts and Too Big to Fail, holding 
Washington and Wall Street accountable, eliminating red tape to 
increase access to capital and credit, and repealing the provisions of 
the Dodd-Frank Act that make America less prosperous, less stable, and 
less free, and for other purposes, with Mr. Womack in the chair.
  The Clerk read the title of the bill.
  The CHAIR. Pursuant to the rule, the bill is considered read the 
first time.
  The gentleman from Texas (Mr. Hensarling) and the gentlewoman from 
California (Ms. Maxine Waters) each will control 45 minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. HENSARLING. Mr. Chairman, at this time I proudly yield 1 minute 
to the gentleman from Wisconsin (Mr. Ryan), the distinguished Speaker 
of the House.
  Mr. RYAN. Mr. Chairman, I just want to start off by thanking Chairman 
Hensarling and the entire Financial Services Committee for their 
leadership on this vital and important legislation. Job well done.
  The Financial CHOICE Act answers a deep need at the very heart of our 
economy. We have heard about this need time and again from our 
constituents back home. I sure have.
  Small businesses are struggling. They have been unable to hire, 
invest, or get the loans that they need to get off the ground. Families 
looking to keep their money safe are hit with fees that they cannot 
afford.
  And why is this? Our community banks are in trouble. They are being 
crushed by the costly rules imposed on them by the Dodd-Frank Act. This 
law may have had good intentions, but its consequences have been dire 
for Main Street.
  Let me put it this way: It is more than 1,000 pages long and has more 
rules and regulations than any other Obama-era law. The burdens created 
are real and deep.
  These costs are unsustainable for small community banks who simply 
cannot afford to meet all the requirements and can't hire a team of 
lawyers to decipher the seemingly endless rules.
  So what do they do? They hunker down. They are unable to loan out 
money. Or worse, they are shutting down.
  The CHOICE Act reins in Dodd-Frank, and it delivers the regulatory 
relief these small banks so desperately need. This will change our 
communities because these banks are the lifeblood of our Main Streets.
  Where I come from, representing towns small and medium, they are not 
big companies in big cities getting money from big banks. They are 
small- and medium-size businesses in small- and medium-size towns 
hoping the community banker will be able to give them the loan they 
need to hire some people, to take a risk, to start a small

[[Page 8909]]

business, to expand their small business. They know the needs of their 
communities, and they are able to identify the people who can fill 
those needs successfully.
  There is a reason why they handle the vast majority of small-business 
loans in this country: because they are the ones who are the closest to 
the small businesses.
  Here is the difference: The people big banks may overlook thinking it 
is some guy with a pipe dream, the community banker is able to 
recognize that as a father of four with the drive to make his dream of 
a bicycle shop into a reality or a woman seeking to rent out retail 
space to open her dream restaurant using her family recipes, or maybe 
it is a young farmer with a new idea to integrate the latest technology 
into the family farm. The big banks don't pay attention to that; only 
community banks do.
  A couple of years later, with the help of these kinds of loans from 
these local banks, these so-called pipe dreams in these small towns and 
these rural counties become successful businesses. They become job 
creators. These are the ultimate success stories that our communities 
in America are built upon.
  This is why the Financial CHOICE Act is so important. It helps 
community banks and the small businesses that absolutely depend on 
them, it helps them thrive. It protects consumers by increasing 
accountability and transparency over the wider financial sector, and it 
also repeals ``too big to fail,'' the rules codified by Dodd-Frank that 
have left taxpayers on the hook for too long. Ultimately, the Financial 
CHOICE Act is a jobs bill, and it is one that will bring hope back to 
Main Street.
  It is easy to talk about the economy and regulations as a series of 
numbers. It is easy to talk in vague terms about job creators and 
small-business owners. But what is far more important is identifying 
the problems that they actually face and actually doing something about 
those problems to help make a difference to improve their lives.
  That is what this CHOICE Act is all about. It is why we were sent 
here: to look out for the people who work hard and who do the right 
thing.
  Let's get this done for them. Let's get this done for the people who 
take the risks, who live and breathe their work, for the people who 
strive and struggle every day for their families. Let's pass the CHOICE 
Act today.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield myself such 
time as I may consume.
  H.R. 10 is being called the ``Wrong'' CHOICE Act by the American 
public because this bill is truly the wrong choice for all of us. 
Indeed, this is one of the worst bills I have seen in my time in 
Congress.
  This bill is a vehicle for Donald Trump's agenda to deregulate and 
help out Wall Street. It destroys nearly all of the important policies 
we put in place in the Dodd-Frank Wall Street Reform and Consumer 
Protection Act to prevent another financial crisis and protect 
consumers. This bill would create vast harm and lead us right back to 
the bad old days.
  We all remember the suffering that resulted from the Great Recession: 
$13 trillion in household wealth was lost; 11 million people lost their 
homes; the unemployment rate hit 10 percent. The impact was enormous 
and felt by all. This bill would pave the way back to economic damage 
of the same scale--or worse.
  The ``Wrong'' CHOICE Act guts the highly successful Consumer 
Financial Protection Bureau, which works to make sure that hardworking 
Americans are not subjected to predatory practices in the financial 
marketplace.
  Since its creation, the Consumer Bureau has returned nearly $12 
billion to more than 29 million consumers who have been ripped off by 
financial institutions. This bill would foolishly put a stop to the 
Consumer Bureau's good work and once again leave consumers vulnerable.
  That is not all. Across the board, the ``Wrong'' CHOICE Act removes 
essential Dodd-Frank protections for consumers, investors, and our 
economy.

                              {time}  1245

  Despite what Republicans will tell you, banks large and small are 
doing just fine since the passage of Dodd-Frank. Last year, they posted 
record profits. Here is the bottom line: Donald Trump and Republicans 
want to open the door to another economic catastrophe like the Great 
Recession and return us to a financial system where reckless and 
predatory practices harm our families and communities. We cannot allow 
that to happen.
  Mr. Chair, I urge all of my colleagues to vote ``no'' on this 
catastrophically bad bill.
  Mr. Chair, I reserve the balance of my time.
  Mr. HENSARLING. Mr. Chair, I yield myself such time as I may consume.
  Mr. Chairman, it has been 7 years since the Dodd-Frank Act was 
passed, a monumental triumph of ideology over compassion and common 
sense. All of the promises of Dodd-Frank were broken. They promised us 
it would lift the economy, Mr. Chairman, but, instead, we are still 
stymied in the weakest, slowest recovery in the postwar era.
  They promised us that it would end too big to fail, but, instead, it 
cynically codified too-big-to-fail banks in the law and backed it up 
with a taxpayer bailout fund.
  It promised us, Mr. Chairman--they promised us that it would lead to 
a more stable economy, but, instead, the big banks are bigger. The 
small banks are fewer. We are losing a community bank or credit union a 
day.
  Our corporate bond market, a key component of financing of jobs, 
historic levels of volatility and illiquidity.
  They promised us, Mr. Chairman, that it would help the consumer, but, 
instead, we see free checking cut in half at banks, bank fees are up. 
The ranks of the unbanked have increased.
  For many creditworthy borrowers, they are paying $500 more for an 
auto loan. Have you tried getting a mortgage recently? They are harder 
to come by and cost hundreds of dollars more to close.
  Every promise of Dodd-Frank has been broken. And, Mr. Chairman, we 
hear about it every day. I heard from Julieann, a banker in 
Massachusetts, and she wrote, ```We have experienced a spike in loan 
declines to women,' for their investigation identified that women 
attempting to buy the family home to settle their divorce and stabilize 
their family were being declined at a high rate due to the Dodd-Frank 
Qualified Mortgage rules. . . .''
  Dodd-Frank is hurting recently divorced women. I heard from Allen in 
New Hampshire who talked about his need for a new car, but he couldn't 
find a loan from a bank, and he said:

       But for my local dealer's efforts on my behalf, there is no 
     doubt I would not be driving my current car, and this was a 
     desperate situation, for I am the sole income earner for my 
     family. My wife is ill, and we have two young children in 
     school. After my old vehicle broke down, I needed to find 
     reliable, replacement transportation so that I could get to 
     work and continue to provide for my family. Please ensure 
     that financing car and truck dealerships are not stymied by 
     Dodd-Frank's CFPB.

  I heard from Maxine in Salt Lake City, who talked about her company. 
She said:

       Last February, we were awarded a major catering contract 
     for all food services in the new performing arts center. The 
     new contract will require us to make a major investment in 
     equipment in small wares. We will be able to hire 50 
     additional staff. Unfortunately, red tape got in the way, 
     turned what should have been a golden opportunity into an 
     unbelievable headache. Three banks informed us that our 
     rating, according to new bank regulations imposed by Dodd-
     Frank, disqualified us from consideration.

  Mr. Chairman, we have letter after letter, email after email, showing 
how Dodd-Frank is harming working families, harming small businesses, 
crushing community banks.
  Fortunately, Mr. Chairman, there is a better, smarter way, and it is 
called the Financial CHOICE Act. It is going to create hope and 
opportunity for investors and consumers, and entrepreneurs, and it 
stands for economic growth for all, but bank bailouts for none.
  Contrary to Dodd-Frank, and what every Democrat will come here 
today--

[[Page 8910]]

my friends on the other side of the aisle--and defend, we will end bank 
bailouts once and for all. We will replace bailout with bankruptcy. We 
will replace economic stagnation with a growing healthy economy. We 
will ensure that there will finally be pay increases, wage increases 
for working Americans who haven't seen a pay increase since Dodd-Frank 
became law.
  We will replace Washington micromanagement with market discipline. We 
will ensure that we replace taxpayer money with private money because 
for every bank who will have a 10 percent simple leverage ratio, which 
is analogous to having a private insurance policy against bailout, we 
will let them have that Dodd-Frank off-ramp, and that is so important.
  But, Mr. Chairman, we are also going to hold Wall Street accountable 
with the toughest penalties that they have seen, and no more bailouts. 
Perhaps that is one of the reasons they oppose the Financial CHOICE Act 
and support the status quo of Dodd-Frank.
  We will make sure that there is needed regulatory relief for our 
small banks and credit unions, because it is our small banks who loan 
to our small businesses, that create the job engine of America, and 
make sure that the American Dream is not a pipe dream; but, instead, it 
is a dream and a vision where we will only be limited by our 
imagination.
  Mr. Chair, I reserve the balance of my time.
  Ms. MAXINE WATERS of California. Mr. Chair, the Speaker and Mr. 
Hensarling would have you think this is all about community banks being 
hurt, but let me tell you what this is all about.
  U.S. and foreign banks have paid more than $160 billion in penalties 
to resolve cases brought against them by the Justice Department and 
Federal regulatory agencies for cases involving collusion, fraud 
against consumers, bribery, and other abuses.
  There were 144 major cases of $100 million or more against 26 large 
U.S. and foreign banks. Just look at this: Bank of America, $56 
billion; J.P.Morgan, $28 billion; Citigroup, $15 billion; Wells Fargo--
and you know about Wells Fargo and what they did--$11 billion; Goldman 
Sachs, $9 billion; Morgan Stanley, $5 billion. This is about rip-offs, 
so this bill will prevent us from being able to assess these kinds of 
penalties on those who are ripping off the American public.
  Mr. Chair, I yield 1 minute to the gentleman from Missouri (Mr. 
Clay), ranking member of the Financial Institutions and Consumer Credit 
Subcommittee.
  Mr. CLAY. Mr. Chair, I thank the ranking member. I rise today to 
oppose H.R. 10, a dangerous assault on American consumers that would 
gut the landmark Dodd-Frank Wall Street Reform Act.
  If the ``Wrong'' CHOICE Act is allowed to be inflicted on working 
families, the reckless financial speculators who sold out the American 
people on Wall Street would be given a free pass to perpetrate future 
financial abuses that will reap billions for them and rob average 
Americans of their financial security again.
  The ``Wrong'' CHOICE Act would take us back to the pre-2008 era of 
unchecked reckless financial abuses that resulted in the worst 
recession since the Great Depression.
  Let me remind Members of the crushing cost of that national economic 
emergency: over 8 million jobs lost, 10 percent unemployment, 7 million 
home foreclosures, and trillions of dollars of personal institutional 
wealth wiped out.
  No proponent of this bill can look the American people in the face 
and tell them that this is better for consumers, because it is not.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Virginia (Mr. Goodlatte), chairman of the Judiciary Committee.
  Mr. GOODLATTE. Mr. Chair, I would first like to thank Chairman 
Hensarling for introducing this important piece of legislation.
  The CHOICE Act replaces the orderly liquidation authority under title 
II of Dodd-Frank with a new bankruptcy procedure developed by the 
Committee on the Judiciary in the Financial Institution Bankruptcy Act.
  In 2008, our economy suffered one of the most significant financial 
crises in history. In the ensuing years, experts from the financial, 
regulatory, legal, and academic communities have examined how best to 
prevent another similar crisis from occurring and to eliminate the 
possibility of using taxpayer moneys to bail out failing firms.
  The Judiciary Committee has advanced the review of this issue, with 
the aim of crafting a solution that will better equip our bankruptcy 
laws to resolve failing firms, while also encouraging greater private 
counterparty diligence in order to reduce the likelihood of another 
financial crisis.
  The Financial Institution Bankruptcy Act is the culmination of a 
multiyear, bipartisan process that solicited and incorporated the views 
of a wide range of leading experts and relevant regulators. The CHOICE 
Act incorporates all of the provisions of the Financial Institution 
Bankruptcy Act, providing a balanced approach that increases 
transparency and predictability in the resolution of a financial firm.
  Furthermore, it ensures that shareholders and creditors--not 
taxpayers--bear the losses related to the failure of a financial 
company.
  Mr. Chair, I urge my colleagues to support this legislation.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Colorado (Mr. Perlmutter), ranking member of the 
Terrorism, Nonproliferation, and Trade Subcommittee.
  Mr. PERLMUTTER. Mr. Chair, I thank the gentlewoman from California 
(Ms. Maxine Waters) for yielding me time.
  I rise in opposition to H.R. 10, the ``Bad'' CHOICE Act, which brings 
back the Wild West to our financial markets and hurts consumers.
  It is a bad choice because this takes us back to a time when we were 
losing 800,000 jobs a month--not gaining 200,000 jobs a month. Colorado 
takes us back to when we had 10 percent unemployment--not 2.5 percent 
unemployment. It takes us back to a time when the stock market was 
6,500--not 21,000.
  It brings back no discipline. The markets were in chaos. People got 
hurt. This kind of return to bad legislation and bad regulation is not 
good for America, and we should all vote ``no.''
  Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from 
Missouri (Mr. Luetkemeyer), a real leader on our committee and chairman 
of the Financial Institution and Consumer Credit Subcommittee.
  Mr. LUETKEMEYER. Mr. Chairman, I am very proud to stand with Chairman 
Hensarling today and offer my support for H.R. 10, the Financial CHOICE 
Act of 2017.
  This bill offers a responsible approach to financial regulation that 
will protect consumers and allow the American economy to flourish. The 
Financial CHOICE Act makes meaningful reforms that ensure transparency, 
restore a rule of law, and help consumers and small businesses gain 
access to the credit they need to move forward towards financial 
independence, be the entrepreneurs they are, and be able to realize 
their dreams.
  Mr. Chairman, we lose one community bank or credit union a day, as 
the chairman just mentioned, every day. These are the institutions that 
lend to families and small businesses across America. These 
institutions are the backbone of each of our communities and something 
that must be done to reverse this dangerous trend of consolidation and 
closure.
  There has been a considerable amount of discussion on both sides of 
the aisle on the need to help community financial institutions. The 
legislation we will consider today provides every Member of Congress 
the opportunity to cast a vote in favor of responsible regulatory 
relief for credit unions and community banks across the Nation.
  The Financial CHOICE Act will increase access to credit for consumers 
by easing rules and regulations that never should have been applied to 
smaller financial institutions in the first place.
  H.R. 10 also makes important reforms to the Consumer Financial 
Protection Bureau, an unaccountable

[[Page 8911]]

agency that embodies the Washington-knows-best mentality that the 
Nation is so tired of seeing and, instead, creates a more responsible 
framework that actually protects consumers instead of special 
interests.
  The Financial CHOICE Act offers a new model for financial opportunity 
and responsible regulation. It is time to take steps to remove the boot 
from the neck of our Nation's lenders and their customers.
  Former Fed Chairman Alan Greenspan has said about the bill that it 
would have a tremendous stimulative effect on our economy. The 
Financial CHOICE Act is the right choice to help our communities grow 
their economies and our citizens realize their dreams.
  Mr. Chair, I want to thank Chairman Hensarling for his unwavering 
leadership and urge my colleagues to support H.R. 10.
  Ms. MAXINE WATERS of California. Mr. Chair, I yield 1 minute to the 
gentleman from Michigan (Mr. Kildee), the vice ranking member of the 
Committee on Financial Services.
  Mr. KILDEE. Mr. Chairman, I thank the ranking member for yielding.
  I understand the President of the United States himself has no real 
understanding of American history, but that is no excuse for this body 
for ignoring even the recent history of this country and returning us 
to the conditions, to the regulatory environment that not only preceded 
but contributed to cause the worst financial crisis that I have 
experienced in my lifetime, the Great Recession.

                              {time}  1300

  Millions of people lost their homes. Millions of people lost their 
job and lost everything they worked for because they were completely 
unprotected against institutions and organizations that were predators 
against them. This proposed legislation would take away those very 
protections and return us to a time when institutions and organizations 
can use unfair and deceptive practices, and the Consumer Financial 
Protection Bureau under this legislation would be barred--would be 
barred--from going to bat for those people being taken advantage of.
  This makes no sense. We ought to reject it, and I urge my colleagues 
to join me in doing so.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Ohio (Mr. Chabot), the chairman of our Small Business Committee.
  Mr. CHABOT. Mr. Chairman, I thank the chairman for yielding.
  Mr. Chairman, I rise in strong support of H.R. 10, the Financial 
CHOICE Act, and I want to thank Chairman Hensarling for his leadership 
on this important issue.
  For the last 7 years, Dodd-Frank has blocked small businesses from 
getting the capital they need to grow and create more jobs. As chairman 
of the Small Business Committee, it is no surprise that small 
businesses from all across the country tell me over and over again that 
this blocking of capital to them by Dodd-Frank is preventing them from 
creating more jobs which are needed in this country.
  Whether to pay employees or to buy new equipment, we need to make it 
easier for small-business owners to gain access to capital. H.R. 10 is 
chock-full of real reforms, including the Helping Angels Lead Our 
Startups, or HALOS, Act to encourage and inspire entrepreneurs across 
the country.
  The Nation's 29 million small businesses are working hard to achieve 
the American Dream. Let's not let our own government continue to stand 
in their way. Support this legislation. It is very important.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentlewoman from New York (Ms. Velazquez), who is the ranking 
member of the Small Business Committee.
  Ms. VELAZQUEZ. Mr. Chairman, I want to thank the ranking member, 
Maxine Waters.
  Here they come again, Mr. Chairman. My colleagues seem to suffer from 
a case of policymaking amnesia. I was here in 2008 as our Nation stood 
on the edge of financial ruin. I will never forget those dark days.
  Thanks to Wall Street making reckless bets and inadequate government 
oversight, millions of Americans lost their homes and jobs. Tell them 
about market discipline back in 2008. Main Street small businesses shed 
employees, and many shut their doors for good. Our economy nearly slid 
into another Depression.
  Now, my Republican colleagues may have forgotten that sequence of 
events, but let me tell you something: The American people have not 
forgotten.
  Dodd-Frank has improved accountability in the financial system. It 
has protected consumers and investors from predatory practices. It 
stabilizes our markets. And yet here we are talking about gutting this 
landmark law.
  The American people are watching. Let's be clear. If you vote 
``yes,'' you are voting to restore the same conditions that fueled the 
crisis and collapse of 2008. It is a vote you will regret--and be 
remembered for. Vote ``no.''
  Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from 
Michigan (Mr. Huizenga), who is a leader on our Capital Markets, 
Securities, and Investments Subcommittee.
  Mr. HUIZENGA. Mr. Chairman, the economic downturn in 2008 caused 
Michiganders and folks around the country to lose their jobs, families 
to lose their savings, and even some to lose their homes. Since that 
time, folks on the other side of the aisle have been attempting to 
convince the American people that the Dodd-Frank Act is ``the answer'' 
to the financial crisis, despite the law failing to actually address 
the root cause of the downturn. In reality, Dodd-Frank has made it more 
difficult for hardworking taxpayers to secure a future for themselves 
and their children by denying them the economic recovery that they 
deserve.
  Hardworking Americans rely on capital markets to save for everything 
from college to retirement. We as Congress must act to eliminate the 
burdensome and unnecessary red tape created under Dodd-Frank to ensure 
U.S. capital markets remain the most effective in the world so that all 
investors can receive the greatest return on their investments.
  Since Dodd-Frank, our capital markets have become less stable, less 
efficient, and less liquid, which has made it more difficult for small 
businesses and American job creators around the country to access the 
necessary financial resources in order to expand and create jobs. In 
fact, Dodd-Frank has severed access to the capital markets for Main 
Street businesses and entrepreneurs who are the heartbeat of the 
American economy.
  In order to succeed, small and growing companies need capital and 
credit--the lifeblood for growth, expansion, and job creation. Yet the 
government has continued to construct arbitrary walls that cut them off 
from essential financing as smaller companies are caught in a sea of 
red tape created by Washington bureaucrats.
  Enough is enough. In order to increase economic opportunity, we must 
enact commonsense regulatory reform and restore accountability to Wall 
Street and to Washington. The House Financial Services Committee 
achieves this goal through the carefully crafted CHOICE Act, which we 
are debating here today.
  The Financial CHOICE Act eliminates Dodd-Frank's one-size-fits-all 
regulatory structure which has strangled community financial 
institutions with overly burdensome regulations that were meant for the 
largest banks here in America.
  The CHAIR. The time of the gentleman has expired.
  Mr. HENSARLING. Mr. Chairman, I yield the gentleman from Michigan an 
additional 30 seconds.
  Mr. HUIZENGA. Mr. Chairman, by enacting the CHOICE Act, community 
banks and credit unions can utilize their resources to help their 
individual customers and small businesses achieve financial 
independence. If we want small businesses to continue to be the engine 
of economic growth, we must remove the regulatory red tape that is 
preventing community lenders from supporting these small business job 
creators.
  We hold Wall Street accountable. We hold the Consumer Financial 
Protection Bureau accountable, and we make

[[Page 8912]]

it more effective to do its job. No government agency should be 
unaccountable to the American taxpayer.
  Dodd-Frank was a larger social agenda waiting for a crisis, and I 
understand that from my friends on the other side; but today, small 
businesses and hardworking Americans continue to pay the price.
  The Financial CHOICE Act enacts progrowth reforms, restores 
accountability, and provides opportunity. I encourage a ``yes'' vote.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Texas (Mr. Al Green), who is the ranking member of 
the Subcommittee on Oversight and Investigations.
  Mr. AL GREEN of Texas. Mr. Chairman, I thank the ranking member.
  Mr. Chairman, this bill is a setback because it allows the American 
public to be subject to rip-offs. It allows you to be ripped off when 
you get your auto loan. Without your knowing it, it will allow you to 
pay a higher amount than you should be paying.
  It allows you to, without your consent, have the money that you place 
in the bank be taken away from your account, moved over to another 
place, and used to gamble; if they win, they keep the profits--all done 
without your consent.
  It allows, without your knowledge, the person that you are working 
with to invest your pension and to put his interests ahead of your 
interests.
  This is a rip-off bill. We should not support it. The American 
consumers are placed at risk. This is the time to stand. We must say 
``no'' to H.R. 10. It is, indeed, the wrong choice.
  Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentlewoman 
from Missouri (Mrs. Wagner), who is a fighter on our committee. She is 
the chair of the Oversight and Investigations Subcommittee.
  Mrs. WAGNER. Mr. Chairman, I am proud to stand before you today to 
speak on H.R. 10, the Financial CHOICE Act.
  I would like to thank Chairman Hensarling and all my colleagues on 
the House Financial Services Committee for their hard work on this 
legislation, including holding 145 hearings on Dodd-Frank and the 
CHOICE Act.
  For nearly 10 years following the financial crisis, our country 
witnessed one of the weakest recoveries of our lifetimes as Dodd-Frank 
held small businesses and families hostage and prevented our economy 
from growing. Now it is harder for families to qualify for a mortgage, 
obtain an auto loan, and access other forms of credit that they depend 
on every single day.
  The only beneficiaries from Dodd-Frank have been Washington 
bureaucrats, who have grown more powerful; and big banks have only 
grown bigger at the expense of your personal freedoms and your freedom 
to make your own financial decisions. Dodd-Frank has failed the 
American people.
  Instead, the CHOICE Act, which stands for creating hope and 
opportunity for investors, consumers, and entrepreneurs, represents a 
better way from this Republican Congress that will provide Americans 
with the financial opportunities that they deserve. The CHOICE Act is 
about helping Main Street, not Wall Street, and will increase lending 
in our communities, open up our economy, end taxpayer-funded bank 
bailouts, and hold Wall Street and Washington accountable.
  It will allow us to impose the toughest penalties on Wall Street 
executives who engage in fraud, deception, and self-dealing. Unlike 
before, executives who commit financial crimes will be held 
accountable, rather than innocent taxpayers and shareholders.
  Americans deserve relief from the regulatory burden and lack of 
financial options that Dodd-Frank has created. Americans deserve the 
``Right'' CHOICE Act.
  Mr. Chairman, I urge my colleagues to support H.R. 10.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentlewoman from Wisconsin (Ms. Moore), who is the ranking member 
of the Monetary Policy and Trade Subcommittee.
  Ms. MOORE. Mr. Chairman, I thank the ranking member.
  Mr. Chairman, I rise in opposition to the ``Wrong'' CHOICE Act. This 
is a bad bill, and I suspect that Republicans are pushing it through 
with only one hearing because they want to push it past the beleaguered 
public who lost trillions of dollars of wealth and home value during 
the last recession.
  Republicans' rubric about freedom and community banks is not fooling 
anyone. This legislation unleashes every bloodthirsty and greedy Wall 
Street superpredator back into the American people to feast on our 
misery like they did pre-Dodd-Frank. In contrast, you will actually 
hear the GOP blame predatory borrowers and say that they caused the 
crisis--like blaming hungry children for famines.
  If this bill passes with the mere 10 percent capital requirements, 
the financial system will become brittle, prone to systemic crisis and 
taxpayer bailouts--a system that is less fair and rife with fraud.
  Didn't we learn our lesson in 2008? 2008 taught us that we cannot 
have sustainable economic growth absent good regulation.
  Mr. Chairman, I urge my colleagues to reject this bad bill.
  Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from 
Kentucky (Mr. Barr), who is the chairman of the Monetary Policy and 
Trade Subcommittee.
  Mr. BARR. Mr. Chairman, the Dodd-Frank Act is a failure, period. It 
is estimated to reduce economic output by nearly $1 trillion over the 
next 10 years, and it contains more regulatory restrictions than all of 
the other regulations enacted by the previous administration combined, 
including ObamaCare.
  The Financial CHOICE Act provides an off-ramp--much-needed relief--to 
Dodd-Frank's growth-crushing regulations. Financial institutions like 
community banks and credit unions will have the choice to stay under 
the Dodd-Frank regulatory regime or opt for the relief that they are 
willing to obtain if they meet a 10 percent simple leverage ratio, a 
level that ensures that they can weather economic downturns without the 
help of taxpayer bailouts.
  This legislation also reins in the primary culprit of the regulatory 
onslaught that has caused one in five community financial institutions 
in my State of Kentucky to close: the Consumer Financial Protection 
Bureau. This is done by giving Congress the power of the purse over the 
Bureau for the first time, making its Director removable by the 
President, requiring it to conduct cost-benefit analysis, and enhancing 
its mission to focus on consumer protection through competition and 
choice.
  This legislation also delivers important regulatory relief to 
community financial institutions, incorporating the TAILOR Act, which 
requires Federal regulators to tailor their regulations based on the 
size of financial institutions instead of using the typical one-size-
fits-all Washington model.
  Additionally, the Financial CHOICE Act ends stifling Dodd-Frank 
regulations that constrain lending for manufactured homes by including 
the Preserving Access to Manufactured Housing Act. It also further 
reduces the chances of a mortgage crisis by giving financial firms an 
incentive to retain 100 percent of a mortgage's risk and greater 
flexibility to lend by including my Portfolio Lending and Mortgage 
Access Act.
  Finally, this legislation places the steepest penalties in history on 
financial firms that actually break our laws.
  So it ends too big to fail, it includes tough penalties--the toughest 
penalties in history--for financial fraud and other misdeeds, but it 
preserves consumer protections through competition, choice, and access 
to the credit Americans need to build our economy.
  Mr. Chairman, I want to thank Chairman Hensarling for his leadership 
on this issue.
  Ms. MAXINE WATERS of California. Mr. Chairman, I have just got to 
stop some of this misrepresentation.
  Exempt from CFPB's supervision and enforcement, Wall Street reform--
that is Dodd-Frank--recognizes community banks and credit unions have a 
small number of employees and a better consumer protection track 
record; thus,

[[Page 8913]]

they are carved out from the Consumer Financial Protection Bureau's 
supervision.

                              {time}  1315

  The Consumer Financial Protection Bureau's supervision and 
enforcement focuses on the largest banks that they won't talk about 
here today and non-banks that compete with small banks and credit 
unions.
  Mr. Chair, I yield 1 minute to the gentleman from New York (Mr. 
Meeks), a senior member of the Financial Services Committee.
  Mr. MEEKS. Mr. Chair, how soon do we forget?
  The bill before us today is an affront to the American people. This 
bill is fatally flawed. It would set America up for more severe 
financial crises in the future. It is plain and simply the wrong 
choice.
  Let me give you one example. Under the ``Wrong'' CHOICE Act, many 
banks would be free from regulatory oversight if they merely maintain a 
10 percent leverage ratio.
  Let's break that down for the American people. If this bill was law 
in 2008, one-third of the banks that eventually failed would be free 
from regulatory oversight altogether. To be clear, 125 banks that 
failed during the crisis would meet the bill's low requirement for 
regulatory relief, not according to me, but to an independent 
clearinghouse analysis.
  You don't have to be a financier to realize that this proposal is 
dangerous and an insult to American families who lost nearly 
everything. I am talking about those families in rural and urban 
America who saw their household net worth drop $10 million, the largest 
loss of wealth in the history of the United States of America.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
California (Mr. McCarthy), a gentleman on leave from the Financial 
Services Committee and one we proudly call our own.
  Mr. McCARTHY. I thank the gentleman for yielding.
  Mr. Chair, I first want to thank Chairman Hensarling and the entire 
Financial Services Committee for the work they have done on this bill. 
They have listened to Members and they have listened to constituents 
throughout this country. They studied the issue and they found the very 
best policy.
  We all know we need economic growth, but we also know that growth 
means little if wages will not rise, if jobs do not return, and if more 
businesses close than open.
  If a rising tide lifts all boats, we need to make sure every American 
is in the boat. Repealing Dodd-Frank with the Financial CHOICE Act 
lifts people back in so they can participate in America's economy. It 
will reestablish the severed ties that link communities to the money 
they need to start businesses and hire employees.
  Bringing back the community banks that Dodd-Frank destroyed means 
that more people, not just the wealthy, will have access to credit. But 
if we want everyone to be part of the American economy, we don't want 
people to face the same risks they did before. We want people to be 
treated fairly.
  In 2008, people lost everything. Aided by misguided Washington 
policies, some played fast and loose and put almost everyone else at 
risk. So it is only natural that people looked around and asked: Why do 
we have a system where, when things go wrong, banks need to get 
bailouts, but the American people get nothing?
  It is not a fair system. Dodd-Frank made it worse. It actually 
codified bailouts into law and made a taxpayer slush fund. On top of 
all that, we all know the regulations it created were just ridiculous.
  Why is it that the rich and powerful get to game the complicated 
rules produced by their friends in the bureaucracy while everyone else 
faces a mountain of paperwork and regulations that no human being has a 
chance of understanding?
  We all know that is not fair. All this ends up boxing out small-
business owners and normal Americans who can't hire lawyers to sift 
through it all.
  The Financial CHOICE Act levels the playing field. It makes both Wall 
Street and Washington accountable so that their bad decisions don't 
cost the taxpayers money. It makes things simple so that you don't need 
an Ivy League law degree to understand the rules that govern our lives.
  America is a nation for the people. Everyone has a shot. Everyone 
should be treated the same. Everyone has a chance to succeed. The 
Financial CHOICE Act brings us a little closer to that America one more 
time.
  Ms. MAXINE WATERS of California. Mr. Chair, I yield 1 minute to the 
gentleman from Georgia (Mr. David Scott), one of our senior members of 
the Financial Services Committee.
  Mr. DAVID SCOTT of Georgia. Mr. Chairman, I love this country. The 
heart and soul of our country is our financial system.
  This bill is a dangerous bill to our economy. Let me tell you why. 
First of all, it takes away all of our consumer protections. I want to 
give you an example.
  Before we had Dodd-Frank, a bank that is insured by the taxpayers 
could go in and use their customer's money. They could take their 
customer's money out to invest in risky bets, and then when the bets go 
south, it is the taxpayers that have to pick up the freight.
  Secondly, let us use this example. Because of the impact and the 
complexities of our financial system, so much of the cause and effect 
of the downturn were the big banks. What Dodd-Frank did was provide a 
test to be able to go in and simulate and confer with the bank to 
prevent it from going overboard.
  Wake up, America. I have talked with our Senators and they have 
assured me that this bill is dead on arrival in the Senate.
  Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from 
New Mexico (Mr. Pearce), who is the chairman of the Terrorism and 
Illicit Finance Subcommittee.
  Mr. PEARCE. Mr. Chair, credit is one of the most powerful devices of 
our financial system. It was designed over time by modern societies. In 
some countries, credit is simply not available to those who need it the 
most: people at the bottom of the ladder.
  In the United States, we have got a well-developed system where 
credit is available no matter how bad their credit rating might be. 
That is, it was available until the Dodd-Frank regulation created the 
CFPB.
  In the Second District of New Mexico, 50 percent of the homes are 
mobile homes or manufactured housing. Dodd-Frank immediately began to 
show that they had no clue about how rural societies worked, and put 
into place regulations that choked off the access of most of our 
homeowners to manufactured housing.
  That wasn't enough for the CFPB. They began then to set forward 
qualified mortgages, which then choked off traditional mortgages to 
many people in the Second District of New Mexico.
  Many people in New Mexico will buy their first mobile home and they 
will live in that. Then, over their life, they will buy 8 or 10 more. 
Then they sell those one at a time, usually to people who can't get 
credit any other way. The CFPB simply shut that down. Now, seniors with 
less income, but people who need the loans the most, have one more 
source of credit dried up to them.
  The rules that affect the rural mortgages and small businesses were 
so punitive that the economy in New Mexico has never come back. It is 
not just that the Financial CHOICE Act is the right choice in the rural 
areas, in our areas; it is the only choice.
  I support H.R. 10, and I ask my colleagues to vote ``yes'' on the 
bill.
  Ms. MAXINE WATERS of California. Mr. Chair, I yield 1\1/2\ minutes to 
the gentleman from Virginia (Mr. Scott), the ranking member of the 
Education and the Workforce Committee.
  Mr. SCOTT of Virginia. Mr. Chairman, I thank the gentlewoman for 
yielding.
  I rise in opposition to the ``Wrong'' CHOICE Act. In addition to what 
else is wrong with the bill, there are two significant problems with it 
impacting the jurisdiction of the Education and

[[Page 8914]]

the Workforce Committee, where I serve as the ranking Democratic 
member.
  First, the bill essentially eliminates the Consumer Financial 
Protection Bureau. The Bureau has played a crucial role in making sure 
student loan borrowers are treated fairly and receive the protections 
that they deserve. It has shut down fraudulent student loan debt relief 
scams, resolved countless consumer complaints, and secured hundreds of 
millions of dollars in loan forgiveness for borrowers tricked into 
taking out costly private loans.
  The bill also repeals the Department of Labor's fiduciary rule, which 
simply ensures that financial advisers put their retirement clients' 
interests first.
  Workers getting ready to retire often seek assistance in making what 
would be the biggest financial decision in their life. Let's be clear: 
many of these just set aside a few hundred dollars a month throughout 
their career, and now have hundreds of thousands of dollars to invest. 
They are counting on their financial adviser to do right by them and 
their families. This rule simply says that they have to do right for 
the families and the workers, not what may generate the highest fees.
  Mr. Chairman, this bill undermines key policy priorities impacting 
student loans and retirement savings. We should stand up for students 
and retirees and reject this bill.
  Mr. HENSARLING. Mr. Chairman, I yield 2 minutes to the gentleman from 
Wisconsin (Mr. Duffy), the chairman of the Housing and Insurance 
Subcommittee.
  Mr. DUFFY. Mr. Chairman, this debate oftentimes can become confusing 
because banking law is confusing.
  We hear both sides take different positions on the Financial CHOICE 
Act and on Dodd-Frank, but I think the way you cut to the fat about 
whether Dodd-Frank was great law and does the Financial CHOICE Act 
actually make this law way better, I think we have to look at a couple 
simple factors.
  Big banks brought us to the crisis in 2008. The question for my 
friends across the aisle and people watching this debate is: Because of 
Dodd-Frank, have big banks gotten smaller or have big banks gotten 
bigger?
  The answer is: Big banks have gotten bigger.
  If you go to rural Wisconsin, small community banks and credit unions 
that help grow businesses and help provide to capital to our families 
are going out of business. Big Wall Street banks don't set up shop in 
rural Wisconsin. So the little guy is getting hurt and the big guys are 
doing really well.
  You have got to ask yourself: Who supports the Financial CHOICE Act?
  You have the NFIB protecting small businesses, the Independent 
Community Bankers of America, the National Association of Federally-
Insured Credit Unions, and the Credit Union National Association. 
Credit unions and small banks support this bill.
  Who doesn't support this bill?
  Well, if you look to The Washington Post: Hensarling, our chairman, 
faces opposition from big-bank CEOs that like Dodd-Frank. They hate the 
Financial CHOICE Act.
  Another quote from The Wall Street Journal: ``Big banks have an 
unexpected message for President-elect Trump: Don't trash the Dodd-
Frank Act.''
  Big banks hate this bill, and little banks and little credit unions 
love it. If you want to know where people stand on this, go to your 
small community banker, go to your credit union, ask them about Dodd-
Frank, and they will give you an earful. Then ask them: Do you like the 
Financial CHOICE Act? They will sit back and give you a small, slow 
clap.
  Let's do what is right for the American people and the small banks 
and small credit unions. Let's join together, pass H.R. 10, and give a 
win to the little guy.
  Ms. MAXINE WATERS of California. Mr. Chairman, the gentleman asked: 
Who does not support this bill?
  Let me tell him: advocates, experts, civil rights groups, labor 
groups, veterans groups, pension plans, and company shareholders.
  We also received a petition urging a ``no'' vote from more than 
220,000 concerned Americans.
  Let me just say that AARP hates this bill. That is who opposes this 
bill.
  Mr. Chairman, I yield 1 minute to the gentleman from California (Mr. 
Sherman), a senior member of the committee on Financial Services.

                              {time}  1330

  Mr. SHERMAN. Mr. Chairman, this bill contains 12 measures that have 
wide Democratic support. Unfortunately, they have been held hostage and 
added to a bill that contains a pharmacy of poison pills.
  The gentleman from New Mexico points out that we need to do something 
with manufactured housing. I support that bill. Liberate that bill. 
Don't put it in a bill that is going to die in the Senate.
  The gentleman from Wisconsin talks about too big to fail. Please 
cosponsor the Sanders-Sherman bill to break up the too big to fail 
rather than this bill that lets them stay too big and takes away the 
regulation.
  I look forward to working in a bipartisan way to support the 
Financial Accounting Foundation's efforts to have independently funded 
standards for government-issued debt. This bill takes that away.
  I look forward to working in a bipartisan way to have different and 
lesser standards for community financial institutions like credit 
unions and local banks. Instead, this highly partisan bill takes us 
down the wrong highway. It is a highway to a bill that will go nowhere 
in the Senate, and then we will resume our efforts to improve financial 
regulation in this country.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Illinois (Mr. Hultgren).
  Mr. HULTGREN. Mr. Chairman, I especially want to thank Chairman 
Hensarling and the entire committee for all their hard work in getting 
us to this point to be able to pass H.R. 10, the Financial CHOICE Act, 
a very important bill to reform significant parts of Dodd-Frank that 
are failing. The Financial CHOICE Act is an important recognition of 
the many mistakes that policymakers made leading up to and responding 
to the financial crisis.
  There is no doubt that the American people demanded changes from 
Washington when the financial crash led to higher unemployment, huge 
drops in home values, and lost hope and opportunities; but instead of 
reforms that would increase competition and decrease systemic risk, the 
Dodd-Frank Act grew government and piled new regulations on community 
banks and credit units and enshrined too big to fail into law.
  Forty-two community banks and 106 Illinois credit unions have closed 
their doors since Dodd-Frank was signed in 2007. This is unacceptable.
  I am grateful that regulatory relief legislation that I have 
championed is included in the Financial CHOICE Act, things like the 
Community Bank Reporting Relief Act and many other provisions that will 
provide great relief to our local financial institutions. That is what 
the Financial CHOICE Act is all about: giving opportunities back to 
local communities to make good financial decisions for their future.
  Ms. MAXINE WATERS of California. Mr. Chairman, continuing to remind 
Mr. Duffy who opposes this bill, the Veterans of Foreign Wars of the 
United States of America opposes this bill.
  I yield 3 minutes to the gentleman from Maryland (Mr. Hoyer), the 
distinguished Democratic whip.
  Mr. HOYER. Mr. Chairman, I rise in opposition to this legislation, 
which I know does not surprise the chairman.
  I have been here for some time. I was here in the 1990s. I was here 
in the 2000s. Frankly, we took the referee off the field in the 2000s, 
and we didn't put the referee as toughly on the field in the late 1990s 
as we should have. Brooksley Born warned us about that, and we kept our 
eyes shut, and keeping our eyes shut cost millions and millions and 
millions of people their jobs, their homes, and their security.
  Let us not return to the time of taking the referee off the field. 
This bill does that. It is a dangerous piece of legislation. The bill 
which my Republican colleagues have put forward

[[Page 8915]]

would put the American people at risk once again of having to bail out 
institutions if they lose money on risky investments.
  Let me say to my Republican friends: I share their view that 
community banks should not be treated as too-big-to-fail banks. 
However, having said that, this bill takes the referee off the field 
one more time. It would effectively eliminate the Consumer Financial 
Protection Bureau that is now the American people's watchdog.
  We have spent a lot of time this year in the last 5 months passing 
bills under the Congressional Review Act that have reduced consumer 
protections, civil rights protections, teacher protections, 
environmental protections. All we are doing is spending our time taking 
away protections for the American people and their futures.
  Have we learned nothing, Mr. Chairman? Those who fail to learn from 
history, it is often said, are doomed to repeat it. Let us not doom our 
citizens to repeat it. Let us not fail to learn the lessons of 2008. 
Let us not doom ourselves to repeating the mistakes of the past.
  The American people, average investors, and retirees, along with 
those who use our markets to save for college and purchase a home, 
deserve, and now have, commonsense protections.
  Nobody is seeking to punish or limit what financial firms do well, 
and that is create and raise capital, but we must ensure that there are 
referees on the field to protect investors and taxpayers and citizens 
and, yes, our families and our children. This bill does the opposite. I 
urge my colleagues to reject it.
  Mr. HENSARLING. Mr. Chairman, I yield myself 10 seconds just to say 
that perhaps the gentlewoman from California is unaware that the VFW 
has tweeted that it lauds Representative Hensarling for a commitment to 
protect veterans, and then:

       We are so happy that the Financial CHOICE Act has been 
     endorsed by over 100 groups, including the Concerned Veterans 
     for America, because of what we do to protect their freedoms.

  At this point, I am very happy to yield 1 minute to the gentleman 
from Florida (Mr. Ross), a proud member of our committee.
  Mr. ROSS. Mr. Chairman, I rise today in support of the Financial 
CHOICE Act, a bill that will provide the much-needed relief from the 
harmful, complex, and excessive regulatory environment created by the 
Dodd-Frank Act.
  In the 7 years since the passage of the Dodd-Frank Act, our Nation 
has suffered from anemic economic growth, increasingly limited 
financial choices for consumers, and an unprecedented level of job-
killing regulations. All the while, big banks have grown larger, and 
small banks and credit unions have suffered. In fact, community banks 
are closing at the rate of one per day.
  Many of my constituents in small and rural towns in the Tampa Bay 
area rely heavily on their community banks for financial services. When 
those banks are forced to close their doors or raise their fees due to 
excessive regulation, my constituents lose access to essential services 
and opportunities.
  Simply put, Dodd-Frank has failed.
  The Financial CHOICE Act represents an alternative and effective 
approach to financial regulation, which will protect taxpayers and bank 
bailouts, empower investors, and hold government bureaucracies 
accountable.
  This legislation makes it easier for hardworking Americans to save 
and invest for retirement, college, and their future. It will also 
increase access to and reduce the cost of credit for families that want 
to purchase a home or start a business.
  I urge my colleagues to join me in supporting passage of this bill 
and helping Washington get off the backs of hardworking taxpayers.
  Ms. MAXINE WATERS of California. I yield 1 minute to the gentleman 
from Massachusetts (Mr. Capuano), a senior member of the Financial 
Services Committee.
  Mr. CAPUANO. Mr. Chairman, you know, I was going to talk about 
leveraged buyouts, and I was going to talk about CDOs and CDO squared 
and Volcker rules and all those other things, but the truth is that is 
not what this is about. It is not about the details of the bill. It is 
about the concept. It is about Main Street versus Wall Street.
  Now, I am not opposed to Wall Street, but if you make me make a 
choice, I am with Main Street. And I know that the radicals are against 
this bill, the radicals like the VFW, and I will just read what they 
said.

       If enacted, the Financial CHOICE Act of 2017 would put 
     those who have taken an oath to defend this country and our 
     way of life in financial harm's way.

  In light of this and on behalf of the nearly 1.7 million members of 
the VFW and its auxiliary, I call on you to oppose H.R. 10.
  The other radical group that opposes this bill is the AARP, 
representing 38 million Americans; and the Communications Workers of 
America, with 700,000 members; and the Brotherhood of Teamsters, 
representing, I think, 900,000; and, of course, the California Teachers 
Association, which represents 900,000 people, who also invest $202 
billion in our country.
  All that being said, I am shocked that I am sitting here thinking 
that the Dodd-Frank Act is some kind of a failure. Bottom line is we 
put an end to the Wild West of Wall Street and we are on to a nice, 
steady playing field. We should be able to adjust it, but we should not 
throw it out.
  Mr. HENSARLING. Mr. Chairman, apparently the gentleman forgot that 
the big Wall Street banks also oppose this, according to the Wall 
Street Journal, Washington Post, and New York Times.
  And I am now very happy to yield 1 minute to the gentleman from North 
Carolina (Mr. Pittenger).
  Mr. PITTENGER. Mr. Chairman, I am here to support the Financial 
CHOICE Act, and for good reasons.
  Under Dodd-Frank, North Carolina has lost 50 percent of our banks 
since 2010, while three community banks have consolidated just in the 
last month. Monthly banking fees have increased 111 percent.
  As well, Dodd-Frank created the Consumer Financial Protection Bureau, 
which even the liberal D.C. Court of Appeals calls unconstitutional and 
a threat to individual liberty.
  Dodd-Frank has made the Wall Street banks even bigger and more 
powerful; and Dodd-Frank has contributed to the slowest, weakest 
economic recovery in 70 years, impeding access to capital and credit in 
the market for small business.
  Maintaining the status quo is not acceptable.
  The Financial CHOICE Act will impose the toughest penalties in 
history for fraud on Wall Street. It will end taxpayer bailouts for 
Wall Street and allow your community banks and credit unions to focus 
on serving you and your local business, which will help create jobs and 
grow the economy. The Financial CHOICE Act means opportunity for all 
Americans and bailouts for none.
  Ms. MAXINE WATERS of California. Mr. Chairman, continuing to answer 
Mr. Duffy about who opposes this bill, the Fleet Reserve Association, 
which includes the Navy, the Marine Corps, and the Coast Guard.
  With that, I yield 1 minute to the gentleman from Massachusetts (Mr. 
Lynch), a senior member of the Financial Services Committee.
  Mr. LYNCH. Mr. Chairman, I have to say that this is the single worst 
piece of legislation that I have seen in my time here in Congress, and 
I have been here awhile. So I have to congratulate the gentleman from 
Texas for putting this amalgamation of terrible ideas together.
  This bill basically destroys the work that we did to try to secure 
the banks after the financial crisis of 2008. It harms consumers, it 
lets off bad actors, it hamstrings our financial regulators, and I 
believe it will lead to the next financial crisis.
  This bill will destroy the only consumer protection agency in the 
United States Government by handing over the ability to defund the 
operation to the people who were committed to opposing its very 
creation.
  It also repeals the Department of Labor's fiduciary rule that simply 
requires that financial advisers put the

[[Page 8916]]

interests of its clients first rather than its own.
  And finally, it is important to emphasize that the Financial CHOICE 
Act rolls back the accountability and reporting standards for credit 
rating agencies, as Gretchen Morgenson discussed in a New York Times 
``Fair Game'' column on May 7.
  Mr. Chairman, to sum up, this is an awful bill. This is a real 
stinker. I hope that my colleagues here vote against it.
  Mr. HENSARLING. Mr. Chairman, I am happy to yield 1 minute to the 
gentleman from Pennsylvania (Mr. Rothfus).
  Mr. ROTHFUS. Mr. Chairman, today is a good day. It is yet another day 
where we turn the page on the antigrowth policies of the last 8 years 
that have given us the slowest economic recovery in 70 years. I urge my 
colleagues to vote against the stagnant status quo with a vote for the 
Financial CHOICE Act.
  With all the debate we are hearing, understand this: The heart of 
this bill is about right regulation, accountability, and growth, 
restoring healthy, robust growth that will create jobs, lift wages, 
and, through the creation of new taxpayers, will increase revenues to 
the Federal Treasury that will help pay for critical programs like 
Social Security, Medicare, veterans benefits, and national defense.
  We have a moral obligation to restore healthy economic growth. The 
opponents of this bill, the status quo defenders, are seemingly okay 
with slow growth and fewer opportunities.
  Mr. Chairman, take a stand for stronger growth. Take a stand for 
young people who want more job opportunities. Take a stand for young 
families who want a new home. Take a stand for seniors and veterans who 
rely on programs funded through a growing, healthy economy. Take a 
stand for a better way. Take a stand for a brighter future. Vote for 
H.R. 10. Vote for the Financial CHOICE Act.

                              {time}  1345

  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Maryland (Mr. Delaney), a member of the Financial 
Services Committee.
  Mr. DELANEY. Mr. Chair, I want to thank the gentlewoman for yielding 
me time.
  Mr. Chairman, during the financial crisis, 19 of the 20 largest 
financial institutions in the United States either required a bailout 
or a significant investment by the taxpayers. Clearly, reform was 
needed, and Dodd-Frank was that reform.
  Since Dodd-Frank was put in place, consumer protections have improved 
materially, the banking system is safer and more sound, and our banks 
and our markets have far outpaced their international competitors. 
Dodd-Frank is working.
  Is it a perfect piece of legislation? Of course not. Anytime Congress 
does something large and transforms an entire industry, we should sign 
up as a body for 10 years of fixes, which is what we have not done, and 
we have let the American people down.
  Are we fixing Dodd-Frank today? No. We are pursuing a misguided and 
time-consuming and wasteful repeal effort.
  I urge my colleagues to reject the CHOICE Act, and I urge my 
Republican colleagues to work with Democrats on bipartisan reforms to 
Dodd-Frank that build on its strength and solve and improve weaknesses 
in the legislation.
  Mr. HENSARLING. Mr. Chair, I yield 1 minute to the gentleman from New 
Jersey (Mr. Lance).
  Mr. LANCE. Mr. Chair, I rise today in support of the Financial CHOICE 
Act. In response to the Great Recession, Congress passed the Dodd-Frank 
law. While well intentioned, various Dodd-Frank provisions and 
regulations are actually encouraging some of the behavior that led to 
the financial crisis.
  The law permits Wall Street to receive bailouts and has constricted 
credit lending for consumers and small businesses. It has drastically 
hurt community banks throughout this country, and they had absolutely 
nothing to do with the financial crisis. Two thousand community banks 
have closed nationwide since Dodd-Frank, including 42 in New Jersey.
  Dodd-Frank has institutionalized too big to fail for Wall Street, 
while telling community banks on Main Street that they are too small to 
succeed.
  Congress agrees on the need for strong regulation of our financial 
system. The Financial CHOICE Act will bring balanced reform to our 
Nation's financial institutions.
  Ms. MAXINE WATERS of California. Mr. Chair, I yield 1 minute to the 
gentlewoman from Ohio (Mrs. Beatty), a member of the Financial Services 
Committee.
  Mrs. BEATTY. Mr. Chair, I thank Ranking Member Waters for yielding me 
time.
  I stand here and I join my colleagues in opposition to the Financial 
CHOICE Act. It is the wrong act. And let me just say this to you: 
Certainly, it does not provide choice nor does it create hope and 
opportunity for investors and for consumers and for entrepreneurs.
  I am from the great State of Ohio, and you may have a sign that says 
people are for it; I have letters from ProgressOhio; I have letters 
from Policy Matters Ohio; I also have a letter here from the National 
Consumer Law Center, Advancing Fairness In The Marketplace For All. Let 
me just tell you what they are saying. They are saying that it is 
breathtaking--the assault on hardworking Americans, the assault on 
businesses that want to level the playing field to improve the economy.
  Mr. Chair, this is ridiculous that we stand here. If it was such a 
good choice, we would have had more meetings on it. If it was such a 
good choice for hardworking Americans, then we would have worked with 
Republicans and Democrats to make it a fair choice, to make it a right 
choice. But I stand here today and tell you it is the wrong choice for 
consumers. It is the wrong choice because it eviscerates the Consumer 
Financial Protection Bureau. It is against the people, and it is not 
for hardworking Americans.
  Mr. HENSARLING. Mr. Chair, I yield 1 minute to the gentleman from 
Indiana (Mr. Messer), a member of our committee and chairman of the 
Republican Policy Committee.
  Mr. MESSER. Mr. Chairman, despite the rhetoric and whatever its 
intentions, since Dodd-Frank's passage, big bank profits are shattering 
records, and home ownership is down, way down, to the lowest level seen 
in over 20 years. Car loans and small-business loans are much harder to 
get, too. Simply put, Dodd-Frank has been great for Federal regulators 
and even big banks but very bad for Hoosier consumers.
  The Financial CHOICE Act changes that. It ends too big to fail and 
enables Hoosier financial institutions to escape the one-size-fits-all 
regulatory regime of Dodd-Frank. That will help hardworking Hoosiers 
get more affordable loans.
  The Financial CHOICE Act also includes my bill, the RIGHTS at the 
CFPB Act, which ensures that anyone pursued by this Federal agency will 
have their rights protected and get their day in court.
  I urge support of the Financial CHOICE Act.
  Ms. MAXINE WATERS of California. Mr. Chair, we have already debunked 
what we have been told by the opposition about the oversight, CFPB's 
supervision and enforcement. Of course, we have told you about that. 
Let's take a moment to tell you that community banks have showed 
strength in residential, commercial, industrial loans, and small-
business lending. In fact, overall loan growth at community banks has 
been faster than at bigger banks. In the fourth quarter of 2016, 
lending was up 8.3 percent for community banks and 4.8 percent for 
larger banks.
  Mr. Chair, with that, I yield 1 minute to the gentleman from Illinois 
(Mr. Foster), a member of the Financial Services Committee.
  Mr. FOSTER. Mr. Chair, I thank Ranking Member Waters for yielding me 
time and for her leadership on this.
  Nine years ago, I was there, in 2008, when our financial system 
collapsed, as a new Member of Congress, the sole scientist on the 
Financial Services Committee. And as we surveyed the wreckage of our 
economy, I wondered how we

[[Page 8917]]

ever could have gotten into a place like that with our financial system 
clogged with toxic assets based on trillions of dollars of mortgages 
that never had any realistic chance of being repaid by their 
homeowners.
  We saw giant banks and trading firms leveraged beyond belief, huge 
financial corporations so complex that they had thousands of business 
units that even their CEOs were unaware of, and risk management 
software that was being ignored, if it existed at all.
  How could we have gotten there? But when I look at the CHOICE Act 
that Republicans are about to ram through on a party-line vote, I 
understand perfectly how we got there. I see all the same forces of 
mindless deregulation and free market ideology, an overriding mania for 
tax cuts for the rich, while stripping financial protection for 
ordinary American families; the same refusal to learn the lessons of 
financial history and to replace them with alternative facts that fit 
their ideology.
  Mr. Chair, I urge my colleagues to stand up for working families and 
protect our economy by opposing this bill today.
  Mr. HENSARLING. Mr. Chair, I yield 1 minute to the gentleman from 
Colorado (Mr. Tipton).
  Mr. TIPTON. Mr. Chair, I also want to thank Chairman Hensarling for 
offering the legislation under consideration today.
  The Financial CHOICE Act takes the necessary steps in reforming the 
supervision of our financial system that the Dodd-Frank Act failed to 
do. Among other provisions, this legislation requires financial 
regulatory agencies to tailor regulatory actions to fit the risk 
profile and business model of supervised institutions. Not only will 
this ensure appropriately tailored compliance obligations for banks and 
credit unions of various risk profiles, but it saves valuable time and 
resources for bank examiners.
  As it stands now, community banks are facing an ever-increasing 
regulatory burden that they can no longer shoulder. This has had a 
devastating impact on small banks, forcing consolidation or failure and 
stifling the creation of new banks in areas that need access to credit.
  In December 2015, a report by the Dallas Fed highlighted this 
problem, noting that the regulatory environment tends to be one-size-
fits-all and concluding that the regulatory oversight should match the 
risk level an institution poses to the financial system and the economy 
at large.
  The CHOICE Act will stop the trend of increasing compliance costs and 
decreasing financial services.
  Mr. Chair, I thank the gentleman from Texas (Mr. Hensarling) for his 
tireless efforts on this legislation and urge my colleagues to support 
it.
  Ms. MAXINE WATERS of California. Mr. Chairman, may I inquire as to 
how much time I have remaining?
  The ACTING CHAIR (Mr. Rodney Davis of Illinois). The gentlewoman from 
California has 21 minutes remaining, and the gentleman from Texas has 
15 minutes remaining.
  Ms. MAXINE WATERS of California. Mr. Chairman, since it has been 
asked about who opposes this bill, I wanted to make sure that we 
include in our information to them the religious organizations. The 
Congregation of St. Joseph, the Seventh Generation Interfaith Coalition 
for Responsible Investment, the Dominican Sisters of Houston, the 
Sisters of Mercy, the Interfaith Center on Corporate Responsibility, 
the Christian Brothers Investment Services, the National Association of 
Evangelicals, the American Baptist Home Mission Society, and the Mercy 
Investment Services all urge a ``no'' vote on this terrible bill.
  Mr. Chairman, with that, I yield 1 minute to the gentleman from 
Washington (Mr. Heck), a senior member now--he has been there for a 
while--of the Financial Services Committee.
  Mr. HECK. Mr. Chair, I am voting ``no'' on the ``Wrong'' CHOICE Act. 
All of us are. Just like healthcare, this legislation takes the 
approach that the best way to proceed is with the most extreme bill 
possible, a bill that attracts no Democrats and even makes moderate 
Republicans deeply uncomfortable.
  One reason, the Dodd-Frank Act set up an office at CFPB to protect 
servicemembers. That office, initially led by Holly Petraeus, has done 
great work in educating and fighting for servicemember families. I have 
worked with Republicans for years to support and enhance it.
  This bill makes that office optional. And it specifically strips the 
funding for its financial counseling project. That is appalling. It 
hurts my constituents, and, again, it makes my Republican friends 
deeply uncomfortable. It is one of scores of provisions that make clear 
this isn't a bill designed to help Americans. It is an ideological 
document. It hurts men and women in uniform. And oh, by the way, 
millions of others. It is a terrible approach.
  Please vote ``no'' on the ``Wrong'' CHOICE Act.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Texas (Mr. Williams), my friend and neighbor.
  Mr. WILLIAMS. Mr. Chairman, I thank Chairman Hensarling for his 
leadership on this issue.
  Mr. Chair, the Consumer Financial Protection Bureau has cost American 
small businesses, American entrepreneurs, and the American taxpayers 
millions of dollars in regulatory costs since the inception.
  I actually own a business. I am a small-business owner, and I can 
tell you it is horrible legislation. And although this rouge and 
unaccountable agency hides behind the false pretense that its actions 
protect consumers, there could be nothing further from the truth.
  Take, for example, the ability to exempt small community financial 
institutions from any rule they impose. In fact, Dodd-Frank gives them 
explicit authority to do so. Yet because they lack congressional 
oversight, because they have a director who cannot be removed at will, 
they simply do absolutely nothing.
  Mr. Chair, if my colleagues are looking for a reason to vote for this 
bill, they should look no further than the reforms that helped rein in 
the CFPB.
  Specifically, I am happy to see the committee-incorporated provision 
I introduced last Congress which would apply the REINS Act to all 
financial agencies, including the CFPB.
  Over the last 12 years, $55 billion in regulatory costs have been 
levied by our financial agencies, and this must end, and it must end 
now.
  Again, the Financial CHOICE Act is a win for American taxpayers. It 
is purely a win for Americans who are sick and tired of the heavy hand 
of Washington.
  Mr. Chair, I urge all my colleagues to support this bill.
  In God we trust.
  Ms. MAXINE WATERS of California. Mr. Chairman, the Members on the 
opposite side of the aisle have come here talking about what they are 
doing for small banks and how they are against the big banks. Let me 
tell you about a letter that was sent yesterday, June 7, from the 
American Bankers Association. They said: ``We are pleased that this 
legislation contains provisions that ABA and our member banks have long 
supported.''
  Who are their members? JPMorgan Chase, Wells Fargo, Citigroup, Bank 
of America. Wall Street loves this bad bill.
  I yield 1 minute to the gentleman from Minnesota (Mr. Ellison), a 
senior progressive champion of the Financial Services Committee.

                              {time}  1400

  Mr. ELLISON. Mr. Chairman, I thank the ranking member for yielding.
  Since Dodd-Frank's passage, the economy has created over 16 million 
jobs over 85 consecutive months. Business lending has increased 75 
percent. Banks, large and small, are posting all-time record profits, 
community banks are outperforming larger banks, and credit unions are 
expanding their membership. And because of the work of the Consumer 
Financial Protection Bureau, 29 million people have seen $12 billion 
back into their pocket and not into those of improper and illegal 
practicing financial services firms.
  Do you want to know why we have the ``Wrong'' CHOICE Act before us 
today?

[[Page 8918]]

  Because they want the money. Not the $12 billion that went back to 
the 29 million veterans and farmers and students and citizens and 
people who need that kind of help for their families. They want that 
money going back to the big financial interests.
  And that is the purpose of the ``Wrong'' CHOICE Act. It is between 
the many and the money, and the ``Wrong'' CHOICE Act stands firmly on 
the side of those who would line their pockets in the top 1 percent.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Maine (Mr. Poliquin), a real workhorse of the Financial Services 
Committee.
  Mr. POLIQUIN. Mr. Chairman, I thank the chairman for yielding.
  Mr. Chairman, I represent the most honest, hardworking families in 
this country, in the great State of Maine. I also represent tens of 
thousands of small-business owners in our State that create thousands 
of jobs for our families.
  In the State of Maine, Mr. Chairman, we know the difference between 
right and wrong, and it is wrong to force taxpayers to bail out huge 
Wall Street banks that take too much risk when it goes wrong. Now, the 
small community banks and credit unions that dot our landscape in Maine 
did not cause the most recent recession.
  These reforms that we are passing today in the Financial CHOICE Act 
reduce unnecessary paperwork and costs that will help our small 
community banks and credit unions lend money to small businesses and 
our families so they can live better lives with more freedom and have 
better job opportunities.
  Also, I am proud to say that the Financial CHOICE Act keeps in place 
very strong protections, Mr. Chairman, for consumers of financial 
services while at the same time imposing the toughest penalties ever 
for fraud and inside dealings for folks that participate in this 
industry.
  It is no wonder, Mr. Chairman, that huge money center banks and Wall 
Street are not for the Financial CHOICE Act. But I am, and I encourage 
everybody to vote for this Financial CHOICE Act. It is a great bill for 
rural America.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Texas (Mr. Gonzalez), a new member of the Financial 
Services Committee.
  Mr. GONZALEZ of Texas. Mr. Chairman, I thank Ranking Member Waters 
for yielding.
  Mr. Chairman, today I rise in opposition to H.R. 10.
  While this bill may contain some language that I would agree with and 
that is helpful to our community banks, as well as some of our credit 
unions, it would be very harmful to our seniors and the elderly.
  Additionally, the Financial CHOICE Act, as written, would be dead on 
arrival in the U.S. Senate and a monumental waste of time for this 
Chamber. As a public servant, we are called to serve the citizens of 
our great Nation, those who raised us; those who consistently told us, 
``it is more important to have the will than to have mere ability,'' 
``hace mas el que quiere que el que puede;'' those who forged a new 
path and a better way of life.
  One of the best measures of a nation is how it cares for its elderly. 
As a country, we made a promise to our elderly, to protect them and 
ensure that they would have reliable access to resources, and the 
support they need to live a dignified life in their later years.
  In my book, a promise made should be a promise kept.
  Today, my colleagues in support of the ``Wrong'' CHOICE Act seek to 
renege on this promise and leave millions of elderly Americans 
vulnerable to financial exploitation schemes. One in every five 
Americans have been victims of financial abuse, accounting for a cost 
of over $36 billion annually. We cannot abandon our elderly when their 
resources and, ultimately, their independence is threatened. We must 
stand with them and enable the Consumer Financial Protection Bureau to 
continue to protect our elderly.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentlewoman 
from Utah (Mrs. Love), an incredibly talented member of the Financial 
Services Committee.
  Mrs. LOVE. Mr. Chairman, I rise in support for the Financial CHOICE 
Act, and I urge a vote for it.
  America's workers, farmers, businesses, households, savers, and 
investors all deserve the flexibility and access to credit that the 
Financial CHOICE Act puts in place for our financial system.
  As a former mayor, I know that families, cities, and counties need 
access to credit. Whether it is a city that wants to build a library or 
a community park, or a family that wants to buy a house, or the farmer 
that needs a new tractor to plow her field, we need a financial system 
that is strong, innovative, but, most of all, accessible.
  Right now, under Dodd-Frank, that isn't the case. For example, one of 
my constituents in Utah owns a catering business that is very 
successful, but the growth of her company has been stunted because she 
ran into red tape and delays after applying for a small business loan.
  That is not how things should work. Community banks, which provide 
the majority of small bank loans, are closing at the rate of one per 
day. Middle- to low-income Americans are getting higher fees, less 
consumer service, and less access to credit than ever before.
  Everyone deserves a chance to realize their version of the American 
Dream, and the Financial CHOICE Act is a bold step toward achieving 
that dream.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Florida (Mr. Crist), a new member of the Financial 
Services Committee.
  Mr. CRIST. Mr. Chairman, I thank the ranking member for her strong 
leadership in this fight against the ``Wrong'' CHOICE Act.
  The bill before us is broken. I was Governor of Florida when the 
financial crisis and foreclosure crisis rolled through my State like a 
hurricane. Unrestrained greed on Wall Street caused a preventable 
disaster because at no point did anyone say: This is simply wrong.
  I remember 2008 and 2009: the bailouts, the foreclosures, and the 
long, painful road to recovery. The financial crisis exposed a broken 
regulatory system, allowing Wall Street to gamble with Main Street's 
future.
  With this bill, Members are being asked to again trust the very 
people who brought us to this financial crisis. Don't put them back in 
charge. Do not let them do it again. Please vote ``no.''
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Arkansas (Mr. Hill), the Financial Services Committee whip.
  Mr. HILL. Mr. Chairman, I thank the chairman for his leadership in 
guiding the Financial CHOICE Act through the Financial Services 
Committee and the House.
  Mr. Chairman, I include in the Record a letter from the Arkansas 
State Bank Department, and an article by the Arkansas Bankers 
Association entitled ``Disappearing Community Banks.''

                                                    Arkansas State


                                              Bank Department,

                                                      May 1, 2017.
     Hon. Jeb Hensarling,
     Chairman, House Committee on Financial Services, Washington, 
         DC.
     Hon. Maxine Waters,
     Ranking Member, House Committee on Financial Services, 
         Washington, DC.
       Dear Chairman Hensarling and Ranking Member Waters: I am 
     writing in support of H.R. 10, the ``Financial CHOICE Act of 
     2017.'' As a state bank regulator, I have seen the huge 
     burden Dodd-Frank Act of 2010 has placed on community banks. 
     Since the financial crisis, several community banks in 
     Arkansas have curtailed or discontinued lending activities--
     particularly, residential mortgages--which has been 
     detrimental to the consumers they serve. In addition, the 
     number of small community banks in our state and across the 
     country has decreased, primarily through mergers with larger 
     banks better equipped to handle Dodd-Frank's onerous 
     compliance regimen.
       I believe the Financial CHOICE Act will address a number of 
     issues which will improve the business climate for community 
     banks. In particular, providing broad regulatory relief to 
     banks with an average leverage capital ratio of at least 10 
     percent will enhance our community banks ability to serve the 
     public. With fewer financial and employee resources allocated 
     to compliance

[[Page 8919]]

     issues, community banks will be able to increase lending to 
     businesses and individuals, which will stimulate much-needed 
     economic growth in their communities. Additionally, I 
     strongly believe the leverage capital ratio is a better 
     standard by which to assess a bank's health than risk-based 
     measures.
       Thank you for your work in advancing the Financial CHOICE 
     Act. I greatly appreciate your efforts to help community 
     banks.
           Sincerely,
                                                Candace A. Franks,
     Commissioner.
                                  ____


                 [From the Arkansas Banker Association]

                      Disappearing Community Banks

    (By Bill Holmes, President & CEO, Arkansas Bankers Association)

       In 1994 I was working for the original Twin City Bank. We 
     were in a bank wide campaign to break a billion dollars in 
     assets. There were 260 banks headquartered in Arkansas. 
     Today, there are 103. If we continue to lose community banks 
     at the same pace our small businesses, home buyers and 
     farmers will have only a third of the bank choices they 
     enjoyed in 1994. This is a problem for our mostly rural 
     state. And it is not just a local problem, it is happening 
     across the country.
       There are any number of reasons for this decline in 
     community banks. For the last ten years, the reason I hear 
     more than any other is the increasing cost of the federal 
     regulatory burden. The costs of complying with regulations 
     that should never have been intended for rural banks, the 
     costs of training more and more staff for compliance issues, 
     the cost of newly required software to feed a never ending 
     appetite for data.
       I will grant you that after the financial crisis some 
     regulatory changes were necessary to improve financial 
     stability. But ten years later we've ended up with too many 
     regs that don't improve our banks, but do limit our bankers' 
     discretion and look to drive credit decisions to a score 
     sheet designed inside the beltway. Our community bankers have 
     decades of history on their customers, and have always been a 
     key to the economic growth in their communities. I don't 
     think the intent of these regulations was to limit the 
     growth, or limit the home buyers, in our state. But the fact 
     is it does. And, it is time to fix this.
       Chairman Hensarling's The Financial CHOICE Act was recently 
     sent to the floor for a vote. It includes multiple changes 
     that our banking industry endorses, and we feel we need these 
     changes to help spur the economy. This legislation would ease 
     some requirements on mortgages that banks hold in their own 
     portfolios. This would let our bankers make many more loans 
     to self-employed businessmen, or entrepreneurs with unstable 
     incomes. The Act looks to tailor the regs and requirements 
     based on the risks and business types of each bank. We need 
     this to continue to give our customers more diversity and 
     more choices of where and how to bank.
       The U.S. economy is unique. We need a healthy and broad mix 
     of banks to meet our customers' needs. From international 
     corporations, to the startup food truck, our bankers are 
     involved and are integral parts of our economy. If we cannot 
     get sensible reform in Washington, Arkansas's banking sector 
     will continue to shrink and become less diverse. Arkansans, 
     and all Americans, will pay the price in terms of less 
     lending and fewer opportunities for growth.

  Mr. HILL. Mr. Chairman, in this debate today, let's hear what a 
commissioner of banking from Arkansas says:
  ``I am writing in support of H.R. 10, the `Financial CHOICE Act of 
2017.' As a State bank regulator, I have seen the huge burden Dodd-
Frank Act of 2010 has placed on community banks. Since the financial 
crisis, several community banks in Arkansas have curtailed or 
discontinued lending activities--particularly, residential mortgages--
which has been detrimental to the consumers they serve.''
  That is a compelling endorsement of this bill from a regulator, Mr. 
Chairman, not from a Member of Congress.
  And when you look at working families in Arkansas, recently I was 
told about an Army National Guard member from north Little Rock, in my 
district, who was informed that he would not receive a home to purchase 
a manufactured home that would have been twice as large and less 
expensive than the 60-year-old house he was renting for his family.
  Or a hairstylist from Nevada County, who I received a letter from. 
She and her husband, a welder, were denied a loan to purchase a new 
home, despite having verifiable income.
  That is why we need to repeal, replace, and pass the Financial CHOICE 
Act.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Nevada (Mr. Kihuen), a new member of the Financial 
Services Committee.
  Mr. KIHUEN. Mr. Chairman, I thank the ranking member for yielding me 
time and for her tireless work on behalf of working families in 
America.
  Mr. Chairman, the Financial CHOICE Act is nothing more than a 
misguided attempt to return to the days where bad actors could put the 
entire financial system at risk.
  There is bipartisan support to provide regulatory relief for 
community banks and credit unions. Just last week, I met with credit 
unions in my district, and they talked about the need for thoughtful, 
tailored regulation. Unfortunately, that kind of thoughtful reform is 
not what is before us today.
  Instead, we have a bill before us that is a fundamental attack on 
working families in America. This bill will make it harder to go after 
bad actors in the financial markets by hamstringing regulators, and 
would completely gut the Consumer Financial Protection Bureau. It would 
eliminate important programs that ensure that taxpayers will not be on 
the hook for future bailouts. And it makes our financial system a whole 
lot less secure.
  The district that I represent was one of the hardest hit in the 
entire country during the financial crisis. My constituents sent me 
here to ensure that we don't repeat the mistakes of the past, which is 
exactly what this bill does.
  Mr. Chairman, this bill has been named the Financial CHOICE Act, and 
I think it is a fitting name.
  Each of us here today has a simple choice to make: Do we side with 
the working families of America? Or do we side with the big 
corporations and the special interests?
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Minnesota (Mr. Emmer), another hardworking member of the Financial 
Services Committee.
  Mr. EMMER. Mr. Chairman, I thank the chairman for yielding.
  Nearly 7 years ago, the American people were promised that the Dodd-
Frank Wall Street Reform and Consumer Protection Act would end 
Washington bailouts, protect consumers, and lead to a more prosperous 
economy.
  Instead, the big banks and the influence of the Federal Government 
have continued to get bigger while smaller, local community banks and 
credit unions are closing up shop and our country continues to struggle 
with anemic levels of economic growth.
  This is why the Financial CHOICE Act is so important. This 
legislation gives us an opportunity to return the power to the ``little 
guy or gal'' who wants to create a better life for themselves and, by 
doing so, for all of us.
  It takes steps to end the failure of excessive and redundant 
bureaucracy, and it will give our entrepreneurs the opportunity to 
access the startup capital they need to grow and thrive once again.
  I am especially pleased that this bill includes provisions from my 
Micro Offering Safe Harbor Act, the Home Mortgage Disclosure Adjustment 
Act, and the Financial Stability Oversight Council Reform Act. These 
three bills are important components of the Financial Services 
Committee's broader intent of improving opportunity and accountability 
for all. I appreciate the chairman's continued efforts to make this 
goal a reality.
  Mr. Chairman, I thank Chairman Hensarling for all of his work. I look 
forward to supporting the Financial CHOICE Act, and I hope all of us 
will do the same.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentlewoman from Florida (Mrs. Demings).
  Mrs. DEMINGS. Mr. Chairman, do we have a role as Congress to protect 
American families?
  In my home State of Florida, it is hard to go anywhere without 
meeting a family who was affected by the foreclosure crisis. Many not 
only lost their homes, but their life savings.
  Through Dodd-Frank, Congress created the Consumer Financial 
Protection Bureau to go after the bad actors that made tough times 
worse for homeowners in Florida by giving the Consumer Financial 
Protection Bureau the

[[Page 8920]]

authority to go after mortgage companies for deceptive practices, 
threatening people who were behind on payments and putting them into 
debt collection when they were eligible for loan modification programs.
  Dodd-Frank also allowed state attorneys general to file consumer 
protection lawsuits against bad actors on behalf of families in their 
States.
  The Financial CHOICE Act would repeal these important consumer 
protections and return us to a time when families were being unfairly 
forced into foreclosure.
  Mr. Chairman, we can't go back. This is America, where we take care 
of our own, don't we? If Congress doesn't protect American families, 
who will?
  I urge my colleagues to do the right thing and to reject this bill.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Michigan (Mr. Trott), a new and very knowledgeable member of the 
Financial Services Committee.
  Mr. TROTT. Mr. Chairman, one of the consequences of the financial 
crisis is the government had to step in with taxpayer dollars and bail 
out the financial industry.
  Once Dodd-Frank was enacted, however, we were told: Don't worry. 
There will never be another bailout. Rest assured, the orderly 
liquidation authority under title II will give the FDIC all the tools 
it needs to resolve a failed financial institution.
  Indeed, title II does give the FDIC the ability to borrow from the 
Treasury all of the taxpayer dollars it needs to reorganize a failed 
financial institution. That kind of sounds like a bailout to me.
  The Financial CHOICE Act truly ends the risk of taxpayer-funded 
bailout. Under the Financial CHOICE Act, a failed bank will go through 
bankruptcy. Bankruptcy is a tested, transparent process. Judges sitting 
in open court instead of unelected bureaucrats sitting behind closed 
doors will make consistent, predictable decisions based on decades of 
case law.
  More importantly, bankruptcy puts the risk of failure on the bank's 
shareholders and creditors, not the taxpayers.
  I urge my colleagues to support the Financial CHOICE Act, and truly 
put an end to the possibility of yet another taxpayer-funded bailout.

                              {time}  1415

  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Pennsylvania (Mr. Cartwright).
  Mr. CARTWRIGHT. Mr. Chairman, my colleagues have already done a good 
job of talking in great detail about why this bill is really a festival 
of bad choices, of wrong choices for America, but I want to focus on 
one issue in particular: executive pay.
  This ``Wrong'' CHOICE Act actually takes away provisions that rein in 
irresponsible pay to executives, the very people who decide decisions 
that get us into this entire mess in the first place.
  Number one, this bill eliminates a rule barring incentive-based 
executive pay that encourages ``inappropriate risks.'' It puts the 
average American in danger of having to pay for another bank bailout. 
Giving out bonuses for putting our national financial stability at risk 
is flat wrong.
  Number two, it eliminates a requirement for corporations to disclose 
how their CEO's pay compares to the average employee's salary. This 
bill eliminates transparency.
  And number three, if you can believe it, this bill even abolishes a 
rule requiring companies to disclose whether executives and board 
directors are allowed to bet against their own stock. This bill takes 
us back to the days of Enron.
  I urge my colleagues to vote ``no'' on this irresponsible 
legislation.
  Mr. HENSARLING. Mr. Chairman, I am happy to yield 1 minute to the 
gentleman from Georgia (Mr. Loudermilk), a new member of our committee.
  Mr. LOUDERMILK. Mr. Chairman, today we know that a major factor 
leading up to the worst economic crisis in our lifetime was the 
heavyhanded and meddlesome politics of the Federal Government.
  Unfortunately, the previous administration responded to that crisis 
not by limiting the intrusion of the Federal bureaucracy, but by 
increasing it. They implemented Dodd-Frank under the guise of 
protecting the consumer, but, in reality, this bill empowered 
government, created new bureaucracies, made the big banks bigger, and 
virtually ended the creation of new community banks.
  In the wake of the financial crisis, Georgia lost more banks than any 
other State in the Nation. Unemployment skyrocketed, and hundreds of 
businesses went under. But instead of creating opportunities for 
Georgians to pick themselves up and start again, Dodd-Frank continued 
to suppress our economic recovery, and today, nearly a decade after the 
end of the recession, there are still 47 counties in Georgia without a 
local community bank, and 3 counties without a single bank branch at 
all.
  The Financial CHOICE Act will reverse these burdensome regulations 
and, once again, sow the seeds of prosperity on Main Street, not just 
Wall Street. The bill will end bailouts of big banks by taxpayers and 
unleash our economic potential by opening the economy to everyone.
  I urge my colleagues to support the Financial CHOICE Act.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentleman from Texas (Mr. Doggett).
  Mr. DOGGETT. Mr. Chairman, this bill is all about obstructing 
effective law enforcement that challenges predatory payday lending, 
that protects military families from unjustified foreclosures, and 
addresses the burden of mounting student debt.
  Republicans give Trump new power to fire the chief cop on the beat 
who protects consumers against wrongful financial practices. We have 
seen how well that worked with Trump and the FBI. Have you learned 
nothing about giving Trump more power?
  Without the Consumer Financial Protection Bureau, Wells Fargo would 
never have been penalized for its multimillion-dollar fraud.
  Republicans here want to shield Wall Street, granting it free rein to 
run over people across America and later reward it with even more tax 
breaks. They tolerate almost any wrongdoing, any crazy Trump tweet, so 
long as they can get more tax breaks and less consumer protection.
  Enough is enough. It is time to say no to this sorry bill and offer 
protection to the people of America from financial wrongdoing.
  Mr. HENSARLING. Mr. Chairman, may I inquire how much time is 
remaining on either side?
  The Acting CHAIR (Mr. Simpson). The gentleman from Texas has 8 
minutes remaining. The gentlewoman from California has 12 minutes 
remaining.
  Mr. HENSARLING. Mr. Chairman, to better balance the time, I reserve 
the balance of my time.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the gentlewoman from Illinois (Ms. Schakowsky).
  Ms. SCHAKOWSKY. Senior citizens, beware of the Financial CHOICE Act. 
This bill repeals the best interest rule, which ensures that Americans 
that are saving for retirement get financial advice in their best 
interest.
  Bad advice has real costs. Steven, a 69-year-old Vietnam veteran in 
Illinois, lost $147,000 in retirement savings when he got advice that 
handsomely profited his so-called investment adviser but devastated 
him.
  This bill guts the Consumer Financial Protection Bureau, which 
prevents financial exploitation of senior citizens.
  In December, the CFPB took an action against three crooked reverse 
mortgage companies that deliberately failed to tell seniors that they 
could lose their homes.
  The Financial CHOICE Act is dangerous. It is dangerous for older 
Americans, it is dangerous for all Americans, and it is dangerous for 
our entire economy. It puts us all at risk. It is the wrong choice for 
America, and I urge my colleagues to vote ``no.''
  Mr. HENSARLING. Mr. Chairman, I reserve the balance of my time.
  Ms. MAXINE WATERS of California. Mr. Chairman, I yield 1 minute to 
the

[[Page 8921]]

gentlewoman from Oregon (Ms. Bonamici).
  Ms. BONAMICI. Mr. Chairman, I thank the ranking member for yielding.
  I rise today in strong opposition to the Financial CHOICE Act because 
it will gut the Consumer Financial Protection Bureau and roll back 
important protections for seniors, for students, and for hardworking 
families across the country.
  The CFPB protects Americans from unscrupulous financial practices and 
deceitful debt collectors. Since its creation, it has assisted more 
than 29 million consumers, many of them seniors, with mortgages, credit 
cards, and debt collection.
  Unfortunately, seniors are especially vulnerable to financial fraud 
and abuse. This bill would roll back the CFPB's ability to identify and 
stop unfair and abusive debt collection and telemarketing practices; 
and this harmful bill would also prevent the CFPB from cracking down on 
predatory payday lenders who take advantage of struggling families by 
issuing loans at exorbitant rates.
  I worked as a consumer protection attorney, and I worked with too 
many families there who lost their homes, too many seniors who were 
harassed by debt collectors, too many people who were victims of 
predatory payday lending and got into the quicksand and were not able 
to get out. We cannot allow this shortsighted bill to stop the good 
work of the CFPB.
  This bill is called the CHOICE Act, but it is the wrong choice, and I 
urge my colleagues to oppose it.
  Mr. HENSARLING. Mr. Chairman, I reserve the balance of my time.
  Mr. ELLISON. Mr. Chairman, I yield 1 minute to the gentlewoman from 
California (Ms. Barragan).
  Ms. BARRAGAN. Mr. Chairman, I rise today in opposition to the 
``Wrong'' CHOICE Act. This bill has a hidden provision that strips away 
oversight for payday lenders.
  Payday lenders are like loan sharks, charging upwards of 400 percent 
interest on loans. It is outrageous. They prey on vulnerable, low-
income borrowers who are already struggling to get by.
  That is how Yesenia from California got trapped in a cycle of debt. 
Her mother was diagnosed with breast cancer and lost her job, so 
Yesenia had to take out a loan just to buy food. The payday lender 
garnished her wages and charged sky-high interest rates and fees. She 
ended up paying back thousands more than she borrowed, all because she 
needed food for her and her mother.
  Let's protect our workers and families. Let's not take away oversight 
of this abusive loan industry. I urge my colleagues to oppose H.R. 10. 
It is the wrong choice.
  Mr. HENSARLING. Mr. Chairman, at this time I am pleased to yield 1 
minute to the gentleman from New York (Mr. Zeldin), a new member of our 
committee.
  Mr. ZELDIN. Mr. Chairman, I rise in strong support of the CHOICE Act, 
and I thank Chairman Hensarling for his strong leadership.
  Imposing regulations meant for large, transnational firms on 
community banks and credit unions may make sense to bureaucrats in 
Washington, but to hardworking families on Long Island, it means you 
can't buy that first home or you can't get that small-business loan.
  Today we have the opportunity to remove the barriers to job creation 
and prosperity that have given us the weakest economic recovery in 
American history. The CHOICE Act will end taxpayer-funded bailouts, 
restore accountability, and jumpstart innovation and job creation.
  I strongly support this legislation, and I urge its adoption.
  Mr. ELLISON. Mr. Chairman, I yield 1 minute to the gentleman from 
Maryland (Mr. Sarbanes).
  Mr. SARBANES. Mr. Chairman, in 2008 our financial system cratered, 
bringing the broader world economy to its knees. Millions of Americans 
lost their homes; millions more lost their jobs by no fault of their 
own; and $13 trillion in wealth and savings was lost.
  We went to work fixing the glaring holes in our Nation's financial 
regulatory system. Among other things, we enacted tougher mortgage 
standards; we brought the derivatives market out of the shadows; we 
stopped the casino-like bets at our investment banks; and we created a 
consumer-focused protection bureau.
  Unfortunately, what we couldn't do was eradicate greed; and, sadly, 
today greed is rearing its ugly head once again. The Republican-
controlled Congress is about to pass H.R. 10, the ``Wrong'' CHOICE Act, 
a bill that would throw away the lessons of the 2008 financial crash 
and unleash the demons that nearly took down the world economy.
  I urge the House to reject this bill.
  Mr. HENSARLING. Mr. Chairman, I am happy to yield 1 minute to the 
gentleman from West Virginia (Mr. Mooney), another new member of our 
committee.
  Mr. MOONEY of West Virginia. Mr. Chairman, I rise today in strong 
support of H.R. 10, the Financial CHOICE Act. This critical piece of 
legislation rolls back onerous Obama-era regulations on the financial 
services industry that are strangling small businesses and hurting 
hardworking American taxpayers.
  As I held roundtables across West Virginia, I heard from small-
business owners and job creators that Obama-era regulations make it 
harder for community banks to make loans to small businesses and first-
time home buyers.
  The Financial CHOICE Act will remove stifling Federal regulations 
from out-of-touch Washington bureaucrats and return financial 
decisionmaking to you, the individual consumers and to the small 
community banks.
  I know that President Trump is committed to supporting the reforms in 
the Financial CHOICE Act, and I look forward to continuing to work with 
our President to grow our economy and bring much-needed relief to West 
Virginia consumers and small-business owners.
  I want to thank Chairman Hensarling and my colleagues on the 
Financial Services Committee for their leadership on this important 
legislation.
  Mr. ELLISON. Mr. Chairman, I yield 1 minute to the gentleman from 
Vermont (Mr. Welch).
  Mr. WELCH. Mr. Chairman, I want to say to my Republican colleagues, I 
have heard a lot of advocacy for the small banks. I am with you. Those 
folks did not cause the Depression, and we have got to give them 
relief.
  But what this bill does is essentially use the good reputation of 
those small lending institutions in all our communities to create an 
opening for the bad actors that did cause this enormous recession, and 
it invites them to go back to their bad old days.
  The business model of our small banks is to help our folks in small 
communities. The business model of some of the Wall Street banks is to 
play casino poker with taxpayer money, and that is what happened. We 
had institutions on Wall Street that were putting together packages of 
bad loans that they shorted for one investor, and then they sold them 
as AAA-rated, pension-worthy investments for pensions for our 
firefighters and teachers. That is absolutely outrageous, and we are 
allowing that to occur again.
  We can help the small banks, and we should help the small banks, but 
we shouldn't give a free pass.
  Now, there is one good thing in this bill. I am glad, very glad to 
see that the Durbin rule continues to exist. That was a crackdown. We 
finally got some relief for our retailers on the transaction fees on 
debit cards.
  Mr. HENSARLING. Mr. Chairman, I am now very happy to yield 2 minutes 
to the gentleman from North Carolina (Mr. Budd), a huge fighter for 
freedom and a fighter against Federal price controls.
  Mr. BUDD. Mr. Chairman, I draw a distinction between political costs 
and real costs. In no city in the country are the political costs 
treated as more real than Washington. But the truth is that for the 
other 99 percent of the country, the real costs are what count.

[[Page 8922]]



                              {time}  1430

  The real costs of the Durbin amendment have been amply documented. 
Community banks have seen interchange revenue fall 20 percent. The low-
income consumer has seen his checking fees double. The small-ticket 
merchant has seen his interchange cost increase.
  For those of us who campaigned on a platform of free markets and 
limited government, which is most of our party, I suggest that a 
principle that is followed only when it costs nothing is not much of a 
principle at all.
  The principle that government shouldn't be setting prices, ended up 
having a political price of its own. And for some, that was the only 
reality of this debate. I only wish that I could say the same for the 1 
million people the Durbin amendment has driven out of the banking 
system.
  Mr. Chair, I yield to the gentleman from Missouri (Mr. Luetkemeyer).
  Mr. LUETKEMEYER. Mr. Chair, I thank the gentleman from North Carolina 
for yielding to me and I associate myself with his remarks.
  The Durbin amendment has not helped consumers and, in fact, has hurt 
them. It has hurt small banks and credit unions. The only entities that 
have benefited are the retailers, who, despite their promises to 
Congress, have not lowered cost, and some studies even show that they 
have increased cost.
  Congress should not be in the business of price fixing. Price 
controls will never work and will always have negative consequences. I 
am committed to returning to free market principles that deliver real 
results for consumers.
  Mr. HENSARLING. Will the gentleman yield?
  Mr. BUDD. Mr. Chair, I yield to the gentleman from Texas.
  Mr. HENSARLING. Mr. Chair, I would like to thank both gentlemen for 
their steadfast leadership on this issue. Basic economics tell us that 
when government fixes market prices, consumer welfare suffers. So it is 
not a surprise that researchers have found that the Durbin amendment 
resulted in a net loss of perhaps $25 billion for consumers.
  But in a larger sense, what we have is a legal dispute between two 
parties. This is an issue that belongs in the courts, not Congress, 
which is why we sought to repeal the Durbin amendment.
  I remain hopeful that Congress will correct this mistake, and I will 
work towards that goal in the future.
  Mr. ELLISON. Mr. Chair, I yield myself such time as I may consume.
  One of the elements of the ``Wrong'' CHOICE Act that is particularly 
troublesome to me--and there are many--has to do with the ``Wrong'' 
CHOICE Act repealing section 953(b) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act.
  Now, people watching this debate, Mr. Chair, might find that to be 
just legislative talk, but it is substantively, really important. 
Section 953(b) was a hard-fought victory for investors, consumers, 
workers, and the general public. Mr. Chair, the law requires that 
publicly traded firms disclose the ratio between what they pay their 
CEO and what they pay their median worker.
  I think this is important information. A CEO of an S&P 500 company 
makes, on average, about $331 for every $1 a typical rank-and-file 
worker makes. In some companies, this ratio can reach as high as 
$1,000-to-$1. Investors should be able to consider if a CEO provides 
hundreds of times more value to their employees before investing in a 
firm. Actually, exorbitant CEO pay, excessive CEO pay, can impact 
dividends. It can impact all kinds of decisions, lead to risk taking, 
and it is a good idea for investors and the general public to know that 
information.
  So while executives are making critical decisions about the direction 
of their companies, quality employees ensure those decisions are being 
properly implemented.
  This pay ratio information benefits investors by giving them valuable 
information for ascertaining whether or not a company's employees are 
being treated fairly and, therefore, able to retain employees; whether 
or not it is a stable company, and a company that values its people.
  The ratio helps them to decide how to cast their say-on-pay advisory 
votes on executive compensation. And research shows that the higher the 
CEO-to-median-worker pay ratio, the more likely the CEO is to pursue 
the kind of risky investments that brought the global financial crisis 
to bear.
  Institute for Policy Studies found that nearly 40 percent of the CEOs 
on their top 25 highest paid list over a 20-year period wound up being 
fired, sought a bailout, or were forced to pay fraud-related fines.
  Moreover, a lower ratio of CEO-to-median-worker pay, implies more 
investment in human capital, and a longer-term outlook on the 
corporation.
  According to the Center for Audit Quality's annual investor survey, 
46 percent of investors say they consider CEO compensation in their 
decisionmaking.
  The current culture of paying CEOs hundreds of times--and even 
thousands in some limited cases--more than typical employees hurts 
working families, is detrimental to employee morale, and goes against 
the research which shows us what is best practice.
  Mr. Chair, I reserve the balance of my time.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Tennessee (Mr. Kustoff), a new member of our committee.
  Mr. KUSTOFF of Tennessee. Mr. Chair, I rise today in support of H.R. 
10, the Financial CHOICE Act. For 7 years now, Dodd-Frank has stalled 
our economic growth. While community banks and credit unions did not 
cause the recession, they have carried most of the burden following the 
crisis.
  These smaller financial institutions are the lifeline of local 
businesses, farmers, entrepreneurs, and anyone striving for true 
financial independence. The Financial CHOICE Act will bring relief from 
onerous rules and regulations that have hamstrung the ability to loan 
and to borrow money.
  Once businesses can access more capital, they will be able to grow, 
hire more employees, contribute more to their communities.
  I want to thank Chairman Hensarling and this committee for working 
tirelessly to bring the American people the relief that they need.
  Mr. Chair, I urge all of my colleagues to support this important 
legislation.
  Mr. ELLISON. Mr. Chair, I yield 1 minute to the gentlewoman from 
California (Ms. Lee).
  Ms. LEE. Mr. Chairman, I want to thank the gentleman for yielding and 
for his most diligent work on behalf of the American people, and also 
to our ranking member, Congresswoman Maxine Waters. I just want to 
thank her for really educating this House and the public of the dangers 
to consumers of this horrible bill, of course, which I stand in 
opposition to.
  It really is a wrong choice for American families. Shamefully, this 
bill gives Wall Street a handout while stealing from the pockets of 
everyday Americans. It would drag us back to the days where Wall Street 
and billionaires get richer, while struggling families are left out in 
the cold.
  The bill significantly undermines both the Consumer Financial 
Protection Bureau and the rules it put in place to prevent predatory 
lending and subprime loans, particularly in communities of color. 
Families lost a generation of wealth prior to Dodd-Frank and have yet 
been able to recover.
  But this bill also, I must say, puts Wall Street recklessness back in 
charge, and it will leave consumers out in the cold again. So it will 
take us back to where we were before, and we cannot go back.
  That is why we are asking for a ``no'' vote. It destroys protections 
for seniors and jeopardizes their financial safety. So I hope that 
Members vote ``no'' on this bill.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentlewoman 
from New York (Ms. Tenney), another new member of the committee.
  Ms. TENNEY. Mr. Chair, I thank Chairman Hensarling for this important 
bill. I rise today in support of H.R. 10, the Financial CHOICE Act.
  As a single parent and small-business owner, I know from my own 
experience

[[Page 8923]]

that the only way for hardworking Americans to achieve financial 
independence is by building an economy from Main Street up, not Wall 
Street down.
  The CHOICE Act not only imposes the toughest penalties in history for 
financial fraud on Wall Street, it saves taxpayers $30 billion. The 
CHOICE Act also eliminates taxpayer-funded bailouts while providing 
choices for consumers and a real opportunity for economic growth.
  As an upstate New Yorker, our region suffers from economic challenges 
caused by excessive regulations, such as the Dodd-Frank Act, that have 
crushed small businesses. Yet small businesses create nearly 70 percent 
of the new jobs. This bill will increase access to capital for small 
businesses and startups--our job creators. It will increase job 
opportunities and positively benefit New York's 22nd District.
  Mr. Chair, I urge all of my colleagues to vote to support our job 
creators and to vote for the Financial CHOICE Act.
  Mr. ELLISON. Mr. Chair, I yield myself such time as I may consume.
  Mr. Chair, does it make sense that, after 8 years of a piece of 
regulation, Dodd-Frank, that has brought us increases in GDP, increases 
in jobs, and stability in financial markets, that we would now repeal 
that piece of legislation to go back to a time when we saw that 
deregulation strategy bring us the Great Recession?
  It just doesn't make any sense to take the position that what we need 
is more wide open, Wild West, you are on your own kind of financial 
rules and laws in our country.
  The fact is, before Dodd-Frank was passed, we had an abysmal consumer 
protection system. We really had seven or eight different agencies that 
were sort of responsible, but not really. Consumer protection was not a 
priority of the Federal Government. And as a result of it, we saw a 
proliferation of mortgages that got people who really couldn't handle 
that particular mortgage that they got, or the products were just 
fraudulent, get into a situation where they ended up going into 
foreclosure.
  We saw the secondary market package up some of these bad mortgages. 
We saw rating agencies say that these were good equity products, and 
when these products started to fail, what we saw is that those big 
banks that trafficked in those equities get bailed out, and we saw 
citizens lose their homes.
  The fact is, going back to those bad old days is just a bad idea--to 
bring us back to a time when we didn't have any consumer protection, 
when we didn't have any responsibility placed on the shoulders of 
management, when we didn't say that we were going to look after these 
rating agencies, and we didn't say that these systemically important 
large institutions were going to get a little bit more scrutiny.
  Before the time that we did that, we saw ruin in the economy. Let me 
just remind the American people: we had many States with unemployment 
above 10 percent because of the deregulation, laissez-faire attitude 
that prevailed in the American financial services legal system.
  Those bad old days nearly ruined so many families, and they are just 
now starting to recover. But under Dodd-Frank, we have seen month after 
month of private sector job growth. We have seen economic activity 
increase. Fast enough for me? No. I think we need much more.
  But with over $170 billion in record profits from 2016, I can tell 
you one thing: this claim on the other side that the banks and 
financial services sector is being crushed simply isn't a true 
statement. It is just not right.
  Business lending is up 75 percent since Dodd-Frank. Data from the 
Federal Reserve shows aggregate bank lending has increased from about 
$1.2 trillion, in 2010, to $2 trillion in outstanding business loans. 
Vote ``no'' on the ``Wrong'' CHOICE Act.
  Mr. Chair, I yield back the balance of my time.
  Mr. HENSARLING. Mr. Chairman, I yield myself such time as I may 
consume.
  We have now had 7 years of history with Dodd-Frank, and what do we 
know? We know that the big banks are bigger. We know that the small 
banks are fewer. The gentleman cites some statistics about lending, but 
what he left out is, we are losing a community bank or credit union a 
day, and they are not dying of natural causes. They are dying of the 
dreaded Dodd-Frank disease.
  Our small businesses continue to suffer. It takes small banks to lend 
to small businesses. The job engine of America and small bank business 
lending isn't recovering, and it can't recover, as long as Dodd-Frank 
is on the rolls of the Federal Register.
  I got to tell you, Mr. Chairman, it is time. It is time for a better 
way. It is time to help our struggling families. That is really what 
this is all about. We have had 7 years of Dodd-Frank, and yet working 
Americans haven't received a pay increase. Their small businesses can't 
get loans. Struggling families have not seen their savings recover from 
the great financial panic which, oh, by the way, was brought about by 
government in the first place, with dumb regulation to put people into 
homes they couldn't afford to keep.
  And let's also remember that Dodd-Frank is actually hurting the 
consumers it claims to help. Free checking was cut in half. Credit 
cards, there are fewer of them. They cost 200 to 300 basis points more. 
Have you tried to get a mortgage lately? They are harder to come by. 
They cost hundreds of more dollars to close.
  Instead, what we have is, Washington elites now making the decision 
on whether or not we get to put a credit card in our wallet, whether we 
get to put a mortgage on our home.
  No, Mr. Chairman, there is a better way. It is why we must enact the 
Financial CHOICE Act. There will be economic growth for all, bank 
bailouts for none, and we will, once again, have an America that is 
only limited by the size of its dreams.
  Mr. Chair, I encourage all to support the Financial CHOICE Act.
  Mr. Chair, I yield back the balance of my time.
  Mr. PASCRELL. Mr. Chair, prior to 2010, banks lending to consumers 
operated with too little oversight and often exploited the lack of 
rules to turn a profit at any cost. We saw the dire consequences in the 
2008 financial crisis. The Consumer Financial Protection Bureau was 
created to enforce laws and protect consumers in the marketplace. Their 
mission is to root out deceptive and abusive practices. And so far, the 
agency has returned $11.8 billion to consumers from enforcement against 
abusive practices from banks, lenders, and financial companies.
  I challenge any member of this body to go to one of their 
constituents and ask whether or not they would like a consumer watchdog 
to stand up for them against abuses from big banks, or if they'd like 
us to leave them to go it alone.
  The CFPB has already returned $11.8 billion to more than 29 million 
consumers. That is $11.8 billion dollars that went back into the 
pockets of 29 million of our constituents. A vote for this legislation 
is a vote against those 29 million consumers who have been helped by 
the CFPB's actions.
  In my home state of New Jersey, one resident held a mortgage with 
Citibank, who failed to report accurately the status of a closed 
account and incorrectly reported it as late. A complaint was submitted 
to the CFPB and when they intervened, the issue was resolved and the 
late mark removed.
  Stories like these are not uncommon. Decisions like these can impact 
a consumer's credit for life and cause tremendous distress. Before the 
CFPB, consumers facing deceptive practices could go ignored by mega-
banks and lending institutions. But when a government agency with 
enforcement powers gets involved, these banks pay attention. They can't 
ignore the CFPB.
  When the cards are stacked against the everyday consumer, the need 
for the CFPB is a no-brainer.
  The New York Times this morning reported that the President's pick to 
oversee the nation's largest banks, Joseph Otting, formerly ran 
OneWest, which has been criticized for ``robo-signing'' foreclosure 
documents in the wake of the financial crisis. If Mr. Otting didn't 
protect consumers when he ran a mortgage lender, why would he protect 
them as Comptroller of the Currency?
  Especially in this Administration, we need an independent consumer 
watchdog that can act without the influence of politics on behalf of 
consumers. Some would choose to erode this bulwark of protection 
against the big

[[Page 8924]]

banks but it is needed now more than ever. Mr. Chair, this vote is a 
clear marker of who you stand with: I stand on the side of my 
constituents in urging a no vote.
  Mr. DeFAZIO. Mr. Chair, In 2008, Wall Street's criminal behavior 
drove the economy into the greatest financial crisis since the Great 
Depression, creating the grossly unbalanced playing field that is our 
economy today. In response, Congress passed the Wall Street Reform and 
Consumer Protection Act (Dodd-Frank) in 2010. While Dodd-Frank fell 
short on major banking reforms, I supported it because it was better 
than no reforms at all.
  I am appalled that House Republicans pushed through the Financial 
CHOICE Act, which would gut major provisions of Dodd-Frank and allow 
Wall Street to return to the same reckless practices that occurred 
before the law was passed. The Financial CHOICE Act removes the 
watchdog from Wall Street, opening the door to destructive trading at 
the expense of pension funds, value investors, and average Americans.
  Additionally, those on Wall Street who broke the law and used 
Americans' investments as a casino should be held accountable for their 
deceptive actions, including jail time. Yet, to this day, no Wall 
Street executive has seen jail time for the damage they did on our 
financial system. Instead, Wall Street executives are being rewarded 
with powerful jobs in the Trump administration.
  It is outrageous that Republicans want to allow the banking sector to 
return to ``business as usual'' with dangerous financial products and 
high-speed speculation. We need stronger, not weaker, financial 
reforms, which is why I'm taking on reckless Wall Street trading with 
my `Putting Main Street FIRST Act' legislation to discourage 
speculative trading by imposing a tax of a fraction of a percent on 
stock, bond, and derivative trades. Congress should be fighting for the 
interests of the American people, not Wall Street.
  Ms. JACKSON LEE. Mr. Chair, I rise today to speak in opposition to 
H.R. 10, the ``Financial CHOICE Act of 2017''.
  I agree with Ranking Member Maxine Waters by calling this bill the 
``Wrong'' CHOICE Act. H.R. 10 is a misguided anti-regulatory bill that 
will only diminish national efforts to protect and secure the financial 
stability of our nation.
  H.R. 10 is ill-conceived, destroying key financial regulations and 
consumer protections put in place by the Dodd-Frank Wall Street Reform 
and Consumer Protection Act.
  H.R. 10 aims to deregulate a financial system that has failed to 
regulate itself in the past leading to the financial crash of 2008.
  The nation still feels the reverberations of that crisis to this day.
  We all remember the foreclosures, the neighborhoods and communities 
financially devastated, the jobs lost, and the retirements deferred.
  Americans lost $13 trillion in household wealth, 11 million Americans 
lost their homes, and the unemployment rate climbed to 10 percent.
  This bill is inherently paradoxical because it claims to promote 
self-accountability on Wall Street, by taking away governmental 
regulations on financial institutions, but that is not the nature of 
the beast.
  As evidenced by a very recent past, if given the opportunity, Wall 
Street runs rampant with greed and disregard for the citizens of our 
country.
  After the 2008 financial crash, Congress enacted legislation to 
protect those that are most vulnerable and to help the country regain 
its rightful place in the economic system.
  H.R. 10 attempts to halt the progress made to protect our economy and 
puts our entire nation's economy at risk of another crisis by launching 
an attack against the Consumer Financial Protection Bureau (CFPB), an 
institution designed to ensure a financial crash such as the 2008 
crisis does not occur again.
  CFPB is an effective government institution that has returned nearly 
$12 billion to consumers cheated by banks and other financial 
institutions.
  This bill strips the bureau's ability to stop unfair and abusive 
practices perpetuated by financial institutions by removing the 
bureau's political independence, threatening its funding and crippling 
its ability to ensure Americans' financial welfare.
  Taking away CFPB's power is harmful to consumers and small investors, 
those whose life savings and futures depend on the protections that 
Congress provides.
  People of color and low-income families remain especially vulnerable 
to the abuse perpetuated by financial institutions.
  Houston, home to some of the most diverse population in the nation, 
would see direct consequences. H.R. 10 would risk the livelihood of 
many living in Houston.
  The ``Wrong'' CHOICE Act abandons hard working people and aids Wall 
Street in the abuse of hard working Americans, jeopardizing the 
financial stability of the entire nation.
  The ``Wrong'' CHOICE Act will drag us back to the days when lax 
lending, predatory practices and profiteers on Wall Street take 
advantage of vulnerable American families.
  We must not return to the days when massive taxpayer bailouts were 
the norm.
  We must not put our financial stability in jeopardy of another 
financial meltdown.
  Mr. GENE GREEN of Texas. Mr. Chair, in the 9 years since the 2008 
financial crisis, there's a consensus that the crisis was caused by too 
much risk and lax regulation. Because of banks' overinvestment in risky 
financial products, our country was plunged into the worst economic 
crisis since the Great Depression.
  Housing prices, where middle-class Americans for decades have focused 
their investment, fell by more than 30 percent and an estimated 5.5 
million more American jobs were lost to slow growth during the crisis. 
My hometown of Houston, Texas, was further hit by the sudden fall of 
oil prices in 2014 and the attendant layoffs and slowdown in the local 
economy, making it hard for my constituents to save, provide for their 
families, and plan for the future.
  Seven years after Dodd-Frank was enacted, our country is just now 
beginning to recover. Dodd-Frank was put in place to make sure that the 
conditions that led to the crisis cannot occur again. If the hardship 
suffered by the millions of Americans who saw the value of their home 
and their retirement funds disappear fails to convince my Republican 
colleagues of the need to make sure that banks cannot gamble with the 
money of middle-class Americans, it's difficult to imagine what would.
  The CHOICE Act recreates the conditions that led to the 2008 crisis 
by allowing banks to again engage in risky investment behavior with 
their clients' money, and limiting oversight of banks by the federal 
government. If a key financial institution like the Lehmann Brothers, 
whose collapse contributed to the severity of the crisis in 2008, again 
collapses, the CHOICE Act then limits the ability of the government to 
intervene to guard against a total collapse of the financial system.
  The assault that the CHOICE Act represents on the livelihood of 
middle and working class Americans isn't limited to this. Although 
consumer protection should be the most basic goal of all lawmakers, 
this bill subjugates consumer protection and welfare to the banking and 
finance industry in two additional ways. First, it will gut the 
Consumer Financial Protection Bureau, the agency created by Dodd-Frank 
and tasked with protecting Americans from irresponsible or predatory 
behavior by financial institutions. The CHOICE Act thus nearly 
eradicates the ability of the U.S. government to monitor the safety of 
financial products for everyday Americans, thus leaving a massive void 
in consumers' daily lives, as financial product offerings continue to 
expand and grow more and more complex and sometimes difficult to 
understand.
  The Wrong CHOICE Act will also nullify the much-needed fiduciary 
rule, allowing investment advisors to make decisions with the money of 
their clients that aren't in their clients' best interest. This is 
shameful, and will allow bad apple investment advisors to take 
advantage of often elderly clients who, understandably, assume that 
those investment advisors will help them save for their retirement 
rather than put their own fees first.
  I ask my colleagues on both sides of the aisle today to stand with 
our nation's retirees and working families and vote down this 
irresponsible bill.

                              {time}  1445

  The Acting CHAIR. All time for general debate has expired.
  Pursuant to the rule, the bill shall be considered for amendment 
under the 5-minute rule.
  In lieu of the amendment in the nature of a substitute recommended by 
the Committee on Financial Services, printed in the bill, it shall be 
in order to consider as an original bill for the purpose of amendment 
under the 5-minute rule the amendment in the nature of a substitute 
printed in part A of House Report 115-163. That amendment in the nature 
of a substitute shall be considered as read.
  The text of the amendment in the nature of a substitute is as 
follows:

                                H.R. 10

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
Sec. 1. Short title; table of contents.
Sec. 2. Directed rulemaking repeals.

[[Page 8925]]

         TITLE I--ENDING ``TOO BIG TO FAIL'' AND BANK BAILOUTS

        Subtitle A--Repeal of the Orderly Liquidation Authority

Sec. 111. Repeal of the orderly liquidation authority.

              Subtitle B--Financial Institution Bankruptcy

Sec. 121. General provisions relating to covered financial 
              corporations.
Sec. 122. Liquidation, reorganization, or recapitalization of a covered 
              financial corporation.
Sec. 123. Amendments to title 28, United States Code.

                Subtitle C--Ending Government Guarantees

Sec. 131. Repeal of obligation guarantee program.
Sec. 132. Repeal of systemic risk determination in resolutions.
Sec. 133. Restrictions on use of the Exchange Stabilization Fund.

     Subtitle D--Eliminating Financial Market Utility Designations

Sec. 141. Repeal of title VIII.

       Subtitle E--Reform of the Financial Stability Act of 2010

Sec. 151. Repeal and modification of provisions of the Financial 
              Stability Act of 2010.
Sec. 152. Operational risk capital requirements for banking 
              organizations.

          TITLE II--DEMANDING ACCOUNTABILITY FROM WALL STREET

                Subtitle A--SEC Penalties Modernization

Sec. 211. Enhancement of civil penalties for securities laws 
              violations.
Sec. 212. Updated civil money penalties of Public Company Accounting 
              Oversight Board.
Sec. 213. Updated civil money penalty for controlling persons in 
              connection with insider trading.
Sec. 214. Update of certain other penalties.
Sec. 215. Monetary sanctions to be used for the relief of victims.
Sec. 216. GAO report on use of civil money penalty authority by 
              Commission.

               Subtitle B--FIRREA Penalties Modernization

Sec. 221. Increase of civil and criminal penalties originally 
              established in the Financial Institutions Reform, 
              Recovery, and Enforcement Act of 1989.

   TITLE III--DEMANDING ACCOUNTABILITY FROM FINANCIAL REGULATORS AND 
                  DEVOLVING POWER AWAY FROM WASHINGTON

                   Subtitle A--Cost-Benefit Analyses

Sec. 311. Definitions.
Sec. 312. Required regulatory analysis.
Sec. 313. Rule of construction.
Sec. 314. Public availability of data and regulatory analysis.
Sec. 315. Five-year regulatory impact analysis.
Sec. 316. Retrospective review of existing rules.
Sec. 317. Judicial review.
Sec. 318. Chief Economists Council.
Sec. 319. Conforming amendments.
Sec. 320. Other regulatory entities.
Sec. 321. Avoidance of duplicative or unnecessary analyses.

Subtitle B--Congressional Review of Federal Financial Agency Rulemaking

Sec. 331. Congressional review.
Sec. 332. Congressional approval procedure for major rules.
Sec. 333. Congressional disapproval procedure for nonmajor rules.
Sec. 334. Definitions.
Sec. 335. Judicial review.
Sec. 336. Effective date of certain rules.
Sec. 337. Budgetary effects of rules subject to section 332 of the 
              Financial CHOICE Act of 2017.
Sec. 338. Nonapplicability to monetary policy.

             Subtitle C--Judicial Review of Agency Actions

Sec. 341. Scope of judicial review of agency actions.

             Subtitle D--Leadership of Financial Regulators

Sec. 351. Federal Deposit Insurance Corporation.
Sec. 352. Federal Housing Finance Agency.

         Subtitle E--Congressional Oversight of Appropriations

Sec. 361. Bringing the Federal Deposit Insurance Corporation into the 
              appropriations process.
Sec. 362. Bringing the Federal Housing Finance Agency into the 
              appropriations process.
Sec. 363. Bringing the National Credit Union Administration into the 
              appropriations process.
Sec. 364. Bringing the Office of the Comptroller of the Currency into 
              the appropriations process.
Sec. 365. Bringing the non-monetary policy related functions of the 
              Board of Governors of the Federal Reserve System into the 
              appropriations process.

                  Subtitle F--International Processes

Sec. 371. Requirements for international processes.

                  Subtitle G--Unfunded Mandates Reform

Sec. 381. Definitions.
Sec. 382. Application of the Unfunded Mandates Reform Act.

                  Subtitle H--Enforcement Coordination

Sec. 391. Policies to minimize duplication of enforcement efforts.

           Subtitle I--Penalties for Unauthorized Disclosures

Sec. 392. Criminal penalty for unauthorized disclosures.

                Subtitle J--Stop Settlement Slush Funds

Sec. 393. Limitation on donations made pursuant to settlement 
              agreements to which certain departments or agencies are a 
              party.

 TITLE IV--UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, INNOVATORS, 
           AND JOB CREATORS BY FACILITATING CAPITAL FORMATION

Subtitle A--Small Business Mergers, Acquisitions, Sales, and Brokerage 
                             Simplification

Sec. 401. Registration exemption for merger and acquisition brokers.
Sec. 402. Effective date.

               Subtitle B--Encouraging Employee Ownership

Sec. 406. Increased threshold for disclosures relating to compensatory 
              benefit plans.

          Subtitle C--Small Company Disclosure Simplification

Sec. 411. Exemption from XBRL requirements for emerging growth 
              companies and other smaller companies.
Sec. 412. Analysis by the SEC.
Sec. 413. Report to Congress.
Sec. 414. Definitions.

   Subtitle D--Securities and Exchange Commission Overpayment Credit

Sec. 416. Refunding or crediting overpayment of section 31 fees.

             Subtitle E--Fair Access to Investment Research

Sec. 421. Safe harbor for investment fund research.

               Subtitle F--Accelerating Access to Capital

Sec. 426. Expanded eligibility for use of Form S-3.

                  Subtitle G--Enhancing the RAISE Act

Sec. 431. Certain accredited investor transactions.

             Subtitle H--Small Business Credit Availability

Sec. 436. Business development company ownership of securities of 
              investment advisers and certain financial companies.
Sec. 437. Expanding access to capital for business development 
              companies.
Sec. 438. Parity for business development companies regarding offering 
              and proxy rules.

                    Subtitle I--Fostering Innovation

Sec. 441. Temporary exemption for low-revenue issuers.

        Subtitle J--Small Business Capital Formation Enhancement

Sec. 446. Annual review of government-business forum on capital 
              formation.

              Subtitle K--Helping Angels Lead Our Startups

Sec. 451. Definition of angel investor group.
Sec. 452. Clarification of general solicitation.

                     Subtitle L--Main Street Growth

Sec. 456. Venture exchanges.

                 Subtitle M--Micro Offering Safe Harbor

Sec. 461. Exemptions for micro-offerings.

               Subtitle N--Private Placement Improvement

Sec. 466. Revisions to SEC Regulation D.

              Subtitle O--Supporting America's Innovators

Sec. 471. Investor limitation for qualifying venture capital funds.

                      Subtitle P--Fix Crowdfunding

Sec. 476. Crowdfunding exemption.
Sec. 477. Exclusion of crowdfunding investors from shareholder cap.
Sec. 478. Preemption of State law.
Sec. 479. Treatment of funding portals.

        Subtitle Q--Corporate Governance Reform and Transparency

Sec. 481. Definitions.
Sec. 482. Registration of proxy advisory firms.
Sec. 483. Commission annual report.

                        Subtitle R--Senior Safe

Sec. 491. Immunity.
Sec. 492. Training required.
Sec. 493. Relationship to State law.

       Subtitle S--National Securities Exchange Regulatory Parity

Sec. 496. Application of exemption.

           Subtitle T--Private Company Flexibility and Growth

Sec. 497. Shareholder threshold for registration.

        Subtitle U--Small Company Capital Formation Enhancements

Sec. 498. JOBS Act-related exemption.

                Subtitle V--Encouraging Public Offerings

Sec. 499. Expanding testing the waters and confidential submissions.

  TITLE V--REGULATORY RELIEF FOR MAIN STREET AND COMMUNITY FINANCIAL 
                              INSTITUTIONS

         Subtitle A--Preserving Access to Manufactured Housing

Sec. 501. Mortgage originator definition.
Sec. 502. High-Cost mortgage definition.

                      Subtitle B--Mortgage Choice

Sec. 506. Definition of points and fees.

         Subtitle C--Financial Institution Customer Protection

Sec. 511. Requirements for deposit account termination requests and 
              orders.

[[Page 8926]]

Sec. 512. Amendments to the Financial Institutions Reform, Recovery, 
              and Enforcement Act of 1989.

           Subtitle D--Portfolio Lending and Mortgage Access

Sec. 516. Safe harbor for certain loans held on portfolio.

    Subtitle E--Application of the Expedited Funds Availability Act

Sec. 521. Application of the Expedited Funds Availability Act.

        Subtitle F--Small Bank Holding Company Policy Statement

Sec. 526. Changes required to small bank holding company policy 
              statement on assessment of financial and managerial 
              factors.

           Subtitle G--Community Institution Mortgage Relief

Sec. 531. Community financial institution mortgage relief.

   Subtitle H--Financial Institutions Examination Fairness and Reform

Sec. 536. Timeliness of examination reports.

  Subtitle I--National Credit Union Administration Budget Transparency

Sec. 541. Budget transparency for the NCUA.

   Subtitle J--Taking Account of Institutions With Low Operation Risk

Sec. 546. Regulations appropriate to business models.

      Subtitle K--Federal Savings Association Charter Flexibility

Sec. 551. Option for Federal savings associations to operate as a 
              covered savings association.

                Subtitle L--SAFE Transitional Licensing

Sec. 556. Eliminating barriers to jobs for loan originators.

                       Subtitle M--Right to Lend

Sec. 561. Small business loan data collection requirement.

              Subtitle N--Community Bank Reporting Relief

Sec. 566. Short form call report.

          Subtitle O--Homeowner Information Privacy Protection

Sec. 571. Study regarding privacy of information collected under the 
              Home Mortgage Disclosure Act of 1975.

            Subtitle P--Home Mortgage Disclosure Adjustment

Sec. 576. Depository institutions subject to maintenance of records and 
              disclosure requirements.

           Subtitle Q--Protecting Consumers' Access to Credit

Sec. 581. Rate of interest after transfer of loan.

                 Subtitle R--NCUA Overhead Transparency

Sec. 586. Fund transparency.

             Subtitle S--Housing Opportunities Made Easier

Sec. 591. Clarification of donated services to non-profits.

  TITLE VI--REGULATORY RELIEF FOR STRONGLY CAPITALIZED, WELL MANAGED 
                         BANKING ORGANIZATIONS

Sec. 601. Capital election.
Sec. 602. Regulatory relief.
Sec. 603. Contingent capital study.
Sec. 604. Study on altering the current prompt corrective action rules.
Sec. 605. Definitions.

   TITLE VII--EMPOWERING AMERICANS TO ACHIEVE FINANCIAL INDEPENDENCE

       Subtitle A--Separation of Powers and Liberty Enhancements

Sec. 711. Consumer Law Enforcement Agency.
Sec. 712. Bringing the Agency into the regular appropriations process.
Sec. 713. Consumer Law Enforcement Agency Inspector General Reform.
Sec. 714. Private parties authorized to compel the Agency to seek 
              sanctions by filing civil actions; Adjudications deemed 
              actions.
Sec. 715. Civil investigative demands to be appealed to courts.
Sec. 716. Agency dual mandate and economic analysis.
Sec. 717. No deference to Agency interpretation.

                Subtitle B--Administrative Enhancements

Sec. 721. Advisory opinions.
Sec. 722. Reform of Consumer Financial Civil Penalty Fund.
Sec. 723. Agency pay fairness.
Sec. 724. Elimination of market monitoring functions.
Sec. 725. Reforms to mandatory functional units.
Sec. 726. Repeal of mandatory advisory board.
Sec. 727. Elimination of supervision authority.
Sec. 728. Transfer of old OTS building from OCC to GSA.
Sec. 729. Limitation on Agency authority.

                    Subtitle C--Policy Enhancements

Sec. 731. Consumer right to financial privacy.
Sec. 732. Repeal of Council authority to set aside Agency rules and 
              requirement of safety and soundness considerations when 
              issuing rules.
Sec. 733. Removal of authority to regulate small-dollar credit.
Sec. 734. Reforming indirect auto financing guidance.
Sec. 735. Removal of Agency UDAAP authority.
Sec. 736. Preservation of UDAP authority for Federal banking 
              regulators.
Sec. 737. Repeal of authority to restrict arbitration.

                TITLE VIII--CAPITAL MARKETS IMPROVEMENTS

       Subtitle A--SEC Reform, Restructuring, and Accountability

Sec. 801. Authorization of appropriations.
Sec. 802. Report on unobligated appropriations.
Sec. 803. SEC Reserve Fund abolished.
Sec. 804. Fees to offset appropriations.
Sec. 805. Commission Federal construction funding prohibition.
Sec. 806. Implementation of recommendations.
Sec. 807. Office of Credit Ratings to report to the Division of Trading 
              and Markets.
Sec. 808. Office of Municipal Securities to report to the Division of 
              Trading and Markets.
Sec. 809. Independence of Commission Ombudsman.
Sec. 810. Investor Advisory Committee improvements.
Sec. 811. Duties of Investor Advocate.
Sec. 812. Elimination of exemption of Small Business Capital Formation 
              Advisory Committee from Federal Advisory Committee Act.
Sec. 813. Internal risk controls.
Sec. 814. Applicability of notice and comment requirements of the 
              Administrative Procedure Act to guidance voted on by the 
              Commission.
Sec. 815. Limitation on pilot programs.
Sec. 816. Procedure for obtaining certain intellectual property.
Sec. 817. Process for closing investigations.
Sec. 818. Enforcement Ombudsman.
Sec. 819. Adequate notice.
Sec. 820. Advisory committee on Commission's enforcement policies and 
              practices.
Sec. 821. Process to permit recipient of Wells notification to appear 
              before Commission staff in-person.
Sec. 822. Publication of enforcement manual.
Sec. 823. Private parties authorized to compel the Securities and 
              Exchange Commission to seek sanctions by filing civil 
              actions.
Sec. 824. Certain findings required to approve civil money penalties 
              against issuers.
Sec. 825. Repeal of authority of the Commission to prohibit persons 
              from serving as officers or directors.
Sec. 826. Subpoena duration and renewal.
Sec. 827. Elimination of automatic disqualifications.
Sec. 828. Denial of award to culpable whistleblowers.
Sec. 829. Clarification of authority to impose sanctions on persons 
              associated with a broker or dealer.
Sec. 830. Complaint and burden of proof requirements for certain 
              actions for breach of fiduciary duty.
Sec. 831. Congressional access to information held by the Public 
              Company Accounting Oversight Board.
Sec. 832. Abolishing Investor Advisory Group.
Sec. 833. Repeal of requirement for Public Company Accounting Oversight 
              Board to use certain funds for merit scholarship program.
Sec. 834. Reallocation of fines for violations of rules of municipal 
              securities rulemaking board.

 Subtitle B--Eliminating Excessive Government Intrusion in the Capital 
                                Markets

Sec. 841. Repeal of Department of Labor fiduciary rule and requirements 
              prior to rulemaking relating to standards of conduct for 
              brokers and dealers.
Sec. 842. Exemption from risk retention requirements for nonresidential 
              mortgage.
Sec. 843. Frequency of shareholder approval of executive compensation.
Sec. 844. Shareholder Proposals.
Sec. 845. Prohibition on requiring a single ballot.
Sec. 846. Requirement for municipal advisor for issuers of municipal 
              securities.
Sec. 847. Small issuer exemption from internal control evaluation.
Sec. 848. Streamlining of applications for an exemption from the 
              Investment Company Act of 1940.
Sec. 849. Restriction on recovery of erroneously awarded compensation.
Sec. 850. Exemptive authority for certain provisions relating to 
              registration of nationally recognized statistical rating 
              organizations.
Sec. 851. Risk-based examinations of Nationally Recognized Statistical 
              Rating Organizations.
Sec. 852. Transparency of credit rating methodologies.
Sec. 853. Repeal of certain attestation requirements relating to credit 
              ratings.
Sec. 854. Look-back review by NRSRO.
Sec. 855. Approval of credit rating procedures and methodologies.
Sec. 856. Exception for providing certain material information relating 
              to a credit rating.
Sec. 857. Repeals.
Sec. 858. Exemption of and reporting by private equity fund advisers.
Sec. 859. Records and reports of private funds.
Sec. 860. Definition of accredited investor.
Sec. 861. Repeal of certain provisions requiring a study and report to 
              Congress.
Sec. 862. Repeal.

[[Page 8927]]

             Subtitle C--Harmonization of Derivatives Rules

Sec. 871. Commissions review and harmonization of rules relating to the 
              regulation of over-the-counter swaps markets.
Sec. 872. Treatment of transactions between affiliates.

       TITLE IX--REPEAL OF THE VOLCKER RULE AND OTHER PROVISIONS

Sec. 901. Repeals.

            TITLE X--FED OVERSIGHT REFORM AND MODERNIZATION

Sec. 1001. Requirements for policy rules of the Federal Open Market 
              Committee.
Sec. 1002. Federal Open Market Committee blackout period.
Sec. 1003. Public transcripts of FOMC meetings.
Sec. 1004. Membership of Federal Open Market Committee.
Sec. 1005. Frequency of testimony of the Chairman of the Board of 
              Governors of the Federal Reserve System to Congress.
Sec. 1006. Vice Chairman for Supervision report requirement.
Sec. 1007. Salaries, financial disclosures, and office staff of the 
              Board of Governors of the Federal Reserve System.
Sec. 1008. Amendments to powers of the Board of Governors of the 
              Federal Reserve System.
Sec. 1009. Interest rates on balances maintained at a Federal Reserve 
              bank by depository institutions established by Federal 
              Open Market Committee.
Sec. 1010. Audit reform and transparency for the Board of Governors of 
              the Federal Reserve System.
Sec. 1011. Establishment of a Centennial Monetary Commission.

   TITLE XI--IMPROVING INSURANCE COORDINATION THROUGH AN INDEPENDENT 
                                ADVOCATE

Sec. 1101. Repeal of the Federal Insurance Office; Creation of the 
              Office of the Independent Insurance Advocate.
Sec. 1102. Treatment of covered agreements.

                    TITLE XII--TECHNICAL CORRECTIONS

Sec. 1201. Table of contents; Definitional corrections.
Sec. 1202. Antitrust savings clause corrections.
Sec. 1203. Title I corrections.
Sec. 1204. Title III corrections.
Sec. 1205. Title IV correction.
Sec. 1206. Title VI corrections.
Sec. 1207. Title VII corrections.
Sec. 1208. Title IX corrections.
Sec. 1209. Title X corrections.
Sec. 1210. Title XII correction.
Sec. 1211. Title XIV correction.
Sec. 1212. Technical corrections to other statutes.

     SEC. 2. DIRECTED RULEMAKING REPEALS.

       With respect to any directed rulemaking required by a 
     provision of law repealed by this Act, to the extent any rule 
     was issued or revised pursuant to such directed rulemaking, 
     such rule or revision shall have no force or effect.

         TITLE I--ENDING ``TOO BIG TO FAIL'' AND BANK BAILOUTS

        Subtitle A--Repeal of the Orderly Liquidation Authority

     SEC. 111. REPEAL OF THE ORDERLY LIQUIDATION AUTHORITY.

       (a) In General.--Title II of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act is hereby repealed and any 
     Federal law amended by such title shall, on and after the 
     effective date of this Act, be effective as if title II of 
     the Dodd-Frank Wall Street Reform and Consumer Protection Act 
     had not been enacted.
       (b) Conforming Amendments.--
       (1) Dodd-frank wall street reform and consumer protection 
     act.--The Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended--
       (A) in the table of contents for such Act, by striking all 
     items relating to title II;
       (B) in section 165(d)--
       (i) in paragraph (1), by striking ``, the Council, and the 
     Corporation'' and inserting ``and the Council'';
       (ii) in paragraph (2), by striking ``, the Council, and the 
     Corporation'' and inserting ``and the Council'';
       (iii) in paragraph (3), by striking ``and the 
     Corporation'';
       (iv) in paragraph (4)--

       (I) by striking ``and the Corporation jointly determine'' 
     and inserting ``determines'';
       (II) by striking ``their'' and inserting ``its'';
       (III) in subparagraph (A), by striking ``and the 
     Corporation''; and
       (IV) in subparagraph (B), by striking ``and the 
     Corporation'';

       (v) in paragraph (5)--

       (I) in subparagraph (A), by striking ``and the Corporation 
     may jointly'' and inserting ``may''; and
       (II) in subparagraph (B)--

       (aa) by striking ``and the Corporation'' each place such 
     term appears;
       (bb) by striking ``may jointly'' and inserting ``may'';
       (cc) by striking ``have jointly'' and inserting ``has'';
       (vi) in paragraph (6), by striking ``, a receiver appointed 
     under title II,''; and
       (vii) by amending paragraph (8) to read as follows:
       ``(8) Rules.--Not later than 12 months after enactment of 
     this paragraph, the Board of Governors shall issue final 
     rules implementing this section.''; and
       (C) in section 716(g), by striking ``or a covered financial 
     company under title II''.
       (2) Federal deposit insurance act.--Section 10(b)(3) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1820(b)(3)) is 
     amended by striking ``, or of such nonbank financial company 
     supervised by the Board of Governors or bank holding company 
     described in section 165(a) of the Financial Stability Act of 
     2010, for the purpose of implementing its authority to 
     provide for orderly liquidation of any such company under 
     title II of that Act''.
       (3) Federal reserve act.--Section 13(3) of the Federal 
     Reserve Act is amended--
       (A) in subparagraph (B)--
       (i) in clause (ii), by striking ``, resolution under title 
     II of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act, or'' and inserting ``or is subject to 
     resolution under''; and
       (ii) in clause (iii), by striking ``, resolution under 
     title II of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act, or'' and inserting ``or resolution under''; 
     and
       (B) by striking subparagraph (E).

              Subtitle B--Financial Institution Bankruptcy

     SEC. 121. GENERAL PROVISIONS RELATING TO COVERED FINANCIAL 
                   CORPORATIONS.

       (a) Definition.--Section 101 of title 11, United States 
     Code, is amended by inserting the following after paragraph 
     (9):
       ``(9A) The term `covered financial corporation' means any 
     corporation incorporated or organized under any Federal or 
     State law, other than a stockbroker, a commodity broker, or 
     an entity of the kind specified in paragraph (2) or (3) of 
     section 109(b), that is--
       ``(A) a bank holding company, as defined in section 2(a) of 
     the Bank Holding Company Act of 1956; or
       ``(B) a corporation that exists for the primary purpose of 
     owning, controlling and financing its subsidiaries, that has 
     total consolidated assets of $50,000,000,000 or greater, and 
     for which, in its most recently completed fiscal year--
       ``(i) annual gross revenues derived by the corporation and 
     all of its subsidiaries from activities that are financial in 
     nature (as defined in section 4(k) of the Bank Holding 
     Company Act of 1956) and, if applicable, from the ownership 
     or control of one or more insured depository institutions, 
     represents 85 percent or more of the consolidated annual 
     gross revenues of the corporation; or
       ``(ii) the consolidated assets of the corporation and all 
     of its subsidiaries related to activities that are financial 
     in nature (as defined in section 4(k) of the Bank Holding 
     Company Act of 1956) and, if applicable, related to the 
     ownership or control of one or more insured depository 
     institutions, represents 85 percent or more of the 
     consolidated assets of the corporation.''.
       (b) Applicability of Chapters.--Section 103 of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(l) Subchapter V of chapter 11 of this title applies only 
     in a case under chapter 11 concerning a covered financial 
     corporation.''.
       (c) Who May Be a Debtor.--Section 109 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by striking ``or'' at the end;
       (B) in paragraph (3)(B), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(4) a covered financial corporation.''; and
       (2) in subsection (d)--
       (A) by striking ``and'' before ``an uninsured State member 
     bank'';
       (B) by striking ``or'' before ``a corporation''; and
       (C) by inserting ``, or a covered financial corporation'' 
     after ``Federal Deposit Insurance Corporation Improvement Act 
     of 1991''.
       (d) Conversion to Chapter 7.--Section 1112 of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(g) Notwithstanding section 109(b), the court may convert 
     a case under subchapter V to a case under chapter 7 if--
       ``(1) a transfer approved under section 1185 has been 
     consummated;
       ``(2) the court has ordered the appointment of a special 
     trustee under section 1186; and
       ``(3) the court finds, after notice and a hearing, that 
     conversion is in the best interest of the creditors and the 
     estate.''.
       (e)(1) Section 726(a)(1) of title 11, United States Code, 
     is amended by inserting after ``first,'' the following: ``in 
     payment of any unpaid fees, costs, and expenses of a special 
     trustee appointed under section 1186, and then''.
       (2) Section 1129(a) of title 11, United States Code, is 
     amended by inserting after paragraph (16) the following:
       ``(17) In a case under subchapter V, all payable fees, 
     costs, and expenses of the special trustee have been paid or 
     the plan provides for the payment of all such fees, costs, 
     and expenses on the effective date of the plan.
       ``(18) In a case under subchapter V, confirmation of the 
     plan is not likely to cause serious adverse effects on 
     financial stability in the United States.''.
       (f) Section 322(b)(2) of title 11, United States Code, is 
     amended by striking ``The'' and inserting ``In cases under 
     subchapter V, the United States trustee shall recommend to 
     the court, and in all other cases, the''.

     SEC. 122. LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF 
                   A COVERED FINANCIAL CORPORATION.

       Chapter 11 of title 11, United States Code, is amended by 
     adding at the end the following

[[Page 8928]]

     (and conforming the table of contents for such chapter 
     accordingly):

 ``SUBCHAPTER V--LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A 
                     COVERED FINANCIAL CORPORATION

     ``Sec. 1181. Inapplicability of other sections

       ``Sections 303 and 321(c) do not apply in a case under this 
     subchapter concerning a covered financial corporation. 
     Section 365 does not apply to a transfer under section 1185, 
     1187, or 1188.

     ``Sec. 1182. Definitions for this subchapter

       ``In this subchapter, the following definitions shall 
     apply:
       ``(1) The term `Board' means the Board of Governors of the 
     Federal Reserve System.
       ``(2) The term `bridge company' means a newly formed 
     corporation to which property of the estate may be 
     transferred under section 1185(a) and the equity securities 
     of which may be transferred to a special trustee under 
     section 1186(a).
       ``(3) The term `capital structure debt' means all unsecured 
     debt of the debtor for borrowed money for which the debtor is 
     the primary obligor, other than a qualified financial 
     contract and other than debt secured by a lien on property of 
     the estate that is to be transferred to a bridge company 
     pursuant to an order of the court under section 1185(a).
       ``(4) The term `contractual right' means a contractual 
     right of a kind defined in section 555, 556, 559, 560, or 
     561.
       ``(5) The term `qualified financial contract' means any 
     contract of a kind defined in paragraph (25), (38A), (47), or 
     (53B) of section 101, section 741(7), or paragraph (4), (5), 
     (11), or (13) of section 761.
       ``(6) The term `special trustee' means the trustee of a 
     trust formed under section 1186(a)(1).

     ``Sec. 1183. Commencement of a case concerning a covered 
       financial corporation

       ``(a) A case under this subchapter concerning a covered 
     financial corporation may be commenced by the filing of a 
     petition with the court by the debtor under section 301 only 
     if the debtor states to the best of its knowledge under 
     penalty of perjury in the petition that it is a covered 
     financial corporation.
       ``(b) The commencement of a case under subsection (a) 
     constitutes an order for relief under this subchapter.
       ``(c) The members of the board of directors (or body 
     performing similar functions) of a covered financial company 
     shall have no liability to shareholders, creditors, or other 
     parties in interest for a good faith filing of a petition to 
     commence a case under this subchapter, or for any reasonable 
     action taken in good faith in contemplation of such a 
     petition or a transfer under section 1185 or section 1186, 
     whether prior to or after commencement of the case.
       ``(d) Counsel to the debtor shall provide, to the greatest 
     extent practicable without disclosing the identity of the 
     potential debtor, sufficient confidential notice to the chief 
     judge of the court of appeals for the circuit embracing the 
     district in which such counsel intends to file a petition to 
     commence a case under this subchapter regarding the potential 
     commencement of such case. The chief judge of such court 
     shall randomly assign to preside over such case a bankruptcy 
     judge selected from among the bankruptcy judges designated by 
     the Chief Justice of the United States under section 298 of 
     title 28.

     ``Sec. 1184. Regulators

       ``The Board, the Securities Exchange Commission, the Office 
     of the Comptroller of the Currency of the Department of the 
     Treasury, the Commodity Futures Trading Commission, and the 
     Federal Deposit Insurance Corporation may raise and may 
     appear and be heard on any issue in any case or proceeding 
     under this subchapter.

     ``Sec. 1185. Special transfer of property of the estate

       ``(a) On request of the trustee, and after notice and a 
     hearing that shall occur not less than 24 hours after the 
     order for relief, the court may order a transfer under this 
     section of property of the estate, and the assignment of 
     executory contracts, unexpired leases, and qualified 
     financial contracts of the debtor, to a bridge company. Upon 
     the entry of an order approving such transfer, any property 
     transferred, and any executory contracts, unexpired leases, 
     and qualified financial contracts assigned under such order 
     shall no longer be property of the estate. Except as provided 
     under this section, the provisions of section 363 shall apply 
     to a transfer and assignment under this section.
       ``(b) Unless the court orders otherwise, notice of a 
     request for an order under subsection (a) shall consist of 
     electronic or telephonic notice of not less than 24 hours 
     to--
       ``(1) the debtor;
       ``(2) the holders of the 20 largest secured claims against 
     the debtor;
       ``(3) the holders of the 20 largest unsecured claims 
     against the debtor;
       ``(4) counterparties to any debt, executory contract, 
     unexpired lease, and qualified financial contract requested 
     to be transferred under this section;
       ``(5) the Board;
       ``(6) the Federal Deposit Insurance Corporation;
       ``(7) the Secretary of the Treasury and the Office of the 
     Comptroller of the Currency of the Treasury;
       ``(8) the Commodity Futures Trading Commission;
       ``(9) the Securities and Exchange Commission;
       ``(10) the United States trustee or bankruptcy 
     administrator; and
       ``(11) each primary financial regulatory agency, as defined 
     in section 2(12) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act, with respect to any affiliate the 
     equity securities of which are proposed to be transferred 
     under this section.
       ``(c) The court may not order a transfer under this section 
     unless the court determines, based upon a preponderance of 
     the evidence, that--
       ``(1) the transfer under this section is necessary to 
     prevent serious adverse effects on financial stability in the 
     United States;
       ``(2) the transfer does not provide for the assumption of 
     any capital structure debt by the bridge company;
       ``(3) the transfer does not provide for the transfer to the 
     bridge company of any property of the estate that is subject 
     to a lien securing a debt, executory contract, unexpired 
     lease or agreement (including a qualified financial contract) 
     of the debtor unless--
       ``(A)(i) the bridge company assumes such debt, executory 
     contract, unexpired lease or agreement (including a qualified 
     financial contract), including any claims arising in respect 
     thereof that would not be allowed secured claims under 
     section 506(a)(1) and after giving effect to such transfer, 
     such property remains subject to the lien securing such debt, 
     executory contract, unexpired lease or agreement (including a 
     qualified financial contract); and
       ``(ii) the court has determined that assumption of such 
     debt, executory contract, unexpired lease or agreement 
     (including a qualified financial contract) by the bridge 
     company is in the best interests of the estate; or
       ``(B) such property is being transferred to the bridge 
     company in accordance with the provisions of section 363;
       ``(4) the transfer does not provide for the assumption by 
     the bridge company of any debt, executory contract, unexpired 
     lease or agreement (including a qualified financial contract) 
     of the debtor secured by a lien on property of the estate 
     unless the transfer provides for such property to be 
     transferred to the bridge company in accordance with 
     paragraph (3)(A) of this subsection;
       ``(5) the transfer does not provide for the transfer of the 
     equity of the debtor;
       ``(6) the trustee has demonstrated that the bridge company 
     is not likely to fail to meet the obligations of any debt, 
     executory contract, qualified financial contract, or 
     unexpired lease assumed and assigned to the bridge company;
       ``(7) the transfer provides for the transfer to a special 
     trustee all of the equity securities in the bridge company 
     and appointment of a special trustee in accordance with 
     section 1186;
       ``(8) after giving effect to the transfer, adequate 
     provision has been made for the fees, costs, and expenses of 
     the estate and special trustee; and
       ``(9) the bridge company will have governing documents, and 
     initial directors and senior officers, that are in the best 
     interest of creditors and the estate.
       ``(d) Immediately before a transfer under this section, the 
     bridge company that is the recipient of the transfer shall--
       ``(1) not have any property, executory contracts, unexpired 
     leases, qualified financial contracts, or debts, other than 
     any property acquired or executory contracts, unexpired 
     leases, or debts assumed when acting as a transferee of a 
     transfer under this section; and
       ``(2) have equity securities that are property of the 
     estate, which may be sold or distributed in accordance with 
     this title.

     ``Sec. 1186. Special trustee

       ``(a)(1) An order approving a transfer under section 1185 
     shall require the trustee to transfer to a qualified and 
     independent special trustee, who is appointed by the court, 
     all of the equity securities in the bridge company that is 
     the recipient of a transfer under section 1185 to hold in 
     trust for the sole benefit of the estate, subject to 
     satisfaction of the special trustee's fees, costs, and 
     expenses. The trust of which the special trustee is the 
     trustee shall be a newly formed trust governed by a trust 
     agreement approved by the court as in the best interests of 
     the estate, and shall exist for the sole purpose of holding 
     and administering, and shall be permitted to dispose of, the 
     equity securities of the bridge company in accordance with 
     the trust agreement.
       ``(2) In connection with the hearing to approve a transfer 
     under section 1185, the trustee shall confirm to the court 
     that the Board has been consulted regarding the identity of 
     the proposed special trustee and advise the court of the 
     results of such consultation.
       ``(b) The trust agreement governing the trust shall 
     provide--
       ``(1) for the payment of the fees, costs, expenses, and 
     indemnities of the special trustee from the assets of the 
     debtor's estate;
       ``(2) that the special trustee provide--
       ``(A) quarterly reporting to the estate, which shall be 
     filed with the court; and
       ``(B) information about the bridge company reasonably 
     requested by a party in interest to prepare a disclosure 
     statement for a plan providing for distribution of any 
     securities of the bridge company if such information is 
     necessary to prepare such disclosure statement;
       ``(3) that for as long as the equity securities of the 
     bridge company are held by the trust, the special trustee 
     shall file a notice with the court in connection with--
       ``(A) any change in a director or senior officer of the 
     bridge company;

[[Page 8929]]

       ``(B) any modification to the governing documents of the 
     bridge company; and
       ``(C) any material corporate action of the bridge company, 
     including--
       ``(i) recapitalization;
       ``(ii) a material borrowing;
       ``(iii) termination of an intercompany debt or guarantee;
       ``(iv) a transfer of a substantial portion of the assets of 
     the bridge company; or
       ``(v) the issuance or sale of any securities of the bridge 
     company;
       ``(4) that any sale of any equity securities of the bridge 
     company shall not be consummated until the special trustee 
     consults with the Federal Deposit Insurance Corporation and 
     the Board regarding such sale and discloses the results of 
     such consultation with the court;
       ``(5) that, subject to reserves for payments permitted 
     under paragraph (1) provided for in the trust agreement, the 
     proceeds of the sale of any equity securities of the bridge 
     company by the special trustee be held in trust for the 
     benefit of or transferred to the estate;
       ``(6) the process and guidelines for the replacement of the 
     special trustee; and
       ``(7) that the property held in trust by the special 
     trustee is subject to distribution in accordance with 
     subsection (c).
       ``(c)(1) The special trustee shall distribute the assets 
     held in trust--
       ``(A) if the court confirms a plan in the case, in 
     accordance with the plan on the effective date of the plan; 
     or
       ``(B) if the case is converted to a case under chapter 7, 
     as ordered by the court.
       ``(2) As soon as practicable after a final distribution 
     under paragraph (1), the office of the special trustee shall 
     terminate, except as may be necessary to wind up and conclude 
     the business and financial affairs of the trust.
       ``(d) After a transfer to the special trustee under this 
     section, the special trustee shall be subject only to 
     applicable nonbankruptcy law, and the actions and conduct of 
     the special trustee shall no longer be subject to approval by 
     the court in the case under this subchapter.

     ``Sec. 1187. Temporary and supplemental automatic stay; 
       assumed debt

       ``(a)(1) A petition filed under section 1183 operates as a 
     stay, applicable to all entities, of the termination, 
     acceleration, or modification of any debt, contract, lease, 
     or agreement of the kind described in paragraph (2), or of 
     any right or obligation under any such debt, contract, lease, 
     or agreement, solely because of--
       ``(A) a default by the debtor under any such debt, 
     contract, lease, or agreement; or
       ``(B) a provision in such debt, contract, lease, or 
     agreement, or in applicable nonbankruptcy law, that is 
     conditioned on--
       ``(i) the insolvency or financial condition of the debtor 
     at any time before the closing of the case;
       ``(ii) the commencement of a case under this title 
     concerning the debtor;
       ``(iii) the appointment of or taking possession by a 
     trustee in a case under this title concerning the debtor or 
     by a custodian before the commencement of the case; or
       ``(iv) a credit rating agency rating, or absence or 
     withdrawal of a credit rating agency rating--
       ``(I) of the debtor at any time after the commencement of 
     the case;
       ``(II) of an affiliate during the period from the 
     commencement of the case until 48 hours after such order is 
     entered;
       ``(III) of the bridge company while the trustee or the 
     special trustee is a direct or indirect beneficial holder of 
     more than 50 percent of the equity securities of--

       ``(aa) the bridge company; or
       ``(bb) the affiliate, if all of the direct or indirect 
     interests in the affiliate that are property of the estate 
     are transferred under section 1185; or

       ``(IV) of an affiliate while the trustee or the special 
     trustee is a direct or indirect beneficial holder of more 
     than 50 percent of the equity securities of--

       ``(aa) the bridge company; or
       ``(bb) the affiliate, if all of the direct or indirect 
     interests in the affiliate that are property of the estate 
     are transferred under section 1185.

       ``(2) A debt, contract, lease, or agreement described in 
     this paragraph is--
       ``(A) any debt (other than capital structure debt), 
     executory contract, or unexpired lease of the debtor (other 
     than a qualified financial contract);
       ``(B) any agreement under which the debtor issued or is 
     obligated for debt (other than capital structure debt);
       ``(C) any debt, executory contract, or unexpired lease of 
     an affiliate (other than a qualified financial contract); or
       ``(D) any agreement under which an affiliate issued or is 
     obligated for debt.
       ``(3) The stay under this subsection terminates--
       ``(A) for the benefit of the debtor, upon the earliest of--
       ``(i) 48 hours after the commencement of the case;
       ``(ii) assumption of the debt, contract, lease, or 
     agreement by the bridge company under an order authorizing a 
     transfer under section 1185;
       ``(iii) a final order of the court denying the request for 
     a transfer under section 1185; or
       ``(iv) the time the case is dismissed; and
       ``(B) for the benefit of an affiliate, upon the earliest 
     of--
       ``(i) the entry of an order authorizing a transfer under 
     section 1185 in which the direct or indirect interests in the 
     affiliate that are property of the estate are not transferred 
     under section 1185;
       ``(ii) a final order by the court denying the request for a 
     transfer under section 1185;
       ``(iii) 48 hours after the commencement of the case if the 
     court has not ordered a transfer under section 1185; or
       ``(iv) the time the case is dismissed.
       ``(4) Subsections (d), (e), (f), and (g) of section 362 
     apply to a stay under this subsection.
       ``(b) A debt, executory contract (other than a qualified 
     financial contract), or unexpired lease of the debtor, or an 
     agreement under which the debtor has issued or is obligated 
     for any debt, may be assumed by a bridge company in a 
     transfer under section 1185 notwithstanding any provision in 
     an agreement or in applicable nonbankruptcy law that--
       ``(1) prohibits, restricts, or conditions the assignment of 
     the debt, contract, lease, or agreement; or
       ``(2) accelerates, terminates, or modifies, or permits a 
     party other than the debtor to terminate or modify, the debt, 
     contract, lease, or agreement on account of--
       ``(A) the assignment of the debt, contract, lease, or 
     agreement; or
       ``(B) a change in control of any party to the debt, 
     contract, lease, or agreement.
       ``(c)(1) A debt, contract, lease, or agreement of the kind 
     described in subparagraph (A) or (B) of subsection (a)(2) may 
     not be accelerated, terminated, or modified, and any right or 
     obligation under such debt, contract, lease, or agreement may 
     not be accelerated, terminated, or modified, as to the bridge 
     company solely because of a provision in the debt, contract, 
     lease, or agreement or in applicable nonbankruptcy law--
       ``(A) of the kind described in subsection (a)(1)(B) as 
     applied to the debtor;
       ``(B) that prohibits, restricts, or conditions the 
     assignment of the debt, contract, lease, or agreement; or
       ``(C) that accelerates, terminates, or modifies, or permits 
     a party other than the debtor to terminate or modify, the 
     debt, contract, lease or agreement on account of--
       ``(i) the assignment of the debt, contract, lease, or 
     agreement; or
       ``(ii) a change in control of any party to the debt, 
     contract, lease, or agreement.
       ``(2) If there is a default by the debtor under a provision 
     other than the kind described in paragraph (1) in a debt, 
     contract, lease or agreement of the kind described in 
     subparagraph (A) or (B) of subsection (a)(2), the bridge 
     company may assume such debt, contract, lease, or agreement 
     only if the bridge company--
       ``(A) shall cure the default;
       ``(B) compensates, or provides adequate assurance in 
     connection with a transfer under section 1185 that the bridge 
     company will promptly compensate, a party other than the 
     debtor to the debt, contract, lease, or agreement, for any 
     actual pecuniary loss to the party resulting from the 
     default; and
       ``(C) provides adequate assurance in connection with a 
     transfer under section 1185 of future performance under the 
     debt, contract, lease, or agreement, as determined by the 
     court under section 1185(c)(4).

     ``Sec. 1188. Treatment of qualified financial contracts and 
       affiliate contracts

       ``(a) Notwithstanding sections 362(b)(6), 362(b)(7), 
     362(b)(17), 362(b)(27), 362(o), 555, 556, 559, 560, and 561, 
     a petition filed under section 1183 operates as a stay, 
     during the period specified in section 1187(a)(3)(A), 
     applicable to all entities, of the exercise of a contractual 
     right--
       ``(1) to cause the modification, liquidation, termination, 
     or acceleration of a qualified financial contract of the 
     debtor or an affiliate;
       ``(2) to offset or net out any termination value, payment 
     amount, or other transfer obligation arising under or in 
     connection with a qualified financial contract of the debtor 
     or an affiliate; or
       ``(3) under any security agreement or arrangement or other 
     credit enhancement forming a part of or related to a 
     qualified financial contract of the debtor or an affiliate.
       ``(b)(1) During the period specified in section 
     1187(a)(3)(A), the trustee or the affiliate shall perform all 
     payment and delivery obligations under such qualified 
     financial contract of the debtor or the affiliate, as the 
     case may be, that become due after the commencement of the 
     case. The stay provided under subsection (a) terminates as to 
     a qualified financial contract of the debtor or an affiliate 
     immediately upon the failure of the trustee or the affiliate, 
     as the case may be, to perform any such obligation during 
     such period.
       ``(2) Any failure by a counterparty to any qualified 
     financial contract of the debtor or any affiliate to perform 
     any payment or delivery obligation under such qualified 
     financial contract, including during the pendency of the stay 
     provided under subsection (a), shall constitute a breach of 
     such qualified financial contract by the counterparty.
       ``(c) Subject to the court's approval, a qualified 
     financial contract between an entity and the debtor may be 
     assigned to or assumed by the bridge company in a transfer 
     under, and in accordance with, section 1185 if and only if--
       ``(1) all qualified financial contracts between the entity 
     and the debtor are assigned to and assumed by the bridge 
     company in the transfer under section 1185;
       ``(2) all claims of the entity against the debtor in 
     respect of any qualified financial contract between the 
     entity and the debtor (other than any claim that, under the 
     terms of the qualified financial contract, is subordinated to 
     the claims of general unsecured creditors) are assigned to 
     and assumed by the bridge company;
       ``(3) all claims of the debtor against the entity under any 
     qualified financial contract between

[[Page 8930]]

     the entity and the debtor are assigned to and assumed by the 
     bridge company; and
       ``(4) all property securing or any other credit enhancement 
     furnished by the debtor for any qualified financial contract 
     described in paragraph (1) or any claim described in 
     paragraph (2) or (3) under any qualified financial contract 
     between the entity and the debtor is assigned to and assumed 
     by the bridge company.
       ``(d) Notwithstanding any provision of a qualified 
     financial contract or of applicable nonbankruptcy law, a 
     qualified financial contract of the debtor that is assumed or 
     assigned in a transfer under section 1185 may not be 
     accelerated, terminated, or modified, after the entry of the 
     order approving a transfer under section 1185, and any right 
     or obligation under the qualified financial contract may not 
     be accelerated, terminated, or modified, after the entry of 
     the order approving a transfer under section 1185 solely 
     because of a condition described in section 1187(c)(1), other 
     than a condition of the kind specified in section 1187(b) 
     that occurs after property of the estate no longer includes a 
     direct beneficial interest or an indirect beneficial interest 
     through the special trustee, in more than 50 percent of the 
     equity securities of the bridge company.
       ``(e) Notwithstanding any provision of any agreement or in 
     applicable nonbankruptcy law, an agreement of an affiliate 
     (including an executory contract, an unexpired lease, 
     qualified financial contract, or an agreement under which the 
     affiliate issued or is obligated for debt) and any right or 
     obligation under such agreement may not be accelerated, 
     terminated, or modified, solely because of a condition 
     described in section 1187(c)(1), other than a condition of 
     the kind specified in section 1187(b) that occurs after the 
     bridge company is no longer a direct or indirect beneficial 
     holder of more than 50 percent of the equity securities of 
     the affiliate, at any time after the commencement of the case 
     if--
       ``(1) all direct or indirect interests in the affiliate 
     that are property of the estate are transferred under section 
     1185 to the bridge company within the period specified in 
     subsection (a);
       ``(2) the bridge company assumes--
       ``(A) any guarantee or other credit enhancement issued by 
     the debtor relating to the agreement of the affiliate; and
       ``(B) any obligations in respect of rights of setoff, 
     netting arrangement, or debt of the debtor that directly 
     arises out of or directly relates to the guarantee or credit 
     enhancement; and
       ``(3) any property of the estate that directly serves as 
     collateral for the guarantee or credit enhancement is 
     transferred to the bridge company.

     ``Sec. 1189. Licenses, permits, and registrations

       ``(a) Notwithstanding any otherwise applicable 
     nonbankruptcy law, if a request is made under section 1185 
     for a transfer of property of the estate, any Federal, State, 
     or local license, permit, or registration that the debtor or 
     an affiliate had immediately before the commencement of the 
     case and that is proposed to be transferred under section 
     1185 may not be accelerated, terminated, or modified at any 
     time after the request solely on account of--
       ``(1) the insolvency or financial condition of the debtor 
     at any time before the closing of the case;
       ``(2) the commencement of a case under this title 
     concerning the debtor;
       ``(3) the appointment of or taking possession by a trustee 
     in a case under this title concerning the debtor or by a 
     custodian before the commencement of the case; or
       ``(4) a transfer under section 1185.
       ``(b) Notwithstanding any otherwise applicable 
     nonbankruptcy law, any Federal, State, or local license, 
     permit, or registration that the debtor had immediately 
     before the commencement of the case that is included in a 
     transfer under section 1185 shall be valid and all rights and 
     obligations thereunder shall vest in the bridge company.

     ``Sec. 1190. Exemption from securities laws

       ``For purposes of section 1145, a security of the bridge 
     company shall be deemed to be a security of a successor to 
     the debtor under a plan if the court approves the disclosure 
     statement for the plan as providing adequate information (as 
     defined in section 1125(a)) about the bridge company and the 
     security.

     ``Sec. 1191. Inapplicability of certain avoiding powers

       ``A transfer made or an obligation incurred by the debtor 
     to an affiliate prior to or after the commencement of the 
     case, including any obligation released by the debtor or the 
     estate to or for the benefit of an affiliate, in 
     contemplation of or in connection with a transfer under 
     section 1185 is not avoidable under section 544, 547, 
     548(a)(1)(B), or 549, or under any similar nonbankruptcy law.

     ``Sec. 1192. Consideration of financial stability

       ``The court may consider the effect that any decision in 
     connection with this subchapter may have on financial 
     stability in the United States.''.

     SEC. 123. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

       (a) Amendment to Chapter 13.--Chapter 13 of title 28, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 298. Judge for a case under subchapter V of chapter 11 
       of title 11

       ``(a)(1) Notwithstanding section 295, the Chief Justice of 
     the United States shall designate not fewer than 10 
     bankruptcy judges to be available to hear a case under 
     subchapter V of chapter 11 of title 11. Bankruptcy judges may 
     request to be considered by the Chief Justice of the United 
     States for such designation.
       ``(2) Notwithstanding section 155, a case under subchapter 
     V of chapter 11 of title 11 shall be heard under section 157 
     by a bankruptcy judge designated under paragraph (1), who 
     shall be randomly assigned to hear such case by the chief 
     judge of the court of appeals for the circuit embracing the 
     district in which the case is pending. To the greatest extent 
     practicable, the approvals required under section 155 should 
     be obtained.
       ``(3) If the bankruptcy judge assigned to hear a case under 
     paragraph (2) is not assigned to the district in which the 
     case is pending, the bankruptcy judge shall be temporarily 
     assigned to the district.
       ``(b) A case under subchapter V of chapter 11 of title 11, 
     and all proceedings in the case, shall take place in the 
     district in which the case is pending.
       ``(c) In this section, the term `covered financial 
     corporation' has the meaning given that term in section 
     101(9A) of title 11.''.
       (b) Amendment to Section 1334 of Title 28.--Section 1334 of 
     title 28, United States Code, is amended by adding at the end 
     the following:
       ``(f) This section does not grant jurisdiction to the 
     district court after a transfer pursuant to an order under 
     section 1185 of title 11 of any proceeding related to a 
     special trustee appointed, or to a bridge company formed, in 
     connection with a case under subchapter V of chapter 11 of 
     title 11.''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for chapter 13 of title 28, United States Code, is 
     amended by adding at the end the following:

``298. Judge for a case under subchapter V of chapter 11 of title 
              11.''.

                Subtitle C--Ending Government Guarantees

     SEC. 131. REPEAL OF OBLIGATION GUARANTEE PROGRAM.

       (a) In General.--The following sections of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act (12 U.S.C. 
     5301 et seq.) are repealed:
       (1) Section 1104.
       (2) Section 1105.
       (3) Section 1106.
       (b) Clerical Amendment.--The table of contents under 
     section 1(b) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act is amended by striking the items 
     relating to sections 1104, 1105, and 1106.

     SEC. 132. REPEAL OF SYSTEMIC RISK DETERMINATION IN 
                   RESOLUTIONS.

       Section 13(c)(4)(G) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1823(c)(4)(G)) is hereby repealed.

     SEC. 133. RESTRICTIONS ON USE OF THE EXCHANGE STABILIZATION 
                   FUND.

       (a) In General.--Section 5302 of title 31, United States 
     Code, is amended by adding at the end the following:
       ``(e) Amounts in the fund may not be used for the 
     establishment of a guaranty program for any nongovernmental 
     entity.''.
       (b) Conforming Amendment.--Section 131(b) of the Emergency 
     Economic Stabilization Act of 2008 (12 U.S.C. 5236(b)) is 
     amended by inserting ``, or for the purposes of preventing 
     the liquidation or insolvency of any entity'' before the 
     period.

     Subtitle D--Eliminating Financial Market Utility Designations

     SEC. 141. REPEAL OF TITLE VIII.

       (a) Repeal.--Title VIII of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5461 et seq.) 
     is repealed, and provisions of law amended by such title are 
     restored and revived as if such title had never been enacted.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended by striking the items relating to 
     title VIII.

       Subtitle E--Reform of the Financial Stability Act of 2010

     SEC. 151. REPEAL AND MODIFICATION OF PROVISIONS OF THE 
                   FINANCIAL STABILITY ACT OF 2010.

       (a) Repeals.--The following provisions of the Financial 
     Stability Act of 2010 are repealed, and the provisions of law 
     amended or repealed by such provisions are restored or 
     revived as if such provisions had not been enacted:
       (1) Subtitle B.
       (2) Section 113.
       (3) Section 114.
       (4) Section 115.
       (5) Section 116.
       (6) Section 117.
       (7) Section 119.
       (8) Section 120.
       (9) Section 121.
       (10) Section 161.
       (11) Section 162.
       (12) Section 164.
       (13) Section 166.
       (14) Section 167.
       (15) Section 168.
       (16) Section 170.
       (17) Section 172.
       (18) Section 174.
       (19) Section 175.
       (b) Additional Modifications.--The Financial Stability Act 
     of 2010 (12 U.S.C. 5311 et seq.) is amended--
       (1) in section 102(a), by striking paragraph (5);
       (2) in section 111--

[[Page 8931]]

       (A) in subsection (b)--
       (i) in paragraph (1)--

       (I) by striking ``who shall each'' and inserting ``who 
     shall, except as provided below, each''; and
       (II) by striking subparagraphs (B) through (J) and 
     inserting the following:

       ``(B) each member of the Board of Governors, who shall 
     collectively have 1 vote on the Council;
       ``(C) the Comptroller of the Currency;
       ``(D) the Director of the Consumer Law Enforcement Agency;
       ``(E) each member of the Commission, who shall collectively 
     have 1 vote on the Council;
       ``(F) each member of the Corporation, who shall 
     collectively have 1 vote on the Council;
       ``(G) each member of the Commodity Futures Trading 
     Commission, who shall collectively have 1 vote on the 
     Council;
       ``(H) the Director of the Federal Housing Finance Agency;
       ``(I) each member of the National Credit Union 
     Administration Board, who shall collectively have 1 vote on 
     the Council; and
       ``(J) the Independent Insurance Advocate.'';
       (ii) in paragraph (2)--

       (I) by striking subparagraphs (A) and (B); and
       (II) by redesignating subparagraphs (C), (D), and (E) as 
     subparagraphs (A), (B), and (C), respectively; and

       (iii) by adding at the end the following:
       ``(4) Voting by multi-person entity.--
       ``(A) Voting within the entity.--An entity described under 
     subparagraph (B), (E), (F), (G), or (I) of paragraph (1) 
     shall determine the entity's Council vote by using the voting 
     process normally applicable to votes by the entity's members.
       ``(B) Casting of entity vote.--The 1 collective Council 
     vote of an entity described under subparagraph (A) shall be 
     cast by the head of such agency or, in the event such head is 
     unable to cast such vote, the next most senior member of the 
     entity available.'';
       (B) in subsection (c)(1), by striking ``The independent 
     member of the Council shall serve for a term of 6 years, and 
     each nonvoting member described in subparagraphs (C), (D), 
     and (E) of'' and inserting ``Each nonvoting members described 
     under'';
       (C) in subsection (e), by adding at the end the following:
       ``(3) Staff access.--Any member of the Council may select 
     to have one or more individuals on the member's staff attend 
     a meeting of the Council, including any meeting of 
     representatives of the member agencies other than the members 
     themselves.
       ``(4) Congressional oversight.--All meetings of the 
     Council, whether or not open to the public, shall be open to 
     the attendance by members of the authorization and oversight 
     committees of the House of Representatives and the Senate.
       ``(5) Member agency meetings.--Any meeting of 
     representatives of the member agencies other than the members 
     themselves shall be open to attendance by staff of the 
     authorization and oversight committees of the House of 
     Representatives and the Senate.'';
       (D) by striking subsection (g) (relating to the 
     nonapplicability of FACA);
       (E) by inserting after subsection (f) the following:
       ``(g) Open Meeting Requirement.--The Council shall be an 
     agency for purposes of section 552b of title 5, United States 
     Code (commonly referred to as the `Government in the Sunshine 
     Act').
       ``(h) Confidential Congressional Briefings.--The 
     Chairperson shall at regular times but not less than annually 
     provide confidential briefings to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate, which may 
     in the discretion of the Chairman of the respective committee 
     be attended by any combination of the committee's members or 
     staff.''; and
       (F) by redesignating subsections (h) through (j) as 
     subsections (i) through (k), respectively;
       (3) in section 112--
       (A) in subsection (a)(2)--
       (i) in subparagraph (A), by striking ``the Federal 
     Insurance Office and, if necessary to assess risks to the 
     United States financial system, direct the Office of 
     Financial Research to'' and inserting ``and, if necessary to 
     assess risks to the United States financial system,'';
       (ii) by striking subparagraphs (B), (H), (I), and (J);
       (iii) by redesignating subparagraphs (C), (D), (E), (F), 
     (G), (K), (L), (M), and (N) as subparagraphs (B), (C), (D), 
     (E), (F), (G), (H), (I), and (J), respectively;
       (iv) in subparagraph (J), as so redesignated--

       (I) in clause (iii), by adding ``and'' at the end;
       (II) by striking clauses (iv) and (v); and
       (III) by redesignating clause (vi) as clause (iv); and

       (B) in subsection (d)--
       (i) in paragraph (1), by striking ``the Office of Financial 
     Research, member agencies, and the Federal Insurance Office'' 
     and inserting ``member agencies'';
       (ii) in paragraph (2), by striking ``the Office of 
     Financial Research, any member agency, and the Federal 
     Insurance Office,'' and inserting ``member agencies'';
       (iii) in paragraph (3)--

       (I) by striking ``, acting through the Office of Financial 
     Research,'' each place it appears; and
       (II) in subparagraph (B), by striking ``the Office of 
     Financial Research or''; and

       (iv) in paragraph (5)(A), by striking ``, the Office of 
     Financial Research,'';
       (4) by amending section 118 to read as follows:

     ``SEC. 118. COUNCIL FUNDING.

       ``There is authorized to be appropriated to the Council 
     $4,000,000 for fiscal year 2017 and each fiscal year 
     thereafter to carry out the duties of the Council.'';
       (5) in section 163--
       (A) by striking subsection (a);
       (B) by redesignating subsection (b) as subsection (a); and
       (C) in subsection (a), as so redesignated--
       (i) by striking ``or a nonbank financial company supervised 
     by the Board of Governors'' each place such term appears;
       (ii) in paragraph (4), by striking ``In addition'' and 
     inserting the following:
       ``(A) In general.--In addition''; and
       (iii) by adding at the end the following:
       ``(B) Exception for qualifying banking organization.--
     Subparagraph (A) shall not apply to a proposed acquisition by 
     a qualifying banking organization, as defined under section 
     605 of the Financial CHOICE Act of 2017.''; and
       (6) in section 165--
       (A) by striking ``nonbank financial companies supervised by 
     the Board of Governors and'' each place such term appears;
       (B) by striking ``nonbank financial company supervised by 
     the Board of Governors and'' each place such term appears;
       (C) in subsection (a), by amending paragraph (2) to read as 
     follows:
       ``(2) Tailored application.--In prescribing more stringent 
     prudential standards under this section, the Board of 
     Governors may differentiate among companies on an individual 
     basis or by category, taking into consideration their capital 
     structure, riskiness, complexity, financial activities 
     (including the financial activities of their subsidiaries), 
     size, and any other risk-related factors that the Board of 
     Governors deems appropriate.'';
       (D) in subsection (b)--
       (i) in paragraph (1)(B)(iv), by striking ``, on its own or 
     pursuant to a recommendation made by the Council in 
     accordance with section 115,'';
       (ii) in paragraph (2)--

       (I) by striking ``foreign nonbank financial company 
     supervised by the Board of Governors or'';
       (II) by striking ``shall--'' and all that follows through 
     ``give due'' and inserting ``shall give due'';
       (III) in subparagraph (A), by striking ``; and'' and 
     inserting a period; and
       (IV) by striking subparagraph (B);

       (iii) in paragraph (3)--

       (I) in subparagraph (A)--

       (aa) by striking clause (i);
       (bb) by redesignating clauses (ii), (iii), and (iv) as 
     clauses (i), (ii), and (iii), respectively; and
       (cc) in clause (iii), as so redesignated, by adding ``and'' 
     at the end;

       (II) by striking subparagraphs (B) and (C); and
       (III) by redesignating subparagraph (D) as subparagraph 
     (B); and

       (iv) in paragraph (4), by striking ``a nonbank financial 
     company supervised by the Board of Governors or'';
       (E) in subsection (c)--
       (i) in paragraph (1), by striking ``under section 115(c)''; 
     and
       (ii) in paragraph (2)--

       (I) by amending subparagraph (A) to read as follows:

       ``(A) any recommendations of the Council;''; and

       (II) in subparagraph (D), by striking ``nonbank financial 
     company supervised by the Board of Governors or'';

       (F) in subsection (d)--
       (i) by striking ``a nonbank financial company supervised by 
     the Board of Governors or'' each place such term appears;
       (ii) in paragraph (1), by striking ``periodically'' and 
     inserting ``not more often than every 2 years'';
       (iii) in paragraph (3)--

       (I) by striking ``The Board'' and inserting the following:

       ``(A) In general.--The Board'';

       (II) by striking ``shall review'' and inserting the 
     following: ``shall--

       ``(i) review'';

       (III) by striking the period and inserting ``; and''; and
       (IV) by adding at the end the following:

       ``(ii) not later than the end of the 6-month period 
     beginning on the date the bank holding company submits the 
     resolution plan, provide feedback to the bank holding company 
     on such plan.
       ``(B) Disclosure of assessment framework.--The Board of 
     Governors shall publicly disclose, including on the website 
     of the Board of Governors, the assessment framework that is 
     used to review information under this paragraph and shall 
     provide the public with a notice and comment period before 
     finalizing such assessment framework.''.
       (iv) in paragraph (6), by striking ``nonbank financial 
     company supervised by the Board, any bank holding company,'' 
     and inserting ``bank holding company'';
       (G) in subsection (e)--
       (i) in paragraph (1), by striking ``a nonbank financial 
     company supervised by the Board of Governors or'';
       (ii) in paragraph (3), by striking ``the nonbank financial 
     company supervised by the Board of Governors or'' each place 
     such term appears; and
       (iii) in paragraph (4), by striking ``a nonbank financial 
     company supervised by the Board of Governors or'';

[[Page 8932]]

       (H) in subsection (g)(1), by striking ``and any nonbank 
     financial company supervised by the Board of Governors'';
       (I) in subsection (h)--
       (i) by striking paragraph (1);
       (ii) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (1), (2), and (3), respectively;
       (iii) in paragraph (1), as so redesignated, by striking 
     ``paragraph (3)'' each place such term appears and inserting 
     ``paragraph (2)''; and
       (iv) in paragraph (2), as so redesignated--

       (I) in subparagraph (A), by striking ``the nonbank 
     financial company supervised by the Board of Governors or 
     bank holding company described in subsection (a), as 
     applicable'' and inserting ``a bank holding company described 
     in subsection (a)''; and
       (II) in subparagraph (B), by striking ``the nonbank 
     financial company supervised by the Board of Governors or a 
     bank holding company described in subsection (a), as 
     applicable'' and inserting ``a bank holding company described 
     in subsection (a)'';

       (J) in subsection (i)--
       (i) in paragraph (1)--

       (I) in subparagraph (A), by striking ``, in coordination 
     with the appropriate primary financial regulatory agencies 
     and the Federal Insurance Office,'';
       (II) in subparagraph (B)--

       (aa) by amending clause (i) to read as follows:
       ``(i) shall--

       ``(I) issue regulations, after providing for public notice 
     and comment, that provide for at least 3 different sets of 
     conditions under which the evaluation required by this 
     subsection shall be conducted, including baseline, adverse, 
     and severely adverse, and methodologies, including models 
     used to estimate losses on certain assets, and the Board of 
     Governors shall not carry out any such evaluation until 60 
     days after such regulations are issued; and
       ``(II) provide copies of such regulations to the 
     Comptroller General of the United States and the Panel of 
     Economic Advisors of the Congressional Budget Office before 
     publishing such regulations;'';

       (bb) in clause (ii), by striking ``and nonbank financial 
     companies'';
       (cc) in clause (iv), by striking ``and'' at the end;
       (dd) in clause (v), by striking the period and inserting 
     the following: ``, including any results of a resubmitted 
     test;''; and
       (ee) by adding at the end the following:
       ``(vi) shall, in establishing the severely adverse 
     condition under clause (i), provide detailed consideration of 
     the model's effects on financial stability and the cost and 
     availability of credit;
       ``(vii) shall, in developing the models and methodologies 
     and providing them for notice and comment under this 
     subparagraph, publish a process to test the models and 
     methodologies for their potential to magnify systemic and 
     institutional risks instead of facilitating increased 
     resiliency;
       ``(viii) shall design and publish a process to test and 
     document the sensitivity and uncertainty associated with the 
     model system's data quality, specifications, and assumptions; 
     and
       ``(ix) shall communicate the range and sources of 
     uncertainty surrounding the models and methodologies.''; and

       (III) by adding at the end the following:

       ``(C) CCAR requirements.--
       ``(i) Parameters and consequences applicable to ccar.--The 
     requirements of subparagraph (B) shall apply to CCAR.
       ``(ii) Two-year limitation.--The Board of Governors may not 
     subject a company to CCAR more than once every two years.
       ``(iii) Mid-cycle resubmission.--If a company receives a 
     quantitative objection to, or otherwise desires to amend the 
     company's capital plan, the company may file a new 
     streamlined plan at any time after a capital planning 
     exercise has been completed and before a subsequent capital 
     planning exercise.
       ``(iv) Limitation on qualitative capital planning 
     objections.--In carrying out CCAR, the Board of Governors may 
     not object to a company's capital plan on the basis of 
     qualitative deficiencies in the company's capital planning 
     process.
       ``(v) Company inquiries.--The Board of Governors shall 
     establish and publish procedures for responding to inquiries 
     from companies subject to CCAR, including establishing the 
     time frame in which such responses will be made, and make 
     such procedures publicly available.
       ``(vi) CCAR defined.--For purposes of this subparagraph and 
     subparagraph (E), the term `CCAR' means the Comprehensive 
     Capital Analysis and Review established by the Board of 
     Governors.''; and
       (ii) in paragraph (2)--

       (I) in subparagraph (A)--

       (aa) by striking ``a bank holding company'' and inserting 
     ``bank holding company'';
       (bb) by striking ``semiannual'' and inserting ``annual'';
       (cc) by striking ``All other financial companies'' and 
     inserting ``All other bank holding companies''; and
       (dd) by striking ``and are regulated by a primary Federal 
     financial regulatory agency'';

       (II) in subparagraph (B)--

       (aa) by striking ``and to its primary financial regulatory 
     agency''; and
       (bb) by striking ``primary financial regulatory agency'' 
     the second time it appears and inserting ``Board of 
     Governors''; and

       (III) in subparagraph (C)--

       (aa) by striking ``Each Federal primary financial 
     regulatory agency, in coordination with the Board of 
     Governors and the Federal Insurance Office,'' and inserting 
     ``The Board of Governors''; and
       (bb) by striking ``consistent and comparable''.
       (K) in subsection (j)--
       (i) in paragraph (1), by striking ``or a nonbank financial 
     company supervised by the Board of Governors''; and
       (ii) in paragraph (2), by striking ``the factors described 
     in subsections (a) and (b) of section 113 and any other'' and 
     inserting ``any'';
       (L) in subsection (k)(1), by striking ``or nonbank 
     financial company supervised by the Board of Governors''; and
       (M) by adding at the end the following:
       ``(l) Exemption for Qualifying Banking Organizations.--This 
     section shall not apply to a proposed acquisition by a 
     qualifying banking organization, as defined under section 605 
     of the Financial CHOICE Act of 2017.''.
       (c) Treatment of Other Resolution Plan Requirements.--
       (1) In general.--With respect to an appropriate Federal 
     banking agency that requires a banking organization to submit 
     to the agency a resolution plan not described under section 
     165(d) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act--
       (A) the agency shall comply with the requirements of 
     paragraphs (3) and (4) of such section 165(d);
       (B) the agency may not require the submission of such a 
     resolution plan more often than every 2 years; and
       (C) paragraphs (6) and (7) of such section 165(d) shall 
     apply to such a resolution plan.
       (2) Definitions.--For purposes of this subsection, the 
     terms ``appropriate Federal banking agency'' and ``banking 
     organization'' have the meaning given those terms, 
     respectively, under section 105.
       (d) Actions to Create a Bank Holding Company.--Section 
     3(b)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1842(b)(1)) is amended--
       (1) by striking ``Upon receiving'' and inserting the 
     following:
       ``(A) In general.--Upon receiving'';
       (2) by striking ``Notwithstanding any other provision'' and 
     inserting the following:
       ``(B) Immediate action.--
       ``(i) In general.--Notwithstanding any other provision''; 
     and
       (3) by adding at the end the following:
       ``(ii) Exception.--The Board may not take any action 
     pursuant to clause (i) on an application that would cause any 
     company to become a bank holding company unless such 
     application involves the company acquiring a bank that is 
     critically undercapitalized (as such term is defined under 
     section 38(b) of the Federal Deposit Insurance Act).''.
       (e) Concentration Limits Applied Only to Banking 
     Organizations.--Section 14 of the Bank Holding Company Act of 
     1956 (12 U.S.C. 1852) is amended--
       (1) by striking ``financial company'' each place such term 
     appears and inserting ``banking organization'';
       (2) in subsection (a)--
       (A) by amending paragraph (2) to read as follows:
       ``(2) the term `banking organization' means--
       ``(A) an insured depository institution;
       ``(B) a bank holding company;
       ``(C) a savings and loan holding company;
       ``(D) a company that controls an insured depository 
     institution; and
       ``(E) a foreign bank or company that is treated as a bank 
     holding company for purposes of this Act; and'';
       (B) in paragraph (3)--
       (i) in subparagraph (A)(ii), by adding ``and'' at the end;
       (ii) in subparagraph (B)(ii), by striking ``; and'' and 
     inserting a period; and
       (iii) by striking subparagraph (C); and
       (3) in subsection (b), by striking ``financial companies'' 
     and inserting ``banking organizations''.
       (f) Conforming Amendment.--Section 3502(5) of title 44, 
     United States Code, is amended by striking ``the Office of 
     Financial Research,''.
       (g) Clerical Amendment.--The table of contents under 
     section 1(b) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act is amended by striking the items 
     relating to subtitle B of title I and 113, 114, 115, 116, 
     117, 119, 120, 121, 161, 162, 164, 166, 167, 168, 170, 172, 
     174, and 175.

     SEC. 152. OPERATIONAL RISK CAPITAL REQUIREMENTS FOR BANKING 
                   ORGANIZATIONS.

       (a) In General.--An appropriate Federal banking agency may 
     not establish an operational risk capital requirement for 
     banking organizations, unless such requirement--
       (1) is based on the risks posed by a banking organization's 
     current activities and businesses;
       (2) is appropriately sensitive to the risks posed by such 
     current activities and businesses;
       (3) is determined under a forward-looking assessment of 
     potential losses that may arise out of a banking 
     organization's current activities and businesses, which is 
     not solely based on a banking organization's historical 
     losses; and
       (4) permits adjustments based on qualifying operational 
     risk mitigants.
       (b) Definitions.--For purposes of this section, the terms 
     ``appropriate Federal banking agency'' and ``banking 
     organization'' have the meaning given those terms, 
     respectively, under section 605.

          TITLE II--DEMANDING ACCOUNTABILITY FROM WALL STREET

                Subtitle A--SEC Penalties Modernization

     SEC. 211. ENHANCEMENT OF CIVIL PENALTIES FOR SECURITIES LAWS 
                   VIOLATIONS.

       (a) Updated Civil Money Penalties.--

[[Page 8933]]

       (1) Securities act of 1933.--
       (A) Money penalties in administrative actions.--Section 
     8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h-
     1(g)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$7,500'' and inserting ``$10,000''; and
       (II) by striking ``$75,000'' and inserting ``$100,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$75,000'' and inserting ``$100,000''; and
       (II) by striking ``$375,000'' and inserting ``$500,000''; 
     and

       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Third tier.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such act or omission 
     shall not exceed the amount specified in clause (ii) if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in--

       ``(aa) substantial losses or created a significant risk of 
     substantial losses to other persons; or
       ``(bb) substantial pecuniary gain to the person who 
     committed the act or omission.
       ``(ii) Maximum amount of penalty.--The amount referred to 
     in clause (i) is the greatest of--

       ``(I) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(II) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(III) the amount of losses incurred by victims as a 
     result of the act or omission.''.

       (B) Money penalties in civil actions.--Section 20(d)(2) of 
     the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Third tier.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such violation shall not 
     exceed the amount specified in clause (ii) if--

       ``(I) the violation described in paragraph (1) involved 
     fraud, deceit, manipulation, or deliberate or reckless 
     disregard of a regulatory requirement; and
       ``(II) such violation directly or indirectly resulted in 
     substantial losses or created a significant risk of 
     substantial losses to other persons.

       ``(ii) Maximum amount of penalty.--The amount referred to 
     in clause (i) is the greatest of--

       ``(I) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(II) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(III) the amount of losses incurred by victims as a 
     result of the violation.''.

       (2) Securities exchange act of 1934.--
       (A) Money penalties in civil actions.--Section 21(d)(3)(B) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u(d)(3)(B)) is amended--
       (i) in clause (i)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in clause (ii)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking clause (iii) and inserting the following:
       ``(iii) Third tier.--
       ``(I) In general.--Notwithstanding clauses (i) and (ii), 
     the amount of penalty for each such violation shall not 
     exceed the amount specified in subclause (II) if--

       ``(aa) the violation described in subparagraph (A) involved 
     fraud, deceit, manipulation, or deliberate or reckless 
     disregard of a regulatory requirement; and
       ``(bb) such violation directly or indirectly resulted in 
     substantial losses or created a significant risk of 
     substantial losses to other persons.

       ``(II) Maximum amount of penalty.--The amount referred to 
     in subclause (I) is the greatest of--

       ``(aa) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(bb) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(cc) the amount of losses incurred by victims as a result 
     of the violation.''.

       (B) Money penalties in administrative actions.--Section 
     21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
     2(b)) is amended--
       (i) in paragraph (1)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in paragraph (2)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking paragraph (3) and inserting the 
     following:
       ``(3) Third tier.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     the amount of penalty for each such act or omission shall not 
     exceed the amount specified in subparagraph (B) if--
       ``(i) the act or omission described in subsection (a) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(ii) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.
       ``(B) Maximum amount of penalty.--The amount referred to in 
     subparagraph (A) is the greatest of--
       ``(i) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(ii) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(iii) the amount of losses incurred by victims as a 
     result of the act or omission.''.
       (3) Investment company act of 1940.--
       (A) Money penalties in administrative actions.--Section 
     9(d)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a-
     9(d)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Third tier.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such act or omission 
     shall not exceed the amount specified in clause (ii) if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.

       ``(ii) Maximum amount of penalty.--The amount referred to 
     in clause (i) is the greatest of--

       ``(I) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(II) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(III) the amount of losses incurred by victims as a 
     result of the act or omission.''.

       (B) Money penalties in civil actions.--Section 42(e)(2) of 
     the Investment Company Act of 1940 (15 U.S.C. 80a-41(e)(2)) 
     is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Third tier.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such violation shall not 
     exceed the amount specified in clause (ii) if--

       ``(I) the violation described in paragraph (1) involved 
     fraud, deceit, manipulation, or deliberate or reckless 
     disregard of a regulatory requirement; and
       ``(II) such violation directly or indirectly resulted in 
     substantial losses or created a significant risk of 
     substantial losses to other persons.

       ``(ii) Maximum amount of penalty.--The amount referred to 
     in clause (i) is the greatest of--

       ``(I) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(II) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(III) the amount of losses incurred by victims as a 
     result of the violation.''.

       (4) Investment advisers act of 1940.--
       (A) Money penalties in administrative actions.--Section 
     203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 
     80b-3(i)(2)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking subparagraph (C) and inserting the 
     following:

[[Page 8934]]

       ``(C) Third tier.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such act or omission 
     shall not exceed the amount specified in clause (ii) if--

       ``(I) the act or omission described in paragraph (1) 
     involved fraud, deceit, manipulation, or deliberate or 
     reckless disregard of a regulatory requirement; and
       ``(II) such act or omission directly or indirectly resulted 
     in substantial losses or created a significant risk of 
     substantial losses to other persons or resulted in 
     substantial pecuniary gain to the person who committed the 
     act or omission.

       ``(ii) Maximum amount of penalty.--The amount referred to 
     in clause (i) is the greatest of--

       ``(I) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(II) 3 times the gross amount of pecuniary gain to the 
     person who committed the act or omission; or
       ``(III) the amount of losses incurred by victims as a 
     result of the act or omission.''.

       (B) Money penalties in civil actions.--Section 209(e)(2) of 
     the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)(2)) 
     is amended--
       (i) in subparagraph (A)--

       (I) by striking ``$5,000'' and inserting ``$10,000''; and
       (II) by striking ``$50,000'' and inserting ``$100,000'';

       (ii) in subparagraph (B)--

       (I) by striking ``$50,000'' and inserting ``$100,000''; and
       (II) by striking ``$250,000'' and inserting ``$500,000''; 
     and

       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Third tier.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the amount of penalty for each such violation shall not 
     exceed the amount specified in clause (ii) if--

       ``(I) the violation described in paragraph (1) involved 
     fraud, deceit, manipulation, or deliberate or reckless 
     disregard of a regulatory requirement; and
       ``(II) such violation directly or indirectly resulted in 
     substantial losses or created a significant risk of 
     substantial losses to other persons.

       ``(ii) Maximum amount of penalty.--The amount referred to 
     in clause (i) is the greatest of--

       ``(I) $300,000 for a natural person or $1,450,000 for any 
     other person;
       ``(II) 3 times the gross amount of pecuniary gain to such 
     defendant as a result of the violation; or
       ``(III) the amount of losses incurred by victims as a 
     result of the violation.''.

       (b) Penalties for Recidivists.--
       (1) Securities act of 1933.--
       (A) Money penalties in administrative actions.--Section 
     8A(g)(2) of the Securities Act of 1933 (15 U.S.C. 77h-
     1(g)(2)) is amended by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such act or omission, the person who committed the act or 
     omission was criminally convicted for securities fraud or 
     became subject to a judgment or order imposing monetary, 
     equitable, or administrative relief in any Commission action 
     alleging fraud by that person.''.
       (B) Money penalties in civil actions.--Section 20(d)(2) of 
     the Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended 
     by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such 
     violation shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (2) Securities exchange act of 1934.--
       (A) Money penalties in civil actions.--Section 21(d)(3)(B) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u(d)(3)(B)) is amended by adding at the end the following:
       ``(iv) Fourth tier.--Notwithstanding clauses (i), (ii), and 
     (iii), the maximum amount of penalty for each such violation 
     shall be 3 times the otherwise applicable amount in such 
     clauses if, within the 5-year period preceding such 
     violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (B) Money penalties in administrative actions.--Section 
     21B(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78u-
     2(b)) is amended by adding at the end the following:
       ``(4) Fourth tier.--Notwithstanding paragraphs (1), (2), 
     and (3), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such paragraphs if, within the 5-year period preceding such 
     act or omission, the person who committed the act or omission 
     was criminally convicted for securities fraud or became 
     subject to a judgment or order imposing monetary, equitable, 
     or administrative relief in any Commission action alleging 
     fraud by that person.''.
       (3) Investment company act of 1940.--
       (A) Money penalties in administrative actions.--Section 
     9(d)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a-
     9(d)(2)) is amended by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such act or omission, the person who committed the act or 
     omission was criminally convicted for securities fraud or 
     became subject to a judgment or order imposing monetary, 
     equitable, or administrative relief in any Commission action 
     alleging fraud by that person.''.
       (B) Money penalties in civil actions.--Section 42(e)(2) of 
     the Investment Company Act of 1940 (15 U.S.C. 80a-41(e)(2)) 
     is amended by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such 
     violation shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (4) Investment advisers act of 1940.--
       (A) Money penalties in administrative actions.--Section 
     203(i)(2) of the Investment Advisers Act of 1940 (15 U.S.C. 
     80b-3(i)(2)) is amended by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such act or 
     omission shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such act or omission, the person who committed the act or 
     omission was criminally convicted for securities fraud or 
     became subject to a judgment or order imposing monetary, 
     equitable, or administrative relief in any Commission action 
     alleging fraud by that person.''.
       (B) Money penalties in civil actions.--Section 209(e)(2) of 
     the Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)(2)) 
     is amended by adding at the end the following:
       ``(D) Fourth tier.--Notwithstanding subparagraphs (A), (B), 
     and (C), the maximum amount of penalty for each such 
     violation shall be 3 times the otherwise applicable amount in 
     such subparagraphs if, within the 5-year period preceding 
     such violation, the defendant was criminally convicted for 
     securities fraud or became subject to a judgment or order 
     imposing monetary, equitable, or administrative relief in any 
     Commission action alleging fraud by that defendant.''.
       (c) Violations of Injunctions and Bars.--
       (1) Securities act of 1933.--Section 20(d) of the 
     Securities Act of 1933 (15 U.S.C. 77t(d)) is amended--
       (A) in paragraph (1), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(A) In general.--Each separate violation of an injunction 
     or order described in subparagraph (B) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(B) Injunctions and orders.--Subparagraph (A) shall apply 
     with respect to any action to enforce--
       ``(i) a Federal court injunction obtained pursuant to this 
     title;
       ``(ii) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(iii) a cease-and-desist order entered by the Commission 
     pursuant to section 8A.''.
       (2) Securities exchange act of 1934.--Section 21(d)(3) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78u(d)(3)) is 
     amended--
       (A) in subparagraph (A), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (B) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(i) In general.--Each separate violation of an injunction 
     or order described in clause (ii) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(ii) Injunctions and orders.--Clause (i) shall apply with 
     respect to an action to enforce--
       ``(I) a Federal court injunction obtained pursuant to this 
     title;
       ``(II) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(III) a cease-and-desist order entered by the Commission 
     pursuant to section 21C.''.

[[Page 8935]]

       (3) Investment company act of 1940.--Section 42(e) of the 
     Investment Company Act of 1940 (15 U.S.C. 80a-41(e)) is 
     amended--
       (A) in paragraph (1), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(A) In general.--Each separate violation of an injunction 
     or order described in subparagraph (B) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(B) Injunctions and orders.--Subparagraph (A) shall apply 
     with respect to any action to enforce--
       ``(i) a Federal court injunction obtained pursuant to this 
     title;
       ``(ii) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(iii) a cease-and-desist order entered by the Commission 
     pursuant to section 9(f).''.
       (4) Investment advisers act of 1940.--Section 209(e) of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-9(e)) is 
     amended--
       (A) in paragraph (1), by inserting after ``the rules or 
     regulations thereunder,'' the following: ``a Federal court 
     injunction or a bar obtained or entered by the Commission 
     under this title,''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) Special provisions relating to a violation of an 
     injunction or certain orders.--
       ``(A) In general.--Each separate violation of an injunction 
     or order described in subparagraph (B) shall be a separate 
     offense, except that in the case of a violation through a 
     continuing failure to comply with such injunction or order, 
     each day of the failure to comply with the injunction or 
     order shall be deemed a separate offense.
       ``(B) Injunctions and orders.--Subparagraph (A) shall apply 
     with respect to any action to enforce--
       ``(i) a Federal court injunction obtained pursuant to this 
     title;
       ``(ii) an order entered or obtained by the Commission 
     pursuant to this title that bars, suspends, places 
     limitations on the activities or functions of, or prohibits 
     the activities of, a person; or
       ``(iii) a cease-and-desist order entered by the Commission 
     pursuant to section 203(k).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to conduct that occurs after the 
     date of the enactment of this Act.

     SEC. 212. UPDATED CIVIL MONEY PENALTIES OF PUBLIC COMPANY 
                   ACCOUNTING OVERSIGHT BOARD.

       (a) In General.--Section 105(c)(4)(D) of the Sarbanes-Oxley 
     Act of 2002 (15 U.S.C. 7215(c)(4)(D)) is amended--
       (1) in clause (i)--
       (A) by striking ``$100,000'' and inserting ``$200,000''; 
     and
       (B) by striking ``$2,000,000'' and inserting 
     ``$4,000,000''; and
       (2) in clause (ii)--
       (A) by striking ``$750,000'' and inserting ``$1,500,000''; 
     and
       (B) by striking ``$15,000,000'' and inserting 
     ``$22,000,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to conduct that occurs after the 
     date of the enactment of this Act.

     SEC. 213. UPDATED CIVIL MONEY PENALTY FOR CONTROLLING PERSONS 
                   IN CONNECTION WITH INSIDER TRADING.

       (a) In General.--Section 21A(a)(3) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u-1(a)(3)) is amended by 
     striking ``$1,000,000'' and inserting ``$2,500,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to conduct that occurs after the 
     date of the enactment of this Act.

     SEC. 214. UPDATE OF CERTAIN OTHER PENALTIES.

       (a) In General.--Section 32 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78ff) is amended--
       (1) in subsection (a), by striking ``$5,000,000'' and 
     inserting ``$7,000,000''; and
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``$2,000,000'' and 
     inserting ``$4,000,000''; and
       (ii) in subparagraph (B), by striking ``$10,000'' and 
     inserting ``$50,000''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``$100,000'' and 
     inserting ``$250,000''; and
       (ii) in subparagraph (B), by striking ``$10,000'' and 
     inserting ``$50,000''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to conduct that occurs after the 
     date of the enactment of this Act.

     SEC. 215. MONETARY SANCTIONS TO BE USED FOR THE RELIEF OF 
                   VICTIMS.

       (a) In General.--Section 308(a) of the Sarbanes-Oxley Act 
     of 2002 (15 U.S.C. 7246(a)) is amended to read as follows:
       ``(a) Monetary Sanctions to Be Used for the Relief of 
     Victims.--
       ``(1) In general.--If, in any judicial or administrative 
     action brought by the Commission under the securities laws, 
     the Commission obtains a monetary sanction (as defined in 
     section 21F(a) of the Securities Exchange Act of 1934) 
     against any person for a violation of such laws, or such 
     person agrees, in settlement of any such action, to such 
     monetary sanction, the amount of such monetary sanction 
     shall, on the motion or at the direction of the Commission, 
     be added to and become part of a disgorgement fund or other 
     fund established for the benefit of the victims of such 
     violation.
       ``(2) Definition of victim.--In this subsection, the term 
     `victim' has the meaning given the term `crime victim' in 
     section 3771(e) of title 18, United States Code.''.
       (b) Monetary Sanction Defined.--Section 21F(a)(4)(A) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78u-6(a)(4)(A)) is 
     amended by striking ``ordered'' and inserting ``required''.
       (c) Effective Date.--The amendments made by this section 
     apply with respect to any monetary sanction ordered or 
     required to be paid before or after the date of enactment of 
     this Act.

     SEC. 216. GAO REPORT ON USE OF CIVIL MONEY PENALTY AUTHORITY 
                   BY COMMISSION.

       (a) In General.--Not later than 2 years after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate a report on 
     the use by the Commission of the authority to impose or 
     obtain civil money penalties for violations of the securities 
     laws during the period beginning on June 1, 2010, and ending 
     on the date of the enactment of this Act.
       (b) Matters Required To Be Included.--The matters covered 
     by the report required by subsection (a) shall include the 
     following:
       (1) The types of violations for which civil money penalties 
     were imposed or obtained.
       (2) The types of persons on whom civil money penalties were 
     imposed or from whom such penalties were obtained.
       (3) The number and dollar amount of civil money penalties 
     imposed or obtained, disaggregated as follows:
       (A) Penalties imposed in administrative actions and 
     penalties obtained in judicial actions.
       (B) Penalties imposed on or obtained from issuers 
     (individual and aggregate filers) and penalties imposed on or 
     obtained from other persons.
       (C) Penalties permitted to be retained for use by the 
     Commission and penalties deposited in the general fund of the 
     Treasury of the United States.
       (4) For penalties imposed on or obtained from issuers:
       (A) Whether the violations involved resulted in direct 
     economic benefit to the issuers.
       (B) The impact of the penalties on the shareholders of the 
     issuers.
       (c) Definitions.--In this section, the terms 
     ``Commission'', ``issuer'', and ``securities laws'' have the 
     meanings given such terms in section 3(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a)).

               Subtitle B--FIRREA Penalties Modernization

     SEC. 221. INCREASE OF CIVIL AND CRIMINAL PENALTIES ORIGINALLY 
                   ESTABLISHED IN THE FINANCIAL INSTITUTIONS 
                   REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989.

       (a) Amendments to FIRREA.--Section 951(b) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 1833a(b)) is amended--
       (1) in paragraph (1), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (2) in paragraph (2), by striking ``$1,000,000 per day or 
     $5,000,000'' and inserting ``$1,500,000 per day or 
     $7,500,000''.
       (b) Amendments to the Home Owners' Loan Act.--The Home 
     Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
       (1) in section 5(v)(6), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (2) in section 10--
       (A) in subsection (r)(3), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (B) in subsection (i)(1)(B), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''.
       (c) Amendments to the Federal Deposit Insurance Act.--The 
     Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
     amended--
       (1) in section 7--
       (A) in subsection (a)(1), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (B) in subsection (j)(16)(D), by striking ``$1,000,000'' 
     each place such term appears and inserting ``$1,500,000'';
       (2) in section 8--
       (A) in subsection (i)(2)(D), by striking ``$1,000,000'' 
     each place such term appears and inserting ``$1,500,000''; 
     and
       (B) in subsection (j), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (3) in section 19(b), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''.
       (d) Amendments to the Federal Credit Union Act.--The 
     Federal Credit Union Act (12 U.S.C. 1751 et seq.) is 
     amended--
       (1) in section 202(a)(3), by striking ``$1,000,000'' and 
     inserting ``$1,500,000'';
       (2) in section 205(d)(3), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (3) in section 206--
       (A) in subsection (k)(2)(D), by striking ``$1,000,000'' 
     each place such term appears and inserting ``$1,500,000''; 
     and

[[Page 8936]]

       (B) in subsection (l), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''.
       (e) Amendments to the Revised Statutes of the United 
     States.--Title LXII of the Revised Statutes of the United 
     States is amended--
       (1) in section 5213(c), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (2) in section 5239(b)(4), by striking ``$1,000,000'' each 
     place such term appears and inserting ``$1,500,000''.
       (f) Amendments to the Federal Reserve Act.--The Federal 
     Reserve Act (12 U.S.C. 221 et seq.) is amended--
       (1) in the 6th undesignated paragraph of section 9, by 
     striking ``$1,000,000'' and inserting ``$1,500,000'';
       (2) in section 19(l)(4), by striking ``$1,000,000'' each 
     place such term appears and inserting ``$1,500,000''; and
       (3) in section 29(d), by striking ``$1,000,000'' each place 
     such term appears and inserting ``$1,500,000''.
       (g) Amendments to the Bank Holding Company Act Amendments 
     of 1970.--Section 106(b)(2)(F)(iv) of the Bank Holding 
     Company Act Amendments of 1970 (12 U.S.C. 1978(b)(2)(F)(iv)) 
     is amended by striking ``$1,000,000'' each place such term 
     appears and inserting ``$1,500,000''.
       (h) Amendments to the Bank Holding Company Act of 1956.--
     Section 8 of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1847) is amended--
       (1) in subsection (a)(2), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (2) in subsection (d)(3), by striking ``$1,000,000'' and 
     inserting ``$1,500,000''.
       (i) Amendments to Title 18, United States Code.--Title 18, 
     United States Code, is amended--
       (1) in section 215(a) of chapter 11, by striking 
     ``$1,000,000'' and inserting ``$1,500,000'';
       (2) in chapter 31--
       (A) in section 656, by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (B) in section 657, by striking ``$1,000,000'' and 
     inserting ``$1,500,000'';
       (3) in chapter 47--
       (A) in section 1005, by striking ``$1,000,000'' and 
     inserting ``$1,500,000'';
       (B) in section 1006, by striking ``$1,000,000'' and 
     inserting ``$1,500,000'';
       (C) in section 1007, by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (D) in section 1014, by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (4) in chapter 63--
       (A) in section 1341, by striking ``$1,000,000'' and 
     inserting ``$1,500,000'';
       (B) in section 1343, by striking ``$1,000,000'' and 
     inserting ``$1,500,000''; and
       (C) in section 1344, by striking ``$1,000,000'' and 
     inserting ``$1,500,000''.

   TITLE III--DEMANDING ACCOUNTABILITY FROM FINANCIAL REGULATORS AND 
                  DEVOLVING POWER AWAY FROM WASHINGTON

                   Subtitle A--Cost-Benefit Analyses

     SEC. 311. DEFINITIONS.

       As used in this subtitle--
       (1) the term ``agency'' means the Board of Governors of the 
     Federal Reserve System, the Consumer Law Enforcement Agency, 
     the Commodity Futures Trading Commission, the Federal Deposit 
     Insurance Corporation, the Federal Housing Finance Agency, 
     the Office of the Comptroller of the Currency, the National 
     Credit Union Administration, and the Securities and Exchange 
     Commission;
       (2) the term ``chief economist'' means--
       (A) with respect to the Board of Governors of the Federal 
     Reserve System, the Director of the Division of Research and 
     Statistics, or an employee of the agency with comparable 
     authority;
       (B) with respect to the Consumer Law Enforcement Agency, 
     the Head of the Office of Economic Analysis, or an employee 
     of the agency with comparable authority;
       (C) with respect to the Commodity Futures Trading 
     Commission, the Chief Economist, or an employee of the agency 
     with comparable authority;
       (D) with respect to the Federal Deposit Insurance 
     Corporation, the Director of the Division of Insurance and 
     Research, or an employee of the agency with comparable 
     authority;
       (E) with respect to the Federal Housing Finance Agency, the 
     Chief Economist, or an employee of the agency with comparable 
     authority;
       (F) with respect to the Office of the Comptroller of the 
     Currency, the Director for Policy Analysis, or an employee of 
     the agency with comparable authority;
       (G) with respect to the National Credit Union 
     Administration, the Chief Economist, or an employee of the 
     agency with comparable authority; and
       (H) with respect to the Securities and Exchange Commission, 
     the Director of the Division of Economic and Risk Analysis, 
     or an employee of the agency with comparable authority;
       (3) the term ``Council'' means the Chief Economists Council 
     established under section 318; and
       (4) the term ``regulation''--
       (A) means an agency statement of general applicability and 
     future effect that is designed to implement, interpret, or 
     prescribe law or policy or to describe the procedure or 
     practice requirements of an agency, including rules, orders 
     of general applicability, interpretive releases, and other 
     statements of general applicability that the agency intends 
     to have the force and effect of law; and
       (B) does not include--
       (i) a regulation issued in accordance with the formal 
     rulemaking provisions of section 556 or 557 of title 5, 
     United States Code;
       (ii) a regulation that is limited to agency organization, 
     management, or personnel matters;
       (iii) a regulation promulgated pursuant to statutory 
     authority that expressly prohibits compliance with this 
     provision;
       (iv) a regulation that is certified by the agency to be an 
     emergency action, if such certification is published in the 
     Federal Register;
       (v) a regulation that is promulgated by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee under section 10A, 10B, 13, 13A, or 19 of 
     the Federal Reserve Act, or any of subsections (a) through 
     (f) of section 14 of that Act;
       (vi) a regulation filed with the Securities and Exchange 
     Commission by the Public Company Accounting Oversight Board, 
     the Municipal Securities Rulemaking Board, or any national 
     securities association registered under section 15A of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o-3(a)) for 
     which the board or association has itself conducted the cost-
     benefit analysis and otherwise complied with the requirements 
     of section 312; or
       (vii) a regulation filed with the Securities and Exchange 
     Commission by a national securities association registered 
     under section 15A(k) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78o-3(k)).

     SEC. 312. REQUIRED REGULATORY ANALYSIS.

       (a) Requirements for Notices of Proposed Rulemaking.--An 
     agency may not issue a notice of proposed rulemaking unless 
     the agency includes in the notice of proposed rulemaking an 
     analysis that contains, at a minimum, with respect to each 
     regulation that is being proposed--
       (1) an identification of the need for the regulation and 
     the regulatory objective, including identification of the 
     nature and significance of the market failure, regulatory 
     failure, or other problem that necessitates the regulation;
       (2) an explanation of why the private market or State, 
     local, or tribal authorities cannot adequately address the 
     identified market failure or other problem;
       (3) an analysis of the adverse impacts to regulated 
     entities, other market participants, economic activity, or 
     agency effectiveness that are engendered by the regulation 
     and the magnitude of such adverse impacts;
       (4) a quantitative and qualitative assessment of all 
     anticipated direct and indirect costs and benefits of the 
     regulation (as compared to a benchmark that assumes the 
     absence of the regulation), including--
       (A) compliance costs;
       (B) effects on economic activity, net job creation 
     (excluding jobs related to ensuring compliance with the 
     regulation), efficiency, competition, and capital formation;
       (C) regulatory administrative costs; and
       (D) costs imposed by the regulation on State, local, or 
     tribal governments or other regulatory authorities;
       (5) if quantified benefits do not outweigh quantitative 
     costs, a justification for the regulation;
       (6) an identification and assessment of all available 
     alternatives to the regulation, including modification of an 
     existing regulation or statute, together with--
       (A) an explanation of why the regulation meets the 
     objectives of the regulation more effectively than the 
     alternatives, and if the agency is proposing multiple 
     alternatives, an explanation of why a notice of proposed 
     rulemaking, rather than an advanced notice of proposed 
     rulemaking, is appropriate; and
       (B) if the regulation is not a pilot program, an 
     explanation of why a pilot program is not appropriate;
       (7) if the regulation specifies the behavior or manner of 
     compliance, an explanation of why the agency did not instead 
     specify performance objectives;
       (8) an assessment of how the burden imposed by the 
     regulation will be distributed among market participants, 
     including whether consumers, investors, small businesses, or 
     independent financial firms and advisors will be 
     disproportionately burdened;
       (9) an assessment of the extent to which the regulation is 
     inconsistent, incompatible, or duplicative with the existing 
     regulations of the agency or those of other domestic and 
     international regulatory authorities with overlapping 
     jurisdiction;
       (10) a description of any studies, surveys, or other data 
     relied upon in preparing the analysis;
       (11) an assessment of the degree to which the key 
     assumptions underlying the analysis are subject to 
     uncertainty; and
       (12) an explanation of predicted changes in market 
     structure and infrastructure and in behavior by market 
     participants, including consumers and investors, assuming 
     that they will pursue their economic interests.
       (b) Requirements for Notices of Final Rulemaking.--
       (1) In general.--Notwithstanding any other provision of 
     law, an agency may not issue a notice of final rulemaking 
     with respect to a regulation unless the agency--
       (A) has issued a notice of proposed rulemaking for the 
     relevant regulation;
       (B) has conducted and includes in the notice of final 
     rulemaking an analysis that contains, at a minimum, the 
     elements required under subsection (a); and
       (C) includes in the notice of final rulemaking regulatory 
     impact metrics selected by the chief economist to be used in 
     preparing the report required pursuant to section 315.

[[Page 8937]]

       (2) Consideration of comments.--The agency shall 
     incorporate in the elements described in paragraph (1)(B) the 
     data and analyses provided to the agency by commenters during 
     the comment period, or explain why the data or analyses are 
     not being incorporated.
       (3) Comment period.--An agency shall not publish a notice 
     of final rulemaking with respect to a regulation, unless the 
     agency--
       (A) has allowed at least 90 days from the date of 
     publication in the Federal Register of the notice of proposed 
     rulemaking for the submission of public comments; or
       (B) includes in the notice of final rulemaking an 
     explanation of why the agency was not able to provide a 90-
     day comment period.
       (4) Prohibited rules.--
       (A) In general.--An agency may not publish a notice of 
     final rulemaking if the agency, in its analysis under 
     paragraph (1)(B), determines that the quantified costs are 
     greater than the quantified benefits under subsection (a)(5).
       (B) Publication of analysis.--If the agency is precluded by 
     subparagraph (A) from publishing a notice of final 
     rulemaking, the agency shall publish in the Federal Register 
     and on the public website of the agency its analysis under 
     paragraph (1)(B), and provide the analysis to each House of 
     Congress.
       (C) Congressional waiver.--If the agency is precluded by 
     subparagraph (A) from publishing a notice of final 
     rulemaking, Congress, by joint resolution pursuant to the 
     procedures set forth for joint resolutions in section 802 of 
     title 5, United States Code, may direct the agency to publish 
     a notice of final rulemaking notwithstanding the prohibition 
     contained in subparagraph (A). In applying section 802 of 
     title 5, United States Code, for purposes of this paragraph, 
     section 802(e)(2) shall not apply and the terms--
       (i) ``joint resolution'' or ``joint resolution described in 
     subsection (a)'' means only a joint resolution introduced 
     during the period beginning on the submission or publication 
     date and ending 60 days thereafter (excluding days either 
     House of Congress is adjourned for more than 3 days during a 
     session of Congress), the matter after the resolving clause 
     of which is as follows: ``That Congress directs, 
     notwithstanding the prohibition contained in section 
     312(b)(4)(A) of the Financial CHOICE Act of 2017, the __ to 
     publish the notice of final rulemaking for the regulation or 
     regulations that were the subject of the analysis submitted 
     by the __ to Congress on __.'' (The blank spaces being 
     appropriately filled in.); and
       (ii) ``submission or publication date'' means--

       (I) the date on which the analysis under paragraph (1)(B) 
     is submitted to Congress under paragraph (4)(B); or
       (II) if the analysis is submitted to Congress less than 60 
     session days or 60 legislative days before the date on which 
     the Congress adjourns a session of Congress, the date on 
     which the same or succeeding Congress first convenes its next 
     session.

     SEC. 313. RULE OF CONSTRUCTION.

       Provided that an agency has first issued an advanced notice 
     of proposed rulemaking in connection with a regulation, the 
     agency is not required to comply with section 3506(c)(2) of 
     title 44, United States Code, with respect to any information 
     collection request--
       (1) that identifies the advanced notice of proposed 
     rulemaking in such request;
       (2) that informs the person from whom the information is 
     obtained or solicited that the provision of such information 
     is voluntary;
       (3) that is necessary to comply with section 312; and
       (4) with respect to which the information collected will 
     not be used for purposes other than compliance with this 
     title.

     SEC. 314. PUBLIC AVAILABILITY OF DATA AND REGULATORY 
                   ANALYSIS.

       (a) In General.--At or before the commencement of the 
     public comment period with respect to a regulation, the 
     agency shall make available on its public website sufficient 
     information about the data, methodologies, and assumptions 
     underlying the analyses performed pursuant to section 312 so 
     that the analytical results of the agency are capable of 
     being substantially reproduced, subject to an acceptable 
     degree of imprecision or error.
       (b) Confidentiality.--The agency shall comply with 
     subsection (a) in a manner that preserves the nonpublic 
     nature of confidential information, including confidential 
     trade secrets, confidential commercial or financial 
     information, and confidential information about positions, 
     transactions, or business practices.

     SEC. 315. FIVE-YEAR REGULATORY IMPACT ANALYSIS.

       (a) In General.--Not later than 5 years after the date of 
     publication in the Federal Register of a notice of final 
     rulemaking, the chief economist of the agency shall issue a 
     report that examines the economic impact of the subject 
     regulation, including the direct and indirect costs and 
     benefits of the regulation.
       (b) Regulatory Impact Metrics.--In preparing the report 
     required by subsection (a), the chief economist shall employ 
     the regulatory impact metrics included in the notice of final 
     rulemaking pursuant to section 312(b)(1)(C).
       (c) Reproducibility.--The report shall include the data, 
     methodologies, and assumptions underlying the evaluation so 
     that the agency's analytical results are capable of being 
     substantially reproduced, subject to an acceptable degree of 
     imprecision or error.
       (d) Confidentiality.--The agency shall comply with 
     subsection (c) in a manner that preserves the nonpublic 
     nature of confidential information, including confidential 
     trade secrets, confidential commercial or financial 
     information, and confidential information about positions, 
     transactions, or business practices.
       (e) Report.--The agency shall submit the report required by 
     subsection (a) to the Committee on Banking, Housing, and 
     Urban Affairs of the Senate and the Committee on Financial 
     Services of the House of Representatives and post it on the 
     public website of the agency. Notwithstanding the previous 
     sentence, the Commodity Futures Trading Commission shall only 
     submit its report to the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate and the Committee on Agriculture 
     of the House of Representatives.

     SEC. 316. RETROSPECTIVE REVIEW OF EXISTING RULES.

       (a) Regulatory Improvement Plan.--Not later than 1 year 
     after the date of enactment of this Act and every 5 years 
     thereafter, each agency shall develop, submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives, and post on the public website of the 
     agency a plan, consistent with law and its resources and 
     regulatory priorities, under which the agency will modify, 
     streamline, expand, or repeal existing regulations so as to 
     make the regulatory program of the agency more effective or 
     less burdensome in achieving the regulatory objectives. 
     Notwithstanding the previous sentence, the Commodity Futures 
     Trading Commission shall only submit its plan to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Agriculture of the House of 
     Representatives.
       (b) Implementation Progress Report.--Two years after the 
     date of submission of each plan required under subsection 
     (a), each agency shall develop, submit to the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives, and post on the public website of the agency 
     a report of the steps that it has taken to implement the 
     plan, steps that remain to be taken to implement the plan, 
     and, if any parts of the plan will not be implemented, 
     reasons for not implementing those parts of the plan. 
     Notwithstanding the previous sentence, the Commodity Futures 
     Trading Commission shall only submit its plan to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Agriculture of the House of 
     Representatives.

     SEC. 317. JUDICIAL REVIEW.

       (a) In General.--Notwithstanding any other provision of 
     law, during the period beginning on the date on which a 
     notice of final rulemaking for a regulation is published in 
     the Federal Register and ending 1 year later, a person that 
     is adversely affected or aggrieved by the regulation is 
     entitled to bring an action in the United States Court of 
     Appeals for the District of Columbia Circuit for judicial 
     review of agency compliance with the requirements of section 
     312.
       (b) Stay.--The court may stay the effective date of the 
     regulation or any provision thereof.
       (c) Relief.--If the court finds that an agency has not 
     complied with the requirements of section 312, the court 
     shall vacate the subject regulation, unless the agency shows 
     by clear and convincing evidence that vacating the regulation 
     would result in irreparable harm. Nothing in this section 
     affects other limitations on judicial review or the power or 
     duty of the court to dismiss any action or deny relief on any 
     other appropriate legal or equitable ground.

     SEC. 318. CHIEF ECONOMISTS COUNCIL.

       (a) Establishment.--There is established the Chief 
     Economists Council.
       (b) Membership.--The Council shall consist of the chief 
     economist of each agency. The members of the Council shall 
     select the first chairperson of the Council. Thereafter the 
     position of Chairperson shall rotate annually among the 
     members of the Council.
       (c) Meetings.--The Council shall meet at the call of the 
     Chairperson, but not less frequently than quarterly.
       (d) Report.--One year after the effective date of this Act 
     and annually thereafter, the Council shall prepare and submit 
     to the Committee on Banking, Housing, and Urban Affairs and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Financial Services and the 
     Committee on Agriculture of the House of Representatives, and 
     make publicly available on the Council's website, a report 
     on--
       (1) the benefits and costs of regulations adopted by the 
     agencies during the past 12 months;
       (2) the regulatory actions planned by the agencies for the 
     upcoming 12 months;
       (3) the cumulative effect of the existing regulations of 
     the agencies on economic activity, innovation, international 
     competitiveness of entities regulated by the agencies, and 
     net job creation (excluding jobs related to ensuring 
     compliance with the regulation);
       (4) the training and qualifications of the persons who 
     prepared the cost-benefit analyses of each agency during the 
     past 12 months;
       (5) the sufficiency of the resources available to the chief 
     economists during the past 12 months for the conduct of the 
     activities required by this subtitle; and
       (6) recommendations for legislative or regulatory action to 
     enhance the efficiency and effectiveness of financial 
     regulation in the United States.

     SEC. 319. CONFORMING AMENDMENTS.

       Section 15(a) of the Commodity Exchange Act (7 U.S.C. 
     19(a)) is amended--
       (1) by striking paragraph (1);

[[Page 8938]]

       (2) in paragraph (2), by striking ``(2)'' and all that 
     follows through ``light of--'' and inserting the following:
       ``(1) Considerations.--Before promulgating a regulation 
     under this chapter or issuing an order (except as provided in 
     paragraph (2)), the Commission shall take into 
     consideration--'';
       (3) in paragraph (1), as so redesignated--
       (A) in subparagraph (B), by striking ``futures'' and 
     inserting ``the relevant'';
       (B) in subparagraph (C), by adding ``and'' at the end;
       (C) in subparagraph (D), by striking ``; and'' and 
     inserting a period; and
       (D) by striking subparagraph (E); and
       (4) by redesignating paragraph (3) as paragraph (2).

     SEC. 320. OTHER REGULATORY ENTITIES.

       Not later than 1 year after the date of enactment of this 
     Act, the Securities and Exchange Commission shall provide to 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives, and make publicly available on the 
     Commission's website a report setting forth a plan for 
     subjecting the Public Company Accounting Oversight Board, the 
     Municipal Securities Rulemaking Board, and any national 
     securities association registered under section 15A of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o-4(a)), other 
     than subsection (k) of such section 15A, to the requirements 
     of this subtitle, other than direct representation on the 
     Council.

     SEC. 321. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY ANALYSES.

       An agency may perform the analyses required by this 
     subtitle in conjunction with, or as a part of, any other 
     agenda or analysis required by any other provision of law, if 
     such other analysis satisfies the provisions of this 
     subtitle.

Subtitle B--Congressional Review of Federal Financial Agency Rulemaking

     SEC. 331. CONGRESSIONAL REVIEW.

       (a)(1)(A) Before a rule may take effect, an agency shall 
     publish in the Federal Register a list of information on 
     which the rule is based, including data, scientific and 
     economic studies, and cost-benefit analyses, and identify how 
     the public can access such information online, and shall 
     submit to each House of the Congress and to the Comptroller 
     General a report containing--
       (i) a copy of the rule;
       (ii) a concise general statement relating to the rule;
       (iii) a classification of the rule as a major or nonmajor 
     rule, including an explanation of the classification 
     specifically addressing each criteria for a major rule 
     contained within subparagraphs (A) through (C) of section 
     334(2);
       (iv) a list of any other related regulatory actions 
     intended to implement the same statutory provision or 
     regulatory objective as well as the individual and aggregate 
     economic effects of those actions; and
       (v) the proposed effective date of the rule.
       (B) On the date of the submission of the report under 
     subparagraph (A), the agency shall submit to the Comptroller 
     General and make available to each House of Congress--
       (i) a complete copy of the cost-benefit analysis of the 
     rule, if any, including an analysis of any jobs added or 
     lost, differentiating between public and private sector jobs;
       (ii) the agency's actions pursuant to sections 603, 604, 
     605, 607, and 609 of title 5, United States Code;
       (iii) the agency's actions pursuant to sections 202, 203, 
     204, and 205 of the Unfunded Mandates Reform Act of 1995 and 
     subtitle G; and
       (iv) any other relevant information or requirements under 
     any other Act and any relevant Executive orders.
       (C) Upon receipt of a report submitted under subparagraph 
     (A), each House shall provide copies of the report to the 
     chairman and ranking member of each standing committee with 
     jurisdiction under the rules of the House of Representatives 
     or the Senate to report a bill to amend the provision of law 
     under which the rule is issued.
       (2)(A) The Comptroller General shall provide a report on 
     each major rule to the committees of jurisdiction by the end 
     of 15 calendar days after the submission or publication date. 
     The report of the Comptroller General shall include an 
     assessment of the agency's compliance with procedural steps 
     required by paragraph (1)(B) and an assessment of whether the 
     major rule imposes any new limits or mandates on private-
     sector activity.
       (B) Agencies shall cooperate with the Comptroller General 
     by providing information relevant to the Comptroller 
     General's report under subparagraph (A).
       (3) A major rule relating to a report submitted under 
     paragraph (1) shall take effect upon enactment of a joint 
     resolution of approval described in section 332 or as 
     provided for in the rule following enactment of a joint 
     resolution of approval described in section 332, whichever is 
     later.
       (4) A nonmajor rule shall take effect as provided by 
     section 333 after submission to Congress under paragraph (1).
       (5) If a joint resolution of approval relating to a major 
     rule is not enacted within the period provided in subsection 
     (b)(2), then a joint resolution of approval relating to the 
     same rule may not be considered under this subtitle in the 
     same Congress by either the House of Representatives or the 
     Senate.
       (b)(1) A major rule shall not take effect unless the 
     Congress enacts a joint resolution of approval described 
     under section 332.
       (2) If a joint resolution described in subsection (a) is 
     not enacted into law by the end of 70 session days or 
     legislative days, as applicable, beginning on the date on 
     which the report referred to in subsection (a)(1)(A) is 
     received by Congress (excluding days either House of Congress 
     is adjourned for more than 3 days during a session of 
     Congress), then the rule described in that resolution shall 
     be deemed not to be approved and such rule shall not take 
     effect.
       (c)(1) Notwithstanding any other provision of this section 
     (except subject to paragraph (3)), a major rule may take 
     effect for one 90-calendar-day period if the President makes 
     a determination under paragraph (2) and submits written 
     notice of such determination to the Congress.
       (2) Paragraph (1) applies to a determination made by the 
     President by Executive order that the major rule should take 
     effect because such rule is--
       (A) necessary because of an imminent threat to health or 
     safety or other emergency;
       (B) necessary for the enforcement of criminal laws;
       (C) necessary for national security; or
       (D) issued pursuant to any statute implementing an 
     international trade agreement.
       (3) An exercise by the President of the authority under 
     this subsection shall have no effect on the procedures under 
     section 332.
       (d)(1) In addition to the opportunity for review otherwise 
     provided under this subtitle, in the case of any rule for 
     which a report was submitted in accordance with subsection 
     (a)(1)(A) during the period beginning on the date occurring--
       (A) in the case of the Senate, 60 session days; or
       (B) in the case of the House of Representatives, 60 
     legislative days,
     before the date the Congress is scheduled to adjourn a 
     session of Congress through the date on which the same or 
     succeeding Congress first convenes its next session, sections 
     332 and 333 shall apply to such rule in the succeeding 
     session of Congress.
       (2)(A) In applying sections 332 and 333 for purposes of 
     such additional review, a rule described under paragraph (1) 
     shall be treated as though--
       (i) such rule were published in the Federal Register on--
       (I) in the case of the Senate, the 15th session day; or
       (II) in the case of the House of Representatives, the 15th 
     legislative day,
     after the succeeding session of Congress first convenes; and
       (ii) a report on such rule were submitted to Congress under 
     subsection (a)(1) on such date.
       (B) Nothing in this paragraph shall be construed to affect 
     the requirement under subsection (a)(1) that a report shall 
     be submitted to Congress before a rule can take effect.
       (3) A rule described under paragraph (1) shall take effect 
     as otherwise provided by law (including other subsections of 
     this section).

     SEC. 332. CONGRESSIONAL APPROVAL PROCEDURE FOR MAJOR RULES.

       (a)(1) For purposes of this section, the term ``joint 
     resolution'' means only a joint resolution addressing a 
     report classifying a rule as major pursuant to section 
     331(a)(1)(A)(iii) that--
       (A) bears no preamble;
       (B) bears the following title (with blanks filled as 
     appropriate): ``Approving the rule submitted by ___ relating 
     to ___.'';
       (C) includes after its resolving clause only the following 
     (with blanks filled as appropriate): ``That Congress approves 
     the rule submitted by ___ relating to ___.''; and
       (D) is introduced pursuant to paragraph (2).
       (2) After a House of Congress receives a report classifying 
     a rule as major pursuant to section 331(a)(1)(A)(iii), the 
     majority leader of that House (or his or her respective 
     designee) shall introduce (by request, if appropriate) a 
     joint resolution described in paragraph (1)--
       (A) in the case of the House of Representatives, within 3 
     legislative days; and
       (B) in the case of the Senate, within 3 session days.
       (3) A joint resolution described in paragraph (1) shall not 
     be subject to amendment at any stage of proceeding.
       (b) A joint resolution described in subsection (a) shall be 
     referred in each House of Congress to the committees having 
     jurisdiction over the provision of law under which the rule 
     is issued.
       (c) In the Senate, if the committee or committees to which 
     a joint resolution described in subsection (a) has been 
     referred have not reported it at the end of 15 session days 
     after its introduction, such committee or committees shall be 
     automatically discharged from further consideration of the 
     resolution and it shall be placed on the calendar. A vote on 
     final passage of the resolution shall be taken on or before 
     the close of the 15th session day after the resolution is 
     reported by the committee or committees to which it was 
     referred, or after such committee or committees have been 
     discharged from further consideration of the resolution.
       (d)(1) In the Senate, when the committee or committees to 
     which a joint resolution is referred have reported, or when a 
     committee or committees are discharged (under subsection (c)) 
     from further consideration of a joint resolution described in 
     subsection (a), it is at any time thereafter in order (even 
     though a previous motion to the same effect has been 
     disagreed to) for a motion to proceed to the consideration of 
     the joint resolution, and all points of order against the 
     joint resolution (and against consideration of the joint 
     resolution) are waived. The motion is not subject to 
     amendment, or to a motion to

[[Page 8939]]

     postpone, or to a motion to proceed to the consideration of 
     other business. A motion to reconsider the vote by which the 
     motion is agreed to or disagreed to shall not be in order. If 
     a motion to proceed to the consideration of the joint 
     resolution is agreed to, the joint resolution shall remain 
     the unfinished business of the Senate until disposed of.
       (2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 2 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion to further limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       (3) In the Senate, immediately following the conclusion of 
     the debate on a joint resolution described in subsection (a), 
     and a single quorum call at the conclusion of the debate if 
     requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       (4) Appeals from the decisions of the Chair relating to the 
     application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       (e) In the House of Representatives, if any committee to 
     which a joint resolution described in subsection (a) has been 
     referred has not reported it to the House at the end of 15 
     legislative days after its introduction, such committee shall 
     be discharged from further consideration of the joint 
     resolution, and it shall be placed on the appropriate 
     calendar. On the second and fourth Thursdays of each month it 
     shall be in order at any time for the Speaker to recognize a 
     Member who favors passage of a joint resolution that has 
     appeared on the calendar for at least 5 legislative days to 
     call up that joint resolution for immediate consideration in 
     the House without intervention of any point of order. When so 
     called up a joint resolution shall be considered as read and 
     shall be debatable for 1 hour equally divided and controlled 
     by the proponent and an opponent, and the previous question 
     shall be considered as ordered to its passage without 
     intervening motion. It shall not be in order to reconsider 
     the vote on passage. If a vote on final passage of the joint 
     resolution has not been taken by the third Thursday on which 
     the Speaker may recognize a Member under this subsection, 
     such vote shall be taken on that day.
       (f)(1) If, before passing a joint resolution described in 
     subsection (a), one House receives from the other a joint 
     resolution having the same text, then--
       (A) the joint resolution of the other House shall not be 
     referred to a committee; and
       (B) the procedure in the receiving House shall be the same 
     as if no joint resolution had been received from the other 
     House until the vote on passage, when the joint resolution 
     received from the other House shall supplant the joint 
     resolution of the receiving House.
       (2) This subsection shall not apply to the House of 
     Representatives if the joint resolution received from the 
     Senate is a revenue measure.
       (g) If either House has not taken a vote on final passage 
     of the joint resolution by the last day of the period 
     described in section 331(b)(2), then such vote shall be taken 
     on that day.
       (h) This section and section 333 are enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such is 
     deemed to be part of the rules of each House, respectively, 
     but applicable only with respect to the procedure to be 
     followed in that House in the case of a joint resolution 
     described in subsection (a) and superseding other rules only 
     where explicitly so; and
       (2) with full recognition of the Constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner 
     and to the same extent as in the case of any other rule of 
     that House.

     SEC. 333. CONGRESSIONAL DISAPPROVAL PROCEDURE FOR NONMAJOR 
                   RULES.

       (a) For purposes of this section, the term ``joint 
     resolution'' means only a joint resolution introduced in the 
     period beginning on the date on which the report referred to 
     in section 331(a)(1)(A) is received by Congress and ending 60 
     days thereafter (excluding days either House of Congress is 
     adjourned for more than 3 days during a session of Congress), 
     the matter after the resolving clause of which is as follows: 
     ``That Congress disapproves the nonmajor rule submitted by 
     the ___ relating to ___, and such rule shall have no force or 
     effect.'' (The blank spaces being appropriately filled in).
       (b) A joint resolution described in subsection (a) shall be 
     referred to the committees in each House of Congress with 
     jurisdiction.
       (c) In the Senate, if the committee to which is referred a 
     joint resolution described in subsection (a) has not reported 
     such joint resolution (or an identical joint resolution) at 
     the end of 15 session days after the date of introduction of 
     the joint resolution, such committee may be discharged from 
     further consideration of such joint resolution upon a 
     petition supported in writing by 30 Members of the Senate, 
     and such joint resolution shall be placed on the calendar.
       (d)(1) In the Senate, when the committee to which a joint 
     resolution is referred has reported, or when a committee is 
     discharged (under subsection (c)) from further consideration 
     of a joint resolution described in subsection (a), it is at 
     any time thereafter in order (even though a previous motion 
     to the same effect has been disagreed to) for a motion to 
     proceed to the consideration of the joint resolution, and all 
     points of order against the joint resolution (and against 
     consideration of the joint resolution) are waived. The motion 
     is not subject to amendment, or to a motion to postpone, or 
     to a motion to proceed to the consideration of other 
     business. A motion to reconsider the vote by which the motion 
     is agreed to or disagreed to shall not be in order. If a 
     motion to proceed to the consideration of the joint 
     resolution is agreed to, the joint resolution shall remain 
     the unfinished business of the Senate until disposed of.
       (2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 10 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion to further limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       (3) In the Senate, immediately following the conclusion of 
     the debate on a joint resolution described in subsection (a), 
     and a single quorum call at the conclusion of the debate if 
     requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       (4) Appeals from the decisions of the Chair relating to the 
     application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       (e) In the Senate, the procedure specified in subsection 
     (c) or (d) shall not apply to the consideration of a joint 
     resolution respecting a nonmajor rule--
       (1) after the expiration of the 60 session days beginning 
     with the applicable submission or publication date; or
       (2) if the report under section 331(a)(1)(A) was submitted 
     during the period referred to in section 331(d)(1), after the 
     expiration of the 60 session days beginning on the 15th 
     session day after the succeeding session of Congress first 
     convenes.
       (f) If, before the passage by one House of a joint 
     resolution of that House described in subsection (a), that 
     House receives from the other House a joint resolution 
     described in subsection (a), then the following procedures 
     shall apply:
       (1) The joint resolution of the other House shall not be 
     referred to a committee.
       (2) With respect to a joint resolution described in 
     subsection (a) of the House receiving the joint resolution--
       (A) the procedure in that House shall be the same as if no 
     joint resolution had been received from the other House; but
       (B) the vote on final passage shall be on the joint 
     resolution of the other House.

     SEC. 334. DEFINITIONS.

       For purposes of this subtitle:
       (1) The term ``agency'' has the meaning given such term 
     under section 311.
       (2) The term ``major rule'' means any rule, including an 
     interim final rule, that the Administrator of the Office of 
     Information and Regulatory Affairs of the Office of 
     Management and Budget finds has resulted in or is likely to 
     result in--
       (A) an annual cost on the economy of $100,000,000 or more, 
     adjusted annually for inflation;
       (B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions; or
       (C) significant adverse effects on competition, employment, 
     investment, productivity, innovation, or on the ability of 
     United States-based enterprises to compete with foreign-based 
     enterprises in domestic and export markets.
       (3) The term ``nonmajor rule'' means any rule that is not a 
     major rule.
       (4) The term ``rule'' has the meaning given such term in 
     section 551 of title 5, United States Code, except that such 
     term does not include--
       (A) any rule of particular applicability, including a rule 
     that approves or prescribes for the future rates, wages, 
     prices, services, or allowances therefore, corporate or 
     financial structures, reorganizations, mergers, or 
     acquisitions thereof, or accounting practices or disclosures 
     bearing on any of the foregoing;
       (B) any rule relating to agency management or personnel; or
       (C) any rule of agency organization, procedure, or practice 
     that does not substantially affect the rights or obligations 
     of non-agency parties.
       (5) The term ``submission date or publication date'', 
     except as otherwise provided in this subtitle, means--
       (A) in the case of a major rule, the date on which the 
     Congress receives the report submitted under section 
     331(a)(1)(A); and
       (B) in the case of a nonmajor rule, the later of--
       (i) the date on which the Congress receives the report 
     submitted under section 331(a)(1)(A); and
       (ii) the date on which the nonmajor rule is published in 
     the Federal Register, if so published.

     SEC. 335. JUDICIAL REVIEW.

       (a) No determination, finding, action, or omission under 
     this subtitle shall be subject to judicial review.
       (b) Notwithstanding subsection (a), a court may determine 
     whether a Federal financial agency has completed the 
     necessary requirements under this subtitle for a rule to take 
     effect.

[[Page 8940]]

       (c) The enactment of a joint resolution of approval under 
     section 332 shall not be interpreted to serve as a grant or 
     modification of statutory authority by Congress for the 
     promulgation of a rule, shall not extinguish or affect any 
     claim, whether substantive or procedural, against any alleged 
     defect in a rule, and shall not form part of the record 
     before the court in any judicial proceeding concerning a rule 
     except for purposes of determining whether or not the rule is 
     in effect.

     SEC. 336. EFFECTIVE DATE OF CERTAIN RULES.

       Notwithstanding section 331--
       (1) any rule that establishes, modifies, opens, closes, or 
     conducts a regulatory program for a commercial, recreational, 
     or subsistence activity related to hunting, fishing, or 
     camping, or
       (2) any rule other than a major rule which the Federal 
     financial agency for good cause finds (and incorporates the 
     finding and a brief statement of reasons therefore in the 
     rule issued) that notice and public procedure thereon are 
     impracticable, unnecessary, or contrary to the public 
     interest,
     shall take effect at such time as the Federal financial 
     agency promulgating the rule determines.

     SEC. 337. BUDGETARY EFFECTS OF RULES SUBJECT TO SECTION 332 
                   OF THE FINANCIAL CHOICE ACT OF 2017.

       Section 257(b)(2) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 is amended by adding at the end 
     the following new subparagraph:
       ``(E) Budgetary effects of rules subject to section 332 of 
     the financial choice act of 2017.--Any rules subject to the 
     congressional approval procedure set forth in section 332 of 
     the Financial CHOICE Act of 2017 affecting budget authority, 
     outlays, or receipts shall be assumed to be effective unless 
     it is not approved in accordance with such section.''.

     SEC. 338. NONAPPLICABILITY TO MONETARY POLICY.

       Nothing in this subtitle shall apply to rules that concern 
     monetary policy proposed or implemented by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee.

             Subtitle C--Judicial Review of Agency Actions

     SEC. 341. SCOPE OF JUDICIAL REVIEW OF AGENCY ACTIONS.

       (a) In General.--Notwithstanding any other provision of 
     law, in any judicial review of an agency action pursuant to 
     chapter 7 of title 5, United States Code, to the extent 
     necessary to decision and when presented, the reviewing court 
     shall determine the meaning or applicability of the terms of 
     an agency action and decide de novo all relevant questions of 
     law, including the interpretation of constitutional and 
     statutory provisions, and rules made by an agency. If the 
     reviewing court determines that a statutory or regulatory 
     provision relevant to its decision contains a gap or 
     ambiguity, the court shall not interpret that gap or 
     ambiguity as an implicit delegation to the agency of 
     legislative rule making authority and shall not rely on such 
     gap or ambiguity as a justification either for interpreting 
     agency authority expansively or for deferring to the agency's 
     interpretation on the question of law. Notwithstanding any 
     other provision of law, this section shall apply in any 
     action for judicial review of agency action authorized under 
     any provision of law. No law may exempt any such civil action 
     from the application of this section except by specific 
     reference to this section.
       (b) Agency Defined.--For purposes of this section, the term 
     ``agency'' has the meaning given such term under section 311.
       (c) Effective Date.--Subsection (a) shall take effect after 
     the end of the 2-year period beginning on the date of the 
     enactment of this Act.

             Subtitle D--Leadership of Financial Regulators

     SEC. 351. FEDERAL DEPOSIT INSURANCE CORPORATION.

       Section 2 of the Federal Deposit Insurance Act (12 U.S.C. 
     1812) is amended--
       (1) in subsection (a)(1), by striking ``5 members'' and all 
     that follows through ``3 of whom'' and inserting the 
     following: ``5 members, who'';
       (2) by amending subsection (d) to read as follows:
       ``(d) Vacancy.--Any vacancy on the Board of Directors shall 
     be filled in the manner in which the original appointment was 
     made.''; and
       (3) in subsection (f)--
       (A) by striking paragraph (2); and
       (B) by redesignating paragraph (3) as paragraph (2).

     SEC. 352. FEDERAL HOUSING FINANCE AGENCY.

       Section 1312(b)(2) of the Federal Housing Enterprises 
     Financial Safety and Soundness Act of 1992 (12 U.S.C. 4512) 
     is amended by striking ``for cause''.

         Subtitle E--Congressional Oversight of Appropriations

     SEC. 361. BRINGING THE FEDERAL DEPOSIT INSURANCE CORPORATION 
                   INTO THE APPROPRIATIONS PROCESS.

       (a) In General.--Section 10(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1820(a)) is amended--
       (1) by striking ``(a) The'' and inserting the following:
       ``(a) Powers.--
       ``(1) In general.--The'';
       (2) by inserting ``, subject to paragraph (2),'' after 
     ``The Board of Directors of the Corporation''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Appropriations requirement.--
       ``(A) Operating fund.--There is established an Operating 
     Fund, to which Congress shall provide annual appropriations 
     to the Corporation, which shall be separate from the Deposit 
     Insurance Fund.
       ``(B) Recovery of costs of annual appropriation.--The 
     Corporation shall collect assessments and other fees, as 
     provided under this Act, that are designed to recover the 
     costs to the Government of the annual appropriation to the 
     Corporation by Congress. Subject to subparagraph (E), the 
     Corporation may only incur obligations, or allow and pay 
     expenses, from the Operating Fund pursuant to an 
     appropriations Act.
       ``(C) Deposits.--Assessments and other fees described under 
     subparagraph (B) for any fiscal year--
       ``(i) shall be deposited in the Operating Fund; and
       ``(ii) except as provided in subparagraph (E), shall not be 
     collected for any fiscal year except to the extent provided 
     in advance in appropriation Acts.
       ``(D) Credits.--Amounts deposited in the Operating Fund 
     during a fiscal year shall be credited as offsetting the 
     amount appropriated to the Operating Fund for such fiscal 
     year.
       ``(E) Exception for certain programs.--This paragraph shall 
     not apply to the Corporation's Insurance Business Line 
     Programs and Receivership Management Business Line Programs, 
     as in existence on the date of enactment of this 
     paragraph.''.
       (b) Conforming Amendment.--Subsection (d) of section 7 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended 
     to read as follows:
       ``(d) Deposit Insurance Fund Exempt From Apportionment.--
     Notwithstanding any other provision of law, amounts received 
     pursuant to any assessments or other fees that are deposited 
     into the Deposit Insurance Fund shall not be subject to 
     apportionment for the purposes of chapter 15 of title 31, 
     United States Code, or under any other authority.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to expenses paid and fees collected 
     on or after October 1, 2017.

     SEC. 362. BRINGING THE FEDERAL HOUSING FINANCE AGENCY INTO 
                   THE APPROPRIATIONS PROCESS.

       (a) In General.--Section 1316 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 4516) is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Appropriations Requirement.--
       ``(1) Recovery of costs of annual appropriation.--The 
     Agency shall collect assessments and other fees that are 
     designed to recover the costs to the Government of the annual 
     appropriation to the Agency by Congress.
       ``(2) Offsetting collections.--Assessments and other fees 
     described under paragraph (1) for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Agency; and
       ``(B) shall not be collected for any fiscal year except to 
     the extent provided in advance in appropriation Acts.''; and
       (2) by striking subsection (f).
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to expenses paid and assessments and 
     other fees collected on or after October 1, 2017.

     SEC. 363. BRINGING THE NATIONAL CREDIT UNION ADMINISTRATION 
                   INTO THE APPROPRIATIONS PROCESS.

       (a) In General.--Section 105 of the Federal Credit Union 
     Act (12 U.S.C. 1755) is amended--
       (1) by amending subsections (a) and (b) to read as follows:
       ``(a) Payment by Federal Credit Unions to Administration.--
     Each insured credit union shall pay to the Administration an 
     annual fee.
       ``(b) Determinations of Assessment Periods and Payment 
     Dates.--The Board shall determine the periods for which the 
     fee referred to under subsection (a) shall be assessed and 
     the date for the payment of such fee or increments 
     thereof.'';
       (2) in subsection (c), by striking ``operating'';
       (3) by amending subsection (d) to read as follows:
       ``(d) Appropriations Requirement.--
       ``(1) Recovery of costs of annual appropriation.--The 
     Administration shall collect fees other than those fees 
     referred to under subsection (a) from each insured credit 
     union, as provided under this Act, in an amount stated as a 
     percentage of insured shares of each insured credit union 
     (which percentage shall be the same for all insured credit 
     unions). Such fees shall be designed to recover the costs to 
     the Government of the annual appropriation to the 
     Administration by Congress.
       ``(2) Offsetting collections.--Fees described under 
     paragraph (1) for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Administration; and
       ``(B) shall not be collected for any fiscal year except to 
     the extent provided in advance in appropriation Acts.
       ``(3) Exception for insurance functions.--This subsection 
     shall not apply to the National Credit Union Share Insurance 
     Fund, including assessments and other fees that are deposited 
     into, and amounts paid from, the National Credit Union Share 
     Insurance Fund.''; and
       (4) by striking subsection (e).
       (b) Conforming Amendments.--The Federal Credit Union Act 
     (12 U.S.C. 1751 et seq.) is amended--

[[Page 8941]]

       (1) in section 120(j), by striking paragraph (3);
       (2) by amending section 128 to read as follows:

     ``SEC. 128. NATIONAL CREDIT UNION SHARE INSURANCE FUND EXEMPT 
                   FROM APPORTIONMENT.

       ``Notwithstanding any other provision of law, amounts 
     received pursuant to any assessments or other fees that are 
     deposited into the National Credit Union Share Insurance Fund 
     or the Temporary Corporate Credit Union Stabilization Fund 
     shall not be subject to apportionment for the purposes of 
     chapter 15 of title 31, United States Code, or under any 
     other authority.''; and
       (3) in section 203(a), by striking ``and for such 
     administrative and other expenses incurred in carrying out 
     the purposes of this title''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to expenses paid and fees collected 
     on or after October 1, 2017.

     SEC. 364. BRINGING THE OFFICE OF THE COMPTROLLER OF THE 
                   CURRENCY INTO THE APPROPRIATIONS PROCESS.

       (a) In General.--Section 5240A of the Revised Statutes of 
     the United States (12 U.S.C. 16) is amended--
       (1) by striking ``Sec. 5240A. The Comptroller of the 
     Currency may collect an assessment, fee, or other charge from 
     any entity described in section 3(q)(1) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(q)(1)), as the 
     Comptroller determines is necessary or appropriate to carry 
     out the responsibilities of the Office of the Comptroller of 
     the Currency. In establishing the amount of an assessment, 
     fee, or charge collected from an entity under this section,'' 
     and inserting the following:

     ``SEC. 5240A. COLLECTION OF FEES; APPROPRIATIONS REQUIREMENT.

       ``(a) In General.--In establishing the amount of an 
     assessment, fee, or charge collected from an entity under 
     subsection (b),'';
       (2) by striking ``Funds derived'' and all that follows 
     through the end of the section; and
       (3) by adding at the end the following:
       ``(b) Appropriations Requirement.--
       ``(1) Recovery of costs of annual appropriation.--The 
     Comptroller of the Currency shall impose and collect 
     assessments, fees, or other charges that are designed to 
     recover the costs to the Government of the annual 
     appropriation to the Office of the Comptroller of the 
     Currency by Congress.
       ``(2) Offsetting collections.--Assessments and other fees 
     described under paragraph (1) for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Office of the Comptroller of the Currency; and
       ``(B) shall not be collected for any fiscal year except to 
     the extent provided in advance in appropriation Acts.''.
       (b) Conforming Amendment.--Section 5240 (12 U.S.C. 481 et 
     seq.) of the Revised Statutes of the United States is amended 
     by striking the fourth undesignated paragraph.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to expenses paid and fees collected 
     on or after October 1, 2017.

     SEC. 365. BRINGING THE NON-MONETARY POLICY RELATED FUNCTIONS 
                   OF THE BOARD OF GOVERNORS OF THE FEDERAL 
                   RESERVE SYSTEM INTO THE APPROPRIATIONS PROCESS.

       (a) In General.--The Federal Reserve Act is amended by 
     inserting after section 11B the following:

     ``SEC. 11C. APPROPRIATIONS REQUIREMENT FOR NON-MONETARY 
                   POLICY RELATED ADMINISTRATIVE COSTS.

       ``(a) Appropriations Requirement.--
       ``(1) Recovery of costs of annual appropriation.--The Board 
     of Governors of the Federal Reserve System and the Federal 
     reserve banks shall collect assessments and other fees, as 
     provided under this Act, that are designed to recover the 
     costs to the Government of the annual appropriation to the 
     Board of Governors of the Federal Reserve System by Congress. 
     The Board of Governors of the Federal Reserve System and the 
     Federal reserve banks may only incur obligations or allow and 
     pay expenses with respect to non-monetary policy related 
     administrative costs pursuant to an appropriations Act.
       ``(2) Offsetting collections.--Assessments and other fees 
     described under paragraph (1) for any fiscal year--
       ``(A) shall be deposited and credited as offsetting 
     collections to the account providing appropriations to the 
     Board of Governors of the Federal Reserve System; and
       ``(B) shall not be collected for any fiscal year except to 
     the extent provided in advance in appropriation Acts.
       ``(3) Limitation.--This subsection shall only apply to the 
     non-monetary policy related administrative costs of the Board 
     of Governors of the Federal Reserve System.
       ``(b) Definitions.--For purposes of this section:
       ``(1) Monetary policy.--The term `monetary policy' means a 
     strategy for producing a generally acceptable exchange medium 
     that supports the productive employment of economic resources 
     by reliably serving as both a unit of account and store of 
     value.
       ``(2) Non-monetary policy related administrative costs.--
     The term `non-monetary policy related administrative costs' 
     means administrative costs not related to the conduct of 
     monetary policy, and includes--
       ``(A) direct operating expenses for supervising and 
     regulating entities supervised and regulated by the Board of 
     Governors of the Federal Reserve System, including conducting 
     examinations, conducting stress tests, communicating with the 
     entities regarding supervisory matters and laws, and 
     regulations;
       ``(B) operating expenses for activities integral to 
     carrying out supervisory and regulatory responsibilities, 
     such as training staff in the supervisory function, research 
     and analysis functions including library subscription 
     services, and collecting and processing regulatory reports 
     filed by supervised institutions; and
       ``(C) support, overhead, and pension expenses related to 
     the items described under subparagraphs (A) and (B).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to expenses paid and fees collected 
     on or after October 1, 2017.

                  Subtitle F--International Processes

     SEC. 371. REQUIREMENTS FOR INTERNATIONAL PROCESSES.

       (a) Board of Governors Requirements.--Section 11 of the 
     Federal Reserve Act (12 U.S.C. 248), as amended by section 
     1007(a), is further amended by adding at the end the 
     following new subsection:
       ``(w) International Processes.--
       ``(1) Notice of process; consultation.--At least 30 
     calendar days before any member or employee of the Board of 
     Governors of the Federal Reserve System participates in a 
     process of setting financial standards as a part of any 
     foreign or multinational entity, the Board of Governors 
     shall--
       ``(A) issue a notice of the process, including the subject 
     matter, scope, and goals of the process, to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Board of Governors; and
       ``(C) solicit public comment, and consult with the 
     committees described under subparagraph (A), with respect to 
     the subject matter, scope, and goals of the process.
       ``(2) Public reports on process.--After the end of any 
     process described under paragraph (1), the Board of Governors 
     shall issue a public report on the topics that were discussed 
     during the process and any new or revised rulemakings or 
     policy changes that the Board of Governors believes should be 
     implemented as a result of the process and make the report 
     available on the website of the Board of Governors.
       ``(3) Notice of agreements; consultation.--At least 90 
     calendar days before any member or employee of the Board of 
     Governors of the Federal Reserve System participates in a 
     process of setting financial standards as a part of any 
     foreign or multinational entity, the Board of Governors 
     shall--
       ``(A) issue a notice of agreement to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Board of Governors; and
       ``(C) consult with the committees described under 
     subparagraph (A) with respect to the nature of the agreement 
     and any anticipated effects such agreement will have on the 
     economy.
       ``(4) Definition.--For purposes of this subsection, the 
     term `process' shall include any official proceeding or 
     meeting on financial regulation of a recognized international 
     organization with authority to set financial standards on a 
     global or regional level, including the Financial Stability 
     Board, the Basel Committee on Banking Supervision (or a 
     similar organization), and the International Association of 
     Insurance Supervisors (or a similar organization).''.
       (b) FDIC Requirements.--The Federal Deposit Insurance Act 
     (12 U.S.C. 1811 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 51. INTERNATIONAL PROCESSES.

       ``(a) Notice of Process; Consultation.--At least 30 
     calendar days before the Board of Directors participates in a 
     process of setting financial standards as a part of any 
     foreign or multinational entity, the Board of Directors 
     shall--
       ``(1) issue a notice of the process, including the subject 
     matter, scope, and goals of the process, to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(2) make such notice available to the public, including 
     on the website of the Corporation; and
       ``(3) solicit public comment, and consult with the 
     committees described under paragraph (1), with respect to the 
     subject matter, scope, and goals of the process.
       ``(b) Public Reports on Process.--After the end of any 
     process described under subsection (a), the Board of 
     Directors shall issue a public report on the topics that were 
     discussed at the process and any new or revised rulemakings 
     or policy changes that the Board of Directors believes should 
     be implemented as a result of the process and make the report 
     available on the website of the Corporation.
       ``(c) Notice of Agreements; Consultation.--At least 90 
     calendar days before the Board of Directors participates in a 
     process of setting financial standards as a part of any 
     foreign or multinational entity, the Board of Directors 
     shall--
       ``(1) issue a notice of agreement to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(2) make such notice available to the public, including 
     on the website of the Corporation; and

[[Page 8942]]

       ``(3) consult with the committees described under paragraph 
     (1) with respect to the nature of the agreement and any 
     anticipated effects such agreement will have on the economy.
       ``(d) Definition.--For purposes of this section, the term 
     `process' shall include any official proceeding or meeting on 
     financial regulation of a recognized international 
     organization with authority to set financial standards on a 
     global or regional level, including the Financial Stability 
     Board, the Basel Committee on Banking Supervision (or a 
     similar organization), and the International Association of 
     Insurance Supervisors (or a similar organization).''.
       (c) Treasury Requirements.--Section 325 of title 31, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) International Processes.--
       ``(1) Notice of process; consultation.--At least 30 
     calendar days before the Secretary participates in a process 
     of setting financial standards as a part of any foreign or 
     multinational entity, the Secretary shall--
       ``(A) issue a notice of the process, including the subject 
     matter, scope, and goals of the process, to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Department of the Treasury; and
       ``(C) solicit public comment, and consult with the 
     committees described under subparagraph (A), with respect to 
     the subject matter, scope, and goals of the process.
       ``(2) Public reports on process.--After the end of any 
     process described under paragraph (1), the Secretary shall 
     issue a public report on the topics that were discussed at 
     the process and any new or revised rulemakings or policy 
     changes that the Secretary believes should be implemented as 
     a result of the process and make the report available on the 
     website of the Department of the Treasury.
       ``(3) Notice of agreements; consultation.--At least 90 
     calendar days before the Secretary participates in a process 
     of setting financial standards as a part of any foreign or 
     multinational entity, the Secretary shall--
       ``(A) issue a notice of agreement to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Department of the Treasury; and
       ``(C) consult with the committees described under 
     subparagraph (A) with respect to the nature of the agreement 
     and any anticipated effects such agreement will have on the 
     economy.
       ``(4) Definition.--For purposes of this subsection, the 
     term `process' shall include any official proceeding or 
     meeting on financial regulation of a recognized international 
     organization with authority to set financial standards on a 
     global or regional level, including the Financial Stability 
     Board, the Basel Committee on Banking Supervision (or a 
     similar organization), and the International Association of 
     Insurance Supervisors (or a similar organization).''.
       (d) OCC Requirements.--Chapter one of title LXII of the 
     Revised Statutes of the United States (12 U.S.C. 21 et seq.) 
     is amended--
       (1) by adding at the end the following new section:

     ``SEC. 5156B. INTERNATIONAL PROCESSES.

       ``(a) Notice of Process; Consultation.--At least 30 
     calendar days before the Comptroller of the Currency 
     participates in a process of setting financial standards as a 
     part of any foreign or multinational entity, the Comptroller 
     of the Currency shall--
       ``(1) issue a notice of the process, including the subject 
     matter, scope, and goals of the process, to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(2) make such notice available to the public, including 
     on the website of the Office of the Comptroller of the 
     Currency; and
       ``(3) solicit public comment, and consult with the 
     committees described under paragraph (1), with respect to the 
     subject matter, scope, and goals of the process.
       ``(b) Public Reports on Process.--After the end of any 
     process described under subsection (a), the Comptroller of 
     the Currency shall issue a public report on the topics that 
     were discussed at the process and any new or revised 
     rulemakings or policy changes that the Comptroller of the 
     Currency believes should be implemented as a result of the 
     process.
       ``(c) Notice of Agreements; Consultation.--At least 90 
     calendar days before the Comptroller of the Currency 
     participates in a process of setting financial standards as a 
     part of any foreign or multinational entity, the Comptroller 
     of the Currency shall--
       ``(1) issue a notice of agreement to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(2) make such notice available to the public, including 
     on the website of the Office of the Comptroller of the 
     Currency; and
       ``(3) consult with the committees described under paragraph 
     (1) with respect to the nature of the agreement and any 
     anticipated effects such agreement will have on the economy.
       ``(d) Definition.--For purposes of this section, the term 
     `process' shall include any official proceeding or meeting on 
     financial regulation of a recognized international 
     organization with authority to set financial standards on a 
     global or regional level, including the Financial Stability 
     Board, the Basel Committee on Banking Supervision (or a 
     similar organization), and the International Association of 
     Insurance Supervisors (or a similar organization).''; and
       (2) in the table of contents for such chapter, by adding at 
     the end the following new item:

``5156B. International processes.''.
       (e) Securities and Exchange Commission Requirements.--
     Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78d), as amended by section 818(a), is further amended by 
     adding at the end the following new subsection:
       ``(k) International Processes.--
       ``(1) Notice of process; consultation.--At least 30 
     calendar days before the Commission participates in a process 
     of setting financial standards as a part of any foreign or 
     multinational entity, the Commission shall--
       ``(A) issue a notice of the process, including the subject 
     matter, scope, and goals of the process, to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Commission; and
       ``(C) solicit public comment, and consult with the 
     committees described under subparagraph (A), with respect to 
     the subject matter, scope, and goals of the process.
       ``(2) Public reports on process.--After the end of any 
     process described under paragraph (1), the Commission shall 
     issue a public report on the topics that were discussed at 
     the process and any new or revised rulemakings or policy 
     changes that the Commission believes should be implemented as 
     a result of the process and make the report available on the 
     website of the Commission.
       ``(3) Notice of agreements; consultation.--At least 90 
     calendar days before the Commission participates in a process 
     of setting financial standards as a part of any foreign or 
     multinational entity, the Commission shall--
       ``(A) issue a notice of agreement to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Commission; and
       ``(C) consult with the committees described under 
     subparagraph (A) with respect to the nature of the agreement 
     and any anticipated effects such agreement will have on the 
     economy.
       ``(4) Definition.--For purposes of this subsection, the 
     term `process' shall include any official proceeding or 
     meeting on financial regulation of a recognized international 
     organization with authority to set financial standards on a 
     global or regional level, including the Financial Stability 
     Board, the Basel Committee on Banking Supervision (or a 
     similar organization), and the International Association of 
     Insurance Supervisors (or a similar organization).''.
       (f) Commodity Futures Trading Commission Requirements.--
     Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
     amended by adding at the end the following:
       ``(k) International Processes.--
       ``(1) Notice of process; consultation.--At least 30 
     calendar days before the Commission participates in a process 
     of setting financial standards as a part of any foreign or 
     multinational entity, the Commission shall--
       ``(A) issue a notice of the process, including the subject 
     matter, scope, and goals of the process, to--
       ``(i) the Committee on Agriculture of the House of 
     Representatives; and
       ``(ii) the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Commission; and
       ``(C) solicit public comment, and consult with the 
     committees described under subparagraph (A), with respect to 
     the subject matter, scope, and goals of the process.
       ``(2) Public reports on process.--After the end of any 
     process described under paragraph (1), the Commission shall 
     issue a public report on the topics that were discussed 
     during the process and any new or revised rulemakings or 
     policy changes that the Commission believes should be 
     implemented as a result of the process and make the report 
     available on the website of the Commission.
       ``(3) Notice of agreements; consultation.--At least 90 
     calendar days before the Commission participates in a process 
     of setting financial standards as a part of any foreign or 
     multinational entity, the Commission shall--
       ``(A) issue a notice of agreement to--
       ``(i) the Committee on Agriculture of the House of 
     Representatives; and
       ``(ii) the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate;
       ``(B) make such notice available to the public, including 
     on the website of the Commission; and
       ``(C) consult with the committees described under 
     subparagraph (A) with respect to the nature of the agreement 
     and any anticipated effects such agreement will have on the 
     economy.
       ``(4) Definition.--For purposes of this subsection, the 
     term `process' shall include any official proceeding or 
     meeting on financial regulation of a recognized international 
     organization with authority to set financial standards on a 
     global or regional level, including the Financial Stability 
     Board, the Basel Committee on Banking Supervision (or a 
     similar organization), and the International Association of 
     Insurance Supervisors (or a similar organization).''.

                  Subtitle G--Unfunded Mandates Reform

     SEC. 381. DEFINITIONS.

       For purposes of this subtitle:
       (1) Agency.--The term ``agency'' has the meaning given such 
     term under section 311.

[[Page 8943]]

       (2) Direct costs.--The term ``direct costs'' has the 
     meaning given such term under section 421(3) of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 658(3)), except that--
       (A) in the case of a Federal intergovernmental mandate, the 
     term means the aggregate estimated amounts that all State, 
     local, and Tribal governments would incur or be required to 
     spend or would be prohibited from raising in revenues in 
     order to comply with the Federal intergovernmental mandate; 
     and
       (B) in the case of a Federal private sector mandate, the 
     term means the aggregate estimated amounts that the private 
     sector will be required to spend or could forgo in profits, 
     including costs passed on to consumers or other entities 
     taking into account, to the extent practicable, behavioral 
     changes, in order to comply with the Federal private sector 
     mandate.
       (3) Other definitions.--Except as provided under paragraphs 
     (1) and (2), the definitions under section 421 of the 
     Congressional Budget and Impoundment Control Act of 1974 
     shall apply to this subtitle.

     SEC. 382. APPLICATION OF THE UNFUNDED MANDATES REFORM ACT.

       (a) In General.--The Unfunded Mandates Reform Act of 1995 
     (2 U.S.C. 1501 et seq.) shall apply to the Board of Governors 
     of the Federal Reserve System, the Consumer Law Enforcement 
     Agency, the Commodity Futures Trading Commission, the Federal 
     Deposit Insurance Corporation, the Federal Housing Finance 
     Agency, the Office of the Comptroller of the Currency, the 
     National Credit Union Administration, and the Securities and 
     Exchange Commission.
       (b) Statements to Accompany Significant Regulatory 
     Actions.--
       (1) In general.--Unless otherwise expressly prohibited by 
     law, before promulgating any general notice of proposed 
     rulemaking or any final rule, or within six months after 
     promulgating any final rule that was not preceded by a 
     general notice of proposed rulemaking, if the proposed 
     rulemaking or final rule includes a Federal mandate that may 
     result in an annual effect on State, local, or Tribal 
     governments, or to the private sector, in the aggregate of 
     $100,000,000 or more in any 1 year, the agency shall prepare 
     a written statement containing the following:
       (A) The text of the draft proposed rulemaking or final 
     rule, together with the information required under 
     subsections (a) and (b)(1) of section 312, as applicable, 
     including an explanation of the manner in which the proposed 
     rulemaking or final rule is consistent with the statutory 
     requirement and avoids undue interference with State, local, 
     and Tribal governments in the exercise of their governmental 
     functions.
       (B) Estimates by the agency, if and to the extent that the 
     agency determines that accurate estimates are reasonably 
     feasible, of--
       (i) the future compliance costs of the Federal mandate; and
       (ii) any disproportionate budgetary effects of the Federal 
     mandate upon any particular regions of the nation or 
     particular State, local, or Tribal governments, urban or 
     rural or other types of communities, or particular segments 
     of the private sector.
       (C)(i) A detailed description of the extent of the agency's 
     prior consultation with the private sector and elected 
     representatives (under subsection (c) and section 204 of the 
     Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534) of the 
     affected State, local, and tribal governments.
       (ii) A detailed summary of the comments and concerns that 
     were presented by the private sector and State, local, or 
     Tribal governments either orally or in writing to the agency.
       (iii) A detailed summary of the agency's evaluation of 
     those comments and concerns.
       (D) A detailed summary of how the agency complied with 
     section 312, as applicable.
       (2) Prevention of duplicative requirements.--If an agency 
     is required to prepare a written statement under both 
     paragraph (1) and section 202(a) of the Unfunded Mandates 
     Reform Act of 1995 (2 U.S.C. 1532(a)), the agency shall 
     prepare only one written statement that consolidates and 
     meets the requirements of such paragraph and such section.
       (c) State, Local, and Tribal Government and Private Sector 
     Input.--
       (1) In general.--Each agency shall, to the extent permitted 
     in law, develop an effective process to permit impacted 
     parties within the private sector (including small 
     businesses) to provide meaningful and timely input in the 
     development of regulatory proposals containing significant 
     Federal mandates.
       (2) Prevention of duplicative processes.--If an agency is 
     required to develop a process under both paragraph (1) and 
     section 204(a) of the Unfunded Mandates Reform Act of 1995 (2 
     U.S.C. 1534(a)), the agency shall develop only one process 
     that consolidates and meets the requirements of such 
     paragraph and such section.
       (3) Guidelines.--For appropriate implementation of this 
     subsection and of section 204 of the Unfunded Mandates Reform 
     Act, consistent with applicable laws and regulations, the 
     following guidelines shall be followed: --
       (A) Consultations shall take place as early as possible, 
     before issuance of a notice of proposed rulemaking, continue 
     through the final rule stage, and be integrated explicitly 
     into the rulemaking process.
       (B) Agencies shall consult with a wide variety of State, 
     local, and Tribal officials and impacted parties within the 
     private sector (including small businesses). Geographic, 
     political, and other factors that may differentiate varying 
     points of view should be considered.
       (C) Agencies should estimate benefits and costs to assist 
     with these consultations. The scope of the consultation 
     should reflect the cost and significance of the Federal 
     mandate being considered.
       (D) Agencies shall, to the extent practicable--
       (i) seek out the views of State, local, and Tribal 
     governments, and impacted parties within the private sector 
     (including small businesses), on costs, benefits, and risks; 
     and
       (ii) solicit ideas about alternative methods of compliance 
     and potential flexibilities, and input on whether the Federal 
     regulation will harmonize with and not duplicate similar laws 
     in other levels of government.
       (E) Consultations shall address the cumulative impact of 
     regulations on the affected entities.
       (F) Agencies may accept electronic submissions of comments 
     by relevant parties but may not use those comments as the 
     sole method of satisfying the guidelines in this subsection.
       (d) Office of Information and Regulatory Affairs 
     Responsibilities.--
       (1) In general.--The Administrator of the Office of 
     Information and Regulatory Affairs shall provide meaningful 
     guidance and oversight so that each agency's regulations for 
     which a written statement is required under subsection (b) 
     and section 202 of the Unfunded Mandates Reform Act of 1995 
     (2 U.S.C. 1532) are consistent with the principles and 
     requirements of this title, as well as other applicable laws, 
     and do not conflict with the policies or actions of another 
     Federal agency (as the term ``agency'' is defined under 
     section 551 of title 5, United States Code). If the 
     Administrator determines that an agency's regulations for 
     which a written statement is required under subsection (b) 
     and section 202 of the Unfunded Mandates Reform Act of 1995 
     do not comply with such principles and requirements, are not 
     consistent with other applicable laws, or conflict with the 
     policies or actions of another Federal agency (as the term 
     ``agency'' is defined under section 551 of title 5, United 
     States Code), the Administrator shall identify areas of 
     noncompliance, notify the agency, and request that the agency 
     comply before the agency finalizes the regulation concerned.
       (2) Annual statements to congress on agency compliance.--
     The Administrator of the Office of Information and Regulatory 
     Affairs shall submit to the Director of the Office of 
     Management and Budget for inclusion in the annual report 
     required by section 208 of the Unfunded Mandates Reform Act 
     of 1995 (2 U.S.C. 1538) a written report detailing compliance 
     by each agency with the requirements of this title that 
     relate to regulations for which a written statement is 
     required by subsection (b) and section 202 of the Unfunded 
     Mandates Reform Act of 1995 (2 U.S.C. 1532), including 
     activities undertaken at the request of the Administrator to 
     improve compliance, during the preceding reporting period. 
     The report shall also contain an appendix detailing 
     compliance by each agency with subsection (c) and section 204 
     of the Unfunded Mandates Reform Act.
       (e) Expanded Judicial Review.--
       (1) Agency statements on significant regulatory actions.--
       (A) In general.--Compliance or noncompliance by any agency 
     with the provisions of subsection (b) and sections 202, 
     203(a)(1) and (2), and 205 of the Unfunded Mandates Reform 
     Act of 1995 shall be subject to judicial review in accordance 
     with this subsection.
       (B) Limited review of agency compliance or noncompliance.--
       (i) Scope of review under title 5.--Agency compliance or 
     noncompliance with the provisions of subsection (b) and 
     sections 202, 203(a)(1) and (2), and 205 of the Unfunded 
     Mandates Reform Act of 1995 shall be subject to judicial 
     review under section 706(1) of title 5, United States Code, 
     and as provided under clause (ii).
       (ii) Court may compel preparation of written statement.--If 
     an agency fails to prepare the written statement (including 
     the preparation of the estimates, analyses, statements, or 
     descriptions) under subsection (b) and section 202 of the 
     Unfunded Mandates Reform Act, prepare a written plan under 
     paragraphs (1) and (2) of section 203 of the Unfunded 
     Mandates Reform Act, or comply with section 205 of the 
     Unfunded Mandates Reform Act, a court may compel the agency 
     to prepare such written statement, prepare such written plan, 
     or comply with such section.
       (C) Review of agency rules.--In any judicial review under 
     any other Federal law of an agency rule for which compliance 
     with this subtitle is required, the inadequacy or failure to 
     prepare required material, or to comply with provisions of 
     subsection (b) and sections 202, 203(a)(1) and (2), and 205 
     of the Unfunded Mandates Reform Act of 1995 may be used as a 
     basis for staying, enjoining, invalidating or otherwise 
     affecting such agency rule.
       (D) Certain information as part of record.--Any information 
     generated under subsection (b) and sections 202, 203(a)(1) 
     and (2), and 205 of the Unfunded Mandates Reform Act of 1995 
     that is part of the rulemaking record for judicial review 
     under the provisions of any other Federal law may be 
     considered as part of the record for judicial review 
     conducted under such other provisions of Federal law.
       (E) Application of other federal law.--For any petition 
     under subparagraph (B) the provisions of such other Federal 
     law shall control all other matters, such as exhaustion of 
     administrative remedies, the time for and manner of seeking 
     review and venue, except that if such other Federal law does 
     not provide a limitation

[[Page 8944]]

     on the time for filing a petition for judicial review that is 
     less than 180 days, such limitation shall be 180 days after a 
     final rule is promulgated by the appropriate agency.
       (F) Effective date.--This paragraph shall apply to any 
     agency rule for which a general notice of proposed rulemaking 
     is promulgated on or after the date of the enactment of this 
     Act.
       (2) Judicial review and rule of construction.--Except as 
     provided in paragraph (1)--
       (A) any estimate, analysis, statement, description, or 
     report prepared under this subtitle, any compliance or 
     noncompliance with the provisions of this subtitle, and any 
     determination concerning the applicability of the provisions 
     of this subtitle shall not be subject to judicial review; and
       (B) no provision of this subtitle shall be construed to 
     create any right or benefit, substantive or procedural, 
     enforceable by any person in any administrative or judicial 
     action.

                  Subtitle H--Enforcement Coordination

     SEC. 391. POLICIES TO MINIMIZE DUPLICATION OF ENFORCEMENT 
                   EFFORTS.

       (a) In General.--Each agency (as defined under section 311) 
     shall, not later than the end of the 90-day period beginning 
     on the date of the enactment of this Act, implement policies 
     and procedures--
       (1) to minimize duplication of efforts with other Federal 
     or State authorities when bringing an administrative or 
     judicial action against an individual or entity;
       (2) to establish when joint investigations, administrative 
     actions, or judicial actions or the coordination of law 
     enforcement activities are necessary and appropriate and in 
     the public interest; and
       (3) to, in the course of a joint investigation, 
     administrative action, or judicial action, establish a lead 
     agency to avoid duplication of efforts and unnecessary 
     burdens and to ensure consistent enforcement, as necessary 
     and appropriate and in the public interest.
       (b) Rule of Construction.--Nothing in this section may be 
     construed to preempt State law or mandate coordination by a 
     State authority.

           Subtitle I--Penalties for Unauthorized Disclosures

     SEC. 392. CRIMINAL PENALTY FOR UNAUTHORIZED DISCLOSURES.

       Section 165 of the Financial Stability Act of 2010 (12 
     U.S.C. 5365), as amended by section 151(b)(6)(M), is further 
     amended by adding at the end the following:
       ``(m) Criminal Penalty for Unauthorized Disclosures.--
       ``(1) In general.--Any officer or employee of a Federal 
     department or agency, who by virtue of such officer or 
     employee's employment or official position, has possession 
     of, or access to, agency records which contain individually 
     identifiable information submitted pursuant to the 
     requirements of this section, the disclosure of which is 
     prohibited by Federal statute, rule, or regulation, and who 
     knowing that disclosure of the specific material is so 
     prohibited, willfully discloses the material in any manner to 
     any person or agency not entitled to receive it, shall be 
     guilty of a misdemeanor and fined not more than $5,000.
       ``(2) Obtaining records under false pretenses.--Any person 
     who knowingly and willfully requests or obtains information 
     described under paragraph (1) from a Federal department or 
     agency under false pretenses shall be guilty of a misdemeanor 
     and fined not more than $5,000.
       ``(3) Treatment of determinations.--For purposes of this 
     subsection, a determination made under subsection (d) or (i) 
     based on individually identifiable information submitted 
     pursuant to the requirements of this section shall be deemed 
     individually identifiable information, the disclosure of 
     which is prohibited by Federal statute.''.

                Subtitle J--Stop Settlement Slush Funds

     SEC. 393. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT 
                   AGREEMENTS TO WHICH CERTAIN DEPARTMENTS OR 
                   AGENCIES ARE A PARTY.

       (a) Limitation on Required Donations.--No settlement to 
     which a department or agency is a party may direct or provide 
     for a payment to any person who is not a victim of the 
     alleged wrongdoing.
       (b) Penalty.--Any Executive branch official or agent 
     thereof who enters into or enforces a settlement in violation 
     of subsection (a), shall be subject to the same penalties 
     that would apply in the case of a violation of section 3302 
     of title 31, United States Code.
       (c) Effective Date.--Subsections (a) and (b) apply only in 
     the case of a settlement agreement concluded on or after the 
     date of enactment of this Act.
       (d) Definitions.--
       (1) The term ``department or agency''--
       (A) has the meaning given the term ``agency'' under section 
     311; and
       (B) means the Department of Housing and Urban Development, 
     the Department of Justice, and the Rural Housing Service of 
     the Department of Agriculture.
       (2) The term ``settlement agreement'' means a settlement 
     agreement resolving a civil action or potential civil action, 
     a plea agreement, a deferred prosecution agreement, or a non-
     prosecution agreement.
       (3) The term ``payment'' means a payment or loan.
       (4) The term ``payment to any person who is not a victim'' 
     means any payment other than a payment--
       (A) to a person who is party to the lawsuit or settlement;
       (B) that provides restitution for or otherwise directly 
     remedies actual harm (including to the environment) directly 
     and proximately caused by the party making the payment as a 
     result of that party's alleged wrongdoing;
       (C) that constitutes payment for services rendered in 
     connection with the case; or
       (D) made pursuant to section 3663 of title 18, United 
     States Code.

 TITLE IV--UNLEASHING OPPORTUNITIES FOR SMALL BUSINESSES, INNOVATORS, 
           AND JOB CREATORS BY FACILITATING CAPITAL FORMATION

Subtitle A--Small Business Mergers, Acquisitions, Sales, and Brokerage 
                             Simplification

     SEC. 401. REGISTRATION EXEMPTION FOR MERGER AND ACQUISITION 
                   BROKERS.

       Section 15(b) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o(b)) is amended by adding at the end the following:
       ``(13) Registration exemption for merger and acquisition 
     brokers.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an M&A broker shall be exempt from registration under this 
     section.
       ``(B) Excluded activities.--An M&A broker is not exempt 
     from registration under this paragraph if such broker does 
     any of the following:
       ``(i) Directly or indirectly, in connection with the 
     transfer of ownership of an eligible privately held company, 
     receives, holds, transmits, or has custody of the funds or 
     securities to be exchanged by the parties to the transaction.
       ``(ii) Engages on behalf of an issuer in a public offering 
     of any class of securities that is registered, or is required 
     to be registered, with the Commission under section 12 or 
     with respect to which the issuer files, or is required to 
     file, periodic information, documents, and reports under 
     subsection (d).
       ``(iii) Engages on behalf of any party in a transaction 
     involving a public shell company.
       ``(C) Disqualifications.--An M&A broker is not exempt from 
     registration under this paragraph if such broker is subject 
     to--
       ``(i) suspension or revocation of registration under 
     paragraph (4);
       ``(ii) a statutory disqualification described in section 
     3(a)(39);
       ``(iii) a disqualification under the rules adopted by the 
     Commission under section 926 of the Investor Protection and 
     Securities Reform Act of 2010 (15 U.S.C. 77d note); or
       ``(iv) a final order described in paragraph (4)(H).
       ``(D) Rule of construction.--Nothing in this paragraph 
     shall be construed to limit any other authority of the 
     Commission to exempt any person, or any class of persons, 
     from any provision of this title, or from any provision of 
     any rule or regulation thereunder.
       ``(E) Definitions.--In this paragraph:
       ``(i) Control.--The term `control' means the power, 
     directly or indirectly, to direct the management or policies 
     of a company, whether through ownership of securities, by 
     contract, or otherwise. There is a presumption of control for 
     any person who--

       ``(I) is a director, general partner, member or manager of 
     a limited liability company, or officer exercising executive 
     responsibility (or has similar status or functions);
       ``(II) has the right to vote 20 percent or more of a class 
     of voting securities or the power to sell or direct the sale 
     of 20 percent or more of a class of voting securities; or
       ``(III) in the case of a partnership or limited liability 
     company, has the right to receive upon dissolution, or has 
     contributed, 20 percent or more of the capital.

       ``(ii) Eligible privately held company.--The term `eligible 
     privately held company' means a privately held company that 
     meets both of the following conditions:

       ``(I) The company does not have any class of securities 
     registered, or required to be registered, with the Commission 
     under section 12 or with respect to which the company files, 
     or is required to file, periodic information, documents, and 
     reports under subsection (d).
       ``(II) In the fiscal year ending immediately before the 
     fiscal year in which the services of the M&A broker are 
     initially engaged with respect to the securities transaction, 
     the company meets either or both of the following conditions 
     (determined in accordance with the historical financial 
     accounting records of the company):

       ``(aa) The earnings of the company before interest, taxes, 
     depreciation, and amortization are less than $25,000,000.
       ``(bb) The gross revenues of the company are less than 
     $250,000,000.
       ``(iii) M&A broker.--The term `M&A broker' means a broker, 
     and any person associated with a broker, engaged in the 
     business of effecting securities transactions solely in 
     connection with the transfer of ownership of an eligible 
     privately held company, regardless of whether the broker acts 
     on behalf of a seller or buyer, through the purchase, sale, 
     exchange, issuance, repurchase, or redemption of, or a 
     business combination involving, securities or assets of the 
     eligible privately held company, if the broker reasonably 
     believes that--

       ``(I) upon consummation of the transaction, any person 
     acquiring securities or assets of the eligible privately held 
     company, acting alone or in concert, will control and, 
     directly or indirectly, will be active in the management of 
     the eligible privately held company or the business conducted 
     with the assets of the eligible privately held company; and
       ``(II) if any person is offered securities in exchange for 
     securities or assets of the eligible privately held company, 
     such person will, prior to

[[Page 8945]]

     becoming legally bound to consummate the transaction, receive 
     or have reasonable access to the most recent fiscal year-end 
     financial statements of the issuer of the securities as 
     customarily prepared by the management of the issuer in the 
     normal course of operations and, if the financial statements 
     of the issuer are audited, reviewed, or compiled, any related 
     statement by the independent accountant, a balance sheet 
     dated not more than 120 days before the date of the offer, 
     and information pertaining to the management, business, 
     results of operations for the period covered by the foregoing 
     financial statements, and material loss contingencies of the 
     issuer.

       ``(iv) Public shell company.--The term `public shell 
     company' is a company that at the time of a transaction with 
     an eligible privately held company--

       ``(I) has any class of securities registered, or required 
     to be registered, with the Commission under section 12 or 
     that is required to file reports pursuant to subsection (d);
       ``(II) has no or nominal operations; and
       ``(III) has--

       ``(aa) no or nominal assets;
       ``(bb) assets consisting solely of cash and cash 
     equivalents; or
       ``(cc) assets consisting of any amount of cash and cash 
     equivalents and nominal other assets.
       ``(F) Inflation adjustment.--
       ``(i) In general.--On the date that is 5 years after the 
     date of the enactment of this paragraph, and every 5 years 
     thereafter, each dollar amount in subparagraph (E)(ii)(II) 
     shall be adjusted by--

       ``(I) dividing the annual value of the Employment Cost 
     Index For Wages and Salaries, Private Industry Workers (or 
     any successor index), as published by the Bureau of Labor 
     Statistics, for the calendar year preceding the calendar year 
     in which the adjustment is being made by the annual value of 
     such index (or successor) for the calendar year ending 
     December 31, 2012; and
       ``(II) multiplying such dollar amount by the quotient 
     obtained under subclause (I).

       ``(ii) Rounding.--Each dollar amount determined under 
     clause (i) shall be rounded to the nearest multiple of 
     $100,000.''.

     SEC. 402. EFFECTIVE DATE.

       This subtitle and any amendment made by this subtitle shall 
     take effect on the date that is 90 days after the date of the 
     enactment of this Act.

               Subtitle B--Encouraging Employee Ownership

     SEC. 406. INCREASED THRESHOLD FOR DISCLOSURES RELATING TO 
                   COMPENSATORY BENEFIT PLANS.

       Not later than 60 days after the date of the enactment of 
     this Act, the Securities and Exchange Commission shall revise 
     section 230.701(e) of title 17, Code of Federal Regulations, 
     so as to increase from $5,000,000 to $20,000,000 the 
     aggregate sales price or amount of securities sold during any 
     consecutive 12-month period in excess of which the issuer is 
     required under such section to deliver an additional 
     disclosure to investors. The Commission shall index for 
     inflation such aggregate sales price or amount every 5 years 
     to reflect the change in the Consumer Price Index for All 
     Urban Consumers published by the Bureau of Labor Statistics, 
     rounding to the nearest $1,000,000.

          Subtitle C--Small Company Disclosure Simplification

     SEC. 411. EXEMPTION FROM XBRL REQUIREMENTS FOR EMERGING 
                   GROWTH COMPANIES AND OTHER SMALLER COMPANIES.

       (a) Exemption for Emerging Growth Companies.--Emerging 
     growth companies are exempted from the requirements to use 
     Extensible Business Reporting Language (XBRL) for financial 
     statements and other periodic reporting required to be filed 
     with the Commission under the securities laws. Such companies 
     may elect to use XBRL for such reporting.
       (b) Exemption for Other Smaller Companies.--Issuers with 
     total annual gross revenues of less than $250,000,000 are 
     exempt from the requirements to use XBRL for financial 
     statements and other periodic reporting required to be filed 
     with the Commission under the securities laws. Such issuers 
     may elect to use XBRL for such reporting. An exemption under 
     this subsection shall continue in effect until--
       (1) the date that is five years after the date of enactment 
     of this Act; or
       (2) the date that is two years after a determination by the 
     Commission, by order after conducting the analysis required 
     by section 3, that the benefits of such requirements to such 
     issuers outweigh the costs, but no earlier than three years 
     after enactment of this Act.
       (c) Modifications to Regulations.--Not later than 60 days 
     after the date of enactment of this Act, the Commission shall 
     revise its regulations under parts 229, 230, 232, 239, 240, 
     and 249 of title 17, Code of Federal Regulations, to reflect 
     the exemptions set forth in subsections (a) and (b).

     SEC. 412. ANALYSIS BY THE SEC.

       The Commission shall conduct an analysis of the costs and 
     benefits to issuers described in section 411(b) of the 
     requirements to use XBRL for financial statements and other 
     periodic reporting required to be filed with the Commission 
     under the securities laws. Such analysis shall include an 
     assessment of--
       (1) how such costs and benefits may differ from the costs 
     and benefits identified by the Commission in the order 
     relating to interactive data to improve financial reporting 
     (dated January 30, 2009; 74 Fed. Reg. 6776) because of the 
     size of such issuers;
       (2) the effects on efficiency, competition, capital 
     formation, and financing and on analyst coverage of such 
     issuers (including any such effects resulting from use of 
     XBRL by investors);
       (3) the costs to such issuers of--
       (A) submitting data to the Commission in XBRL;
       (B) posting data on the website of the issuer in XBRL;
       (C) software necessary to prepare, submit, or post data in 
     XBRL; and
       (D) any additional consulting services or filing agent 
     services;
       (4) the benefits to the Commission in terms of improved 
     ability to monitor securities markets, assess the potential 
     outcomes of regulatory alternatives, and enhance investor 
     participation in corporate governance and promote capital 
     formation; and
       (5) the effectiveness of standards in the United States for 
     interactive filing data relative to the standards of 
     international counterparts.

     SEC. 413. REPORT TO CONGRESS.

       Not later than one year after the date of enactment of this 
     Act, the Commission shall provide the Committee on Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate a report 
     regarding--
       (1) the progress in implementing XBRL reporting within the 
     Commission;
       (2) the use of XBRL data by Commission officials;
       (3) the use of XBRL data by investors;
       (4) the results of the analysis required by section 412; 
     and
       (5) any additional information the Commission considers 
     relevant for increasing transparency, decreasing costs, and 
     increasing efficiency of regulatory filings with the 
     Commission.

     SEC. 414. DEFINITIONS.

       As used in this subtitle, the terms ``Commission'', 
     ``emerging growth company'', ``issuer'', and ``securities 
     laws'' have the meanings given such terms in section 3 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c).

   Subtitle D--Securities and Exchange Commission Overpayment Credit

     SEC. 416. REFUNDING OR CREDITING OVERPAYMENT OF SECTION 31 
                   FEES.

       (a) In General.--Section 31 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78ee) is amended by adding at the end the 
     following:
       ``(n) Overpayment.--If a national securities exchange or 
     national securities association pays to the Commission an 
     amount in excess of fees and assessments due under this 
     section and informs the Commission of such amount paid in 
     excess within 10 years of the date of the payment, the 
     Commission shall offset future fees and assessments due by 
     such exchange or association in an amount equal to such 
     excess amount.''.
       (b) Applicability.--The amendment made by this section 
     shall apply to any fees and assessments paid before, on, or 
     after the date of enactment of this section.

             Subtitle E--Fair Access to Investment Research

     SEC. 421. SAFE HARBOR FOR INVESTMENT FUND RESEARCH.

       (a) Expansion of the Safe Harbor.--Not later than the end 
     of the 45-day period beginning on the date of enactment of 
     this Act, the Securities and Exchange Commission shall 
     propose, and not later than the end of the 120-day period 
     beginning on such date, the Commission shall adopt, upon such 
     terms, conditions, or requirements as the Commission may 
     determine necessary or appropriate in the public interest, 
     for the protection of investors, and for the promotion of 
     capital formation, revisions to section 230.139 of title 17, 
     Code of Federal Regulations, to provide that a covered 
     investment fund research report that is published or 
     distributed by a broker or dealer--
       (1) shall be deemed, for purposes of sections 2(a)(10) and 
     5(c) of the Securities Act of 1933 (15 U.S.C. 77b(a)(10), 
     77e(c)), not to constitute an offer for sale or an offer to 
     sell a security that is the subject of an offering pursuant 
     to a registration statement that is effective, even if the 
     broker or dealer is participating or will participate in the 
     registered offering of the covered investment fund's 
     securities; and
       (2) shall be deemed to satisfy the conditions of subsection 
     (a)(1) or (a)(2) of section 230.139 of title 17, Code of 
     Federal Regulations, or any successor provisions, for 
     purposes of the Commission's rules and regulations under the 
     Federal securities laws and the rules of any self-regulatory 
     organization.
       (b) Implementation of Safe Harbor.--In implementing the 
     safe harbor pursuant to subsection (a), the Commission 
     shall--
       (1) not, in the case of a covered investment fund with a 
     class of securities in substantially continuous distribution, 
     condition the safe harbor on whether the broker's or dealer's 
     publication or distribution of a covered investment fund 
     research report constitutes such broker's or dealer's 
     initiation or reinitiation of research coverage on such 
     covered investment fund or its securities;
       (2) not--
       (A) require the covered investment fund to have been 
     registered as an investment company under the Investment 
     Company Act of 1940 (15 U.S.C. 80a-1 et seq.) or subject to 
     the reporting requirements of section 13 or 15(d) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)) for 
     any period exceeding the period of time referenced under 
     paragraph (a)(1)(i)(A)(1) of section 230.139 of title 17, 
     Code of Federal Regulations; or

[[Page 8946]]

       (B) impose a minimum float provision exceeding that 
     referenced in paragraph (a)(1)(i)(A)(1)(i) of section 230.139 
     of title 17, Code of Federal Regulations;
       (3) provide that a self-regulatory organization may not 
     maintain or enforce any rule that would--
       (A) prohibit the ability of a member to publish or 
     distribute a covered investment fund research report solely 
     because the member is also participating in a registered 
     offering or other distribution of any securities of such 
     covered investment fund; or
       (B) prohibit the ability of a member to participate in a 
     registered offering or other distribution of securities of a 
     covered investment fund solely because the member has 
     published or distributed a covered investment fund research 
     report about such covered investment fund or its securities; 
     and
       (4) provide that a covered investment fund research report 
     shall not be subject to section 24(b) of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-24(b)) or the rules and 
     regulations thereunder, except that such report may still be 
     subject to such section and the rules and regulations 
     thereunder to the extent that it is otherwise not subject to 
     the content standards in the rules of any self-regulatory 
     organization related to research reports, including those 
     contained in the rules governing communications with the 
     public regarding investment companies or substantially 
     similar standards.
       (c) Rules of Construction.--Nothing in this Act shall be 
     construed as in any way limiting--
       (1) the applicability of the antifraud or antimanipulation 
     provisions of the Federal securities laws and rules adopted 
     thereunder to a covered investment fund research report, 
     including section 17 of the Securities Act of 1933 (15 U.S.C. 
     77q), section 34(b) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-33), and sections 9 and 10 of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78i, 78j); or
       (2) the authority of any self-regulatory organization to 
     examine or supervise a member's practices in connection with 
     such member's publication or distribution of a covered 
     investment fund research report for compliance with 
     applicable provisions of the Federal securities laws or self-
     regulatory organization rules related to research reports, 
     including those contained in rules governing communications 
     with the public.
       (d) Interim Effectiveness of Safe Harbor.--
       (1) In general.--From and after the 120-day period 
     beginning on the date of enactment of this Act, if the 
     Commission has not adopted revisions to section 230.139 of 
     title 17, Code of Federal Regulations, as required by 
     subsection (a), and until such time as the Commission has 
     done so, a broker or dealer distributing or publishing a 
     covered investment fund research report after such date shall 
     be able to rely on the provisions of section 230.139 of title 
     17, Code of Federal Regulations, and the broker or dealer's 
     publication of such report shall be deemed to satisfy the 
     conditions of subsection (a)(1) or (a)(2) of section 230.139 
     of title 17, Code of Federal Regulations, if the covered 
     investment fund that is the subject of such report satisfies 
     the reporting history requirements (without regard to Form S-
     3 or Form F-3 eligibility) and minimum float provisions of 
     such subsections for purposes of the Commission's rules and 
     regulations under the Federal securities laws and the rules 
     of any self-regulatory organization, as if revised and 
     implemented in accordance with subsections (a) and (b).
       (2) Status of covered investment fund.--After such period 
     and until the Commission has adopted revisions to section 
     230.139 and FINRA has revised rule 2210, for purposes of 
     subsection (c)(7)(O) of such rule, a covered investment fund 
     shall be deemed to be a security that is listed on a national 
     securities exchange and that is not subject to section 24(b) 
     of the Investment Company Act of 1940 (15 U.S.C. 80a-24(b)). 
     Communications concerning only covered investment funds that 
     fall within the scope of such section shall not be required 
     to be filed with FINRA.
       (e) Definitions.--For purposes of this section:
       (1) The term ``covered investment fund research report'' 
     means a research report published or distributed by a broker 
     or dealer about a covered investment fund or any securities 
     issued by the covered investment fund, but not including a 
     research report to the extent that it is published or 
     distributed by the covered investment fund or any affiliate 
     of the covered investment fund.
       (2) The term ``covered investment fund'' means--
       (A) an investment company registered under, or that has 
     filed an election to be treated as a business development 
     company under, the Investment Company Act of 1940 and that 
     has filed a registration statement under the Securities Act 
     of 1933 for the public offering of a class of its securities, 
     which registration statement has been declared effective by 
     the Commission; and
       (B) a trust or other person--
       (i) issuing securities in an offering registered under the 
     Securities Act of 1933 and which class of securities is 
     listed for trading on a national securities exchange;
       (ii) the assets of which consist primarily of commodities, 
     currencies, or derivative instruments that reference 
     commodities or currencies, or interests in the foregoing; and
       (iii) that provides in its registration statement under the 
     Securities Act of 1933 that a class of its securities are 
     purchased or redeemed, subject to conditions or limitations, 
     for a ratable share of its assets.
       (3) The term ``FINRA'' means the Financial Industry 
     Regulatory Authority.
       (4) The term ``research report'' has the meaning given that 
     term under section 2(a)(3) of the Securities Act of 1933 (15 
     U.S.C. 77b(a)(3)), except that such term shall not include an 
     oral communication.
       (5) The term ``self-regulatory organization'' has the 
     meaning given to that term under section 3(a)(26) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)).

               Subtitle F--Accelerating Access to Capital

     SEC. 426. EXPANDED ELIGIBILITY FOR USE OF FORM S-3.

       Not later than 45 days after the date of the enactment of 
     this Act, the Securities and Exchange Commission shall revise 
     Form S-3--
       (1) so as to permit securities to be registered pursuant to 
     General Instruction I.B.1. of such form provided that 
     either--
       (A) the aggregate market value of the voting and non-voting 
     common equity held by non-affiliates of the registrant is 
     $75,000,000 or more; or
       (B) the registrant has at least one class of common equity 
     securities listed and registered on a national securities 
     exchange; and
       (2) so as to remove the requirement of paragraph (c) from 
     General Instruction I.B.6. of such form.

                  Subtitle G--Enhancing the RAISE Act

     SEC. 431. CERTAIN ACCREDITED INVESTOR TRANSACTIONS.

       Section 4 of the Securities Act of 1933 (15 U.S.C. 77d) is 
     amended--
       (1) by amending subsection (d) to read as follows:
       ``(d)(1) The transactions referred to in subsection (a)(7) 
     are transactions where--
       ``(A) each purchaser is an accredited investor, as that 
     term is defined in section 230.501(a) of title 17, Code of 
     Federal Regulations (or any successor thereto); and
       ``(B) if any securities sold in reliance on subsection 
     (a)(7) are offered by means of any general solicitation or 
     general advertising, all such sales are made through a 
     platform available only to accredited investors.
       ``(2) Securities sold in reliance on subsection (a)(7) 
     shall be deemed to have been acquired in a transaction not 
     involving any public offering.
       ``(3) The exemption provided by this subsection shall not 
     be available for a transaction where the seller is--
       ``(A) an issuer, its subsidiaries or parent;
       ``(B) an underwriter acting on behalf of the issuer, its 
     subsidiaries or parent, which receives compensation from the 
     issuer with respect to such sale; or
       ``(C) a dealer.
       ``(4) A transaction meeting the requirements of this 
     subsection shall be deemed not to be a distribution for 
     purposes of section 2(a)(11).''; and
       (2) by striking subsection (e).

             Subtitle H--Small Business Credit Availability

     SEC. 436. BUSINESS DEVELOPMENT COMPANY OWNERSHIP OF 
                   SECURITIES OF INVESTMENT ADVISERS AND CERTAIN 
                   FINANCIAL COMPANIES.

       (a) In General.--Section 60 of the Investment Company Act 
     of 1940 (15 U.S.C. 80a-59) is amended--
       (1) by striking ``Notwithstanding'' and inserting ``(a) 
     Notwithstanding'';
       (2) by striking ``except that the Commission shall not'' 
     and inserting the following: ``except that--
       ``(1) section 12 shall not apply to the purchasing, 
     otherwise acquiring, or holding by a business development 
     company of any security issued by, or any other interest in 
     the business of, any person who is an investment adviser 
     registered under title II of this Act, who is an investment 
     adviser to an investment company, or who is an eligible 
     portfolio company; and
       ``(2) the Commission shall not'';
       (3) by adding at the end the following:
       ``(b) Nothing in this section shall prevent the Commission 
     from issuing rules to address potential conflicts of interest 
     between business development companies and investment 
     advisers.''.
       (b) Definition of Eligible Portfolio Company.--Section 
     2(a)(46)(B) of the Investment Company Act of 1940 (15 U.S.C. 
     80a-2(a)(46)(B)) is amended by inserting before the semicolon 
     the following: ``(unless it is described in paragraph (2), 
     (3), (4), (5), (6), or (9) of such section)''.
       (c) Investment Threshold.--Section 55(a) of the Investment 
     Company Act of 1940 is amended by inserting before the colon 
     the following: ``, provided that no more than 50 percent of 
     its total assets are assets described in section 3(c)''.

     SEC. 437. EXPANDING ACCESS TO CAPITAL FOR BUSINESS 
                   DEVELOPMENT COMPANIES.

       (a) In General.--Section 61(a) of the Investment Company 
     Act of 1940 (15 U.S.C. 80a-60(a)) is amended--
       (1) by redesignating paragraphs (2) through (4) as 
     paragraphs (3) through (5), respectively;
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Except as provided in paragraph (2), the asset 
     coverage requirements of subparagraphs (A) and (B) of section 
     18(a)(1) (and any related rule promulgated under this Act) 
     applicable to business development companies shall be 200 
     percent.
       ``(2) The asset coverage requirements of subparagraphs (A) 
     and (B) of section 18(a)(1) and of subparagraphs (A) and (B) 
     of section 18(a)(2) (and any related rule promulgated under 
     this Act) applicable to a business development company shall 
     be 150 percent if--
       ``(A) within five business days of the approval of the 
     adoption of the asset coverage requirements described in 
     clause (ii), the business development company discloses such 
     approval and

[[Page 8947]]

     the date of its effectiveness in a Form 8-K filed with the 
     Commission and in a notice on its website and discloses in 
     its periodic filings made under section 13 of the Securities 
     and Exchange Act of 1934 (15 U.S.C. 78m)--
       ``(i) the aggregate value of the senior securities issued 
     by such company and the asset coverage percentage as of the 
     date of such company's most recent financial statements; and
       ``(ii) that such company has adopted the asset coverage 
     requirements of this subparagraph and the effective date of 
     such requirements;
       ``(B) with respect to a business development company that 
     issues equity securities that are registered on a national 
     securities exchange, the periodic filings of the company 
     under section 13(a) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78m) include disclosures reasonably designed to 
     ensure that shareholders are informed of--
       ``(i) the amount of indebtedness and asset coverage ratio 
     of the company, determined as of the date of the financial 
     statements of the company dated on or most recently before 
     the date of such filing; and
       ``(ii) the principal risk factors associated with such 
     indebtedness, to the extent such risk is incurred by the 
     company; and
       ``(C)(i) the application of this paragraph to the company 
     is approved by the required majority (as defined in section 
     57(o)) of the directors of or general partners of such 
     company who are not interested persons of the business 
     development company, which application shall become effective 
     on the date that is 1 year after the date of the approval, 
     and, with respect to a business development company that 
     issues equity securities that are not registered on a 
     national securities exchange, the company extends, to each 
     person who is a shareholder as of the date of the approval, 
     an offer to repurchase the equity securities held by such 
     person as of such approval date, with 25 percent of such 
     securities to be repurchased in each of the four quarters 
     following such approval date; or
       ``(ii) the company obtains, at a special or annual meeting 
     of shareholders or partners at which a quorum is present, the 
     approval of more than 50 percent of the votes cast of the 
     application of this paragraph to the company, which 
     application shall become effective on the date immediately 
     after the date of the approval.'';
       (3) in paragraph (3) (as redesignated), by inserting ``or 
     which is a stock'' after ``indebtedness'';
       (4) in subparagraph (A) of paragraph (4) (as 
     redesignated)--
       (A) in the matter preceding clause (i), by striking 
     ``voting''; and
       (B) by amending clause (iii) to read as follows:
       ``(iii) the exercise or conversion price at the date of 
     issuance of such warrants, options, or rights is not less 
     than--

       ``(I) the market value of the securities issuable upon the 
     exercise of such warrants, options, or rights at the date of 
     issuance of such warrants, options, or rights; or
       ``(II) if no such market value exists, the net asset value 
     of the securities issuable upon the exercise of such 
     warrants, options, or rights at the date of issuance of such 
     warrants, options, or rights; and''; and

       (5) by adding at the end the following:
       ``(6)(A) Except as provided in subparagraph (B), the 
     following shall not apply to a business development company:
       ``(i) Subparagraphs (C) and (D) of section 18(a)(2).
       ``(ii) Subparagraph (E) of section 18(a)(2), to the extent 
     such subparagraph requires any priority over any other class 
     of stock as to distribution of assets upon liquidation.
       ``(iii) With respect to a senior security which is a stock, 
     subsections (c) and (i) of section 18.
       ``(B) Subparagraph (A) shall not apply with respect to 
     preferred stock issued to a person who is not known by the 
     company to be a qualified institutional buyer (as defined in 
     section 3(a) of the Securities Exchange Act of 1934).''.
       (b) Conforming Amendments.--The Investment Company Act of 
     1940 (15 U.S.C. 80a-1 et seq.) is amended--
       (1) in section 57--
       (A) in subsection (j)(1), by striking ``section 
     61(a)(3)(B)'' and inserting ``section 61(a)(4)(B)''; and
       (B) in subsection (n)(2), by striking ``section 
     61(a)(3)(B)'' and inserting ``section 61(a)(4)(B)''; and
       (2) in section 63(3), by striking ``section 61(a)(3)'' and 
     inserting ``section 61(a)(4)''.

     SEC. 438. PARITY FOR BUSINESS DEVELOPMENT COMPANIES REGARDING 
                   OFFERING AND PROXY RULES.

       (a) Revision to Rules.--Not later than 1 year after the 
     date of enactment of this Act, the Securities and Exchange 
     Commission shall revise any rules to the extent necessary to 
     allow a business development company that has filed an 
     election pursuant to section 54 of the Investment Company Act 
     of 1940 (15 U.S.C. 80a-53) to use the securities offering and 
     proxy rules that are available to other issuers that are 
     required to file reports under section 13 or section 15(d) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78m; 78o(d)). 
     Any action that the Commission takes pursuant to this 
     subsection shall include the following:
       (1) The Commission shall revise rule 405 under the 
     Securities Act of 1933 (17 C.F.R. 230.405)--
       (A) to remove the exclusion of a business development 
     company from the definition of a well-known seasoned issuer 
     provided by that rule; and
       (B) to add registration statements filed on Form N-2 to the 
     definition of automatic shelf registration statement provided 
     by that rule.
       (2) The Commission shall revise rules 168 and 169 under the 
     Securities Act of 1933 (17 C.F.R. 230.168 and 230.169) to 
     remove the exclusion of a business development company from 
     an issuer that can use the exemptions provided by those 
     rules.
       (3) The Commission shall revise rules 163 and 163A under 
     the Securities Act of 1933 (17 C.F.R. 230.163 and 230.163A) 
     to remove a business development company from the list of 
     issuers that are ineligible to use the exemptions provided by 
     those rules.
       (4) The Commission shall revise rule 134 under the 
     Securities Act of 1933 (17 C.F.R. 230.134) to remove the 
     exclusion of a business development company from that rule.
       (5) The Commission shall revise rules 138 and 139 under the 
     Securities Act of 1933 (17 C.F.R. 230.138 and 230.139) to 
     specifically include a business development company as an 
     issuer to which those rules apply.
       (6) The Commission shall revise rule 164 under the 
     Securities Act of 1933 (17 C.F.R. 230.164) to remove a 
     business development company from the list of issuers that 
     are excluded from that rule.
       (7) The Commission shall revise rule 433 under the 
     Securities Act of 1933 (17 C.F.R. 230.433) to specifically 
     include a business development company that is a well-known 
     seasoned issuer as an issuer to which that rule applies.
       (8) The Commission shall revise rule 415 under the 
     Securities Act of 1933 (17 C.F.R. 230.415)--
       (A) to state that the registration for securities provided 
     by that rule includes securities registered by a business 
     development company on Form N-2; and
       (B) to provide an exception for a business development 
     company from the requirement that a Form N-2 registrant must 
     furnish the undertakings required by item 34.4 of Form N-2.
       (9) The Commission shall revise rule 497 under the 
     Securities Act of 1933 (17 C.F.R. 230.497) to include a 
     process for a business development company to file a form of 
     prospectus that is parallel to the process for filing a form 
     of prospectus under rule 424(b).
       (10) The Commission shall revise rules 172 and 173 under 
     the Securities Act of 1933 (17 C.F.R. 230.172 and 230.173) to 
     remove the exclusion of an offering of a business development 
     company from those rules.
       (11) The Commission shall revise rule 418 under the 
     Securities Act of 1933 (17 C.F.R. 230.418) to provide that a 
     business development company that would otherwise meet the 
     eligibility requirements of General Instruction I.A of Form 
     S-3 shall be exempt from paragraph (a)(3) of that rule.
       (12) The Commission shall revise rule 14a-101 under the 
     Securities Exchange Act of 1934 (17 C.F.R. 240.14a-101) to 
     provide that a business development company that would 
     otherwise meet the requirements of General Instruction I.A of 
     Form S-3 shall be deemed to meet the requirements of Form S-3 
     for purposes of Schedule 14A.
       (13) The Commission shall revise rule 103 under Regulation 
     FD (17 C.F.R. 243.103) to provide that paragraph (a) of that 
     rule applies for purposes of Form N-2.
       (b) Revision to Form N-2.--Not later than 1 year after the 
     date of enactment of this Act, the Commission shall revise 
     Form N-2--
       (1) to include an item or instruction that is similar to 
     item 12 on Form S-3 to provide that a business development 
     company that would otherwise meet the requirements of Form S-
     3 shall incorporate by reference its reports and documents 
     filed under the Securities Exchange Act of 1934 into its 
     registration statement filed on Form N-2; and
       (2) to include an item or instruction that is similar to 
     the instruction regarding automatic shelf offerings by well-
     known seasoned issuers on Form S-3 to provide that a business 
     development company that is a well-known seasoned issuer may 
     file automatic shelf offerings on Form N-2.
       (c) Treatment if Revisions Not Completed in Timely 
     Manner.--If the Commission fails to complete the revisions 
     required by subsections (a) and (b) by the time required by 
     such subsections, a business development company shall be 
     entitled to treat such revisions as having been completed in 
     accordance with the actions required to be taken by the 
     Commission by such subsections until such time as such 
     revisions are completed by the Commission.
       (d) Rule of Construction.--Any reference in this section to 
     a rule or form means such rule or form or any successor rule 
     or form.

                    Subtitle I--Fostering Innovation

     SEC. 441. TEMPORARY EXEMPTION FOR LOW-REVENUE ISSUERS.

       Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7262) is amended by adding at the end the following:
       ``(d) Temporary Exemption for Low-Revenue Issuers.--
       ``(1) Low-revenue exemption.--Subsection (b) shall not 
     apply with respect to an audit report prepared for an issuer 
     that--
       ``(A) ceased to be an emerging growth company on the last 
     day of the fiscal year of the issuer following the fifth 
     anniversary of the date of the first sale of common equity 
     securities of the issuer pursuant to an effective 
     registration statement under the Securities Act of 1933;
       ``(B) had average annual gross revenues of less than 
     $50,000,000 as of its most recently completed fiscal year; 
     and
       ``(C) is not a large accelerated filer.
       ``(2) Expiration of temporary exemption.--An issuer ceases 
     to be eligible for the exemption described under paragraph 
     (1) at the earliest of--

[[Page 8948]]

       ``(A) the last day of the fiscal year of the issuer 
     following the tenth anniversary of the date of the first sale 
     of common equity securities of the issuer pursuant to an 
     effective registration statement under the Securities Act of 
     1933;
       ``(B) the last day of the fiscal year of the issuer during 
     which the average annual gross revenues of the issuer exceed 
     $50,000,000; or
       ``(C) the date on which the issuer becomes a large 
     accelerated filer.
       ``(3) Definitions.--For purposes of this subsection:
       ``(A) Average annual gross revenues.--The term `average 
     annual gross revenues' means the total gross revenues of an 
     issuer over its most recently completed three fiscal years 
     divided by three.
       ``(B) Emerging growth company.--The term `emerging growth 
     company' has the meaning given such term under section 3 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78c).
       ``(C) Large accelerated filer.--The term `large accelerated 
     filer' has the meaning given that term under section 240.12b-
     2 of title 17, Code of Federal Regulations, or any successor 
     thereto.''.

        Subtitle J--Small Business Capital Formation Enhancement

     SEC. 446. ANNUAL REVIEW OF GOVERNMENT-BUSINESS FORUM ON 
                   CAPITAL FORMATION.

       Section 503 of the Small Business Investment Incentive Act 
     of 1980 (15 U.S.C. 80c-1) is amended by adding at the end the 
     following:
       ``(e) The Commission shall--
       ``(1) review the findings and recommendations of the forum; 
     and
       ``(2) each time the forum submits a finding or 
     recommendation to the Commission, promptly issue a public 
     statement--
       ``(A) assessing the finding or recommendation of the forum; 
     and
       ``(B) disclosing the action, if any, the Commission intends 
     to take with respect to the finding or recommendation.''.

              Subtitle K--Helping Angels Lead Our Startups

     SEC. 451. DEFINITION OF ANGEL INVESTOR GROUP.

       As used in this subtitle, the term ``angel investor group'' 
     means any group that--
       (1) is composed of accredited investors interested in 
     investing personal capital in early-stage companies;
       (2) holds regular meetings and has defined processes and 
     procedures for making investment decisions, either 
     individually or among the membership of the group as a whole; 
     and
       (3) is neither associated nor affiliated with brokers, 
     dealers, or investment advisers.

     SEC. 452. CLARIFICATION OF GENERAL SOLICITATION.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Securities and Exchange Commission 
     shall revise Regulation D of its rules (17 C.F.R. 230.500 et 
     seq.) to require that in carrying out the prohibition against 
     general solicitation or general advertising contained in 
     section 230.502(c) of title 17, Code of Federal Regulations, 
     the prohibition shall not apply to a presentation or other 
     communication made by or on behalf of an issuer which is made 
     at an event--
       (1) sponsored by--
       (A) the United States or any territory thereof, by the 
     District of Columbia, by any State, by a political 
     subdivision of any State or territory, or by any agency or 
     public instrumentality of any of the foregoing;
       (B) a college, university, or other institution of higher 
     education;
       (C) a nonprofit organization;
       (D) an angel investor group;
       (E) a venture forum, venture capital association, or trade 
     association; or
       (F) any other group, person or entity as the Securities and 
     Exchange Commission may determine by rule;
       (2) where any advertising for the event does not reference 
     any specific offering of securities by the issuer;
       (3) the sponsor of which--
       (A) does not make investment recommendations or provide 
     investment advice to event attendees;
       (B) does not engage in an active role in any investment 
     negotiations between the issuer and investors attending the 
     event;
       (C) does not charge event attendees any fees other than 
     administrative fees; and
       (D) does not receive any compensation with respect to such 
     event that would require registration of the sponsor as a 
     broker or a dealer under the Securities Exchange Act of 1934, 
     or as an investment advisor under the Investment Advisers Act 
     of 1940; and
       (4) where no specific information regarding an offering of 
     securities by the issuer is communicated or distributed by or 
     on behalf of the issuer, other than--
       (A) that the issuer is in the process of offering 
     securities or planning to offer securities;
       (B) the type and amount of securities being offered;
       (C) the amount of securities being offered that have 
     already been subscribed for; and
       (D) the intended use of proceeds of the offering.
       (b) Rule of Construction.--Subsection (a) may only be 
     construed as requiring the Securities and Exchange Commission 
     to amend the requirements of Regulation D with respect to 
     presentations and communications, and not with respect to 
     purchases or sales.

                     Subtitle L--Main Street Growth

     SEC. 456. VENTURE EXCHANGES.

       (a) Securities Exchange Act of 1934.--Section 6 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by 
     adding at the end the following:
       ``(m) Venture Exchange.--
       ``(1) Registration.--
       ``(A) In general.--A national securities exchange may elect 
     to be treated (or for a listing tier of such exchange to be 
     treated) as a venture exchange by notifying the Commission of 
     such election, either at the time the exchange applies to be 
     registered as a national securities exchange or after 
     registering as a national securities exchange.
       ``(B) Determination time period.--With respect to a 
     securities exchange electing to be treated (or for a listing 
     tier of such exchange to be treated) as a venture exchange--
       ``(i) at the time the exchange applies to be registered as 
     a national securities exchange, such application and election 
     shall be deemed to have been approved by the Commission 
     unless the Commission denies such application before the end 
     of the 6-month period beginning on the date the Commission 
     received such application; and
       ``(ii) after registering as a national securities exchange, 
     such election shall be deemed to have been approved by the 
     Commission unless the Commission denies such approval before 
     the end of the 6-month period beginning on the date the 
     Commission received notification of such election.
       ``(2) Powers and restrictions.--A venture exchange--
       ``(A) may only constitute, maintain, or provide a market 
     place or facilities for bringing together purchasers and 
     sellers of venture securities;
       ``(B) may determine the increment to be used for quoting 
     and trading venture securities on the exchange;
       ``(C) shall disseminate last sale and quotation information 
     on terms that are fair and reasonable and not unreasonably 
     discriminatory;
       ``(D) may choose to carry out periodic auctions for the 
     sale of a venture security instead of providing continuous 
     trading of the venture security; and
       ``(E) may not extend unlisted trading privileges to any 
     venture security.
       ``(3) Exemptions from certain national security exchange 
     regulations.--A venture exchange shall not be required to--
       ``(A) comply with any of sections 242.600 through 242.612 
     of title 17, Code of Federal Regulations;
       ``(B) comply with any of sections 242.300 through 242.303 
     of title 17, Code of Federal Regulations;
       ``(C) submit any data to a securities information 
     processor; or
       ``(D) use decimal pricing.
       ``(4) Treatment of certain exempted securities.--A security 
     that is exempt from registration pursuant to section 3(b) of 
     the Securities Act of 1933 shall be exempt from section 12(a) 
     of this title with respect to the trading of such security on 
     a venture exchange, if the issuer of such security is in 
     compliance with all disclosure obligations of such section 
     3(b) and the regulations issued under such section.
       ``(5) Definitions.--For purposes of this subsection:
       ``(A) Early-stage, growth company.--
       ``(i) In general.--The term `early-stage, growth company' 
     means an issuer--

       ``(I) that has not made an initial public offering of any 
     securities of the issuer; and
       ``(II) with a market capitalization of $1,000,000,000 (as 
     such amount is indexed for inflation every 5 years by the 
     Commission to reflect the change in the Consumer Price Index 
     for All Urban Consumers published by the Bureau of Labor 
     Statistics, setting the threshold to the nearest $1,000,000) 
     or less.

       ``(ii) Treatment when market capitalization exceeds 
     threshold.--

       ``(I) In general.--In the case of an issuer that is an 
     early-stage, growth company the securities of which are 
     traded on a venture exchange, such issuer shall not cease to 
     be an early-stage, growth company by reason of the market 
     capitalization of such issuer exceeding the threshold 
     specified in clause (i)(II) until the end of the period of 24 
     consecutive months during which the market capitalization of 
     such issuer exceeds $2,000,000,000 (as such amount is indexed 
     for inflation every 5 years by the Commission to reflect the 
     change in the Consumer Price Index for All Urban Consumers 
     published by the Bureau of Labor Statistics, setting the 
     threshold to the nearest $1,000,000).
       ``(II) Exemptions.--If an issuer would cease to be an 
     early-stage, growth company under subclause (I), the venture 
     exchange may, at the request of the issuer, exempt the issuer 
     from the market capitalization requirements of this 
     subparagraph for the 1-year period that begins on the day 
     after the end of the 24-month period described in such 
     subclause. The venture exchange may, at the request of the 
     issuer, extend the exemption for 1 additional year.

       ``(B) Venture security.--The term `venture security' 
     means--
       ``(i) securities of an early-stage, growth company that are 
     exempt from registration pursuant to section 3(b) of the 
     Securities Act of 1933; and
       ``(ii) securities of an emerging growth company.''.
       (b) Securities Act of 1933.--Section 18(b)(1) of the 
     Securities Act of 1933 (15 U.S.C. 77r(b)(1)) is amended--
       (1) in subparagraph (B), by striking ``or'' at the end;
       (2) in subparagraph (C), by striking the period and 
     inserting ``; or''; and

[[Page 8949]]

       (3) by adding at the end the following:
       ``(D) a venture security, as defined under section 6(m)(5) 
     of the Securities Exchange Act of 1934.''.
       (c) Sense of Congress.--It is the sense of the Congress 
     that the Securities and Exchange Commission should--
       (1) when necessary or appropriate in the public interest 
     and consistent with the protection of investors, make use of 
     the Commission's general exemptive authority under section 36 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78mm) with 
     respect to the provisions added by this section; and
       (2) if the Commission determines appropriate, create an 
     Office of Venture Exchanges within the Commission's Division 
     of Trading and Markets.
       (d) Rule of Construction.--Nothing in this section or the 
     amendments made by this section shall be construed to impair 
     or limit the construction of the antifraud provisions of the 
     securities laws (as defined in section 3(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a))) or the authority of 
     the Securities and Exchange Commission under those 
     provisions.
       (e) Effective Date for Tiers of Existing National 
     Securities Exchanges.--In the case of a securities exchange 
     that is registered as a national securities exchange under 
     section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78f) on the date of the enactment of this Act, any election 
     for a listing tier of such exchange to be treated as a 
     venture exchange under subsection (m) of such section shall 
     not take effect before the date that is 180 days after such 
     date of enactment.

                 Subtitle M--Micro Offering Safe Harbor

     SEC. 461. EXEMPTIONS FOR MICRO-OFFERINGS.

       (a) In General.--Section 4 of the Securities Act of 1933 
     (15 U.S.C. 77d) is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(8) transactions meeting the requirements of subsection 
     (e).''; and
       (2) as amended by section 431(2), by inserting after 
     subsection (d) the following:
       ``(e) Certain Micro-Offerings.--The transactions referred 
     to in subsection (a)(8) are transactions involving the sale 
     of securities by an issuer (including all entities controlled 
     by or under common control with the issuer) that meet all of 
     the following requirements:
       ``(1) Pre-existing relationship.--Each purchaser has a 
     substantive pre-existing relationship with an officer of the 
     issuer, a director of the issuer, or a shareholder holding 10 
     percent or more of the shares of the issuer.
       ``(2) 35 or fewer purchasers.--There are no more than, or 
     the issuer reasonably believes that there are no more than, 
     35 purchasers of securities from the issuer that are sold in 
     reliance on the exemption provided under subsection (a)(8) 
     during the 12-month period preceding such transaction.
       ``(3) Small offering amount.--The aggregate amount of all 
     securities sold by the issuer, including any amount sold in 
     reliance on the exemption provided under subsection (a)(8), 
     during the 12-month period preceding such transaction, does 
     not exceed $500,000.''.
       (b) Exemption Under State Regulations.--Section 18(b)(4) of 
     the Securities Act of 1933 (15 U.S.C. 77r(b)(4)) is amended--
       (1) in subparagraph (F), by striking ``or'' at the end;
       (2) in subparagraph (G), by striking the period and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(H) section 4(a)(8).''.

               Subtitle N--Private Placement Improvement

     SEC. 466. REVISIONS TO SEC REGULATION D.

       Not later than 45 days following the date of the enactment 
     of this Act, the Securities and Exchange Commission shall 
     revise Regulation D (17 C.F.R. 501 et seq.) in accordance 
     with the following:
       (1) The Commission shall revise Form D filing requirements 
     to require an issuer offering or selling securities in 
     reliance on an exemption provided under Rule 506 of 
     Regulation D to file with the Commission a single notice of 
     sales containing the information required by Form D for each 
     new offering of securities no earlier than 15 days after the 
     date of the first sale of securities in the offering. The 
     Commission shall not require such an issuer to file any 
     notice of sales containing the information required by Form D 
     except for the single notice described in the previous 
     sentence.
       (2) The Commission shall make the information contained in 
     each Form D filing available to the securities commission (or 
     any agency or office performing like functions) of each State 
     and territory of the United States and the District of 
     Columbia.
       (3) The Commission shall not condition the availability of 
     any exemption for an issuer under Rule 506 of Regulation D 
     (17 C.F.R. 230.506) on the issuer's or any other person's 
     filing with the Commission of a Form D or any similar report.
       (4) The Commission shall not require issuers to submit 
     written general solicitation materials to the Commission in 
     connection with a Rule 506(c) offering, except when the 
     Commission requests such materials pursuant to the 
     Commission's authority under section 8A or section 20 of the 
     Securities Act of 1933 (15 U.S.C. 77h-1 or 77t) or section 9, 
     10(b), 21A, 21B, or 21C of the Securities Exchange Act of 
     1934 (15 U.S.C. 78i, 78j(b), 78u-1, 78u-2, or 78u-3).
       (5) The Commission shall not extend the requirements 
     contained in Rule 156 to private funds.
       (6) The Commission shall revise Rule 501(a) of Regulation D 
     to provide that a person who is a ``knowledgeable employee'' 
     of a private fund or the fund's investment adviser, as 
     defined in Rule 3c-5(a)(4) (17 C.F.R. 270.3c-5(a)(4)), shall 
     be an accredited investor for purposes of a Rule 506 offering 
     of a private fund with respect to which the person is a 
     knowledgeable employee.

              Subtitle O--Supporting America's Innovators

     SEC. 471. INVESTOR LIMITATION FOR QUALIFYING VENTURE CAPITAL 
                   FUNDS.

       Section 3(c)(1) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-3(c)(1)) is amended--
       (1) by inserting after ``one hundred persons'' the 
     following: ``(or, with respect to a qualifying venture 
     capital fund, 500 persons)''; and
       (2) by adding at the end the following:
       ``(C) The term `qualifying venture capital fund' means any 
     venture capital fund (as defined pursuant to section 
     203(l)(1) of the Investment Advisers Act of 1940 (15 U.S.C. 
     80b-3(l)(1)) with no more than $50,000,000 in aggregate 
     capital contributions and uncalled committed capital, as such 
     dollar amount is annually adjusted by the Commission to 
     reflect the change in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics of the 
     Department of Labor.''.

                      Subtitle P--Fix Crowdfunding

     SEC. 476. CROWDFUNDING EXEMPTION.

       (a) Securities Act of 1933.--Section 4(a) of the Securities 
     Act of 1933 (15 U.S.C. 77d) is amended by striking paragraph 
     (6) and inserting the following:
       ``(6) transactions involving the offer or sale of 
     securities by an issuer, provided that--
       ``(A) in the case of a transaction involving an 
     intermediary between the issuer and the investor, such 
     intermediary complies with the requirements under section 
     4A(a); and
       ``(B) in the case of a transaction not involving an 
     intermediary between the issuer and the investor, the issuer 
     complies with the requirements under section 4A(b).''.
       (b) Requirements to Qualify for Crowdfunding Exemption.--
     Section 4A of the Securities Act of 1933 (15 U.S.C. 77d-1) is 
     amended to read as follows:

     ``SEC. 4A. REQUIREMENTS WITH RESPECT TO CERTAIN SMALL 
                   TRANSACTIONS.

       ``(a) Requirements on Intermediaries.--For purposes of 
     section 4(a)(6), a person acting as an intermediary in a 
     transaction involving the offer or sale of securities shall 
     comply with the requirements of this subsection if the 
     intermediary--
       ``(1) warns investors, including on the intermediary's 
     website used for the offer and sale of such securities, of 
     the speculative nature generally applicable to investments in 
     startups, emerging businesses, and small issuers, including 
     risks in the secondary market related to illiquidity;
       ``(2) warns investors that they are subject to the 
     restriction on sales requirement described under subsection 
     (e);
       ``(3) takes reasonable measures to reduce the risk of fraud 
     with respect to such transaction;
       ``(4) registers with the Commission and the Financial 
     Industry Regulatory Authority, including by providing the 
     Commission with the intermediary's physical address, website 
     address, and the names of the intermediary and employees of 
     the intermediary, and keep such information up-to-date;
       ``(5) provides the Commission with continuous investor-
     level access to the intermediary's website;
       ``(6) requires each potential investor to answer questions 
     demonstrating--
       ``(A) an understanding of the level of risk generally 
     applicable to investments in startups, emerging businesses, 
     and small issuers;
       ``(B) an understanding of the risk of illiquidity; and
       ``(C) such other areas as the Commission may determine 
     appropriate by rule or regulation, including information 
     relating to the owners' and management's experience, and any 
     related party transactions and conflicts of interest;
       ``(7) carries out a background check on the issuer's 
     principals;
       ``(8) provides the Commission and potential investors with 
     notice of the offering not less than 10 days prior to such 
     offering, not later than the first day securities are offered 
     to potential investors, including--
       ``(A) the issuer's name, legal status, physical address, 
     and website address;
       ``(B) the names of the issuer's principals;
       ``(C) the stated purpose and intended use of the proceeds 
     of the offering sought by the issuer; and
       ``(D) the target offering amount and the deadline to reach 
     the target offering amount;
       ``(9) outsources cash-management functions to a qualified 
     third party custodian, such as a broker or dealer registered 
     under section 15(b)(1) of the Securities Exchange Act of 
     1934, a trust company, or an insured depository institution;
       ``(10) makes available on the intermediary's website a 
     method of communication that permits the issuer and investors 
     to communicate with one another; and
       ``(11) provides the Commission with a notice upon 
     completion of the offering, which shall include the aggregate 
     offering amount and the number of purchasers.
       ``(b) Requirements on Issuers if No Intermediary.--For 
     purposes of section 4(a)(6), an issuer who offers or sells 
     securities without an intermediary shall comply with the 
     requirements of this subsection if the issuer--
       ``(1) warns investors, including on the issuer's website, 
     of the speculative nature generally applicable to investments 
     in startups, emerging

[[Page 8950]]

     businesses, and small issuers, including risks in the 
     secondary market related to illiquidity;
       ``(2) warns investors that they are subject to the 
     restriction on sales requirement described under subsection 
     (e);
       ``(3) takes reasonable measures to reduce the risk of fraud 
     with respect to such transaction;
       ``(4) provides the Commission with the issuer's physical 
     address, website address, and the names of the principals and 
     employees of the issuers, and keeps such information up-to-
     date;
       ``(5) provides the Commission with continuous investor-
     level access to the issuer's website;
       ``(6) requires each potential investor to answer questions 
     demonstrating--
       ``(A) an understanding of the level of risk generally 
     applicable to investments in startups, emerging businesses, 
     and small issuers;
       ``(B) an understanding of the risk of illiquidity; and
       ``(C) such other areas as the Commission may determine 
     appropriate by rule or regulation;
       ``(7) provides the Commission with notice of the offering 
     not less than 10 days prior to such offering, not later than 
     the first day securities are offered to potential investors, 
     including--
       ``(A) the stated purpose and intended use of the proceeds 
     of the offering sought by the issuer; and
       ``(B) the target offering amount and the deadline to reach 
     the target offering amount;
       ``(8) outsources cash-management functions to a qualified 
     third party custodian, such as a broker or dealer registered 
     under section 15(b)(1) of the Securities Exchange Act of 
     1934, a trust company, or an insured depository institution;
       ``(9) makes available on the issuer's website a method of 
     communication that permits the issuer and investors to 
     communicate with one another;
       ``(10) does not offer personalized investment advice;
       ``(11) provides the Commission with a notice upon 
     completion of the offering, which shall include the aggregate 
     offering amount and the number of purchasers; and
       ``(c) Verification of Income.--For purposes of section 
     4(a)(6), an issuer or intermediary may rely on certifications 
     as to annual income provided by the person to whom the 
     securities are sold to verify the investor's income.
       ``(d) Information Available to States.--The Commission 
     shall make the notices described under subsections (a)(9), 
     (a)(13), (b)(8), and (b)(13) and the information described 
     under subsections (a)(4) and (b)(4) available to the States.
       ``(e) Restriction on Sales.--With respect to a transaction 
     involving the issuance of securities described under section 
     4(a)(6), a purchaser may not transfer such securities during 
     the 1-year period beginning on the date of purchase, unless 
     such securities are sold to--
       ``(1) the issuer of such securities; or
       ``(2) an accredited investor.
       ``(f) Construction.--
       ``(1) No registration as broker.--With respect to a 
     transaction described under section 4(a)(6) involving an 
     intermediary, such intermediary shall not be required to 
     register as a broker under section 15(a)(1) of the Securities 
     Exchange Act of 1934 solely by reason of participation in 
     such transaction.
       ``(2) No preclusion of other capital raising.--Nothing in 
     this section or section 4(a)(6) shall be construed as 
     preventing an issuer from raising capital through methods not 
     described under section 4(a)(6).''.
       (c) Rulemaking.--Not later than 180 days after the date of 
     enactment of this Act, the Securities and Exchange Commission 
     shall issue or revise such rules as may be necessary to carry 
     out section 4A of the Securities Act of 1933, ans amended by 
     this Act. In issuing or revising such rules, the Commission 
     shall consider the costs and benefits of the action.
       (d) Disqualification.--Not later than 180 days after the 
     date of enactment of this Act, the Securities and Exchange 
     Commission shall by rule or regulation establish 
     disqualification provisions under which an issuer shall not 
     be eligible to utilize the exemption under section 4(a)(6) of 
     the Securities Act of 1933 (as amended by this Act) based on 
     the disciplinary history of the issuer or its predecessors, 
     affiliates, officers, directors, or persons fulfilling 
     similar roles. The Commission shall also establish 
     disqualification provisions under which an intermediary shall 
     not be eligible to act as an intermediary in connection with 
     an offering utilizing the exemption under section 4(a)(6) of 
     the Securities Act of 1933 based on the disciplinary history 
     of the intermediary or its predecessors, affiliates, 
     officers, directors, or persons fulfilling similar roles. 
     Such provisions shall be substantially similar to the 
     disqualification provisions contained in the regulations 
     adopted in accordance with section 926 of the Dodd-Frank Wall 
     Street Reform and Consumer Protection Act (15 U.S.C. 77d 
     note).

     SEC. 477. EXCLUSION OF CROWDFUNDING INVESTORS FROM 
                   SHAREHOLDER CAP.

       Section 12(g)(5) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78l(g)(5)) is amended--
       (1) by striking ``(5) For the purposes'' and inserting:
       ``(5) Definitions.--
       ``(A) In general.--For the purposes''; and
       (2) by adding at the end the following:
       ``(B) Exclusion for persons holding certain securities.--
     For purposes of this subsection, securities held by persons 
     who purchase such securities in transactions described under 
     section 4(a)(6) of the Securities Act of 1933 shall not be 
     deemed to be `held of record'.''.

     SEC. 478. PREEMPTION OF STATE LAW.

       (a) In General.--Section 18(b)(4)(C) of the Securities Act 
     of 1933 (15 U.S.C. 77r(b)(4)(C)) is amended by striking 
     ``section 4(6)'' and inserting ``section 4(a)(6)''.
       (b) Clarification of the Preservation of State Enforcement 
     Authority.--
       (1) In general.--The amendments made by section 305(a) of 
     the Jumpstart Our Business Startups Act, as amended by 
     subsection (a), relate solely to State registration, 
     documentation, and offering requirements, as described under 
     section 18(a) of Securities Act of 1933 (15 U.S.C. 77r(a)), 
     and shall have no impact or limitation on other State 
     authority to take enforcement action with regard to an 
     issuer, intermediary, or any other person or entity using the 
     exemption from registration provided by section 4(a)(6) of 
     such Act. Notwithstanding monetary penalties or sanctions, a 
     State may not impose any filing or fee under such authority.
       (2) Clarification of state jurisdiction over unlawful 
     conduct of intermediaries, issuers, and custodians.--Section 
     18(c)(1) of the Securities Act of 1933 is amended by striking 
     ``in connection with securities or securities transactions'' 
     and all that follows and inserting the following: ``in 
     connection with securities or securities transactions, with 
     respect to--
       ``(A) fraud or deceit;
       ``(B) unlawful conduct by a broker or dealer; and
       ``(C) with respect to a transaction described under section 
     4(a)(6), unlawful conduct by an intermediary, issuer, or 
     custodian.''.

     SEC. 479. TREATMENT OF FUNDING PORTALS.

       Section 5312(c) of title 31, United States Code, is amended 
     by adding at the end the following:
       ``(2) Funding portals not included in definition.--The term 
     `financial institution' (as defined in subsection (a)) does 
     not include a funding portal (as defined under section 3(a) 
     of the Securities Exchange Act of 1934 (15 U.S.C. 
     78c(a))).''.

        Subtitle Q--Corporate Governance Reform and Transparency

     SEC. 481. DEFINITIONS.

       (a) Securities Exchange Act of 1934.--Section 3(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended 
     by adding at the end the following new paragraphs:
       ``(83) Proxy advisory firm.--The term `proxy advisory firm' 
     means any person who is primarily engaged in the business of 
     providing proxy voting research, analysis, or recommendations 
     to clients, which conduct constitutes a solicitation within 
     the meaning of section 14 and the Commission's rules and 
     regulations thereunder, except to the extent that the person 
     is exempted by such rules and regulations from requirements 
     otherwise applicable to persons engaged in a solicitation.
       ``(84) Person associated with a proxy advisory firm.--The 
     term `person associated with' a proxy advisory firm means any 
     partner, officer, or director of a proxy advisory firm (or 
     any person occupying a similar status or performing similar 
     functions), any person directly or indirectly controlling, 
     controlled by, or under common control with a proxy advisory 
     firm, or any employee of a proxy advisory firm, except that 
     persons associated with a proxy advisory firm whose functions 
     are clerical or ministerial shall not be included in the 
     meaning of such term. The Commission may by rules and 
     regulations classify, for purposes or any portion or portions 
     of this Act, persons, including employees controlled by a 
     proxy advisory firm.''.
       (b) Applicable Definitions.--As used in this subtitle--
       (1) the term ``Commission'' means the Securities and 
     Exchange Commission; and
       (2) the term ``proxy advisory firm'' has the same meaning 
     as in section 3(a)(83) of the Securities Exchange Act of 
     1934, as added by this subtitle.

     SEC. 482. REGISTRATION OF PROXY ADVISORY FIRMS.

       (a) Amendment.--The Securities Exchange Act of 1934 is 
     amended by inserting after section 15G the following new 
     section:

     ``SEC. 15H. REGISTRATION OF PROXY ADVISORY FIRMS.

       ``(a) Conduct Prohibited.--It shall be unlawful for a proxy 
     advisory firm to make use of the mails or any means or 
     instrumentality of interstate commerce to provide proxy 
     voting research, analysis, or recommendations to any client, 
     unless such proxy advisory firm is registered under this 
     section.
       ``(b) Registration Procedures.--
       ``(1) Application for registration.--
       ``(A) In general.--A proxy advisory firm must file with the 
     Commission an application for registration, in such form as 
     the Commission shall require, by rule or regulation, and 
     containing the information described in subparagraph (B).
       ``(B) Required information.--An application for 
     registration under this section shall contain information 
     regarding--
       ``(i) a certification that the applicant has adequate 
     financial and managerial resources to consistently provide 
     proxy advice based on accurate information;
       ``(ii) the procedures and methodologies that the applicant 
     uses in developing proxy voting recommendations, including 
     whether and how the applicant considers the size of a company 
     when making proxy voting recommendations;
       ``(iii) the organizational structure of the applicant;
       ``(iv) whether or not the applicant has in effect a code of 
     ethics, and if not, the reasons therefor;
       ``(v) any potential or actual conflict of interest relating 
     to the ownership structure of the applicant or the provision 
     of proxy advisory services by the applicant, including 
     whether the

[[Page 8951]]

     proxy advisory firm engages in services ancillary to the 
     provision of proxy advisory services such as consulting 
     services for corporate issuers, and if so the revenues 
     derived therefrom;
       ``(vi) the policies and procedures in place to manage 
     conflicts of interest under subsection (f); and
       ``(vii) any other information and documents concerning the 
     applicant and any person associated with such applicant as 
     the Commission, by rule, may prescribe as necessary or 
     appropriate in the public interest or for the protection of 
     investors.
       ``(2) Review of application.--
       ``(A) Initial determination.--Not later than 90 days after 
     the date on which the application for registration is filed 
     with the Commission under paragraph (1) (or within such 
     longer period as to which the applicant consents) the 
     Commission shall--
       ``(i) by order, grant registration; or
       ``(ii) institute proceedings to determine whether 
     registration should be denied.
       ``(B) Conduct of proceedings.--
       ``(i) Content.--Proceedings referred to in subparagraph 
     (A)(ii) shall--

       ``(I) include notice of the grounds for denial under 
     consideration and an opportunity for hearing; and
       ``(II) be concluded not later than 120 days after the date 
     on which the application for registration is filed with the 
     Commission under paragraph (1).

       ``(ii) Determination.--At the conclusion of such 
     proceedings, the Commission, by order, shall grant or deny 
     such application for registration.
       ``(iii) Extension authorized.--The Commission may extend 
     the time for conclusion of such proceedings for not longer 
     than 90 days, if it finds good cause for such extension and 
     publishes its reasons for so finding, or for such longer 
     period as to which the applicant consents.
       ``(C) Grounds for decision.--The Commission shall grant 
     registration under this subsection--
       ``(i) if the Commission finds that the requirements of this 
     section are satisfied; and
       ``(ii) unless the Commission finds (in which case the 
     Commission shall deny such registration) that--

       ``(I) the applicant has failed to certify to the 
     Commission's satisfaction that it has adequate financial and 
     managerial resources to consistently provide proxy advice 
     based on accurate information and to materially comply with 
     the procedures and methodologies disclosed under paragraph 
     (1)(B) and with subsections (f) and (g); or
       ``(II) if the applicant were so registered, its 
     registration would be subject to suspension or revocation 
     under subsection (e).

       ``(3) Public availability of information.--Subject to 
     section 24, the Commission shall make the information and 
     documents submitted to the Commission by a proxy advisory 
     firm in its completed application for registration, or in any 
     amendment submitted under paragraph (1) or (2) of subsection 
     (c), publicly available on the Commission's website, or 
     through another comparable, readily accessible means.
       ``(c) Update of Registration.--
       ``(1) Update.--Each registered proxy advisory firm shall 
     promptly amend and update its application for registration 
     under this section if any information or document provided 
     therein becomes materially inaccurate, except that a 
     registered proxy advisory firm is not required to amend the 
     information required to be filed under subsection 
     (b)(1)(B)(i) by filing information under this paragraph, but 
     shall amend such information in the annual submission of the 
     organization under paragraph (2) of this subsection.
       ``(2) Certification.--Not later than 90 calendar days after 
     the end of each calendar year, each registered proxy advisory 
     firm shall file with the Commission an amendment to its 
     registration, in such form as the Commission, by rule, may 
     prescribe as necessary or appropriate in the public interest 
     or for the protection of investors--
       ``(A) certifying that the information and documents in the 
     application for registration of such registered proxy 
     advisory firm continue to be accurate in all material 
     respects; and
       ``(B) listing any material change that occurred to such 
     information or documents during the previous calendar year.
       ``(d) Censure, Denial, or Suspension of Registration; 
     Notice and Hearing.--The Commission, by order, shall censure, 
     place limitations on the activities, functions, or operations 
     of, suspend for a period not exceeding 12 months, or revoke 
     the registration of any registered proxy advisory firm if the 
     Commission finds, on the record after notice and opportunity 
     for hearing, that such censure, placing of limitations, 
     suspension, or revocation is necessary for the protection of 
     investors and in the public interest and that such registered 
     proxy advisory firm, or any person associated with such an 
     organization, whether prior to or subsequent to becoming so 
     associated--
       ``(1) has committed or omitted any act, or is subject to an 
     order or finding, enumerated in subparagraph (A), (D), (E), 
     (H), or (G) of section 15(b)(4), has been convicted of any 
     offense specified in section 15(b)(4)(B), or is enjoined from 
     any action, conduct, or practice specified in subparagraph 
     (C) of section 15(b)(4), during the 10-year period preceding 
     the date of commencement of the proceedings under this 
     subsection, or at any time thereafter;
       ``(2) has been convicted during the 10-year period 
     preceding the date on which an application for registration 
     is filed with the Commission under this section, or at any 
     time thereafter, of--
       ``(A) any crime that is punishable by imprisonment for one 
     or more years, and that is not described in section 
     15(b)(4)(B); or
       ``(B) a substantially equivalent crime by a foreign court 
     of competent jurisdiction;
       ``(3) is subject to any order of the Commission barring or 
     suspending the right of the person to be associated with a 
     registered proxy advisory firm;
       ``(4) fails to furnish the certifications required under 
     subsections (b)(2)(C)(ii)(I) and (c)(2);
       ``(5) has engaged in one or more prohibited acts enumerated 
     in paragraph (1); or
       ``(6) fails to maintain adequate financial and managerial 
     resources to consistently offer advisory services with 
     integrity, including by failing to comply with subsections 
     (f) or (g).
       ``(e) Termination of Registration.--
       ``(1) Voluntary withdrawal.--A registered proxy advisory 
     firm may, upon such terms and conditions as the Commission 
     may establish as necessary in the public interest or for the 
     protection of investors, which terms and conditions shall 
     include at a minimum that the registered proxy advisory firm 
     will no longer conduct such activities as to bring it within 
     the definition of proxy advisory firm in section 3(a)(83) of 
     the Securities Exchange Act of 1934, withdraw from 
     registration by filing a written notice of withdrawal to the 
     Commission.
       ``(2) Commission authority.--In addition to any other 
     authority of the Commission under this title, if the 
     Commission finds that a registered proxy advisory firm is no 
     longer in existence or has ceased to do business as a proxy 
     advisory firm, the Commission, by order, shall cancel the 
     registration under this section of such registered proxy 
     advisory firm.
       ``(f) Management of Conflicts of Interest.--
       ``(1) Organization policies and procedures.--Each 
     registered proxy advisory firm shall establish, maintain, and 
     enforce written policies and procedures reasonably designed, 
     taking into consideration the nature of the business of such 
     registered proxy advisory firm and associated persons, to 
     address and manage any conflicts of interest that can arise 
     from such business.
       ``(2) Commission authority.--The Commission shall issue 
     final rules to prohibit, or require the management and 
     disclosure of, any conflicts of interest relating to the 
     offering of proxy advisory services by a registered proxy 
     advisory firm, including, without limitation, conflicts of 
     interest relating to--
       ``(A) the manner in which a registered proxy advisory firm 
     is compensated by the client, or any affiliate of the client, 
     for providing proxy advisory services;
       ``(B) the provision of consulting, advisory, or other 
     services by a registered proxy advisory firm, or any person 
     associated with such registered proxy advisory firm, to the 
     client;
       ``(C) business relationships, ownership interests, or any 
     other financial or personal interests between a registered 
     proxy advisory firm, or any person associated with such 
     registered proxy advisory firm, and any client, or any 
     affiliate of such client;
       ``(D) transparency around the formulation of proxy voting 
     policies;
       ``(E) the execution of proxy votes if such votes are based 
     upon recommendations made by the proxy advisory firm in which 
     someone other than the issuer is a proponent;
       ``(F) issuing recommendations where proxy advisory firms 
     provide advisory services to a company; and
       ``(G) any other potential conflict of interest, as the 
     Commission deems necessary or appropriate in the public 
     interest or for the protection of investors.
       ``(g) Reliability of Proxy Advisory Firm Services.--
       ``(1) In general.--Each registered proxy advisory firm 
     shall have staff sufficient to produce proxy voting 
     recommendations that are based on accurate and current 
     information. Each registered proxy advisory firm shall detail 
     procedures sufficient to permit companies receiving proxy 
     advisory firm recommendations access in a reasonable time to 
     the draft recommendations, with an opportunity to provide 
     meaningful comment thereon, including the opportunity to 
     present details to the person responsible for developing the 
     recommendation in person or telephonically. Each registered 
     proxy advisory firm shall employ an ombudsman to receive 
     complaints about the accuracy of voting information used in 
     making recommendations from the subjects of the proxy 
     advisory firm's voting recommendations, and shall resolve 
     those complaints in a timely fashion and in any event prior 
     to voting on the matter to which the recommendation relates.
       ``(2) Draft recommendations defined.--For purposes of this 
     subsection, the term `draft recommendations'--
       ``(A) means the overall conclusions of proxy voting 
     recommendations prepared for the clients of a proxy advisory 
     firm, including any public data cited therein, any company 
     information or substantive analysis impacting the 
     recommendation, and the specific voting recommendations on 
     individual proxy ballot issues; and
       ``(B) does not include the entirety of the proxy advisory 
     firm's final report to its clients.
       ``(h) Designation of Compliance Officer.--Each registered 
     proxy advisory firm shall designate an individual responsible 
     for administering the policies and procedures that are 
     required to be established pursuant to subsections (f) and 
     (g), and for ensuring compliance with

[[Page 8952]]

     the securities laws and the rules and regulations thereunder, 
     including those promulgated by the Commission pursuant to 
     this section.
       ``(i) Prohibited Conduct.--
       ``(1) Prohibited acts and practices.--The Commission shall 
     issue final rules to prohibit any act or practice relating to 
     the offering of proxy advisory services by a registered proxy 
     advisory firm that the Commission determines to be unfair or 
     coercive, including any act or practice relating to--
       ``(A) conditioning a voting recommendation or other proxy 
     advisory firm recommendation on the purchase by an issuer or 
     an affiliate thereof of other services or products, of the 
     registered proxy advisory firm or any person associated with 
     such registered proxy advisory firm; and
       ``(B) modifying a voting recommendation or otherwise 
     departing from its adopted systematic procedures and 
     methodologies in the provision of proxy advisory services, 
     based on whether an issuer, or affiliate thereof, subscribes 
     or will subscribe to other services or product of the 
     registered proxy advisory firm or any person associated with 
     such organization.
       ``(2) Rule of construction.--Nothing in paragraph (1), or 
     in any rules or regulations adopted thereunder, may be 
     construed to modify, impair, or supersede the operation of 
     any of the antitrust laws (as defined in the first section of 
     the Clayton Act, except that such term includes section 5 of 
     the Federal Trade Commission Act, to the extent that such 
     section 5 applies to unfair methods of competition).
       ``(j) Statements of Financial Condition.--Each registered 
     proxy advisory firm shall, on a confidential basis, file with 
     the Commission, at intervals determined by the Commission, 
     such financial statements, certified (if required by the 
     rules or regulations of the Commission) by an independent 
     public auditor, and information concerning its financial 
     condition, as the Commission, by rule, may prescribe as 
     necessary or appropriate in the public interest or for the 
     protection of investors.
       ``(k) Annual Report.--Each registered proxy advisory firm 
     shall, at the beginning of each fiscal year of such firm, 
     report to the Commission on the number of shareholder 
     proposals its staff reviewed in the prior fiscal year, the 
     number of recommendations made in the prior fiscal year, the 
     number of staff who reviewed and made recommendations on such 
     proposals in the prior fiscal year, and the number of 
     recommendations made in the prior fiscal year where the 
     proponent of such recommendation was a client of or received 
     services from the proxy advisory firm.
       ``(l) Transparent Policies.--Each registered proxy advisory 
     firm shall file with the Commission and make publicly 
     available its methodology for the formulation of proxy voting 
     policies and voting recommendations.
       ``(m) Rules of Construction.--
       ``(1) No waiver of rights, privileges, or defenses.--
     Registration under and compliance with this section does not 
     constitute a waiver of, or otherwise diminish, any right, 
     privilege, or defense that a registered proxy advisory firm 
     may otherwise have under any provision of State or Federal 
     law, including any rule, regulation, or order thereunder.
       ``(2) No private right of action.--Nothing in this section 
     may be construed as creating any private right of action, and 
     no report filed by a registered proxy advisory firm in 
     accordance with this section or section 17 shall create a 
     private right of action under section 18 or any other 
     provision of law.
       ``(n) Regulations.--
       ``(1) New provisions.--Such rules and regulations as are 
     required by this section or are otherwise necessary to carry 
     out this section, including the application form required 
     under subsection (a)--
       ``(A) shall be issued by the Commission, not later than 180 
     days after the date of enactment of this section; and
       ``(B) shall become effective not later than 1 year after 
     the date of enactment of this section.
       ``(2) Review of existing regulations.--Not later than 270 
     days after the date of enactment of this section, the 
     Commission shall--
       ``(A) review its existing rules and regulations which 
     affect the operations of proxy advisory firms;
       ``(B) amend or revise such rules and regulations in 
     accordance with the purposes of this section, and issue such 
     guidance, as the Commission may prescribe as necessary or 
     appropriate in the public interest or for the protection of 
     investors; and
       ``(C) direct Commission staff to withdraw the Egan Jones 
     Proxy Services (May 27, 2004) and Institutional Shareholder 
     Services, Inc. (September 15, 2004) no-action letters.
       ``(o) Applicability.--This section, other than subsection 
     (n), which shall apply on the date of enactment of this 
     section, shall apply on the earlier of--
       ``(1) the date on which regulations are issued in final 
     form under subsection (n)(1); or
       ``(2) 270 days after the date of enactment of this 
     section.''.
       (b) Conforming Amendment.--Section 17(a)(1) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78q(a)(1)) is 
     amended by inserting ``proxy advisory firm,'' after 
     ``nationally recognized statistical rating organization,''.

     SEC. 483. COMMISSION ANNUAL REPORT.

       The Commission shall make an annual report publicly 
     available on the Commission's Internet website. Such report 
     shall, with respect to the year to which the report relates--
       (1) identify applicants for registration under section 15H 
     of the Securities Exchange Act of 1934, as added by this 
     subtitle;
       (2) specify the number of and actions taken on such 
     applications;
       (3) specify the views of the Commission on the state of 
     competition, transparency, policies and methodologies, and 
     conflicts of interest among proxy advisory firms;
       (4) include the determination of the Commission with regard 
     to--
       (A) the quality of proxy advisory services issued by proxy 
     advisory firms;
       (B) the financial markets;
       (C) competition among proxy advisory firms;
       (D) the incidence of undisclosed conflicts of interest by 
     proxy advisory firms;
       (E) the process for registering as a proxy advisory firm; 
     and
       (F) such other matters relevant to the implementation of 
     this subtitle and the amendments made by this subtitle, as 
     the Commission determines necessary to bring to the attention 
     of the Congress;
       (5) identify problems, if any, that have resulted from the 
     implementation of this subtitle and the amendments made by 
     this subtitle; and
       (6) recommend solutions, including any legislative or 
     regulatory solutions, to any problems identified under 
     paragraphs (4) and (5).

                        Subtitle R--Senior Safe

     SEC. 491. IMMUNITY.

       (a) Definitions.--In this subtitle--
       (1) the term ``Bank Secrecy Act Officer'' means an 
     individual responsible for ensuring compliance with the 
     requirements mandated by subchapter II of chapter 53 of title 
     31, United States Code;
       (2) the term ``broker-dealer'' means a broker or dealer, as 
     those terms are defined, respectively, in section 3(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
       (3) the term ``covered agency'' means--
       (A) a State financial regulatory agency, including a State 
     securities or law enforcement authority and a State insurance 
     regulator;
       (B) each of the Federal financial institutions regulatory 
     agencies;
       (C) the Securities and Exchange Commission;
       (D) a law enforcement agency;
       (E) and State or local agency responsible for administering 
     adult protective service laws; and
       (F) a State attorney general.
       (4) the term ``covered financial institution'' means--
       (A) a credit union;
       (B) a depository institution;
       (C) an investment advisor;
       (D) a broker-dealer;
       (E) an insurance company;
       (F) a State attorney general; and
       (G) a transfer agent.
       (5) the term ``credit union'' means a Federal credit union, 
     State credit union, or State-chartered credit union, as those 
     terms are defined in section 101 of the Federal Credit Union 
     Act (12 U.S.C. 1752);
       (6) the term ``depository institution'' has the meaning 
     given the term in section 3(c) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1813(c));
       (7) the term ``exploitation'' means the fraudulent or 
     otherwise illegal, unauthorized, or improper act or process 
     of an individual, including a caregiver or fiduciary, that--
       (A) uses the resources of a senior citizen for monetary 
     personal benefit, profit, or gain; or
       (B) results in depriving a senior citizen of rightful 
     access to or use of benefits, resources, belongings or 
     assets;
       (8) the term ``Federal financial institutions regulatory 
     agencies'' has the meaning given the term in section 1003 of 
     the Federal Financial Institutions Examination Council Act of 
     1978 (12 U.S.C. 3302);
       (9) the term ``investment adviser'' has the meaning given 
     the term in section 202 of the Investment Advisers Act of 
     1940 (15 U.S.C. 80b-2);
       (10) the term ``insurance company'' has the meaning given 
     the term in section 2(a) of the Investment Company Act of 
     1940 (15 U.S.C. 80a-2(a));
       (11) the term ``registered representative'' means an 
     individual who represents a broker-dealer in effecting or 
     attempting to affect a purchase or sale of securities;
       (12) the term ``senior citizen'' means an individual who is 
     not less than 65 years of age;
       (13) the term ``State insurance regulator'' has the meaning 
     given such term in section 315 of the Gramm-Leach-Bliley Act 
     (15 U.S.C. 6735);
       (14) the term ``State securities or law enforcement 
     authority'' has the meaning given the term in section 
     24(f)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78x(f)(4)); and
       (15) the term ``transfer agent'' has the meaning given the 
     term in section 3(a) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78c(a)).
       (b) Immunity From Suit.--
       (1) Immunity for individuals.--An individual who has 
     received the training described in section 492 shall not be 
     liable, including in any civil or administrative proceeding, 
     for disclosing the possible exploitation of a senior citizen 
     to a covered agency if the individual, at the time of the 
     disclosure--
       (A) served as a supervisor, compliance officer (including a 
     Bank Secrecy Act Officer), or registered representative for a 
     covered financial institution; and
       (B) made the disclosure with reasonable care including 
     reasonable efforts to avoid disclosure other than to a 
     covered agency.
       (2) Immunity for covered financial institutions.--A covered 
     financial institution shall not be liable, including in any 
     civil or administrative proceeding, for a disclosure made by 
     an individual described in paragraph (1) if--
       (A) the individual was employed by, or, in the case of a 
     registered representative, affiliated or

[[Page 8953]]

     associated with, the covered financial institution at the 
     time of the disclosure; and
       (B) before the time of the disclosure, the covered 
     financial institution provided the training described in 
     section 492 to each individual described in section 492(a).

     SEC. 492. TRAINING REQUIRED.

       (a) In General.--A covered financial institution may 
     provide training described in subsection (b)(1) to each 
     officer or employee of, or registered representative 
     affiliated or associated with, the covered financial 
     institution who--
       (1) is described in section 491(b)(1)(A);
       (2) may come into contact with a senior citizen as a 
     regular part of the duties of the officer, employee, or 
     registered representative; or
       (3) may review or approve the financial documents, records, 
     or transactions of a senior citizen in connection with 
     providing financial services to a senior citizen.
       (b) Training.--
       (1) In general.--The training described in this paragraph 
     shall--
       (A) instruct any individual attending the training on how 
     to identify and report the suspected exploitation of a senior 
     citizen;
       (B) discuss the need to protect the privacy and respect the 
     integrity of each individual customer of a covered financial 
     institution; and
       (C) be appropriate to the job responsibilities of the 
     individual attending the training.
       (2) Timing.--The training required under subsection (a) 
     shall be provided as soon as reasonably practicable but not 
     later than 1 year after the date on which an officer, 
     employee, or registered representative begins employment with 
     or becomes affiliated or associated with the covered 
     financial institution.
       (3) Bank secrecy act officer.--An individual who is 
     designated as a compliance officer under an anti-money 
     laundering program established pursuant to section 5318(h) of 
     title 31, United States Code, shall be deemed to have 
     received the training described under this subsection.

     SEC. 493. RELATIONSHIP TO STATE LAW.

       Nothing in this Act shall be construed to preempt or limit 
     any provision of State law, except only to the extent that 
     section 491 provides a greater level of protection against 
     liability to an individual described in section 491(b)(1) or 
     to a covered financial institution described in section 
     491(b)(2) than is provided under State law.

       Subtitle S--National Securities Exchange Regulatory Parity

     SEC. 496. APPLICATION OF EXEMPTION.

       Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C. 
     77r(b)(1)), as amended by section 456(b), is further 
     amended--
       (1) by striking subparagraph (A);
       (2) in subparagraph (B), by striking ``that the Commission 
     determines by rule (on its own initiative or on the basis of 
     a petition) are substantially similar to the listing 
     standards applicable to securities described in subparagraph 
     (A)'' and inserting ``that have been approved by the 
     Commission'';
       (3) in subparagraph (C), by striking ``or (B)''; and
       (4) by redesignating subparagraphs (B), (C), and (D) as 
     subparagraphs (A), (B), and (C), respectively.

           Subtitle T--Private Company Flexibility and Growth

     SEC. 497. SHAREHOLDER THRESHOLD FOR REGISTRATION.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended--
       (1) in section 12(g)--
       (A) in paragraph (1)--
       (i) by striking ``shall--'' and all that follows through 
     ``register such security'' and inserting ``shall, not later 
     than 120 days after the last day of its first fiscal year 
     ended after the effective date of this subsection on which 
     the issuer has total assets exceeding $10,000,000 (or such 
     greater amount of assets as the Commission may establish by 
     rule) and a class of equity security (other than an exempted 
     security) held of record by 2,000 or more persons (or such 
     greater number of persons as the Commission may establish by 
     rule), register such security''; and
       (ii) by adding at the end the following: ``The dollar 
     figure in this paragraph shall be indexed for inflation every 
     5 years by the Commission to reflect the change in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics, rounded to the nearest 
     $100,000.''; and
       (B) in paragraph (4), by striking ``300 persons'' and all 
     that follows through ``1,200 persons persons'' and inserting 
     ``1,200 persons''; and
       (2) in section 15(d)(1), by striking ``300 persons'' and 
     all that follows through ``1,200 persons persons'' and 
     inserting ``1,200 persons''.

        Subtitle U--Small Company Capital Formation Enhancements

     SEC. 498. JOBS ACT-RELATED EXEMPTION.

       Section 3(b) of the Securities Act of 1933 (15 U.S.C. 
     77c(b)) is amended--
       (1) in paragraph (2)(A), by striking ``$50,000,000'' and 
     inserting ``$75,000,000, adjusted for inflation by the 
     Commission every 2 years to the nearest $10,000 to reflect 
     the change in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics''; and
       (2) in paragraph (5)--
       (A) by striking ``such amount as'' and inserting: ``such 
     amount, in addition to the adjustment for inflation provided 
     for under such paragraph (2)(A), as''; and
       (B) by striking ``such amount, it'' and inserting ``such 
     amount, in addition to the adjustment for inflation provided 
     for under such paragraph (2)(A), it''.

                Subtitle V--Encouraging Public Offerings

     SEC. 499. EXPANDING TESTING THE WATERS AND CONFIDENTIAL 
                   SUBMISSIONS.

       The Securities Act of 1933 (15 U.S.C. 77a et seq.) is 
     amended--
       (1) in section 5(d), by striking ``an emerging growth 
     company or any person authorized to act on behalf of an 
     emerging growth company'' and inserting ``an issuer or any 
     person authorized to act on behalf of an issuer''; and
       (2) in section 6(e)--
       (A) in the heading, by striking ``Emerging Growth 
     Companies'' and inserting ``Draft Registration Statements''; 
     and
       (B) by amending paragraph (1) to read as follows:
       ``(1) In general.--Any issuer, prior to its initial public 
     offering date, may confidentially submit to the Commission a 
     draft registration statement, for confidential nonpublic 
     review by the staff of the Commission prior to public filing, 
     provided that the initial confidential submission and all 
     amendments thereto shall be publicly filed with the 
     Commission not later than 15 days before the date on which 
     the issuer conducts a road show, as such term is defined in 
     section 230.433(h)(4) of title 17, Code of Federal 
     Regulations, or any successor thereto.''.

  TITLE V--REGULATORY RELIEF FOR MAIN STREET AND COMMUNITY FINANCIAL 
                              INSTITUTIONS

         Subtitle A--Preserving Access to Manufactured Housing

     SEC. 501. MORTGAGE ORIGINATOR DEFINITION.

       Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is 
     amended--
       (1) by redesignating the second subsection (cc) and 
     subsection (dd) as subsections (dd) and (ee), respectively; 
     and
       (2) in paragraph (2)(C) of subsection (dd), as so 
     redesignated, by striking ``an employee of a retailer of 
     manufactured homes who is not described in clause (i) or 
     (iii) of subparagraph (A) and who does not advise a consumer 
     on loan terms (including rates, fees, and other costs)'' and 
     inserting ``a retailer of manufactured or modular homes or 
     its employees unless such retailer or its employees receive 
     compensation or gain for engaging in activities described in 
     subparagraph (A) that is in excess of any compensation or 
     gain received in a comparable cash transaction''.

     SEC. 502. HIGH-COST MORTGAGE DEFINITION.

       Section 103 of the Truth in Lending Act (15 U.S.C. 1602), 
     as amended by section 501, is further amended--
       (1) by redesignating subsection (aa) (relating to 
     disclosure of greater amount or percentage), as so designated 
     by section 1100A of the Consumer Financial Protection Act of 
     2010, as subsection (bb);
       (2) by redesignating subsection (bb) (relating to high cost 
     mortgages), as so designated by section 1100A of the Consumer 
     Financial Protection Act of 2010, as subsection (aa), and 
     moving such subsection to immediately follow subsection (z); 
     and
       (3) in subsection (aa)(1)(A), as so redesignated--
       (A) in clause (i)(I), by striking ``(8.5 percentage points, 
     if the dwelling is personal property and the transaction is 
     for less than $50,000)'' and inserting ``(10 percentage 
     points if the dwelling is personal property or is a 
     transaction that does not include the purchase of real 
     property on which a dwelling is to be placed, and the 
     transaction is for less than $75,000 (as such amount is 
     adjusted by the Consumer Law Enforcement Agency to reflect 
     the change in the Consumer Price Index))''; and
       (B) in clause (ii)--
       (i) in subclause (I), by striking ``or'' at the end; and
       (ii) by adding at the end the following:

       ``(III) in the case of a transaction for less than $75,000 
     (as such amount is adjusted by the Consumer Law Enforcement 
     Agency to reflect the change in the Consumer Price Index) in 
     which the dwelling is personal property (or is a consumer 
     credit transaction that does not include the purchase of real 
     property on which a dwelling is to be placed) the greater of 
     5 percent of the total transaction amount or $3,000 (as such 
     amount is adjusted by the Consumer Law Enforcement Agency to 
     reflect the change in the Consumer Price Index); or''.

                      Subtitle B--Mortgage Choice

     SEC. 506. DEFINITION OF POINTS AND FEES.

       (a) Amendment to Section 103 of TILA.--Paragraph (4) of 
     section 103(aa) of the Truth in Lending Act, as redesignated 
     by section 502, is amended--
       (1) by striking ``paragraph (1)(B)'' and inserting 
     ``paragraph (1)(A) and section 129C'';
       (2) in subparagraph (C)--
       (A) by inserting ``and insurance'' after ``taxes'';
       (B) in clause (ii), by inserting ``, except as retained by 
     a creditor or its affiliate as a result of their 
     participation in an affiliated business arrangement (as 
     defined in section 3(7) of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2602(7)),'' after 
     ``compensation''; and
       (C) by striking clause (iii) and inserting the following:
       ``(iii) the charge is--
       ``(I) a bona fide third-party charge not retained by the 
     mortgage originator, creditor, or an affiliate of the 
     creditor or mortgage originator; or
       ``(II) a charge set forth in section 106(e)(1);''; and
       (3) in subparagraph (D)--

[[Page 8954]]

       (A) by striking ``accident,''; and
       (B) by striking ``or any payments'' and inserting ``and any 
     payments''.
       (b) Amendment to Section 129C of TILA.--Section 129C of the 
     Truth in Lending Act (15 U.S.C. 1639c) is amended--
       (1) in subsection (a)(5)(C), by striking ``103'' and all 
     that follows through ``or mortgage originator'' and inserting 
     ``103(aa)(4)''; and
       (2) in subsection (b)(2)(C)(i), by striking ``103'' and all 
     that follows through ``or mortgage originator)'' and 
     inserting ``103(aa)(4)''.

         Subtitle C--Financial Institution Customer Protection

     SEC. 511. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMINATION 
                   REQUESTS AND ORDERS.

       (a) Termination Requests or Orders Must Be Material.--
       (1) In general.--An appropriate Federal banking agency may 
     not formally or informally request or order a depository 
     institution to terminate a specific customer account or group 
     of customer accounts or to otherwise restrict or discourage a 
     depository institution from entering into or maintaining a 
     banking relationship with a specific customer or group of 
     customers unless--
       (A) the agency has a material reason for such request or 
     order; and
       (B) such reason is not based solely on reputation risk.
       (2) Treatment of national security threats.--If an 
     appropriate Federal banking agency believes a specific 
     customer or group of customers is, or is acting as a conduit 
     for, an entity which--
       (A) poses a threat to national security,
       (B) is involved in terrorist financing,
       (C) is an agency of the government of Iran, North Korea, 
     Syria, or any country listed from time to time on the State 
     Sponsors of Terrorism list,
       (D) is located in, or is subject to the jurisdiction of, 
     any country specified in subparagraph (C), or
       (E) does business with any entity described in subparagraph 
     (C) or (D), unless the appropriate Federal banking agency 
     determines that the customer or group of customers has used 
     due diligence to avoid doing business with any entity 
     described in subparagraph (C) or (D),
     such belief shall satisfy the requirement under paragraph 
     (1).
       (b) Notice Requirement.--
       (1) In general.--If an appropriate Federal banking agency 
     formally or informally requests or orders a depository 
     institution to terminate a specific customer account or a 
     group of customer accounts, the agency shall--
       (A) provide such request or order to the institution in 
     writing; and
       (B) accompany such request or order with a written 
     justification for why such termination is needed, including 
     any specific laws or regulations the agency believes are 
     being violated by the customer or group of customers, if any.
       (2) Justification requirement.--A justification described 
     under paragraph (1)(B) may not be based solely on the 
     reputation risk to the depository institution.
       (c) Customer Notice.--
       (1) Notice required.--Except as provided under paragraph 
     (2), if an appropriate Federal banking agency orders a 
     depository institution to terminate a specific customer 
     account or a group of customer accounts, the depository 
     institution shall inform the customer or customers of the 
     justification for the customer's account termination 
     described under subsection (b).
       (2) Notice prohibited in cases of national security.--If an 
     appropriate Federal banking agency requests or orders a 
     depository institution to terminate a specific customer 
     account or a group of customer accounts based on a belief 
     that the customer or customers pose a threat to national 
     security, or are otherwise described under subsection (a)(2), 
     neither the depository institution nor the appropriate 
     Federal banking agency may inform the customer or customers 
     of the justification for the customer's account termination.
       (d) Reporting Requirement.--Each appropriate Federal 
     banking agency shall issue an annual report to the Congress 
     stating--
       (1) the aggregate number of specific customer accounts that 
     the agency requested or ordered a depository institution to 
     terminate during the previous year; and
       (2) the legal authority on which the agency relied in 
     making such requests and orders and the frequency on which 
     the agency relied on each such authority.
       (e) Definitions.--For purposes of this section:
       (1) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' means--
       (A) the appropriate Federal banking agency, as defined 
     under section 3 of the Federal Deposit Insurance Act (12 
     U.S.C. 1813); and
       (B) the National Credit Union Administration, in the case 
     of an insured credit union.
       (2) Depository institution.--The term ``depository 
     institution'' means--
       (A) a depository institution, as defined under section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813); and
       (B) an insured credit union.

     SEC. 512. AMENDMENTS TO THE FINANCIAL INSTITUTIONS REFORM, 
                   RECOVERY, AND ENFORCEMENT ACT OF 1989.

       Section 951 of the Financial Institutions Reform, Recovery, 
     and Enforcement Act of 1989 (12 U.S.C. 1833a) is amended--
       (1) in subsection (c)(2), by striking ``affecting a 
     federally insured financial institution'' and inserting 
     ``against a federally insured financial institution or by a 
     federally insured financial institution against an 
     unaffiliated third person''; and
       (2) in subsection (g)--
       (A) in the heading, by striking ``Subpoenas'' and inserting 
     ``Investigations''; and
       (B) by amending paragraph (1)(C) to read as follows:
       ``(C) summon witnesses and require the production of any 
     books, papers, correspondence, memoranda, or other records 
     which the Attorney General deems relevant or material to the 
     inquiry, if the Attorney General--
       ``(i) requests a court order from a court of competent 
     jurisdiction for such actions and offers specific and 
     articulable facts showing that there are reasonable grounds 
     to believe that the information or testimony sought is 
     relevant and material for conducting an investigation under 
     this section; or
       ``(ii) either personally or through delegation no lower 
     than the Deputy Attorney General, issues and signs a subpoena 
     for such actions and such subpoena is supported by specific 
     and articulable facts showing that there are reasonable 
     grounds to believe that the information or testimony sought 
     is relevant for conducting an investigation under this 
     section.''.

           Subtitle D--Portfolio Lending and Mortgage Access

     SEC. 516. SAFE HARBOR FOR CERTAIN LOANS HELD ON PORTFOLIO.

       (a) In General.--Section 129C of the Truth in Lending Act 
     (15 U.S.C. 1639c) is amended by adding at the end the 
     following:
       ``(j) Safe Harbor for Certain Loans Held on Portfolio.--
       ``(1) Safe harbor for creditors that are depository 
     institutions.--
       ``(A) In general.--A creditor that is a depository 
     institution shall not be subject to suit for failure to 
     comply with subsection (a), (c)(1), or (f)(2) of this section 
     or section 129H with respect to a residential mortgage loan, 
     and the banking regulators shall treat such loan as a 
     qualified mortgage, if--
       ``(i) the creditor has, since the origination of the loan, 
     held the loan on the balance sheet of the creditor; and
       ``(ii) all prepayment penalties with respect to the loan 
     comply with the limitations described under subsection 
     (c)(3).
       ``(B) Exception for certain transfers.--In the case of a 
     depository institution that transfers a loan originated by 
     that institution to another depository institution by reason 
     of the bankruptcy or failure of the originating depository 
     institution or the purchase of the originating depository 
     institution, the depository institution transferring such 
     loan shall be deemed to have complied with the requirement 
     under subparagraph (A)(i).
       ``(2) Safe harbor for mortgage originators.--A mortgage 
     originator shall not be subject to suit for a violation of 
     section 129B(c)(3)(B) for steering a consumer to a 
     residential mortgage loan if--
       ``(A) the creditor of such loan is a depository institution 
     and has informed the mortgage originator that the creditor 
     intends to hold the loan on the balance sheet of the creditor 
     for the life of the loan; and
       ``(B) the mortgage originator informs the consumer that the 
     creditor intends to hold the loan on the balance sheet of the 
     creditor for the life of the loan.
       ``(3) Definitions.--For purposes of this subsection:
       ``(A) Banking regulators.--The term `banking regulators' 
     means the Federal banking agencies, the Consumer Law 
     Enforcement Agency, and the National Credit Union 
     Administration.
       ``(B) Depository institution.--The term `depository 
     institution' has the meaning given that term under section 
     19(b)(1) of the Federal Reserve Act (12 U.S.C. 505(b)(1)).
       ``(C) Federal banking agencies.--The term `Federal banking 
     agencies' has the meaning given that term under section 3 of 
     the Federal Deposit Insurance Act.''.
       (b) Rule of Construction.--Nothing in the amendment made by 
     this section may be construed as preventing a balloon loan 
     from qualifying for the safe harbor provided under section 
     129C(j) of the Truth in Lending Act if the balloon loan 
     otherwise meets all of the requirements under such subsection 
     (j), regardless of whether the balloon loan meets the 
     requirements described under clauses (i) through (iv) of 
     section 129C(b)(2)(E) of such Act.

    Subtitle E--Application of the Expedited Funds Availability Act

     SEC. 521. APPLICATION OF THE EXPEDITED FUNDS AVAILABILITY 
                   ACT.

       (a) In General.--The Expedited Funds Availability Act (12 
     U.S.C. 4001 et seq.) is amended--
       (1) in section 602(20) (12 U.S.C. 4001(20)) by inserting 
     ``, located in the United States,'' after ``ATM'';
       (2) in section 602(21) (12 U.S.C. 4001(21)) by inserting 
     ``American Samoa, the Commonwealth of the Northern Mariana 
     Islands,'' after ``Puerto Rico,'';
       (3) in section 602(23) (12 U.S.C. 4001(23)) by inserting 
     ``American Samoa, the Commonwealth of the Northern Mariana 
     Islands,'' after ``Puerto Rico,''; and
       (4) in section 603(d)(2)(A) (12 U.S.C. 4002(d)(2)(A)), by 
     inserting ``American Samoa, the Commonwealth of the Northern 
     Mariana Islands,'' after ``Puerto Rico,''.
       (b) Effective Date.--This section shall take effect on 
     January 1, 2017.

[[Page 8955]]



        Subtitle F--Small Bank Holding Company Policy Statement

     SEC. 526. CHANGES REQUIRED TO SMALL BANK HOLDING COMPANY 
                   POLICY STATEMENT ON ASSESSMENT OF FINANCIAL AND 
                   MANAGERIAL FACTORS.

       (a) In General.--Before the end of the 6-month period 
     beginning on the date of the enactment of this Act, the Board 
     of Governors of the Federal Reserve System shall revise the 
     Small Bank Holding Company Policy Statement on Assessment of 
     Financial and Managerial Factors (12 C.F.R. part 225--
     appendix C) to raise the consolidated asset threshold under 
     such policy statement from $1,000,000,000 (as adjusted by 
     Public Law 113-250) to $10,000,000,000.
       (b) Conforming Amendment.--Subparagraph (C) of section 
     171(b)(5) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (12 U.S.C. 5371(b)(5)) is amended to read as 
     follows:
       ``(C) any bank holding company or savings and loan holding 
     company that is subject to the application of the Small Bank 
     Holding Company Policy Statement on Assessment of Financial 
     and Managerial Factors of the Board of Governors (12 C.F.R. 
     part 225--appendix C).''.

           Subtitle G--Community Institution Mortgage Relief

     SEC. 531. COMMUNITY FINANCIAL INSTITUTION MORTGAGE RELIEF.

       (a) Exemption From Escrow Requirements for Loans Held by 
     Smaller Creditors.--Section 129D of the Truth in Lending Act 
     (15 U.S.C. 1639d) is amended--
       (1) by adding at the end the following:
       ``(k) Safe Harbor for Loans Held by Smaller Creditors.--
       ``(1) In general.--A creditor shall not be in violation of 
     subsection (a) with respect to a loan if--
       ``(A) the creditor has consolidated assets of 
     $10,000,000,000 or less; and
       ``(B) the creditor holds the loan on the balance sheet of 
     the creditor for the 3-year period beginning on the date of 
     the origination of the loan.
       ``(2) Exception for certain transfers.--In the case of a 
     creditor that transfers a loan to another person by reason of 
     the bankruptcy or failure of the creditor, the purchase of 
     the creditor, or a supervisory act or recommendation from a 
     State or Federal regulator, the creditor shall be deemed to 
     have complied with the requirement under paragraph (1)(B).''; 
     and
       (2) by striking the term ``Board'' each place such term 
     appears and inserting ``Consumer Law Enforcement Agency''.
       (b) Modification to Exemption for Small Servicers of 
     Mortgage Loans.--Section 6 of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2605) is amended by adding 
     at the end the following:
       ``(n) Small Servicer Exemption.--The Consumer Law 
     Enforcement Agency shall, by regulation, provide exemptions 
     to, or adjustments for, the provisions of this section for a 
     servicer that annually services 20,000 or fewer mortgage 
     loans, in order to reduce regulatory burdens while 
     appropriately balancing consumer protections.''.

   Subtitle H--Financial Institutions Examination Fairness and Reform

     SEC. 536. TIMELINESS OF EXAMINATION REPORTS.

       (a) In General.--The Federal Financial Institutions 
     Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 1012. TIMELINESS OF EXAMINATION REPORTS.

       ``(a) In General.--
       ``(1) Final examination report.--A Federal financial 
     institutions regulatory agency shall provide a final 
     examination report to a financial institution not later than 
     60 days after the later of--
       ``(A) the exit interview for an examination of the 
     institution; or
       ``(B) the provision of additional information by the 
     institution relating to the examination.
       ``(2) Exit interview.--If a financial institution is not 
     subject to a resident examiner program, the exit interview 
     shall occur not later than the end of the 9-month period 
     beginning on the commencement of the examination, except that 
     such period may be extended by the Federal financial 
     institutions regulatory agency by providing written notice to 
     the institution and the Independent Examination Review 
     Director describing with particularity the reasons that a 
     longer period is needed to complete the examination.
       ``(b) Examination Materials.--Upon the request of a 
     financial institution, the Federal financial institutions 
     regulatory agency shall include with the final report an 
     appendix listing all examination or other factual information 
     relied upon by the agency in support of a material 
     supervisory determination.

     ``SEC. 1013. EXAMINATION STANDARDS.

       ``(a) In General.--In the examination of a financial 
     institution--
       ``(1) a commercial loan shall not be placed in non-accrual 
     status solely because the collateral for such loan has 
     deteriorated in value;
       ``(2) a modified or restructured commercial loan shall be 
     removed from non-accrual status if the borrower demonstrates 
     the ability to perform on such loan over a maximum period of 
     6 months, except that with respect to loans on a quarterly, 
     semiannual, or longer repayment schedule such period shall be 
     a maximum of 3 consecutive repayment periods;
       ``(3) a new appraisal on a performing commercial loan shall 
     not be required unless an advance of new funds is involved; 
     and
       ``(4) in classifying a commercial loan in which there has 
     been deterioration in collateral value, the amount to be 
     classified shall be the portion of the deficiency relating to 
     the decline in collateral value and repayment capacity of the 
     borrower.
       ``(b) Well Capitalized Institutions.--The Federal financial 
     institutions regulatory agencies may not require a financial 
     institution that is well capitalized to raise additional 
     capital in lieu of an action prohibited under subsection (a).
       ``(c) Consistent Loan Classifications.--The Federal 
     financial institutions regulatory agencies shall develop and 
     apply identical definitions and reporting requirements for 
     non-accrual loans.

     ``SEC. 1014. OFFICE OF INDEPENDENT EXAMINATION REVIEW.

       ``(a) Establishment.--There is established in the Council 
     an Office of Independent Examination Review (the `Office').
       ``(b) Head of Office.--There is established the position of 
     the Independent Examination Review Director (the `Director'), 
     as the head of the Office. The Director shall be appointed by 
     the Council and shall be independent from any member agency 
     of the Council.
       ``(c) Staffing.--The Director is authorized to hire staff 
     to support the activities of the Office.
       ``(d) Duties.--The Director shall--
       ``(1) receive and, at the Director's discretion, 
     investigate complaints from financial institutions, their 
     representatives, or another entity acting on behalf of such 
     institutions, concerning examinations, examination practices, 
     or examination reports;
       ``(2) hold meetings, at least once every three months and 
     in locations designed to encourage participation from all 
     sections of the United States, with financial institutions, 
     their representatives, or another entity acting on behalf of 
     such institutions, to discuss examination procedures, 
     examination practices, or examination policies;
       ``(3) review examination procedures of the Federal 
     financial institutions regulatory agencies to ensure that the 
     written examination policies of those agencies are being 
     followed in practice and adhere to the standards for 
     consistency established by the Council;
       ``(4) conduct a continuing and regular review of 
     examination quality assurance for all examination types 
     conducted by the Federal financial institutions regulatory 
     agencies;
       ``(5) adjudicate any supervisory appeal initiated under 
     section 1015; and
       ``(6) report annually to the Committee on Financial 
     Services of the House of Representatives, the Committee on 
     Banking, Housing, and Urban Affairs of the Senate, and the 
     Council, on the reviews carried out pursuant to paragraphs 
     (3) and (4), including compliance with the requirements set 
     forth in section 1012 regarding timeliness of examination 
     reports, and the Council's recommendations for improvements 
     in examination procedures, practices, and policies.
       ``(e) Confidentiality.--The Director shall keep 
     confidential all meetings with, discussions with, and 
     information provided by financial institutions.

     ``SEC. 1015. RIGHT TO INDEPENDENT REVIEW OF MATERIAL 
                   SUPERVISORY DETERMINATIONS.

       ``(a) In General.--A financial institution shall have the 
     right to obtain an independent review of a material 
     supervisory determination contained in a final report of 
     examination.
       ``(b) Notice.--
       ``(1) Timing.--A financial institution seeking review of a 
     material supervisory determination under this section shall 
     file a written notice with the Independent Examination Review 
     Director (the `Director') within 60 days after receiving the 
     final report of examination that is the subject of such 
     review.
       ``(2) Identification of determination.--The written notice 
     shall identify the material supervisory determination that is 
     the subject of the independent examination review, and a 
     statement of the reasons why the institution believes that 
     the determination is incorrect or should otherwise be 
     modified.
       ``(3) Information to be provided to institution.--Any 
     information relied upon by the agency in the final report 
     that is not in the possession of the financial institution 
     may be requested by the financial institution and shall be 
     delivered promptly by the agency to the financial 
     institution.
       ``(c) Right to Hearing.--
       ``(1) In general.--The Director shall determine the merits 
     of the appeal on the record or, at the financial 
     institution's election, shall refer the appeal to an 
     Administrative Law Judge to conduct a confidential hearing 
     pursuant to the procedures set forth under sections 556 and 
     557 of title 5, United States Code, which hearing shall take 
     place not later than 60 days after the petition for review 
     was received by the Director, and to issue a proposed 
     decision to the Director based upon the record established at 
     such hearing.
       ``(2) Standard of review.--In rendering a determination or 
     recommendation under this subsection, neither the 
     Administrative Law Judge nor the Director shall defer to the 
     opinions of the examiner or agency, but shall conduct a de 
     novo review to independently determine the appropriateness of 
     the agency's decision based upon the relevant statutes, 
     regulations, and other appropriate guidance, as well as 
     evidence adduced at any hearing.
       ``(d) Final Decision.--A decision by the Director on an 
     independent review under this section shall--

[[Page 8956]]

       ``(1) be made not later than 60 days after the record has 
     been closed; and
       ``(2) be deemed final agency action and shall bind the 
     agency whose supervisory determination was the subject of the 
     review and the financial institution requesting the review.
       ``(e) Right to Judicial Review.--A financial institution 
     shall have the right to petition for review of final agency 
     action under this section by filing a Petition for Review 
     within 60 days of the Director's decision in the United 
     States Court of Appeals for the District of Columbia Circuit 
     or the Circuit in which the financial institution is located.
       ``(f) Report.--The Director shall report annually to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate on actions taken under this 
     section, including the types of issues that the Director has 
     reviewed and the results of those reviews. In no case shall 
     such a report contain information about individual financial 
     institutions or any confidential or privileged information 
     shared by financial institutions.
       ``(g) Retaliation Prohibited.--A Federal financial 
     institutions regulatory agency may not--
       ``(1) retaliate against a financial institution, including 
     service providers, or any institution-affiliated party (as 
     defined under section 3 of the Federal Deposit Insurance 
     Act), for exercising appellate rights under this section; or
       ``(2) delay or deny any agency action that would benefit a 
     financial institution or any institution-affiliated party on 
     the basis that an appeal under this section is pending under 
     this section.
       ``(h) Rule of Construction.--Nothing in this section may be 
     construed--
       ``(1) to affect the right of a Federal financial 
     institutions regulatory agency to take enforcement or other 
     supervisory actions related to a material supervisory 
     determination under review under this section; or
       ``(2) to prohibit the review under this section of a 
     material supervisory determination with respect to which 
     there is an ongoing enforcement or other supervisory 
     action.''.
       (b) Additional Amendments.--
       (1) Riegle community development and regulatory improvement 
     act of 1994.--Section 309 of the Riegle Community Development 
     and Regulatory Improvement Act of 1994 (12 U.S.C. 4806) is 
     amended--
       (A) in subsection (a), by inserting after ``appropriate 
     Federal banking agency'' the following: ``, the Consumer Law 
     Enforcement Agency,'';
       (B) in subsection (b)--
       (i) in paragraph (2), by striking ``the appellant from 
     retaliation by agency examiners'' and inserting ``the insured 
     depository institution or insured credit union from 
     retaliation by the agencies referred to in subsection (a)''; 
     and
       (ii) by adding at the end the following flush-left text:
     ``For purposes of this subsection and subsection (e), 
     retaliation includes delaying consideration of, or 
     withholding approval of, any request, notice, or application 
     that otherwise would have been approved, but for the exercise 
     of the institution's or credit union's rights under this 
     section.'';
       (C) in subsection (e)(2)--
       (i) in subparagraph (B), by striking ``and'' at the end;
       (ii) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(D) ensure that appropriate safeguards exist for 
     protecting the insured depository institution or insured 
     credit union from retaliation by any agency referred to in 
     subsection (a) for exercising its rights under this 
     subsection.''; and
       (D) in subsection (f)(1)(A)--
       (i) in clause (ii), by striking ``and'' at the end;
       (ii) in clause (iii), by striking ``and'' at the end; and
       (iii) by adding at the end the following:
       ``(iv) any issue specifically listed in an exam report as a 
     matter requiring attention by the institution's management or 
     board of directors; and
       ``(v) any suspension or removal of an institution's status 
     as eligible for expedited processing of applications, 
     requests, notices, or filings on the grounds of a supervisory 
     or compliance concern, regardless of whether that concern has 
     been cited as a basis for another material supervisory 
     determination or matter requiring attention in an examination 
     report, provided that the conduct at issue did not involve 
     violation of any criminal law; and''.
       (2) Federal credit union act.--Section 205(j) of the 
     Federal Credit Union Act (12 U.S.C. 1785(j)) is amended by 
     inserting ``the Consumer Law Enforcement Agency,'' before 
     ``the Administration'' each place such term appears.
       (3) Federal financial institutions examination council act 
     of 1978.--The Federal Financial Institutions Examination 
     Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended--
       (A) in section 1003, by amending paragraph (1) to read as 
     follows:
       ``(1) the term `Federal financial institutions regulatory 
     agencies'--
       ``(A) means the Office of the Comptroller of the Currency, 
     the Board of Governors of the Federal Reserve System, the 
     Federal Deposit Insurance Corporation, and the National 
     Credit Union Administration; and
       ``(B) for purposes of sections 1012, 1013, 1014, and 1015, 
     includes the Consumer Law Enforcement Agency;''; and
       (B) in section 1005, by striking ``One-fifth'' and 
     inserting ``One-fourth''.

  Subtitle I--National Credit Union Administration Budget Transparency

     SEC. 541. BUDGET TRANSPARENCY FOR THE NCUA.

       Section 209(b) of the Federal Credit Union Act (12 U.S.C. 
     1789) is amended--
       (1) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively;
       (2) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) on an annual basis and prior to the submission of the 
     detailed business-type budget required under paragraph (2)--
       ``(A) make publicly available and cause to be printed in 
     the Federal Register a draft of such detailed business-type 
     budget; and
       ``(B) hold a public hearing, with public notice provided of 
     such hearing, wherein the public can submit comments on the 
     draft of such detailed business-type budget;''; and
       (3) in paragraph (2), as so redesignated--
       (A) by inserting ``detailed'' after ``submit a''; and
       (B) by inserting ``, and where such budget shall address 
     any comments submitted by the public pursuant to paragraph 
     (1)(B)'' after ``Control Act''.

   Subtitle J--Taking Account of Institutions With Low Operation Risk

     SEC. 546. REGULATIONS APPROPRIATE TO BUSINESS MODELS.

       (a) In General.--For any regulatory action occurring after 
     the date of the enactment of this Act, each Federal financial 
     institutions regulatory agency shall--
       (1) take into consideration the risk profile and business 
     models of each type of institution or class of institutions 
     subject to the regulatory action;
       (2) determine the necessity, appropriateness, and impact of 
     applying such regulatory action to such institutions or 
     classes of institutions; and
       (3) tailor such regulatory action in a manner that limits 
     the regulatory compliance impact, cost, liability risk, and 
     other burdens, as appropriate, for the risk profile and 
     business model of the institution or class of institutions 
     involved.
       (b) Other Considerations.--In carrying out the requirements 
     of subsection (a), each Federal financial institutions 
     regulatory agency shall consider--
       (1) the impact that such regulatory action, both by itself 
     and in conjunction with the aggregate effect of other 
     regulations, has on the ability of the applicable institution 
     or class of institutions to serve evolving and diverse 
     customer needs;
       (2) the potential impact of examination manuals, regulatory 
     actions taken with respect to third-party service providers, 
     or other regulatory directives that may be in conflict or 
     inconsistent with the tailoring of such regulatory action 
     described in subsection (a)(3); and
       (3) the underlying policy objectives of the regulatory 
     action and statutory scheme involved.
       (c) Notice of Proposed and Final Rulemaking.--Each Federal 
     financial institutions regulatory agency shall disclose in 
     every notice of proposed rulemaking and in any final 
     rulemaking for a regulatory action how the agency has applied 
     subsections (a) and (b).
       (d) Reports to Congress.--
       (1) Individual agency reports.--
       (A) In general.--Not later than 1 year after the date of 
     the enactment of this Act and annually thereafter, each 
     Federal financial institutions regulatory agency shall report 
     to the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate on the specific actions taken to 
     tailor the regulatory actions of the agency pursuant to the 
     requirements of this Act.
       (B) Appearance before the committees.--The head of each 
     Federal financial institution regulatory agency shall appear 
     before the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate after each report is made 
     pursuant to subparagraph (A) to testify on the contents of 
     such report.
       (2) FIEC reports.--
       (A) In general.--Not later than 3 months after each report 
     is submitted under paragraph (1), the Financial Institutions 
     Examination Council shall report to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate on--
       (i) the extent to which regulatory actions tailored 
     pursuant to this Act result in different treatment of 
     similarly situated institutions of diverse charter types; and
       (ii) the reasons for such differential treatment.
       (B) Appearance before the committees.--The Chairman of the 
     Financial Institutions Examination Council shall appear 
     before the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate after each report is made 
     pursuant to subparagraph (A) to testify on the contents of 
     such report.
       (e) Limited Look-Back Application.--
       (1) In general.--Each Federal financial institutions 
     regulatory agency shall conduct a review of all regulations 
     adopted during the period beginning on the date that is seven 
     years before the date of the introduction of this Act in the 
     House of Representatives and ending on the date of the 
     enactment of this Act, and apply the requirements of this Act 
     to such regulations.
       (2) Revision.--If the application of the requirements of 
     this Act to any such regulation requires such regulation to 
     be revised, the applicable Federal financial institutions 
     regulatory

[[Page 8957]]

     agency shall revise such regulation within 3 years of the 
     enactment of this Act.
       (f) Definitions.--In this Act, the following definitions 
     shall apply:
       (1) Federal financial institutions regulatory agencies.--
     The term ``Federal financial institutions regulatory 
     agencies'' means the Office of the Comptroller of the 
     Currency, the Board of Governors of the Federal Reserve 
     System, the Federal Deposit Insurance Corporation, the 
     National Credit Union Administration, and the Consumer Law 
     Enforcement Agency.
       (2) Regulatory action.--The term ``regulatory action'' 
     means any proposed, interim, or final rule or regulation, 
     guidance, or published interpretation.

      Subtitle K--Federal Savings Association Charter Flexibility

     SEC. 551. OPTION FOR FEDERAL SAVINGS ASSOCIATIONS TO OPERATE 
                   AS A COVERED SAVINGS ASSOCIATION.

       The Home Owners' Loan Act is amended by inserting after 
     section 5 (12 U.S.C. 1464) the following:

     ``SEC. 5A. ELECTION TO OPERATE AS A COVERED SAVINGS 
                   ASSOCIATION.

       ``(a) Definition.--In this section, the term `covered 
     savings association' means a Federal savings association that 
     makes an election approved under subsection (b).
       ``(b) Election.--
       ``(1) In general.--Upon issuance of the rules described in 
     subsection (f), a Federal savings association may elect to 
     operate as a covered savings association by submitting a 
     notice to the Comptroller of such election.
       ``(2) Approval.--A Federal savings association shall be 
     deemed to be approved to operate as a covered savings 
     association on the date that is 60 days after the date on 
     which the Comptroller receives the notice under paragraph 
     (1), unless the Comptroller notifies the Federal savings 
     association otherwise.
       ``(c) Rights and Duties.--Notwithstanding any other 
     provision of law and except as otherwise provided in this 
     section, a covered savings association shall--
       ``(1) have the same rights and privileges as a national 
     bank that has its main office situated in the same location 
     as the home office of the covered savings association; and
       ``(2) be subject to the same duties, restrictions, 
     penalties, liabilities, conditions, and limitations that 
     would apply to such a national bank.
       ``(d) Treatment of Covered Savings Associations.--A covered 
     savings association shall be treated as a Federal savings 
     association for the purposes--
       ``(1) of governance of the covered savings association, 
     including incorporation, bylaws, boards of directors, 
     shareholders, and distribution of dividends;
       ``(2) of consolidation, merger, dissolution, conversion 
     (including conversion to a stock bank or to another charter), 
     conservatorship, and receivership; and
       ``(3) determined by regulation of the Comptroller.
       ``(e) Existing Branches.--A covered savings association may 
     continue to operate any branch or agency the covered savings 
     association operated on the date on which an election under 
     subsection (b) is approved.
       ``(f) Rulemaking.--The Comptroller shall issue rules to 
     carry out this section--
       ``(1) that establish streamlined standards and procedures 
     that clearly identify required documentation or timelines for 
     an election under subsection (b);
       ``(2) that require a Federal savings association that makes 
     an election under subsection (b) to identify specific assets 
     and subsidiaries--
       ``(A) that do not conform to the requirements for assets 
     and subsidiaries of a national bank; and
       ``(B) that are held by the Federal savings association on 
     the date on which the Federal savings association submits a 
     notice of such election;
       ``(3) that establish--
       ``(A) a transition process for bringing such assets and 
     subsidiaries into conformance with the requirements for a 
     national bank; and
       ``(B) procedures for allowing the Federal savings 
     association to provide a justification for grandfathering 
     such assets and subsidiaries after electing to operate as a 
     covered savings association;
       ``(4) that establish standards and procedures to allow a 
     covered savings association to terminate an election under 
     subsection (b) after an appropriate period of time or to make 
     a subsequent election;
       ``(5) that clarify requirements for the treatment of 
     covered savings associations, including the provisions of law 
     that apply to covered savings associations; and
       ``(6) as the Comptroller deems necessary and in the 
     interests of safety and soundness.''.

                Subtitle L--SAFE Transitional Licensing

     SEC. 556. ELIMINATING BARRIERS TO JOBS FOR LOAN ORIGINATORS.

       (a) In General.--The S.A.F.E. Mortgage Licensing Act of 
     2008 (12 U.S.C. 5101 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 1518. EMPLOYMENT TRANSITION OF LOAN ORIGINATORS.

       ``(a) Temporary Authority to Originate Loans for Loan 
     Originators Moving From a Depository Institution to a Non-
     depository Institution.--
       ``(1) In general.--Upon employment by a State-licensed 
     mortgage company, an individual who is a registered loan 
     originator shall be deemed to have temporary authority to act 
     as a loan originator in an application State for the period 
     described in paragraph (2) if the individual--
       ``(A) has not had an application for a loan originator 
     license denied, or had such a license revoked or suspended in 
     any governmental jurisdiction;
       ``(B) has not been subject to or served with a cease and 
     desist order in any governmental jurisdiction or as described 
     in section 1514(c);
       ``(C) has not been convicted of a felony that would 
     preclude licensure under the law of the application State;
       ``(D) has submitted an application to be a State-licensed 
     loan originator in the application State; and
       ``(E) was registered in the Nationwide Mortgage Licensing 
     System and Registry as a loan originator during the 12-month 
     period preceding the date of submission of the information 
     required under section 1505(a).
       ``(2) Period.--The period described in paragraph (1) shall 
     begin on the date that the individual submits the information 
     required under section 1505(a) and shall end on the earliest 
     of--
       ``(A) the date that the individual withdraws the 
     application to be a State-licensed loan originator in the 
     application State;
       ``(B) the date that the application State denies, or issues 
     a notice of intent to deny, the application;
       ``(C) the date that the application State grants a State 
     license; or
       ``(D) the date that is 120 days after the date on which the 
     individual submits the application, if the application is 
     listed on the Nationwide Mortgage Licensing System and 
     Registry as incomplete.
       ``(b) Temporary Authority to Originate Loans for State-
     licensed Loan Originators Moving Interstate.--
       ``(1) In general.--A State-licensed loan originator shall 
     be deemed to have temporary authority to act as a loan 
     originator in an application State for the period described 
     in paragraph (2) if the State-licensed loan originator--
       ``(A) meets the requirements of subparagraphs (A), (B), 
     (C), and (D) of subsection (a)(1);
       ``(B) is employed by a State-licensed mortgage company in 
     the application State; and
       ``(C) was licensed in a State that is not the application 
     State during the 30-day period preceding the date of 
     submission of the information required under section 1505(a) 
     in connection with the application submitted to the 
     application State.
       ``(2) Period.--The period described in paragraph (1) shall 
     begin on the date that the State-licensed loan originator 
     submits the information required under section 1505(a) in 
     connection with the application submitted to the application 
     State and end on the earliest of--
       ``(A) the date that the State-licensed loan originator 
     withdraws the application to be a State-licensed loan 
     originator in the application State;
       ``(B) the date that the application State denies, or issues 
     a notice of intent to deny, the application;
       ``(C) the date that the application State grants a State 
     license; or
       ``(D) the date that is 120 days after the date on which the 
     State-licensed loan originator submits the application, if 
     the application is listed on the Nationwide Mortgage 
     Licensing System and Registry as incomplete.
       ``(c) Applicability.--
       ``(1) Any person employing an individual who is deemed to 
     have temporary authority to act as a loan originator in an 
     application State pursuant to this section shall be subject 
     to the requirements of this title and to applicable State law 
     to the same extent as if such individual was a State-licensed 
     loan originator licensed by the application State.
       ``(2) Any individual who is deemed to have temporary 
     authority to act as a loan originator in an application State 
     pursuant to this section and who engages in residential 
     mortgage loan origination activities shall be subject to the 
     requirements of this title and to applicable State law to the 
     same extent as if such individual was a State-licensed loan 
     originator licensed by the application State.
       ``(d) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) State-licensed mortgage company.--The term `State-
     licensed mortgage company' means an entity licensed or 
     registered under the law of any State to engage in 
     residential mortgage loan origination and processing 
     activities.
       ``(2) Application state.--The term `application State' 
     means a State in which a registered loan originator or a 
     State-licensed loan originator seeks to be licensed.''.
       (b) Table of Contents Amendment.--The table of contents in 
     section 1(b) of the Housing and Economic Recovery Act of 2008 
     (42 U.S.C. 4501 note) is amended by inserting after the item 
     relating to section 1517 the following:

``Sec. 1518. Employment transition of loan originators.''.
       (c) Amendment to Civil Liability of the Consumer Law 
     Enforcement Agency and Other Officials.--Section 1513 of the 
     S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5112) is 
     amended by striking ``are loan originators or are applying 
     for licensing or registration as loan originators'' and 
     inserting ``are applying for licensing or registration using 
     the Nationwide Mortgage Licensing System and Registry''.

                       Subtitle M--Right to Lend

     SEC. 561. SMALL BUSINESS LOAN DATA COLLECTION REQUIREMENT.

       (a) Repeal.--Section 704B of the Equal Credit Opportunity 
     Act (15 U.S.C. 1691c-2) is repealed.
       (b) Conforming Amendments.--Section 701(b) of the Equal 
     Credit Opportunity Act (15 U.S.C. 1691(b)) is amended--

[[Page 8958]]

       (1) in paragraph (3), by inserting ``or'' at the end;
       (2) in paragraph (4), by striking ``; or'' and inserting a 
     period; and
       (3) by striking paragraph (5).
       (c) Clerical Amendment.--The table of sections for title 
     VII of the Consumer Credit Protection Act is amended by 
     striking the item relating to section 704B.

              Subtitle N--Community Bank Reporting Relief

     SEC. 566. SHORT FORM CALL REPORT.

       (a) In General.--Section 7(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1817(a)) is amended by adding at the 
     end the following:
       ``(12) Short form reporting.--
       ``(A) In general.--The appropriate Federal banking agencies 
     shall issue regulations allowing for a reduced reporting 
     requirement for covered depository institutions when making 
     the first and third report of condition for a year, as 
     required pursuant to paragraph (3).
       ``(B) Covered depository institution defined.--For purposes 
     of this paragraph, the term `covered depository institution' 
     means an insured depository institution that--
       ``(i) is well capitalized (as defined under section 38(b)); 
     and
       ``(ii) satisfies such other criteria as the appropriate 
     Federal banking agencies determine appropriate.''.
       (b) Report to Congress.--Not later than 180 days after the 
     date of the enactment of this Act, and every 365 days 
     thereafter until the appropriate Federal banking agencies (as 
     defined under section 3 of the Federal Deposit Insurance Act) 
     have issued the regulations required under section 
     7(a)(12)(A) of the Federal Deposit Insurance Act, such 
     agencies shall submit to the Committee on Financial Services 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate a report describing 
     the progress made in issuing such regulations.

          Subtitle O--Homeowner Information Privacy Protection

     SEC. 571. STUDY REGARDING PRIVACY OF INFORMATION COLLECTED 
                   UNDER THE HOME MORTGAGE DISCLOSURE ACT OF 1975.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study to determine whether the data required 
     to be published, made available, or disclosed under the final 
     rule, in connection with other publicly available data 
     sources, including data made publicly available under 
     Regulation C (12 C.F.R. 1003) before the effective date of 
     the final rule, could allow for or increase the probability 
     of--
       (1) exposure of the identity of mortgage applicants or 
     mortgagors through reverse engineering;
       (2) exposure of mortgage applicants or mortgagors to 
     identity theft or the loss of sensitive personal financial 
     information;
       (3) the marketing or sale of unfair or deceptive financial 
     products to mortgage applicants or mortgagors based on such 
     data;
       (4) personal financial loss or emotional distress resulting 
     from the exposure of mortgage applicants or mortgagors to 
     identify theft or the loss of sensitive personal financial 
     information; and
       (5) the potential legal liability facing the Consumer Law 
     Enforcement Agency and market participants in the event the 
     data required to be published, made available, or disclosed 
     under the final rule leads or contributes to identity theft 
     or the capture of sensitive personal financial information.
       (b) Report.--The Comptroller General of the United States 
     shall submit to the Committee on Financial Services of the 
     House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate a report that 
     includes--
       (1) the findings and conclusions of the Comptroller General 
     with respect to the study required under subsection (a); and
       (2) any recommendations for legislative or regulatory 
     actions that--
       (A) would enhance the privacy of a consumer when accessing 
     mortgage credit; and
       (B) are consistent with consumer protections and safe and 
     sound banking operations.
       (c) Suspension of Data Sharing Requirements.--
     Notwithstanding any other provision of law, including the 
     final rule--
       (1) depository institutions shall not be required to 
     publish, disclose, or otherwise make available to the public, 
     pursuant to the Home Mortgage Disclosure Act of 1975 (or 
     regulations issued under such Act) any data that was not 
     required to be published, disclosed, or otherwise made 
     available pursuant to such Act (or regulations issued under 
     such Act) on the day before the date of the enactment of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act; 
     and
       (2) the Consumer Law Enforcement Agency and the Financial 
     Institutions Examination Council shall not publish, disclose, 
     or otherwise make available to the public any such 
     information received from a depository institution pursuant 
     to the final rule, except as required by law.
       (d)  Temporary Suspension of Data Reporting 
     Requirements..--Notwithstanding any other provision of law, 
     the effective date for new reporting requirements contained 
     in the final rule shall be January 1, 2019.
       (e) Definitions.--For purposes of this section:
       (1) Depository institution.--The term ``depository 
     institution'' has the meaning given that term under section 
     303 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
     2802).
       (2) Final rule.--The term ``final rule'' means the final 
     rule issued by the Bureau of Consumer Financial Protection 
     titled ``Home Mortgage Disclosure (Regulation C)'' (October 
     28, 2015; 80 Fed. Reg. 66128).

            Subtitle A--Home Mortgage Disclosure Adjustment

     SEC. 576. DEPOSITORY INSTITUTIONS SUBJECT TO MAINTENANCE OF 
                   RECORDS AND DISCLOSURE REQUIREMENTS.

       (a) In General.--Section 304 of the Home Mortgage 
     Disclosure Act of 1975 (12 U.S.C. 2803) is amended--
       (1) by redesignating subsection (i) as paragraph (2) and 
     adjusting the margin appropriately; and
       (2) by inserting before such paragraph (2) the following:
       ``(i) Exemptions.--
       ``(1) In general.--With respect to a depository 
     institution, the requirements of subsections (a) and (b) 
     shall not apply--
       ``(A) with respect to closed-end mortgage loans, if such 
     depository institution originated less than 100 closed-end 
     mortgage loans in each of the two preceding calendar years; 
     and
       ``(B) with respect to open-end lines of credit, if such 
     depository institution originated less than 200 open-end 
     lines of credit in each of the two preceding calendar 
     years.''.
       (b) Technical Correction.--Section 304(i)(2) of such Act, 
     as redesignated by subsection (a), is amended by striking 
     ``section 303(2)(A)'' and inserting ``section 303(3)(A)''.

           Subtitle B--Protecting Consumers' Access to Credit

     SEC. 581. RATE OF INTEREST AFTER TRANSFER OF LOAN.

       (a) Amendment to the Revised Statutes.--Section 5197 of the 
     Revised Statutes of the United States (12 U.S.C. 85) is 
     amended by adding at the end the following new sentence: ``A 
     loan that is valid when made as to its maximum rate of 
     interest in accordance with this section shall remain valid 
     with respect to such rate regardless of whether the loan is 
     subsequently sold, assigned, or otherwise transferred to a 
     third party, and may be enforced by such third party 
     notwithstanding any State law to the contrary.''.
       (b) Amendment to the Home Owners' Loan Act.--Section 
     4(g)(1) of the Home Owners' Loan Act (12 U.S.C. 1463(g)(1)) 
     is amended by adding at the end the following new sentence: 
     ``A loan that is valid when made as to its maximum rate of 
     interest in accordance with this subsection shall remain 
     valid with respect to such rate regardless of whether the 
     loan is subsequently sold, assigned, or otherwise transferred 
     to a third party, and may be enforced by such third party 
     notwithstanding any State law to the contrary.''.
       (c) Amendment to the Federal Credit Union Act.--Section 
     205(g)(1) of the Federal Credit Union Act (12 U.S.C. 
     1785(g)(1)) is amended by adding at the end the following new 
     sentence: ``A loan that is valid when made as to its maximum 
     rate of interest in accordance with this subsection shall 
     remain valid with respect to such rate regardless of whether 
     the loan is subsequently sold, assigned, or otherwise 
     transferred to a third party, and may be enforced by such 
     third party notwithstanding any State law to the contrary.''.
       (d) Amendment to the Federal Deposit Insurance Act.--
     Section 27(a) of the Federal Deposit Insurance Act (12 U.S.C. 
     1831d(a)) is amended by adding at the end the following new 
     sentence: ``A loan that is valid when made as to its maximum 
     rate of interest in accordance with this section shall remain 
     valid with respect to such rate regardless of whether the 
     loan is subsequently sold, assigned, or otherwise transferred 
     to a third party, and may be enforced by such third party 
     notwithstanding any State law to the contrary.''.

                 Subtitle C--NCUA Overhead Transparency

     SEC. 586. FUND TRANSPARENCY.

       Section 203 of the Federal Credit Union Act (12 U.S.C. 
     1783) is amended by adding at the end the following:
       ``(g) Fund Transparency.--
       ``(1) In general.--The Board shall accompany each annual 
     budget submitted pursuant to section 209(b) with a report 
     containing--
       ``(A) a detailed analysis of how the expenses of the 
     Administration are assigned between prudential activities and 
     insurance-related activities and the extent to which those 
     expenses are paid from the fees collected pursuant to section 
     105 or from the Fund; and
       ``(B) the Board's supporting rationale for any proposed use 
     of amounts in the Fund contained in such budget, including 
     detailed breakdowns and supporting rationales for any such 
     proposed use related to titles of this Act other than this 
     title.
       ``(2) Public disclosure.--The Board shall make each report 
     described under paragraph (1) available to the public and 
     available on the Board's website.''.

             Subtitle D--Housing Opportunities Made Easier

     SEC. 591. CLARIFICATION OF DONATED SERVICES TO NON-PROFITS.

       Section 129E(i) of the Truth in Lending Act (15 U.S.C. 
     1639e(i)) is amended by adding at the end the following:
       ``(4) Rule of construction related to appraisal 
     donations.--For purposes of paragraph (1), if a fee appraiser 
     voluntarily donates appraisal services to an organization 
     described in section 170(c)(2) of the Internal Revenue Code 
     of 1986, such voluntary donation shall be deemed customary 
     and reasonable.''.

[[Page 8959]]



  TITLE VI--REGULATORY RELIEF FOR STRONGLY CAPITALIZED, WELL MANAGED 
                         BANKING ORGANIZATIONS

     SEC. 601. CAPITAL ELECTION.

       (a) In General.--A banking organization may make an 
     election under this section to be treated as a qualifying 
     banking organization for purposes of the regulatory relief 
     described under section 602.
       (b) Requirements.--A banking organization may qualify to be 
     treated as a qualifying banking organization if--
       (1) the banking organization has an average leverage ratio 
     of at least 10 percent;
       (2) with respect to a depository institution holding 
     company, each insured depository institution subsidiary of 
     the holding company simultaneously makes the election 
     described under subsection (a); and
       (3) with respect to an insured depository institution, any 
     parent depository institution holding company of the 
     institution simultaneously makes the election described under 
     subsection (a).
       (c) Election Process.--To make an election under this 
     section, a banking organization shall submit an election to 
     the appropriate Federal banking agency (and any applicable 
     State bank supervisor that regulates the banking 
     organization) containing--
       (1) a notice of such election;
       (2) the banking organization's average leverage ratio, as 
     well as the organization's quarterly leverage ratio for each 
     of the most recently completed four calendar quarters;
       (3) if the banking organization is a depository institution 
     holding company, the information described under paragraph 
     (2) for each of the organization's insured depository 
     institution subsidiaries; and
       (4) if the banking organization is an insured depository 
     institution, the information described under paragraph (2) 
     for any parent depository institution holding company of the 
     institution.
       (d) Effective Date of Election.--
       (1) In general.--An election made under this section shall 
     take effect at the end of the 30-day period beginning on the 
     date that the appropriate Federal banking agency receives the 
     application described under subsection (c), unless the 
     appropriate Federal banking agency determines that the 
     banking organization has not met the requirements described 
     under subsection (b).
       (2) Notice of failure to meet requirements.--If the 
     appropriate Federal banking agency determines that a banking 
     organization submitting an election notice under subsection 
     (c) does not meet the requirements described under subsection 
     (b), the agency shall--
       (A) notify the banking organization (and any applicable 
     State bank supervisor that regulates the banking 
     organization), in writing, of such determination as soon as 
     possible after such determination is made, but in no case 
     later than the end of the 30-day period beginning on the date 
     that the appropriate Federal banking agency receives the 
     election; and
       (B) include in such notification the specific reasons for 
     such determination and steps that the banking organization 
     can take to meet such requirements.
       (e) Treatment of Certain New Banking Organizations.--In the 
     case of a banking organization that is a newly-chartered 
     insured depository institution or a banking organization that 
     becomes a banking organization because it controls a newly-
     chartered insured depository institution, such banking 
     organization may be treated as a qualifying banking 
     organization immediately upon becoming a banking 
     organization, if--
       (1) an election to be treated as a qualifying banking 
     organization was included in the application filed with the 
     appropriate Federal banking agency in connection with 
     becoming a banking organization; and
       (2) as of the date the banking organization becomes a 
     banking organization, the banking organization's tangible 
     equity divided by the banking organization's leverage 
     exposure, expressed as a percentage, is at least 10 percent.
       (f) Failure to Maintain Quarterly Leverage Ratio and Loss 
     of Election.--
       (1) Effect of failure to maintain quarterly leverage 
     ratio.--
       (A) In general.--If, with respect to the most recently 
     completed calendar quarter, the appropriate Federal banking 
     agency determines that a qualifying banking organization's 
     quarterly leverage ratio is below 10 percent--
       (i) the appropriate Federal banking agency shall notify the 
     qualifying banking organization and any applicable State bank 
     supervisor that regulates the banking organization of such 
     determination;
       (ii) the appropriate Federal banking agency may prohibit 
     the banking organization from making a capital distribution; 
     and
       (iii) the banking organization shall, within 3 months of 
     the first such determination, submit a capital restoration 
     plan to the appropriate Federal banking agency.
       (B) Loss of election after one-year remediation period.--If 
     a banking organization described under subparagraph (A) does 
     not, within the 1-year period beginning on the date of such 
     determination, raise the organization's quarterly leverage 
     ratio for a calendar quarter ending in such 1-year period to 
     at least 10 percent, the banking organization's election 
     under this section shall be terminated, and the appropriate 
     Federal banking agency shall notify any applicable State bank 
     supervisor that regulates the banking organization of such 
     termination.
       (C) Effect of subsidiary on parent organization.--With 
     respect to a qualifying banking organization described under 
     subparagraph (A) that is an insured depository institution, 
     any parent depository institution holding company of the 
     qualifying banking organization shall--
       (i) if the appropriate Federal banking agency determines it 
     appropriate, be prohibited from making a capital distribution 
     (other than a capital contribution to such qualifying banking 
     organization described under subparagraph (A)); and
       (ii) if the qualifying banking organization has an election 
     terminated under subparagraph (B), any such parent depository 
     institution holding company shall also have its election 
     under this section terminated.
       (2) Immediate loss of election if the quarterly leverage 
     ratio falls below 6 percent.--
       (A) In general.--If, with respect to the most recently 
     completed calendar quarter, the appropriate Federal banking 
     agency determines that a qualifying banking organization's 
     quarterly leverage ratio is below 6 percent, the banking 
     organization's election under this section shall be 
     terminated, and the appropriate Federal banking agency shall 
     notify any applicable State bank supervisor that regulates 
     the banking organization of such termination.
       (B) Effect of subsidiary on parent organization.--With 
     respect to a qualifying banking organization described under 
     subparagraph (A) that is an insured depository institution, 
     any parent depository institution holding company of the 
     qualifying banking organization shall also have its election 
     under this section terminated.
       (3) Ability to make future elections.--If a banking 
     organization has an election under this section terminated, 
     the banking organization may not apply for another election 
     under this section until the banking organization has 
     maintained a quarterly leverage ratio of at least 10 percent 
     for 8 consecutive calendar quarters.

     SEC. 602. REGULATORY RELIEF.

       (a) In General.--A qualifying banking organization shall be 
     exempt from the following:
       (1) Any Federal law, rule, or regulation addressing capital 
     or liquidity requirements or standards.
       (2) Any Federal law, rule, or regulation that permits an 
     appropriate Federal banking agency to object to a capital 
     distribution.
       (3) Any consideration by an appropriate Federal banking 
     agency of the following:
       (A) Any risk the qualifying banking organization may pose 
     to ``the stability of the financial system of the United 
     States'', under section 5(c)(2) of the Bank Holding Company 
     Act of 1956.
       (B) The ``extent to which a proposed acquisition, merger, 
     or consolidation would result in greater or more concentrated 
     risks to the stability of the United States banking or 
     financial system'', under section 3(c)(7) of the Bank Holding 
     Company Act of 1956, so long as the banking organization, 
     after such proposed acquisition, merger, or consolidation, 
     would maintain a quarterly leverage ratio of at least 10 
     percent.
       (C) Whether the performance of an activity by the banking 
     organization could possibly pose a ``risk to the stability of 
     the United States banking or financial system'', under 
     section 4(j)(2)(A) of the Bank Holding Company Act of 1956.
       (D) Whether the acquisition of control of shares of a 
     company engaged in an activity described in section 
     4(j)(1)(A) of the Bank Holding Company Act of 1956 could 
     possibly pose a ``risk to the stability of the United States 
     banking or financial system'', under section 4(j)(2)(A) of 
     the Bank Holding Company Act of 1956, so long as the banking 
     organization, after acquiring control of such company, would 
     maintain a quarterly leverage ratio of at least 10 percent.
       (E) Whether a merger would pose a ``risk to the stability 
     of the United States banking or financial system'', under 
     section 18(c)(5) of the Federal Deposit Insurance Act, so 
     long as the banking organization, after such proposed merger, 
     would maintain a quarterly leverage ratio of at least 10 
     percent.
       (F) Any risk the qualifying banking organization may pose 
     to ``the stability of the financial system of the United 
     States'', under section 10(b)(4) of the Home Owners' Loan 
     Act.
       (4) Subsections (i)(8) and (k)(6)(B)(ii) of section 4 and 
     section 14 of the Bank Holding Company Act of 1956.
       (5) Section 18(c)(13) of the Federal Deposit Insurance Act.
       (6) Section 163 of the Financial Stability Act of 2010.
       (7) Section 10(e)(2)(E) of the Home Owners' Loan Act.
       (8) Any Federal law, rule, or regulation implementing 
     standards of the type provided for in subsections (b), (c), 
     (d), (e), (g), (h), (i), and (j) of section 165 of the 
     Financial Stability Act of 2010.
       (9) Any Federal law, rule, or regulation providing 
     limitations on mergers, consolidations, or acquisitions of 
     assets or control, to the extent such limitations relate to 
     capital or liquidity standards or concentrations of deposits 
     or assets, so long as the banking organization, after such 
     proposed merger, consolidation, or acquisition, would 
     maintain a quarterly leverage ratio of at least 10 percent.
       (b) Qualifying Banking Organizations Treated as Well 
     Capitalized.--A qualifying banking organization shall be 
     deemed to be ``well capitalized'' for purposes of--
       (1) section 216 of the Federal Credit Union Act; and
       (2) sections 29, 38, 44, and 46 of the Federal Deposit 
     Insurance Act.

[[Page 8960]]

       (c) Treatment of Certain Risk-weighted Asset Requirements 
     for Qualifying Banking Organizations.--
       (1) Acquisition size criteria treatment.--A qualifying 
     banking organization shall be deemed to meet the criteria 
     described under section 4(j)(4)(D) of the Bank Holding 
     Company Act of 1956, so long as after the proposed 
     transaction the acquiring qualifying banking organization 
     would maintain a quarterly leverage ratio of at least 10 
     percent.
       (2) Use of leverage exposure.--With respect to a qualifying 
     banking organization, in determining whether a proposal 
     qualifies with the criteria described under subparagraphs 
     (A)(iii) and (B)(i) of section 4(j)(4) of the Bank Holding 
     Company Act of 1956, the Board of Governors of the Federal 
     Reserve System shall consider the leverage exposure of an 
     insured depository institution instead of the total risk-
     weighted assets of such institution.

     SEC. 603. CONTINGENT CAPITAL STUDY.

       (a) Study.--The Board of Governors of the Federal Reserve 
     System, the Federal Deposit Insurance Corporation, and the 
     Office of the Comptroller of the Currency shall each carry 
     out a study, which shall include holding public hearings, on 
     how to design a requirement that banking organizations issue 
     contingent capital with a market-based conversion trigger.
       (b) Report.--Not later than the end of the 1-year period 
     beginning on the date of the enactment of this Act, each 
     agency described under subsection (a) shall submit a report 
     to the Congress containing--
       (1) all findings and determinations made by the agency in 
     carrying out the study required under subsection (a); and
       (2) the agency's recommendations on how the Congress should 
     design a requirement that banking organizations issue 
     contingent capital with a market-based conversion trigger.

     SEC. 604. STUDY ON ALTERING THE CURRENT PROMPT CORRECTIVE 
                   ACTION RULES.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study to assess the benefits and feasibility 
     of altering the current prompt corrective action rules and 
     replacing the Basel-based capital ratios with the 
     nonperforming asset coverage ratio or NACR as the trigger for 
     specific required supervisory interventions. The Comptroller 
     General shall ensure that such study includes the following:
       (1) An assessment of the performance of an NACR forward-
     looking measure of a banking organization's solvency 
     condition relative to the regulatory capital ratios currently 
     used by prompt corrective action rules.
       (2) An analysis of the performance of alternative 
     definitions of nonperforming assets.
       (3) An assessment of the impact of two alternative 
     intervention thresholds:
       (A) An initial (high) intervention threshold, below which 
     appropriate Federal banking agency examiners are required to 
     intervene and assess a banking organization's condition and 
     prescribe remedial measures.
       (B) A lower threshold, below which banking organizations 
     must increase their capital, seek an acquirer, or face 
     mandatory resolution within 90 days.
       (b) Report.--Not later than the end of the 1-year period 
     beginning on the date of the enactment of this Act, the 
     Comptroller General shall submit a report to the Congress 
     containing--
       (1) all findings and determinations made in carrying out 
     the study required under subsection (a); and
       (2) recommendations on the most suitable definition of 
     nonperforming assets, as well as the two numerical thresholds 
     that trigger specific required supervisory interventions.

     SEC. 605. DEFINITIONS.

       For purposes of this title:
       (1) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency''--
       (A) has the meaning given such term under section 3 of the 
     Federal Deposit Insurance Act; and
       (B) means the National Credit Union Administration, in the 
     case of an insured credit union.
       (2) Banking organization.--The term ``banking 
     organization'' means--
       (A) an insured depository institution;
       (B) an insured credit union;
       (C) a depository institution holding company;
       (D) a company that is treated as a bank holding company for 
     purposes of section 8 of the International Banking Act; and
       (E) a U.S. intermediate holding company established by a 
     foreign banking organization pursuant to section 252.153 of 
     title 12, Code of Federal Regulations.
       (3) Foreign exchange swap .--The term ``foreign exchange 
     swap'' has the meaning given that term under section 1a of 
     the Commodity Exchange Act.
       (4) Insured credit union.--The term ``insured credit 
     union'' has the meaning given that term under section 101 of 
     the Federal Credit Union Act.
       (5) Leverage exposure.--The term ``leverage exposure''--
       (A) with respect to a banking organization other than an 
     insured credit union or a traditional banking organization, 
     has the meaning given the term ``total leverage exposure'' 
     under section 3.10(c)(4)(ii), 217.10(c)(4), or 324.10(c)(4) 
     of title 12, Code of Federal Regulations, as applicable, as 
     in effect on the date of the enactment of this Act;
       (B) with respect to a traditional banking organization 
     other than an insured credit union, means total assets (minus 
     any items deducted from common equity tier 1 capital) as 
     calculated in accordance with generally accepted accounting 
     principles and as reported on the traditional banking 
     organization's applicable regulatory filing with the banking 
     organization's appropriate Federal banking agency; and
       (C) with respect to a banking organization that is an 
     insured credit union, has the meaning given the term ``total 
     assets'' under section 702.2 of title 12, Code of Federal 
     Regulations, as in effect on the date of the enactment of 
     this Act.
       (6) Leverage ratio definitions.--
       (A) Average leverage ratio.--With respect to a banking 
     organization, the term ``average leverage ratio'' means the 
     average of the banking organization's quarterly leverage 
     ratios for each of the most recently completed four calendar 
     quarters.
       (B) Quarterly leverage ratio.--With respect to a banking 
     organization and a calendar quarter, the term ``quarterly 
     leverage ratio'' means the organization's tangible equity 
     divided by the organization's leverage exposure, expressed as 
     a percentage, on the last day of such quarter.
       (7) NACR.--The term ``NACR'' means--
       (A) book equity less nonperforming assets plus loan loss 
     reserves, divided by
       (B) total banking organization assets.
       (8) Nonperforming assets.--The term ``nonperforming 
     assets'' means--
       (A) 20 percent of assets that are past due 30 to 89 days, 
     plus
       (B) 50 percent of assets that are past due 90 days or more, 
     plus
       (C) 100 percent of nonaccrual assets and other real estate 
     owned.
       (9) Qualifying banking organization.--The term ``qualifying 
     banking organization'' means a banking organization that has 
     made an election under section 601 and with respect to which 
     such election is in effect.
       (10) Security-based swap .--The term ``security-based 
     swap'' has the meaning given that term under section 3 of the 
     Securities Exchange Act of 1934.
       (11) Swap.--The term ``swap'' has the meaning given that 
     term under section 1a of the Commodity Exchange Act.
       (12) Tangible equity.--The term ``tangible equity''--
       (A) with respect to a banking organization other than a 
     credit union, means the sum of--
       (i) common equity tier 1 capital;
       (ii) additional tier 1 capital consisting of instruments 
     issued on or before the date of enactment of this Act; and
       (iii) with respect to a depository institution holding 
     company that had less than $15,000,000,000 in total 
     consolidated assets as of December 31, 2009, or March 31, 
     2010, or a banking organization that was a mutual holding 
     company as of May 19, 2010, trust preferred securities issued 
     prior to May 19, 2010, to the extent such organization was 
     permitted, as of the date of the enactment of this Act, to 
     consider such securities as tier 1 capital under existing 
     regulations of the appropriate Federal banking agency; and
       (B) with respect to a banking organization that is a credit 
     union, has the meaning given the term ``net worth'' under 
     section 702.2 of title 12, Code of Federal Regulations, as in 
     effect on the date of the enactment of this Act.
       (13) Traditional banking organization.--The term 
     ``traditional banking organization'' means a banking 
     organization that--
       (A) has zero trading assets and zero trading liabilities;
       (B) does not engage in swaps or security-based swaps, other 
     than swaps or security-based swaps referencing interest rates 
     or foreign exchange swaps; and
       (C) has a total notional exposure of swaps and security-
     based swaps of not more than $8,000,000,000.
       (14) Other banking terms.--The terms ``insured depository 
     institution'' and ``depository institution holding company'' 
     have the meaning given those terms, respectively, under 
     section 3 of the Federal Deposit Insurance Act.
       (15) Other capital terms.--With respect to a banking 
     organization, the terms ``additional tier 1 capital'' and 
     ``common equity tier 1 capital'' have the meaning given such 
     terms, respectively, under section 3.20, 217.20, or 324.20 of 
     title 12, Code of Federal Regulations, as applicable, as in 
     effect on the date of the enactment of this Act.

   TITLE VII--EMPOWERING AMERICANS TO ACHIEVE FINANCIAL INDEPENDENCE

       Subtitle A--Separation of Powers and Liberty Enhancements

     SEC. 711. CONSUMER LAW ENFORCEMENT AGENCY.

       (a) Making the Bureau an Independent Consumer Law 
     Enforcement Agency.--The Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5481 et seq.) is amended--
       (1) in section 1011--
       (A) in the heading of such section, by striking ``BUREAU OF 
     CONSUMER FINANCIAL PROTECTION'' and inserting ``CONSUMER LAW 
     ENFORCEMENT AGENCY'';
       (B) in subsection (a)--
       (i) in the heading of such subsection, by striking 
     ``Bureau'' and inserting ``Agency'';
       (ii) by striking ``in the Federal Reserve System,'';
       (iii) by striking ``independent bureau'' and inserting 
     ``independent agency''; and
       (iv) by striking ```Bureau of Consumer Financial 
     Protection''' and inserting ```Consumer Law Enforcement 
     Agency' (hereinafter in this section referred to as the 
     `Agency')'';
       (C) in subsection (b)(5), by amending subparagraph (A) to 
     read as follows:
       ``(A) shall be appointed by the President; and'';

[[Page 8961]]

       (D) in subsection (c), by striking paragraph (3);
       (E) in subsection (e), by striking ``, including in cities 
     in which the Federal reserve banks, or branches of such 
     banks, are located,''; and
       (F) by striking ``Bureau'' each place such term appears and 
     inserting ``Agency''; and
       (2) in section 1012--
       (A) in subsection (a)(10), by striking ``examinations,''; 
     and
       (B) by striking subsection (c).
       (b) Deeming of Name.--Any reference in a law, regulation, 
     document, paper, or other record of the United States to the 
     Bureau of Consumer Financial Protection shall be deemed a 
     reference to the Consumer Law Enforcement Agency.
       (c) Conforming Amendments.--
       (1) Dodd-frank wall street reform and consumer protection 
     act.--The Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (12 U.S.C. 5301 et seq.) is amended--
       (A) in the table of contents in section 1(b)--
       (i) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency''; and
       (ii) in the table of contents relating to title X, in the 
     items relating to subtitle B, subtitle C, and section 1027, 
     by striking ``Bureau'' each place such term appears and 
     inserting ``Agency'';
       (B) in section 2, by amending paragraph (4) to read as 
     follows:
       ``(4) Agency.--The term `Agency' means the Consumer Law 
     Enforcement Agency established under title X.'';
       (C) in section 342 by striking ``Bureau'' each place such 
     term appears in headings and text and inserting ``Agency'';
       (D) in section 1400(b)--
       (i) by striking ``Bureau of Consumer Financial Protection'' 
     and inserting ``Consumer Law Enforcement Agency''; and
       (ii) in the subsection heading, by striking ``Bureau of 
     Consumer Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency'';
       (E) in section 1411(a)(1), by striking ``Bureau'' and 
     inserting ``Agency''; and
       (F) in section 1447, by striking ``Director of the Bureau'' 
     each place such term appears and inserting ``Director of the 
     Consumer Law Enforcement Agency''.
       (2) Alternative mortgage transaction parity act of 1982.--
     The Alternative Mortgage Transaction Parity Act of 1982 (12 
     U.S.C. 3801 et seq.) is amended--
       (A) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency''; and
       (B) in the subsection heading of subsection (d) of section 
     804 (12 U.S.C. 3803(d)), by striking ``Bureau'' and inserting 
     ``Agency''.
       (3) Electronic fund transfer act.--The Electronic Fund 
     Transfer Act (15 U.S.C. 1693 et seq.) is amended--
       (A) by amending the second paragraph (4) (defining the term 
     ``Bureau'') to read as follows:
       ``(4) the term `Agency' means the Consumer Law Enforcement 
     Agency;'';
       (B) in section 916(d)(1), by striking ``Bureau of Consumer 
     Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency''; and
       (C) by striking ``Bureau'' each place that term appears in 
     heading or text and inserting ``Agency''.
       (4) Equal credit opportunity act.--The Equal Credit 
     Opportunity Act (15 U.S.C. 1691 et seq.) is amended--
       (A) in section 702 (15 U.S.C. 1691a), by amending 
     subsection (c) to read as follows:
       ``(c) The term `Agency' means the Consumer Law Enforcement 
     Agency.''; and
       (B) by striking ``Bureau'' each place that term appears in 
     heading or text and inserting ``Agency''.
       (5) Expedited funds availability act.--The Expedited Funds 
     Availability Act (12 U.S.C. 4001 et seq.) is amended--
       (A) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency''; and
       (B) in the heading of section 605(f)(1), by striking 
     ``board and bureau'' and inserting ``Board and agency''.
       (6) Fair and accurate credit transactions act of 2003.--The 
     Fair and Accurate Credit Transactions Act of 2003 (Public Law 
     108-159) is amended by striking ``Bureau'' each place such 
     term appears in heading and text and inserting ``Agency''.
       (7) Fair credit reporting act.--The Fair Credit Reporting 
     Act (15 U.S.C. 1681 et seq.) is amended--
       (A) by amending section 603(w) to read as follows:
       ``(w) Agency.--The term `Agency' means the Consumer Law 
     Enforcement Agency.''; and
       (B) by striking ``Bureau'' each place such term appears, 
     other than in sections 626 and 603(v), and inserting 
     ``Agency''.
       (8) Fair debt collection practices act.--The Fair Debt 
     Collection Practices Act (15 U.S.C. 1692 et seq.) is 
     amended--
       (A) by amending section 803(1) to read as follows:
       ``(1) The term `Agency' means the Consumer Law Enforcement 
     Agency.''; and
       (B) by striking ``Bureau'' each place such term appears in 
     heading or text and inserting ``Agency''.
       (9) Federal deposit insurance act.--The Federal Deposit 
     Insurance Act (12 U.S.C. 1811 et seq.) is amended--
       (A) in the second paragraph (6) (with the heading 
     ``Referral to bureau of consumer financial protection'') of 
     section 8(t) (12 U.S.C. 1818(t))--
       (i) in the paragraph heading, by striking ``bureau of 
     consumer financial protection''; and inserting ``Consumer law 
     enforcement agency''; and
       (ii) by striking ``Bureau of Consumer Financial 
     Protection'' and inserting ``Consumer Law Enforcement 
     Agency'';
       (B) by amending clause (vi) of section 11(t)(2)(A) (12 
     U.S.C. 1821(t)(2)(A)(vi)) to read as follows:
       ``(vi) The Consumer Law Enforcement Agency.'';
       (C) in section 18(x) (12 U.S.C. 1828(x)), by striking 
     ``Bureau of Consumer Financial Protection'' each place such 
     term appears and inserting ``Consumer Law Enforcement 
     Agency'';
       (D) by striking ``Bureau'' each place such term appears and 
     inserting ``Agency''; and
       (E) in section 43(e) (12 U.S.C. 1831t(e)), by amending 
     paragraph (5) to read as follows:
       ``(5) Agency.--The term `Agency' means the Consumer Law 
     Enforcement Agency.''.
       (10) Federal financial institutions examination council act 
     of 1978.--The Federal Financial Institutions Examination 
     Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended--
       (A) in section 1004(a)(4), by striking ``Consumer Financial 
     Protection Bureau'' and inserting ``Consumer Law Enforcement 
     Agency''; and
       (B) in section 1011, by striking ``Bureau of Consumer 
     Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency''.
       (11) Financial institutions reform, recovery, and 
     enforcement act of 1989.--The Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (Public Law 101-73; 103 
     Stat. 183) is amended--
       (A) in section 1112(b) (12 U.S.C. 3341), by striking 
     ``Bureau of Consumer Financial Protection'' and inserting 
     ``Consumer Law Enforcement Agency'';
       (B) in section 1124 (12 U.S.C. 3353), by striking ``Bureau 
     of Consumer Financial Protection'' each place such term 
     appears and inserting ``Consumer Law Enforcement Agency'';
       (C) in section 1125 (12 U.S.C. 3354), by striking ``Bureau 
     of Consumer Financial Protection'' each place such term 
     appears and inserting ``Consumer Law Enforcement Agency''; 
     and
       (D) in section 1206(a) (12 U.S.C. 1833b(a)), by striking 
     ``Federal Housing Finance Board'' and all that follows 
     through ``Farm Credit Administration'' and inserting 
     ``Federal Housing Finance Agency, the Consumer Law 
     Enforcement Agency, and the Farm Credit Administration''.
       (12) Financial literacy and education improvement act.--
     Section 513 of the Financial Literacy and Education 
     Improvement Act (20 U.S.C. 9702) is amended by striking 
     ``Bureau of Consumer Financial Protection'' each place such 
     term appears and inserting ``Consumer Law Enforcement 
     Agency''.
       (13) Gramm-Leach-Bliley act.--Title V of the Gramm-Leach-
     Bliley Act (15 U.S.C. 6801 et seq.) is amended--
       (A) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency''; and
       (B) in section 505(a)(8) (15 U.S.C. 6805(a)(8)), by 
     striking ``Bureau'' and inserting ``Agency''.
       (14) Home mortgage disclosure act of 1975.--The Home 
     Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is 
     amended--
       (A) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency'';
       (B) by striking ``Bureau'' each place such term appears and 
     inserting ``Agency''; and
       (C) in section 303, by amending paragraph (1) to read as 
     follows:
       ``(1) the term `Agency' means the Consumer Law Enforcement 
     Agency;''.
       (15) Homeowners protection act of 1998.--Section 10(a)(4) 
     of the Homeowners Protection Act of 1998 (12 U.S.C. 
     4909(a)(4)) is amended by striking ``Bureau of Consumer 
     Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency''.
       (16) Home ownership and equity protection act of 1994.--
     Section 158(a) of the Home Ownership and Equity Protection 
     Act of 1994 (15 U.S.C. 1601 note) is amended by striking 
     ``Bureau'' and inserting ``Consumer Law Enforcement Agency''.
       (17) Interstate land sales full disclosure act.--The 
     Interstate Land Sales Full Disclosure Act (12 U.S.C. 1701 et 
     seq.) is amended--
       (A) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Agency'';
       (B) in section 1402, by amending paragraph (12) to read as 
     follows:
       ``(12) `Agency' means the Consumer Law Enforcement 
     Agency.''; and
       (C) in section 1416, by striking ``Bureau'' each place such 
     term appears and inserting ``Agency''.
       (18) Real estate settlement procedures act of 1974.--The 
     Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 
     et seq.) is amended--
       (A) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency'';
       (B) by striking ``Bureau'' each place such term appears and 
     inserting ``Agency''; and
       (C) in section 3, by amending paragraph (9) to read as 
     follows:
       ``(9) the term `Agency' means the Consumer Law Enforcement 
     Agency.''.

[[Page 8962]]

       (19) Revised statues of the united states.--Section 
     5136C(b)(3)(B) of the Revised Statutes of the United States 
     (12 U.S.C. 25b(b)(3)(B)) is amended by striking ``Bureau of 
     Consumer Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency''.
       (20) Right to financial privacy act of 1978.--The Right to 
     Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is 
     amended--
       (A) by amending subparagraph (B) of section 1101(7) (12 
     U.S.C. 3401(7)(B)) to read as follows:
       ``(B) the Consumer Law Enforcement Agency;''; and
       (B) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears in heading or text and inserting 
     ``Consumer Law Enforcement Agency''.
       (21) S.A.F.E. mortgage licensing act of 2008.--The S.A.F.E. 
     Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) is 
     amended--
       (A) in section 1507, by striking ``Bureau, and the Bureau 
     of Consumer Financial Protection'' each place such term 
     appears and inserting ``Consumer Law Enforcement Agency'';
       (B) by striking ``Bureau of Consumer Financial Protection'' 
     each place such term appears and inserting ``Consumer Law 
     Enforcement Agency'';
       (C) by striking ``Bureau'' each place such appears, other 
     than in sections 1505(a)(1), 1507(a)(2)(A), and 1511(b), and 
     inserting ``Agency'';
       (D) in section 1503, by amending paragraph (1) to read as 
     follows:
       ``(1) Agency.--The term `Agency' means the Consumer Law 
     Enforcement Agency.'';
       (E) in the heading of section 1508, by striking ``BUREAU OF 
     CONSUMER FINANCIAL PROTECTION'' and inserting ``CONSUMER LAW 
     ENFORCEMENT AGENCY''; and
       (F) in the heading of section 1514, by striking ``BUREAU'' 
     and inserting ``AGENCY''.
       (22) Telemarketing and consumer fraud and abuse prevention 
     act.--The Telemarketing and Consumer Fraud and Abuse 
     Prevention Act (15 U.S.C. 6101 et seq.) is amended by 
     striking ``Bureau of Consumer Financial Protection'' each 
     place such term appears in heading or text and inserting 
     ``Consumer Law Enforcement Agency''.
       (23) Title 5, united states code.--Title 5, United States 
     Code, is amended--
       (A) in section 552a(w)--
       (i) in the subsection heading, by striking ``Bureau of 
     Consumer Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency'';
       (ii) by striking ``Bureau of Consumer Financial 
     Protection'' and inserting ``Consumer Law Enforcement 
     Agency'';
       (B) in section 609(d)(2), by striking ``Consumer Financial 
     Protection Bureau of the Federal Reserve System'' and 
     inserting ``Consumer Law Enforcement Agency''; and
       (C) in section 3132(a)(1)(D), by inserting ``the Consumer 
     Law Enforcement Agency,'' before ``and the National Credit 
     Union Administration''.
       (24) Title 10, united states code.--
       (A) Section 987.--Section 987(h)(3)(E) of title 10, United 
     States Code, is amended by striking ``Bureau of Consumer 
     Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency''.
       (B) NDAA fy 2015.--Section 557(a) of the Carl Levin and 
     Howard P. ``Buck'' McKeon National Defense Authorization Act 
     for Fiscal Year 2015 (Public Law 113-29; 128 Stat. 3381; 10 
     U.S.C. 1144 note), is amended by striking ``Consumer 
     Financial Protection Bureau'' each place such term appears 
     and inserting ``Consumer Law Enforcement Agency''.
       (25) Title 44, united states code.--Title 44, United States 
     Code, is amended--
       (A) in section 3502(5), by striking ``the Bureau of 
     Consumer Financial Protection,''; and
       (B) in section 3513(c), by striking ``Bureau of Consumer 
     Financial Protection'' and inserting ``Consumer Law 
     Enforcement Agency''.
       (26) Truth in lending act.--The Truth in Lending Act (15 
     U.S.C. 1601 et seq.) is amended--
       (A) by amending section 103(b) (15 U.S.C. 1602(b)) to read 
     as follows:
       ``(b) Agency.--The term `Agency' means the Consumer Law 
     Enforcement Agency.'';
       (B) by amending section 103(c) (15 U.S.C. 1602(c)) to read 
     as follows:
       ``(c) Board.--The term `Board' means the Board of Governors 
     of the Federal Reserve System.''; and
       (C) in section 128(f) (15 U.S.C. 1638(f)), by striking 
     ``Board'' each place such term appears and inserting 
     ``Agency'';
       (D) in sections 129B (15 U.S.C. 1639b) and 129C (15 U.S.C. 
     1639c), by striking ``Board'' each place such term appears 
     and inserting ``Agency'';
       (E) in section 140A (15 U.S.C. 1651), by striking ``in 
     consultation with the Bureau'' and inserting ``in 
     consultation with the Federal Trade Commission'';
       (F) by striking ``Bureau'' each place such term appears in 
     heading or text and inserting ``Agency''; and
       (G) by striking ``bureau'' and inserting ``Agency'' in the 
     paragraph headings for--
       (i) section 122(d)(2) (15 U.S.C. 1632(d)(2));
       (ii) section 127(c)(5) (15 U.S.C. 1637(c)(5));
       (iii) section 127(r)(3) (15 U.S.C. 1637(r)(3)); and
       (iv) section 127A(a)(14) (15 U.S.C. 1637a(a)(14)).
       (27) Truth in savings act.--The Truth in Savings Act (12 
     U.S.C. 4301 et seq.) is amended--
       (A) by amending paragraph (4) of section 274 (12 U.S.C. 
     4313(4)) to read as follows:
       ``(4) Agency.--The term `Agency' means the Consumer Law 
     Enforcement Agency.'';
       (B) by striking ``National Credit Union Administration 
     Bureau'' each place such term appears and inserting 
     ``National Credit Union Administration Board''; and
       (C) by striking ``Bureau'' each place such term appears and 
     inserting ``Agency'', except in section 233(b)(4)(B).

     SEC. 712. BRINGING THE AGENCY INTO THE REGULAR APPROPRIATIONS 
                   PROCESS.

       Section 1017 of the Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5497) is amended--
       (1) in subsection (a)--
       (A) by amending the heading of such subsection to read as 
     follows: ``Budget, Financial Management, and Audit.--'';
       (B) by striking paragraphs (1), (2), and (3);
       (C) by redesignating paragraphs (4) and (5) as paragraphs 
     (1) and (2), respectively; and
       (D) by striking subparagraphs (E) and (F) of paragraph (1), 
     as so redesignated;
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsections (d) and (e) as subsections 
     (b) and (c), respectively; and
       (4) in subsection (c), as so redesignated--
       (A) by striking paragraphs (1), (2), and (3) and inserting 
     the following:
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to the Agency for each of fiscal years 
     2017 and 2018 an amount equal to the aggregate amount of 
     funds transferred by the Board of Governors to the Bureau of 
     Consumer Financial Protection during fiscal year 2015.''; and
       (B) by redesignating paragraph (4) as paragraph (2).

     SEC. 713. CONSUMER LAW ENFORCEMENT AGENCY INSPECTOR GENERAL 
                   REFORM.

       (a) Appointment of Inspector General.--The Inspector 
     General Act of 1978 (5 U.S.C. App.) is amended--
       (1) in section 8G--
       (A) in subsection (a)(2), by striking ``and the Bureau of 
     Consumer Financial Protection'';
       (B) in subsection (c), by striking ``For purposes of 
     implementing this section'' and all that follows through the 
     end of the subsection; and
       (C) in subsection (g)(3), by striking ``and the Bureau of 
     Consumer Financial Protection''; and
       (2) in section 12--
       (A) in paragraph (1), by inserting ``the Consumer Law 
     Enforcement Agency;'' after ``the President of the Export-
     Import Bank;''; and
       (B) in paragraph (2), by inserting ``the Consumer Law 
     Enforcement Agency,'' after ``the Export-Import Bank,''.
       (b) Requirements for the Inspector General for the Consumer 
     Law Enforcement Agency.--
       (1) Establishment.--Section 1011 of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5491), as amended by 
     section 311, is further amended by adding at the end the 
     following:
       ``(f) Inspector General.--There is established the position 
     of the Inspector General of the Agency.''; and
       (2) Hearings.--Section 1016 of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5496) is amended by 
     inserting after subsection (c) the following:
       ``(d) Additional Requirement for Inspector General.--On a 
     separate occasion from that described in subsection (a), the 
     Inspector General of the Agency shall appear before each of 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate and the Committee on Financial Services of the House 
     of Representatives at semi-annual hearings no less frequently 
     than twice annually, at a date determined by the chairman of 
     the respective committee, to testify regarding the reports 
     required under subsection (b) and the reports required under 
     section 5 of the Inspector General Act of 1978 (5 U.S.C. 
     App.).''.
       (3) Participation in the council of inspectors general on 
     financial oversight.--Section 989E(a)(1) of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act is amended by 
     adding at the end the following:
       ``(J) The Consumer Law Enforcement Agency.''.
       (4) Deadline for appointment.--Not later than 60 days after 
     the date of the enactment of this Act, the President shall 
     appoint an Inspector General for the Consumer Law Enforcement 
     Agency in accordance with section 3 of the Inspector General 
     Act of 1978 (5 U.S.C. App.).
       (c) Transition Period.--The Inspector General of the Board 
     of Governors of the Federal Reserve System and the Bureau of 
     Consumer Financial Protection shall serve in that position 
     until the confirmation of an Inspector General for the 
     Consumer Law Enforcement Agency. At that time, the Inspector 
     General of the Board of Governors of the Federal Reserve 
     System and the Bureau of Consumer Financial Protection shall 
     become the Inspector General of the Board of Governors of the 
     Federal Reserve System.

     SEC. 714. PRIVATE PARTIES AUTHORIZED TO COMPEL THE AGENCY TO 
                   SEEK SANCTIONS BY FILING CIVIL ACTIONS; 
                   ADJUDICATIONS DEEMED ACTIONS.

       Section 1053 of the Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5563) is amended by adding at the end the 
     following:
       ``(f) Private Parties Authorized to Compel the Agency to 
     Seek Sanctions by Filing Civil Actions.--
       ``(1) Termination of administrative proceeding.--In the 
     case of any person who is a party to a proceeding brought by 
     the Agency under this section, to which chapter 5 of title 5, 
     United States Code, applies, and against whom an order 
     imposing a cease and desist order or a

[[Page 8963]]

     penalty may be issued at the conclusion of the proceeding, 
     that person may, not later than 20 days after receiving 
     notice of such proceeding, and at that person's discretion, 
     require the Agency to terminate the proceeding.
       ``(2) Civil action authorized.--If a person requires the 
     Agency to terminate a proceeding pursuant to paragraph (1), 
     the Agency may bring a civil action against that person for 
     the same remedy that might be imposed.
       ``(g) Adjudications Deemed Actions.--Any administrative 
     adjudication commenced under this section shall be deemed an 
     `action' for purposes of section 1054(g).''.

     SEC. 715. CIVIL INVESTIGATIVE DEMANDS TO BE APPEALED TO 
                   COURTS.

       Section 1052 of the Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5562) is amended--
       (1) in subsection (c)--
       (A) in paragraph (2), by inserting after ``shall state'' 
     the following: ``with specificity''; and
       (B) by adding at the end the following:
       ``(14) Meeting requirement.--The recipient of a civil 
     investigative demand shall meet and confer with an Agency 
     investigator within 30 calendar days after receipt of the 
     demand to discuss and attempt to resolve all issues regarding 
     compliance with the civil investigative demand, unless the 
     Agency grants an extension requested by such recipient.'';
       (2) in subsection (f)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) In general.--Not later than 45 days after the service 
     of any civil investigative demand upon any person under 
     subsection (c), or at any time before the return date 
     specified in the demand, whichever period is shorter, or 
     within such period exceeding 45 days after service or in 
     excess of such return date as may be prescribed in writing, 
     subsequent to service, by any Agency investigator named in 
     the demand, such person may file, in the district court of 
     the United States for any judicial district in which such 
     person resides, is found, or transacts business, a petition 
     for an order modifying or setting aside the demand.''; and
       (B) in paragraph (2), by striking ``at the Bureau''; and
       (3) in subsection (h)--
       (A) by striking ``(1) In general.--''; and
       (B) by striking paragraph (2).

     SEC. 716. AGENCY DUAL MANDATE AND ECONOMIC ANALYSIS.

       (a) Purpose.--Section 1021(a) of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5511(a)) is amended by 
     adding at the end the following: ``In addition, the Director 
     shall seek to implement and, where applicable, enforce 
     Federal consumer financial law consistently for the purpose 
     of strengthening participation in markets by covered persons, 
     without Government interference or subsidies, to increase 
     competition and enhance consumer choice.''.
       (b) Office of Economic Analysis.--
       (1) In general.--Section 1013 of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5493), as amended by 
     section 725, is further amended by adding at the end the 
     following:
       ``(h) Office of Economic Analysis.--
       ``(1) Establishment.--The Director shall, not later than 
     the end of the 60-day period beginning on the date of the 
     enactment of this subsection, establish an Office of Economic 
     Analysis.
       ``(2) Direct reporting.--The head of the Office of Economic 
     Analysis shall report directly to the Director.
       ``(3) Review and assessment of proposed rules and 
     regulations.--The Office of Economic Analysis shall--
       ``(A) review all proposed rules and regulations, including 
     regulatory guidance, of the Agency;
       ``(B) assess the impact of such rules and regulations, 
     including regulatory guidance, on consumer choice, price, and 
     access to credit products; and
       ``(C) publish a report on such reviews and assessments in 
     the Federal Register.
       ``(4) Measuring existing rules and regulations.--The Office 
     of Economic Analysis shall--
       ``(A) review each rule and regulation issued by the Agency 
     after 1, 2, 6, and 11 years of the date such rule became 
     effective;
       ``(B) measure the rule or regulation's success in solving 
     the problem that the rule or regulation was intended to solve 
     when issued; and
       ``(C) publish a report on such review and measurement in 
     the Federal Register.
       ``(5) Cost-benefit analysis related to administrative 
     enforcement and civil actions.--The Office of Economic 
     Analysis shall--
       ``(A) carry out a cost-benefit analysis of any proposed 
     administrative enforcement action, civil lawsuit, or consent 
     order of the Agency; and
       ``(B) assess the impact of such complaint, lawsuit, or 
     order on consumer choice, price, and access to credit 
     products.''.
       (2) Consideration of review and assessment; rulemaking 
     requirements.--Section 1022(b) of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5512(b)) is amended by 
     adding at the end the following:
       ``(5) Consideration of review and assessment by the office 
     of economic analysis.--Before issuing any rule or regulation, 
     the Director shall consider the review and assessment of such 
     rule or regulation, including regulatory guidance, carried 
     out by the Office of Economic Analysis.
       ``(6) Identification of problems and metrics for judging 
     success.--
       ``(A) In general.--The Director shall, in each proposed 
     rulemaking of the Agency--
       ``(i) identify the problem that the particular rule or 
     regulations is seeking to solve; and
       ``(ii) specify the metrics by which the Agency will measure 
     the success of the rule or regulation in solving such 
     problem.
       ``(B) Required metrics.--The metrics specified under 
     subparagraph (A)(ii) shall include a measurement of changes 
     to consumer access to, and cost of, consumer financial 
     products and services.''.
       (3) Consideration of cost-benefit review related to 
     administrative actions.--The Dodd-Frank Wall Street Reform 
     and Consumer Protection Act (12 U.S.C. 5301 et seq.) is 
     amended--
       (A) in subtitle E of title X, by adding at the end the 
     following:

     ``SEC. 1059. CONSIDERATION OF COST-BENEFIT ANALYSIS RELATED 
                   TO ADMINISTRATIVE ENFORCEMENT AND CIVIL 
                   ACTIONS.

       ``Before initiating any administrative enforcement action 
     or civil lawsuit or entering into a consent order, the 
     Director shall consider the cost-benefit analysis of such 
     action, lawsuit, or order carried out by the Office of 
     Economic Analysis.''; and
       (B) in the table of contents under section 1(b), by 
     inserting after the item relating to section 1058 the 
     following:

``Sec. 1059. Consideration of cost-benefit analysis related to 
              administrative enforcement and civil actions.''.
       (c) Avoidance of Duplicative or Unnecessary Analyses.--The 
     Consumer Law Enforcement Agency may perform any of the 
     analyses required by the amendments made by this section in 
     conjunction with, or as part of, any other agenda or analysis 
     required by any other provision of law, if such other agenda 
     or analysis satisfies the provisions of this section.

     SEC. 717. NO DEFERENCE TO AGENCY INTERPRETATION.

       The Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5481 et seq.) is amended--
       (1) in section 1022(b)(4)--
       (A) by striking ``(A) In general.--''; and
       (B) by striking subparagraph (B); and
       (2) in section 1061(b)(5)(E)--
       (A) by striking ``affords to the--'' and all that follows 
     through ``(i) Federal Trade Commission'' and inserting 
     ``affords to the Federal Trade Commission'';
       (B) by striking ``; or'' and inserting a period; and
       (C) by striking clause (ii).

                Subtitle B--Administrative Enhancements

     SEC. 721. ADVISORY OPINIONS.

       Section 1022(b) of the Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5512(b)), as amended by section 716, is 
     further amended by adding at the end the following:
       ``(7) Advisory opinions.--
       ``(A) Establishing procedures.--
       ``(i) In general.--The Director shall establish a procedure 
     and, as necessary, promulgate rules to provide written 
     opinions in response to inquiries concerning the conformance 
     of specific conduct with Federal consumer financial law. In 
     establishing the procedure, the Director shall consult with 
     the prudential regulators and such other Federal departments 
     and agencies as the Director determines appropriate, and 
     obtain the views of all interested persons through a public 
     notice and comment period.
       ``(ii) Scope of request.--A request for an opinion under 
     this paragraph must relate to specific proposed or 
     prospective conduct by a covered person contemplating the 
     proposed or prospective conduct.
       ``(iii) Submission.--A request for an opinion under this 
     paragraph may be submitted to the Director either by or on 
     behalf of a covered person.
       ``(iv) Right to withdraw inquiry.--Any inquiry under this 
     paragraph may be withdrawn at any time prior to the Director 
     issuing an opinion in response to such inquiry, and any 
     opinion based on an inquiry that has been withdrawn shall 
     have no force or effect.
       ``(B) Issuance of opinions.--
       ``(i) In general.--The Director shall, within 90 days of 
     receiving the request for an opinion under this paragraph, 
     either--

       ``(I) issue an opinion stating whether the described 
     conduct would violate Federal consumer financial law;
       ``(II) if permissible under clause (iii), deny the request; 
     or
       ``(III) explain why it is not feasible to issue an opinion.

       ``(ii) Extension.--Notwithstanding clause (i), if the 
     Director determines that the Agency requires additional time 
     to issue an opinion, the Director may make a single extension 
     of the deadline of 90 days or less.
       ``(iii) Denial of requests.--The Director shall not issue 
     an opinion, and shall so inform the requestor, if the request 
     for an opinion--

       ``(I) asks a general question of interpretation;
       ``(II) asks about a hypothetical situation;
       ``(III) asks about the conduct of someone other than the 
     covered person on whose behalf the request is made;
       ``(IV) asks about past conduct that the covered person on 
     whose behalf the request is made does not plan to continue in 
     the future; or
       ``(V) fails to provide necessary supporting information 
     requested by the Agency within a reasonable time established 
     by the Agency.

       ``(iv) Amendment and revocation.--An advisory opinion 
     issued under this paragraph may be amended or revoked at any 
     time.
       ``(v) Public disclosure.--An opinion rendered pursuant to 
     this paragraph shall be

[[Page 8964]]

     placed in the Agency's public record 90 days after the 
     requesting party has received the advice, subject to any 
     limitations on public disclosure arising from statutory 
     restrictions, Agency regulations, or the public interest. The 
     Agency shall redact any personal, confidential, or 
     identifying information about the covered person or any other 
     persons mentioned in the advisory opinion, unless the covered 
     person consents to such disclosure.
       ``(vi) Report to congress.--The Agency shall, concurrent 
     with the semi-annual report required under section 1016(b), 
     submit information regarding the number of requests for an 
     advisory opinion received, the subject of each request, the 
     number of requests denied pursuant to clause (iii), and the 
     time needed to respond to each request.
       ``(C) Reliance on opinion.--Any person may rely on an 
     opinion issued by the Director pursuant to this paragraph 
     that has not been amended or withdrawn. No liability under 
     Federal consumer financial law shall attach to conduct 
     consistent with an advisory opinion that had not been amended 
     or withdrawn at the time the conduct was undertaken.
       ``(D) Assistance for small businesses.--
       ``(i) In general.--The Agency shall assist, to the maximum 
     extent practicable, small businesses in preparing inquiries 
     under this paragraph.
       ``(ii) Small business defined.--For purposes of this 
     subparagraph, the term `small business' has the meaning given 
     the term `small business concern' under section 3 of the 
     Small Business Act (15 U.S.C. 632).
       ``(E) Inquiry fee.--
       ``(i) In general.--The Director shall develop a system to 
     charge a fee for each inquiry made under this paragraph in an 
     amount sufficient, in the aggregate, to pay for the cost of 
     carrying out this paragraph.
       ``(ii) Notice and comment.--Not later than 45 days after 
     the date of the enactment of this paragraph, the Director 
     shall publish a description of the fee system described in 
     clause (i) in the Federal Register and shall solicit comments 
     from the public for a period of 60 days after publication.
       ``(iii) Finalization.--The Director shall publish a final 
     description of the fee system and implement such fee system 
     not later than 30 days after the end of the public comment 
     period described in clause (ii).''.

     SEC. 722. REFORM OF CONSUMER FINANCIAL CIVIL PENALTY FUND.

       (a) Segregated Accounts.--Section 1017(b) of the Consumer 
     Financial Protection Act of 2010, as redesignated by section 
     712, is amended by redesignating paragraph (2) as paragraph 
     (3), and by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Segregated accounts in civil penalty fund.--
       ``(A) In general.--The Agency shall establish and maintain 
     a segregated account in the Civil Penalty Fund each time the 
     Agency obtains a civil penalty against any person in any 
     judicial or administrative action under Federal consumer 
     financial laws.
       ``(B) Deposits in segregated accounts.--The Agency shall 
     deposit each civil penalty collected into the segregated 
     account established for such penalty under subparagraph 
     (A).''.
       (b) Payment to Victims.--Paragraph (3) of section 1017(b) 
     of such Act, as redesignated by subsection (a), is amended to 
     read as follows:
       ``(3) Payment to victims.--
       ``(A) In general.--
       ``(i) Identification of class.--Not later than 60 days 
     after the date of deposit of amounts in a segregated account 
     in the Civil Penalty Fund, the Agency shall identify the 
     class of victims of the violation of Federal consumer 
     financial laws for which such amounts were collected and 
     deposited under paragraph (2).
       ``(ii) Payments.--The Agency, within 2 years after the date 
     on which such class of victims is identified, shall locate 
     and make payments from such amounts to each victim.
       ``(B) Funds deposited in treasury.--
       ``(i) In general.--The Agency shall deposit into the 
     general fund of the Treasury any amounts remaining in a 
     segregated account in the Civil Penalty Fund at the end of 
     the 2-year period for payments to victims under subparagraph 
     (A).
       ``(ii) Impossible or impractical payments.--If the Agency 
     determines before the end of the 2-year period for payments 
     to victims under subparagraph (A) that such victims cannot be 
     located or payments to such victims are otherwise not 
     practicable, the Agency shall deposit into the general fund 
     of the Treasury the amounts in the segregated account in the 
     Civil Penalty Fund.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to civil penalties collected after the 
     date of enactment of this Act.
       (2) Amounts in consumer financial civil penalty fund on 
     date of enactment.--With respect to amounts in the Consumer 
     Financial Civil Penalty Fund on the date of enactment of this 
     Act that were not allocated for consumer education and 
     financial literacy programs on or before September 30, 2015, 
     the Consumer Law Enforcement Agency shall separate such 
     amounts into segregated accounts in accordance with, and for 
     purposes of, section 1017(d) of the Consumer Financial 
     Protection Act of 2010, as amended by this section. The date 
     of deposit of such amounts shall be deemed to be the date of 
     enactment of this Act.

     SEC. 723. AGENCY PAY FAIRNESS.

       (a) In General.--Section 1013(a)(2) of the Consumer 
     Financial Protection Act of 2010 (12 U.S.C. 5493(a)(2)) is 
     amended to read as follows:
       ``(2) Compensation.--The rates of basic pay for all 
     employees of the Agency shall be set and adjusted by the 
     Director in accordance with the General Schedule set forth in 
     section 5332 of title 5, United States Code.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to service by an employee of the Consumer Law 
     Enforcement Agency following the 90-day period beginning on 
     the date of enactment of this Act.

     SEC. 724. ELIMINATION OF MARKET MONITORING FUNCTIONS.

       The Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5481 et seq.) is amended--
       (1) in section 1021(c)--
       (A) by striking paragraph (3); and
       (B) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (3), (4), and (5), respectively;
       (2) in section 1022, by striking subsection (c); and
       (3) in section 1026(b), by striking ``, and to assess and 
     detect risks to consumers and consumer financial markets''.

     SEC. 725. REFORMS TO MANDATORY FUNCTIONAL UNITS.

       The Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5481 et seq.) is amended--
       (1) in section 1013--
       (A) in subsection (b)--
       (i) in paragraph (1), by striking ``shall establish'' and 
     inserting ``may establish'';
       (ii) in paragraph (2), by striking ``shall establish'' and 
     inserting ``may establish''; and
       (iii) paragraph (3)(D)--

       (I) by striking ``To facilitate preparation of the reports 
     required under subparagraph (C), supervision and enforcement 
     activities, and monitoring of the market for consumer 
     financial products and services, the'' and inserting ``The''; 
     and
       (II) by adding at the end the following: ``Information 
     collected under this paragraph may not be made publicly 
     available, except as required by law.'';

       (B) in subsection (c)--
       (i) in paragraph (1), by striking ``shall establish'' and 
     inserting ``may establish''; and
       (ii) in paragraph (3), by striking ``There is established 
     the'' and inserting ``At any time when the Office of Fair 
     Lending and Equal Opportunity exists within the Agency, there 
     shall be a'';
       (C) in subsection (d)--
       (i) in paragraph (1), by striking ``shall establish'' and 
     inserting ``may establish'';
       (ii) in paragraph (3)--

       (I) in subparagraph (A), by inserting ``, if such Office 
     exists within the Agency,'' after ``Community Affairs 
     Office''; and
       (II) in subparagraph (B), by striking ``established by the 
     Director'' and inserting ``, if established by the 
     Director,''; and

       (iii) in paragraph (4), by striking ``Not later than 24 
     months after the designated transfer date, and annually 
     thereafter,'' and inserting ``Annually, at any time when the 
     Office of Financial Education exists within the Agency,'';
       (D) in subsection (e)(1), by striking ``shall establish'' 
     and inserting ``may establish'';
       (E) by striking subsection (f);
       (F) by redesignating subsections (g) and (h) as subsections 
     (f) and (g), respectively; and
       (G) in subsection (f), as so redesignated--
       (i) in paragraph (1)--

       (I) by striking ``Before the end of the 180-day period 
     beginning on the designated transfer date, the Director 
     shall'' and inserting ``The Director may''; and
       (II) by striking ``on protection from unfair, deceptive, 
     and abusive practices and'';

       (ii) in paragraph (2), by striking ``The Office'' and 
     inserting ``At any time when the Office of Financial 
     Protection for Older Americans exists within the Agency, the 
     Office''; and
       (iii) in paragraph (3)--

       (I) in subparagraph (A)--

       (aa) by striking clause (i);
       (bb) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii), respectively; and
       (cc) in clause (ii), as so redesignated, by striking ``to 
     respond to consumer problems caused by unfair, deceptive, or 
     abusive practices'';

       (II) in subparagraph (B), by striking ``and alert the 
     Commission and State regulators of certifications or 
     designations that are identified as unfair, deceptive, or 
     abusive''; and
       (III) in subparagraph (D)--

       (aa) by striking clause (i); and
       (bb) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii), respectively;
       (2) in section 1029(e), by inserting after ``Affairs,'' the 
     following: ``if established under this title,''; and
       (3) in section 1035--
       (A) in subsection (a), by striking ``shall designate'' and 
     inserting ``may designate''; and
       (B) in subsection (b), by striking ``The Secretary'' and 
     inserting ``If the Secretary designates the Ombudsman under 
     subsection (a), the Secretary''.

     SEC. 726. REPEAL OF MANDATORY ADVISORY BOARD.

       (a) In General.--Section 1014 of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5494) is repealed.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended by striking the item relation to 
     section 1014.
       (c) Rule of Construction.--Nothing in this section may be 
     construed as limiting the authority of the Director of the 
     Consumer Law Enforcement Agency to establish advisory 
     committees pursuant to the Federal Advisory Committee Act.

[[Page 8965]]



     SEC. 727. ELIMINATION OF SUPERVISION AUTHORITY.

       (a) In General.--The Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5481 et seq.) is amended--
       (1) in section 1002(15)(B)(ii)(I), by striking 
     ``examination or'';
       (2) in section 1013(a)(1)(B), by striking ``compliance 
     examiners, compliance supervision analysts,'';
       (3) in section 1016(c)--
       (A) in paragraph (5), by striking ``supervisory and''; and
       (B) in paragraph (6), by striking ``orders, and supervisory 
     actions'' and inserting ``and orders'';
       (4) in section 1024--
       (A) in the heading, by striking ``SUPERVISION OF'' and 
     inserting ``AUTHORITY WITH RESPECT TO CERTAIN'';
       (B) in subsection (a)--
       (i) in paragraph (1)(B), by striking ``as defined by rule 
     in accordance with paragraph (2)'' and inserting ``as of the 
     date of the enactment of the Financial CHOICE Act of 2017'';
       (ii) by striking paragraph (2);
       (iii) by redesignating paragraph (3) as paragraph (2); and
       (iv) in subparagraph (A) of paragraph (2), as so 
     redesignated, by striking ``1025(a) or'';
       (C) by striking subsection (b);
       (D) by redesignating subsections (c), (d), (e), and (f) as 
     subsections (b), (c), (d), and (e), respectively;
       (E) in subsection (c), as so redesignated--
       (i) in the heading, by striking ``and Examination 
     Authority''; and
       (ii) by striking ``, conduct examinations,'' each place 
     such term appears;
       (F) in subsection (d), as so redesignated--
       (i) by inserting ``rulemaking and enforcement, but not 
     supervisory,'' before ``authority of the Bureau''; and
       (ii) by striking ``conducting any examination or requiring 
     any report from a service provider subject to this 
     subsection'' and inserting ``carrying out any authority 
     pursuant to this subsection with respect to a service 
     provider'';
       (5) by striking section 1025;
       (6) in section 1026--
       (A) by amending subsection (a) to read as follows:
       ``(a) Scope of Coverage.--This section shall apply to any 
     covered person that is an insured depository institution or 
     an insured credit union.'';
       (B) in subsection (b)(3), by striking ``report of 
     examination or related'';
       (C) by striking subsection (c);
       (D) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively;
       (E) in subsection (c), as so redesignated, by adding at the 
     end the following:
       ``(3) Very large institutions.--
       ``(A) Primary enforcement authority.--Notwithstanding 
     paragraph (1), to the extent that the Agency and another 
     Federal agency are authorized to enforce a Federal consumer 
     financial law, the Agency shall have primary authority to 
     enforce that Federal consumer financial law with respect to 
     an insured depository institution or insured credit union, if 
     such depository institution or credit union has total assets 
     of more than $10,000,000,000, and any affiliate thereof.
       ``(B) Referral.--Any Federal agency, other than the Federal 
     Trade Commission, that is authorized to enforce a Federal 
     consumer financial law may recommend, in writing, to the 
     Agency that the Agency initiate an enforcement proceeding 
     with respect to a person described in subparagraph (A), as 
     the Agency is authorized to do by that Federal consumer 
     financial law.
       ``(C) Backup enforcement authority.--If the Agency does 
     not, before the end of the 120-day period beginning on the 
     date on which the Agency receives a recommendation under 
     subparagraph (B), initiate an enforcement proceeding, the 
     other agency referred to in subparagraph (B) may initiate an 
     enforcement proceeding.''; and
       (F) in subsection (d), as so redesignated--
       (i) by inserting after ``subsection (a)'' the following: 
     ``, or to any person described under subsection (c)(3)(A),'';
       (ii) by striking ``section 1025'' and inserting ``this 
     section''; and
       (iii) by striking ``When conducting any examination or 
     requiring any report from a service provider subject to this 
     subsection'' and inserting ``In carrying out any authority 
     pursuant to this subsection with respect to a service 
     provider'';
       (7) in section 1027--
       (A) by striking ``supervisory,'' each place such term 
     appears;
       (B) in subsection (e)(1), by striking ``supervisory or''; 
     and
       (C) in subsection (p), by striking ``section 1024(c)(1)'' 
     and inserting ``section 1024(b)(1)'';
       (8) in section 1034--
       (A) by striking subsections (b) and (c); and
       (B) by redesignating subsection (d) as subsection (b);
       (9) in section 1053--
       (A) in subsection (b)(1)(A), by striking ``sections 1024, 
     1025, and 1026'' and inserting ``sections 1024 and 1026''; 
     and
       (B) in subsection (c)(3)(B)(ii)(II), by striking ``, by 
     examination or otherwise,'';
       (10) in section 1054(a), by striking ``sections 1024, 1025, 
     and 1026'' and inserting ``sections 1024 and 1026'';
       (11) in section 1061--
       (A) in subsection (a)(1)--
       (i) in subparagraph (A), by striking ``; and'' at the end 
     and inserting a period;
       (ii) by striking ``means--'' and all that follows through 
     ``(A) all'' and inserting ``means all'';
       (iii) by striking subparagraph (B); and
       (B) in subsection (c)--
       (i) by amending paragraph (1) to read as follows:
       ``(1) Examination.--A transferor agency that is a 
     prudential regulator shall have exclusive authority (relative 
     to the Bureau) to require reports from and conduct 
     examinations for compliance with Federal consumer financial 
     laws with respect to a person described in section 
     1026(a).'';
       (ii) in paragraph (2)--

       (I) by striking subparagraph (A); and
       (II) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively;

       (12) in section 1063, by striking ``sections 1024, 1025, 
     and 1026'' each place such term appears and inserting 
     ``sections 1024 and 1026''; and
       (13) in section 1067, by striking subsection (e).
       (b) Home Mortgage Disclosure Act of 1975.--Section 305(d) 
     of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
     2804(d)) is amended by striking ``examine and''.
       (c) Omnibus Appropriations Act, 2009.--Section 626 of the 
     Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 note) is 
     repealed.
       (d) Clerical Amendment.--The table of contents in section 
     1(b) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended--
       (1) in the item relating to section 1024, by striking 
     ``SUPERVISION OF'' and inserting ``AUTHORITY WITH RESPECT TO 
     CERTAIN''; and
       (2) by striking the item relating to section 1025.

     SEC. 728. TRANSFER OF OLD OTS BUILDING FROM OCC TO GSA.

       Within 180 days of the date of the enactment of this Act, 
     the Comptroller of the Currency shall transfer, at no cost, 
     the parcel of real property in the District of Columbia 
     located at 1700 G Street, Northwest, to the administrative 
     jurisdiction, custody, and control of the Administrator of 
     General Services.

     SEC. 729. LIMITATION ON AGENCY AUTHORITY.

       Section 1027 of the Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5517) is amended--
       (1) in subsection (g)(3)(A), by striking ``may not exercise 
     any rulemaking or enforcement authority'' and inserting ``may 
     not exercise any rulemaking, enforcement, or other 
     authority'';
       (2) in subsection (i)(1), by striking ``shall have no 
     authority to exercise any power to enforce this title'' and 
     inserting ``may not exercise any rulemaking, enforcement, or 
     other authority''; and
       (3) in subsection (j)(1), by striking ``shall have no 
     authority to exercise any power to enforce this title'' and 
     inserting ``may not exercise any rulemaking, enforcement, or 
     other authority''.

                    Subtitle C--Policy Enhancements

     SEC. 731. CONSUMER RIGHT TO FINANCIAL PRIVACY.

       (a) Requirement of the Agency to Obtain Permission Before 
     Collecting Nonpublic Personal Information.--Section 1022 of 
     the Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5512), as amended by section 724(2), is further amended by 
     inserting after subsection (b) the following:
       ``(c) Consumer Privacy.--
       ``(1) In general.--The Agency may not request, obtain, 
     access, collect, use, retain, or disclose any nonpublic 
     personal information about a consumer unless--
       ``(A) the Agency clearly and conspicuously discloses to the 
     consumer, in writing or in an electronic form, what 
     information will be requested, obtained, accessed, collected, 
     used, retained, or disclosed; and
       ``(B) before such information is requested, obtained, 
     accessed, collected, used, retained, or disclosed, the 
     consumer informs the Agency that such information may be 
     requested, obtained, accessed, collected, used, retained, or 
     disclosed.
       ``(2) Application of requirement to contractors of the 
     agency.--Paragraph (1) shall apply to any person directed or 
     engaged by the Agency to collect information to the extent 
     such information is being collected on behalf of the Agency.
       ``(3) Definition of nonpublic personal information.--In 
     this subsection, the term `nonpublic personal information' 
     has the meaning given the term in section 509 of the Gramm-
     Leach-Bliley Act (15 U.S.C. 6809).''.
       (b) Removal of Exemption for the Agency From the Right to 
     Financial Privacy Act.--Section 1113 of the Right to 
     Financial Privacy Act of 1978 (12 U.S.C. 3413) is amended by 
     striking subsection (r).

     SEC. 732. REPEAL OF COUNCIL AUTHORITY TO SET ASIDE AGENCY 
                   RULES AND REQUIREMENT OF SAFETY AND SOUNDNESS 
                   CONSIDERATIONS WHEN ISSUING RULES.

       (a) Repeal of Authority.--
       (1) In general.--Section 1023 of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5513) is hereby repealed.
       (2) Conforming amendment.--Section 1022(b)(2)(C) of the 
     Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5512(b)(2)(C)) is amended by striking ``, except that nothing 
     in this clause shall be construed as altering or limiting the 
     procedures under section 1023 that may apply to any rule 
     prescribed by the Bureau''.
       (3) Clerical amendment.--The table of contents under 
     section 1(b) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act is amended by striking the item 
     relating to section 1023.

[[Page 8966]]

       (b) Safety and Soundness Check.--Section 1022(b)(2)(A) of 
     the Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5512(b)(2)(A)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by adding ``and'' at the end; and
       (3) by adding at the end the following:
       ``(iii) the impact of such rule on the financial safety or 
     soundness of an insured depository institution;''.

     SEC. 733. REMOVAL OF AUTHORITY TO REGULATE SMALL-DOLLAR 
                   CREDIT.

       The Consumer Financial Protection Act of 2010 (12 U.S.C. 
     5481 et seq.) is amended--
       (1) in section 1024(a)(1)--
       (A) in subparagraph (C), by adding ``or'' at the end;
       (B) in subparagraph (D), by striking ``; or'' and inserting 
     a period; and
       (C) by striking subparagraph (E); and
       (2) in section 1027, by adding at the end the following:
       ``(t) No Authority to Regulate Small-dollar Credit.--The 
     Agency may not exercise any rulemaking, enforcement, or other 
     authority with respect to payday loans, vehicle title loans, 
     or other similar loans.''.

     SEC. 734. REFORMING INDIRECT AUTO FINANCING GUIDANCE.

       (a) Nullification of Auto Lending Guidance.--Bulletin 2013-
     02 of the Bureau of Consumer Financial Protection (published 
     March 21, 2013) shall have no force or effect.
       (b) Guidance Requirements.--Section 1022(b) of the Consumer 
     Financial Protection Act of 2010 (12 U.S.C. 5512(b)), as 
     amended by section 721, is further amended by adding at the 
     end the following:
       ``(8) Guidance on indirect auto financing.--In proposing 
     and issuing guidance primarily related to indirect auto 
     financing, the Agency shall--
       ``(A) provide for a public notice and comment period before 
     issuing the guidance in final form;
       ``(B) make available to the public, including on the 
     website of the Agency, all studies, data, methodologies, 
     analyses, and other information relied on by the Agency in 
     preparing such guidance;
       ``(C) redact such information as necessary to maintain the 
     nonpublic nature of confidential information, such as trade 
     secrets and other confidential commercial or financial 
     information, and personally identifiable information;
       ``(D) consult with the Board of Governors of the Federal 
     Reserve System, the Federal Trade Commission, and the 
     Department of Justice; and
       ``(E) conduct a study on the costs and impacts of such 
     guidance to consumers and women-owned, minority-owned, 
     veteran-owned, and small businesses, including consumers and 
     small businesses in rural areas.''.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to apply to guidance issued by the Consumer Law 
     Enforcement Agency that is not primarily related to indirect 
     auto financing.

     SEC. 735. REMOVAL OF AGENCY UDAAP AUTHORITY.

       (a) In General.--The Consumer Financial Protection Act of 
     2010 (12 U.S.C. 5481 et seq.) is amended--
       (1) in section 1021(b)(2), by striking ``from unfair, 
     deceptive, or abusive acts and practices and'';
       (2) by striking section 1031;
       (3) in section 1036(a)--
       (A) in paragraph (1)--
       (i) by striking ``provider'' and all that follows through 
     ``to offer'' and inserting ``provider to offer'';
       (ii) by striking subparagraph (B); and
       (B) in paragraph (2)(C), by striking ``; or'' at the end 
     and inserting a period; and
       (C) by striking paragraph (3); and
       (4) in section 1061(b)(5)--
       (A) in subparagraph (B)--
       (i) by striking ``(i) In general.--''; and
       (ii) by striking clause (ii);
       (B) by striking subparagraph (D); and
       (C) by redesignating subparagraph (E) (as amended by 
     section 717(2)) as subparagraph (D); and
       (5) in section 1076(b)(2), by striking ``determine--'' and 
     all that follows through ``(B) provide for'' and inserting 
     ``determine, provide for''.
       (b) Telemarketing and Consumer Fraud and Abuse Prevention 
     Act.--Section 3(c) of the Telemarketing and Consumer Fraud 
     and Abuse Prevention Act (15 U.S.C. 6102) is amended--
       (1) in paragraph (1), by striking ``; and'' at the end and 
     inserting a period;
       (2) by striking paragraph (2); and
       (3) by striking ``subsection (a)--'' and all that follows 
     through ``(1) shall'' and inserting ``subsection (a) shall''.
       (c) Clerical Amendment.--The table of contents in section 
     1(b) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended by striking the item relating to 
     section 1031.

     SEC. 736. PRESERVATION OF UDAP AUTHORITY FOR FEDERAL BANKING 
                   REGULATORS.

       (a) In General.--Section 18(f) of the Federal Trade 
     Commission Act (15 U.S.C. 57a(f)) is amended to read as 
     follows:
       ``(f) Unfair or Deceptive Acts or Practices by Depository 
     Institutions.--
       ``(1) In general.--In order to prevent unfair or deceptive 
     acts or practices in or affecting commerce (including acts or 
     practices which are unfair or deceptive to consumers) by 
     depository institutions, each Federal banking regulator shall 
     prescribe regulations to carry out the purposes of this 
     section, including regulations defining with specificity such 
     unfair or deceptive acts or practices, and containing 
     requirements prescribed for the purpose of preventing such 
     acts or practices.
       ``(2) Promulgating substantially similar regulations.--
     Whenever the Commission prescribes a rule under subsection 
     (a)(1)(B), then within 60 days after such rule takes effect 
     each Federal banking regulator shall promulgate substantially 
     similar regulations prohibiting acts or practices of 
     depository institutions which are substantially similar to 
     those prohibited by rules of the Commission and which impose 
     substantially similar requirements, unless--
       ``(A) the Federal banking regulator finds that such acts or 
     practices of depository institutions are not unfair or 
     deceptive; or
       ``(B) the Board of Governors of the Federal Reserve System 
     finds that implementation of similar regulations with respect 
     to depository institutions would seriously conflict with 
     essential monetary and payments systems policies of such 
     Board, and publishes any such finding, and the reasons 
     therefor, in the Federal Register.
       ``(3) Enforcement.--
       ``(A) In general.--Compliance with regulations prescribed 
     under this subsection shall be enforced--
       ``(i) under section 8 of the Federal Deposit Insurance Act, 
     with respect to a depository institution other than a Federal 
     credit union; and
       ``(ii) under sections 120 and 206 of the Federal Credit 
     Union Act, with respect to a Federal credit union.
       ``(B) Deeming of violation.--For the purpose of the 
     exercise by a Federal banking regulator of the regulator's 
     powers under any Act referred to in subparagraph (A), a 
     violation of any regulation prescribed under this subsection 
     shall be deemed to be a violation of a requirement imposed 
     under that Act.
       ``(C) Enforcement through any existing authority.--In 
     addition to its powers under any provision of law 
     specifically referred to in subparagraph (A), each Federal 
     banking regulator may exercise, for the purpose of enforcing 
     compliance with any regulation prescribed under this 
     subsection, any other authority conferred on the regulator by 
     law.
       ``(4) Rule of construction.--The authority of the Board of 
     Governors of the Federal Reserve System to issue regulations 
     under this subsection does not impair the authority of any 
     other Federal banking regulator to make rules respecting the 
     regulator's own procedures in enforcing compliance with 
     regulations prescribed under this subsection.
       ``(5) Report to congress.--Each Federal banking regulator 
     exercising authority under this subsection shall transmit to 
     the Congress each year a detailed report on its activities 
     under this subsection during the preceding calendar year.
       ``(6) Definitions.--For purposes of this Act:
       ``(A) Bank.--The term `bank' means--
       ``(i) national banks and Federal branches and Federal 
     agencies of foreign banks;
       ``(ii) member banks of the Federal Reserve System (other 
     than national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25A of the 
     Federal Reserve Act; and
       ``(iii) banks insured by the Federal Deposit Insurance 
     Corporation (other than banks referred to in clause (i) or 
     (ii)) and insured State branches of foreign banks.
       ``(B) Depository institution.--The term `depository 
     institution' means a bank, a savings and loan institution, or 
     a Federal credit union.
       ``(C) Federal banking regulator.--The term `Federal banking 
     regulator'--
       ``(i) has the meaning given the term `appropriate Federal 
     banking agency' under section 3 of the Federal Deposit 
     Insurance Act; and
       ``(ii) means the National Credit Union Administration, in 
     the case of a Federal credit union.
       ``(D) Federal credit union.--The term `Federal credit 
     union' has the same meaning as in section 101 of the Federal 
     Credit Union Act.
       ``(E) Savings and loan institution.--The term `savings and 
     loan institution' has the same meaning as in section 3 of the 
     Federal Deposit Insurance Act.
       ``(F) Other terms.--The terms used in this paragraph that 
     are not defined in this Act or otherwise defined in section 
     3(s) of the Federal Deposit Insurance Act shall have the 
     meaning given to them in section 1(b) of the International 
     Banking Act of 1978.''.
       (b) Conforming Amendments.--The Federal Trade Commission 
     Act (15 U.S.C. 41 et seq.) is amended--
       (1) in section 6(j)(6), by striking ``section 18(f)(3) (15 
     U.S.C. 57a(f)(3)), a Federal credit union described in 
     section 18(f)(4) (15 U.S.C. 57a(f)(4))'' and inserting 
     ``section 18(f), a Federal credit union described in section 
     18(f)'';
       (2) in section 21(b)(6)(C), by striking ``section 18(f)(3) 
     of the Federal Trade Commission Act (15 U.S.C. 57a(f)(3)), or 
     a Federal credit union described in section 18(f)(4) of the 
     Federal Trade Commission Act (15 U.S.C. 57a(f)(4))'' and 
     inserting ``section 18(f), or a Federal credit union 
     described in section 18(f)'';
       (3) by striking ``section 18(f)(2)'' and inserting 
     ``section 18(f)'';
       (4) by striking ``section 18(f)(3)'' each place such term 
     appears and inserting ``section 18(f)''; and
       (5) by striking ``section 18(f)(4)'' each place such term 
     appears and inserting ``section 18(f)''.

[[Page 8967]]



     SEC. 737. REPEAL OF AUTHORITY TO RESTRICT ARBITRATION.

       (a) In General.--Section 1028 of the Consumer Financial 
     Protection Act of 2010 (12 U.S.C. 5518) is hereby repealed.
       (b) Clerical Amendment.--The table of contents under 
     section 1(b) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act is amended by striking the item 
     relating to section 1028.

                TITLE VIII--CAPITAL MARKETS IMPROVEMENTS

       Subtitle A--SEC Reform, Restructuring, and Accountability

     SEC. 801. AUTHORIZATION OF APPROPRIATIONS.

       Section 35 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78kk) is amended by striking paragraphs (1) through 
     (5) and inserting the following:
       ``(1) for fiscal year 2017, $1,605,000,000;
       ``(2) for fiscal year 2018, $1,655,000,000;
       ``(3) for fiscal year 2019, $1,705,000,000;
       ``(4) for fiscal year 2020, $1,755,000,000;
       ``(5) for fiscal year 2021, $1,805,000,000; and
       ``(6) for fiscal year 2022, $1,855,000,000.''.

     SEC. 802. REPORT ON UNOBLIGATED APPROPRIATIONS.

       Section 23 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78w) is amended by adding at the end the following:
       ``(e) Report on Unobligated Appropriations.--If, at the end 
     of any fiscal year, there remain unobligated any funds that 
     were appropriated to the Commission for such fiscal year, the 
     Commission shall, not later than 30 days after the last day 
     of such fiscal year, submit to the Committee on Financial 
     Services and the Committee on Appropriations of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs and the Committee on Appropriations of the 
     Senate and make available on the Commission's website a 
     report stating the amount of such unobligated funds. If there 
     is any material change in the amount stated in the report, 
     the Commission shall, not later than 7 days after determining 
     the amount of the change, submit to such committees and make 
     available on the Commission's website a supplementary report 
     stating the amount of and reason for the change.''.

     SEC. 803. SEC RESERVE FUND ABOLISHED.

       Section 4 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78d) is amended by striking subsection (i).

     SEC. 804. FEES TO OFFSET APPROPRIATIONS.

       (a) Section 31 of the Securities Exchange Act of 1934.--
     Section 31 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78ee) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Collection.--The Commission shall, in accordance with 
     this section, collect transaction fees and assessments.'';
       (2) in subsection (i)--
       (A) in paragraph (1)(A), by inserting ``except as provided 
     in paragraph (2),'' before ``shall''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) General revenue.--Any fees collected for a fiscal 
     year pursuant to this section, sections 13(e) and 14(g) of 
     this title, and section 6(b) of the Securities Act of 1933 in 
     excess of the amount provided in appropriation Acts for 
     collection for such fiscal year pursuant to such sections 
     shall be deposited and credited as general revenue of the 
     Treasury.'';
       (3) in subsection (j)--
       (A) by striking ``the regular appropriation to the 
     Commission by Congress for such fiscal year'' each place it 
     appears and inserting ``the target offsetting collection 
     amount for such fiscal year''; and
       (B) in paragraph (2), by striking ``subsection (l)'' and 
     inserting ``subsection (l)(2)''; and
       (4) by striking subsection (l) and inserting the following:
       ``(l) Definitions.--For purposes of this section:
       ``(1) Target offsetting collection amount.--The target 
     offsetting collection amount for a fiscal year is--
       ``(A) for fiscal year 2017, $1,400,000,000; and
       ``(B) for each succeeding fiscal year, the target 
     offsetting collection amount for the prior fiscal year, 
     adjusted by the rate of inflation.
       ``(2) Baseline estimate of the aggregate dollar amount of 
     sales.--The baseline estimate of the aggregate dollar amount 
     of sales for any fiscal year is the baseline estimate of the 
     aggregate dollar amount of sales of securities (other than 
     bonds, debentures, other evidences of indebtedness, security 
     futures products, and options on securities indexes 
     (excluding a narrow-based security index)) to be transacted 
     on each national securities exchange and by or through any 
     member of each national securities association (otherwise 
     than on a national securities exchange) during such fiscal 
     year as determined by the Commission, after consultation with 
     the Congressional Budget Office and the Office of Management 
     and Budget, using the methodology required for making 
     projections pursuant to section 257 of the Balanced Budget 
     and Emergency Deficit Control Act of 1985.''.
       (b) Section 6(b) of the Securities Act of 1933.--Section 
     6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) is 
     amended--
       (1) by striking ``target fee collection amount'' each place 
     it appears and inserting ``target offsetting collection 
     amount'';
       (2) in paragraph (4), by striking the last sentence and 
     inserting the following: ``Subject to paragraphs (6)(B) and 
     (7), an adjusted rate prescribed under paragraph (2) shall 
     take effect on the later of--
       ``(A) the first day of the fiscal year to which such rate 
     applies; or
       ``(B) five days after the date on which a regular 
     appropriation to the Commission for such fiscal year is 
     enacted.'';
       (3) in paragraph (5), by inserting ``of the Securities 
     Exchange Act of 1934'' after ``sections 13(e) and 14(g)'';
       (4) by redesignating paragraph (6) as paragraph (8);
       (5) by inserting after paragraph (5) the following:
       ``(6) Offsetting collections.--Fees collected pursuant to 
     this subsection for any fiscal year--
       ``(A) except as provided in section 31(i)(2) of the 
     Securities Exchange Act of 1934, shall be deposited and 
     credited as offsetting collections to the account providing 
     appropriations to the Commission; and
       ``(B) except as provided in paragraph (7), shall not be 
     collected for any fiscal year except to the extent provided 
     in advance in appropriation Acts.
       ``(7) Lapse of appropriation.--If on the first day of a 
     fiscal year a regular appropriation to the Commission has not 
     been enacted, the Commission shall continue to collect fees 
     (as offsetting collections) under this subsection at the rate 
     in effect during the preceding fiscal year, until 5 days 
     after the date such a regular appropriation is enacted.''; 
     and
       (6) in subparagraph (A) of paragraph (8) (as so 
     redesignated)--
       (A) by striking the subparagraph heading and inserting 
     ``Target offsetting collection amount.--''; and
       (B) in the heading of the right column of the table, by 
     striking ``fee'' and inserting ``offsetting''.
       (c) Section 13(e) of the Securities Exchange Act of 1934.--
     Section 13(e) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m(e)) is amended--
       (1) by striking paragraph (5) and inserting the following:
       ``(5) Offsetting collections.--Fees collected pursuant to 
     this subsection for any fiscal year--
       ``(A) except as provided in section 31(i)(2), shall be 
     deposited and credited as offsetting collections to the 
     account providing appropriations to the Commission; and
       ``(B) except as provided in paragraph (8), shall not be 
     collected for any fiscal year except to the extent provided 
     in advance in appropriations Acts.''; and
       (2) by adding at the end the following:
       ``(8) Lapse of appropriation.--If on the first day of a 
     fiscal year a regular appropriation to the Commission has not 
     been enacted, the Commission shall continue to collect fees 
     (as offsetting collections) under this subsection at the rate 
     in effect during the preceding fiscal year, until 5 days 
     after the date such a regular appropriation is enacted.''.
       (d) Section 14(g) of the Securities Exchange Act of 1934.--
     Section 14(g) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78n(g)) is amended--
       (1) by striking paragraph (5) and inserting the following:
       ``(5) Offsetting collections.--Fees collected pursuant to 
     this subsection for any fiscal year--
       ``(A) except as provided in section 31(i)(2), shall be 
     deposited and credited as offsetting collections to the 
     account providing appropriations to the Commission; and
       ``(B) except as provided in paragraph (8), shall not be 
     collected for any fiscal year except to the extent provided 
     in advance in appropriations Acts.'';
       (2) by redesignating paragraph (8) as paragraph (9); and
       (3) by inserting after paragraph (7) the following:
       ``(8) Lapse of appropriation.--If on the first day of a 
     fiscal year a regular appropriation to the Commission has not 
     been enacted, the Commission shall continue to collect fees 
     (as offsetting collections) under this subsection at the rate 
     in effect during the preceding fiscal year, until 5 days 
     after the date such a regular appropriation is enacted.''.
       (e) Effective Date.--The amendments made by this section--
       (1) shall apply beginning on October 1, 2017, except that 
     for fiscal year 2018, the Securities and Exchange Commission 
     shall publish--
       (A) the rates established under section 31 of the 
     Securities Exchange Act of 1934, as amended by this section, 
     not later than 30 days after the date on which an Act making 
     a regular appropriation to the Commission for fiscal year 
     2018 is enacted; and
       (B) the rate established under section 6(b) of the 
     Securities Act of 1933, as amended by this section, not later 
     than August 31, 2017; and
       (2) shall not apply with respect to fees for any fiscal 
     year before fiscal year 2018.

     SEC. 805. COMMISSION FEDERAL CONSTRUCTION FUNDING 
                   PROHIBITION.

       The Securities and Exchange Commission may not obligate any 
     funds for the purpose of Federal construction of a new 
     headquarters facility of the Commission.

     SEC. 806. IMPLEMENTATION OF RECOMMENDATIONS.

       Section 967 of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act is amended by adding at the end the 
     following:
       ``(d) Implementation of Recommendations.--Not later than 6 
     months after the date of enactment of this subsection, the 
     Securities and Exchange Commission shall complete an 
     implementation of the recommendations contained in the report 
     of the independent consultant

[[Page 8968]]

     issued under subsection (b) on March 10, 2011. To the extent 
     that implementation of certain recommendations requires 
     legislation, the Commission shall submit a report to Congress 
     containing a request for legislation granting the Commission 
     such authority it needs to fully implement such 
     recommendations.''.

     SEC. 807. OFFICE OF CREDIT RATINGS TO REPORT TO THE DIVISION 
                   OF TRADING AND MARKETS.

       Section 15E(p)(1) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78o-7(p)(1)) is amended--
       (1) in subparagraph (A), by striking ``within the 
     Commission'' and inserting ``within the Division of Trading 
     and Markets''; and
       (2) in subparagraph (B), by striking ``report to the 
     Chairman'' and inserting ``report to the head of the Division 
     of Trading and Markets''.

     SEC. 808. OFFICE OF MUNICIPAL SECURITIES TO REPORT TO THE 
                   DIVISION OF TRADING AND MARKETS.

       Section 979 of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act (15 U.S.C. 78o-4a) is amended--
       (1) in subsection (a), by inserting ``, within the Division 
     of Trading and Markets,'' after ``There shall be in the 
     Commission''; and
       (2) in subsection (b), by striking ``report to the 
     Chairman'' and inserting ``report to the head of the Division 
     of Trading and Markets''.

     SEC. 809. INDEPENDENCE OF COMMISSION OMBUDSMAN.

       Section 4(g)(8) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78d(g)(8)) is amended--
       (1) in subparagraph (A), by striking ``the Investor 
     Advocate shall appoint'' and all that follows through 
     ``Investor Advocate'' and inserting ``the Chairman shall 
     appoint an Ombudsman, who shall report to the Commission''; 
     and
       (2) in subparagraph (D)--
       (A) by striking ``report to the Investor Advocate'' and 
     inserting ``report to the Commission''; and
       (B) by striking the last sentence.

     SEC. 810. INVESTOR ADVISORY COMMITTEE IMPROVEMENTS.

       Section 39 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78pp) is amended--
       (1) in subsection (a)(2)(B), by striking ``submit'' and 
     inserting ``in consultation with the Small Business Capital 
     Formation Advisory Committee established under section 40, 
     submit'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (C), by striking ``and'';
       (ii) in subparagraph (D)(iv), by striking the period at the 
     end and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(E) a member of the Small Business Capital Formation 
     Advisory Committee who shall be a nonvoting member.'';
       (B) by amending paragraph (2) to read as follows:
       ``(2) Term.--
       ``(A) Length of term for members of the committee.--Each 
     member of the Committee appointed under paragraph (1), other 
     than the Investor Advocate, shall serve for a term of 4 
     years.
       ``(B) Limitation on multiple terms.--A member of the 
     Committee may not serve for more than one term, except for 
     the Investor Advocate, a representative of State securities 
     commissions, and the member of the Small Business Capital 
     Formation Advisory Committee.''; and
       (C) in paragraph (3), by striking ``paragraph (1)(B)'' and 
     inserting ``paragraph (1)'';
       (3) in subsection (c), by amending paragraph (2) to read as 
     follows:
       ``(2) Term.--
       ``(A) Length of term.--Each member elected under paragraph 
     (1) shall serve for a term of 3 years in the capacity for 
     which the member was elected under paragraph (1).
       ``(B) Limitation on multiple terms.--A member elected under 
     paragraph (1) may not serve for more than one term in the 
     capacity for which the member was elected under paragraph 
     (1).''; and
       (4) by striking subsections (i) and (j).

     SEC. 811. DUTIES OF INVESTOR ADVOCATE.

       Section 4(g)(4) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78d(g)(4)) is amended--
       (1) in subparagraph (D)(ii), by striking ``and'';
       (2) in subparagraph (E), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(F) not take a position on any legislation pending before 
     Congress other than a legislative change proposed by the 
     Investor Advocate pursuant to subparagraph (E);
       ``(G) consult with the Advocate for Small Business Capital 
     Formation on proposed recommendations made under subparagraph 
     (E); and
       ``(H) advise the Advocate for Small Business Capital 
     Formation on issues related to small business investors.''.

     SEC. 812. ELIMINATION OF EXEMPTION OF SMALL BUSINESS CAPITAL 
                   FORMATION ADVISORY COMMITTEE FROM FEDERAL 
                   ADVISORY COMMITTEE ACT.

       Section 40 of the Securities Exchange Act of 1934 (as added 
     by Public Law 114-284) is amended by striking subsection (h).

     SEC. 813. INTERNAL RISK CONTROLS.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended--
       (1) by inserting after section 4G, as added by this Act, 
     the following:

     ``SEC. 4H. INTERNAL RISK CONTROLS.

       ``(a) In General.--Each of the following entities, in 
     consultation with the Chief Economist, shall develop 
     comprehensive internal risk control mechanisms to safeguard 
     and govern the storage of all market data by such entity, all 
     market data sharing agreements of such entity, and all 
     academic research performed at such entity using market data:
       ``(1) The Commission.
       ``(2) Each national security association required to 
     register under section 15A.
       ``(b) Consolidated Audit Trail.--The Commission may not 
     approve a national market system plan pursuant to part 
     242.613 of title 17, Code of Federal Regulations (or any 
     successor regulation), unless the operator of the 
     consolidated audit trail created by such plan has developed, 
     in consultation with the Chief Economist, comprehensive 
     internal risk control mechanisms to safeguard and govern the 
     storage of all market data by such operator, all market data 
     sharing agreements of such operator, and all academic 
     research performed at such operator using market data.'';
       (2) in section 3(a), by redesignating the second paragraph 
     (80) (relating to funding portals) as paragraph (81); and
       (3) in section 3(a), by adding at the end the following:
       ``(82) Chief economist.--The term `Chief Economist' means 
     the Director of the Division of Economic and Risk Analysis, 
     or an employee of the Commission with comparable authority, 
     as determined by the Commission.''.

     SEC. 814. APPLICABILITY OF NOTICE AND COMMENT REQUIREMENTS OF 
                   THE ADMINISTRATIVE PROCEDURE ACT TO GUIDANCE 
                   VOTED ON BY THE COMMISSION.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by inserting after section 4H, as added by this 
     Act, the following:

     ``SEC. 4I. APPLICABILITY OF NOTICE AND COMMENT REQUIREMENTS 
                   OF THE ADMINISTRATIVE PROCEDURE ACT TO GUIDANCE 
                   VOTED ON BY THE COMMISSION.

       ``The notice and comment requirements of section 553 of 
     title 5, United States Code, shall also apply with respect to 
     any Commission statement or guidance, including interpretive 
     rules, general statements of policy, or rules of Commission 
     organization, procedure, or practice, that has the effect of 
     implementing, interpreting, or prescribing law or policy and 
     that is voted on by the Commission.''.

     SEC. 815. LIMITATION ON PILOT PROGRAMS.

       (a) In General.--Section 4 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78d), as amended by section 371(e), is 
     further amended by adding at the end the following:
       ``(l) Limitation on Pilot Programs.--
       ``(1) In general.--Any pilot program established by self-
     regulatory organizations, either individually or jointly, and 
     filed with the Commission, including under section 11A or 19, 
     shall terminate after the end of the 5-year period beginning 
     on the date that the Commission approved such program, unless 
     the Commission issues a rule to permanently continue such 
     program or approves such program on a permanent basis.
       ``(2) Extension.--With respect to a particular pilot 
     program described under paragraph (1), the Commission may 
     extend the 5-year period described under such paragraph for 
     an additional 3 years if the Commission determines such 
     extension is necessary or appropriate in the public interest 
     or for the protection of investors.
       ``(3) Lack of statutory authority.--If, with respect to a 
     pilot program described under paragraph (1), the Commission 
     determines that the pilot program should continue 
     permanently, but the Commission lacks sufficient statutory 
     authority to permanently continue the program, the Commission 
     shall, not later than 1 year before such pilot program is 
     scheduled to terminate pursuant to paragraph (1), notify the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate that the Commission believes the 
     program should continue permanently but does not have 
     sufficient statutory authority to continue the program.''.
       (b) Treatment of Existing Pilot Programs.--For purposes of 
     section 4(k) of Securities Exchange Act of 1934, as added by 
     subsection (a), the date on which the Commission approved a 
     pilot program that was in existence on the date of the 
     enactment of this Act shall be deemed to be the date of the 
     enactment of this Act.

     SEC. 816. PROCEDURE FOR OBTAINING CERTAIN INTELLECTUAL 
                   PROPERTY.

       (a) Persons Under Securities Act of 1933.--Section 8 of the 
     Securities Act of 1933 (15 U.S.C. 77h) is amended by adding 
     at the end the following:
       ``(g) Procedure for Obtaining Certain Intellectual 
     Property.--The Commission is not authorized to compel under 
     this title a person to produce or furnish source code, 
     including algorithmic trading source code or similar 
     intellectual property, to the Commission unless the 
     Commission first issues a subpoena.''.
       (b) Persons Under the Securities Exchange Act of 1934.--
     Section 23 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78w), as amended by section 802, is further amended by adding 
     at the end the following:
       ``(f) Procedure for Obtaining Certain Intellectual 
     Property.--The Commission is not authorized to compel under 
     this title a person to produce or furnish source code, 
     including algorithmic trading source code or similar 
     intellectual property, to the Commission unless the 
     Commission first issues a subpoena.''.
       (c) Investment Companies.--Section 31 of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-30) is amended by adding 
     at the end the following:
       ``(e) Procedure for Obtaining Certain Intellectual 
     Property.--The Commission is not

[[Page 8969]]

     authorized to compel under this title an investment company 
     to produce or furnish source code, including algorithmic 
     trading source code or similar intellectual property, to the 
     Commission unless the Commission first issues a subpoena.''.
       (d) Investment Advisers.--Section 204 of the Investment 
     Advisers Act of 1940 (15 U.S.C. 80b-4) is amended--
       (1) by adding at the end the following:
       ``(f) Procedure for Obtaining Certain Intellectual 
     Property.--The Commission is not authorized to compel under 
     this title an investment adviser to produce or furnish source 
     code, including algorithmic trading source code or similar 
     intellectual property, to the Commission unless the 
     Commission first issues a subpoena.''; and
       (2) in the second subsection (d), by striking ``(d)'' and 
     inserting ``(e)''.

     SEC. 817. PROCESS FOR CLOSING INVESTIGATIONS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Securities and Exchange 
     Commission shall establish a process for closing 
     investigations (including preliminary or informal 
     investigations) that is designed to ensure that the 
     Commission, in a timely manner--
       (1) makes a determination of whether or not to institute an 
     administrative or judicial action in a matter or refer the 
     matter to the Attorney General for potential criminal 
     prosecution; and
       (2) if the Commission determines not to institute such an 
     action or refer the matter to the Attorney General, informs 
     the persons who are the subject of the investigation that the 
     investigation is closed.
       (b) Rule of Construction.--Nothing in this section shall be 
     construed to affect the authority of the Commission to re-
     open an investigation if the Commission obtains new evidence 
     after the investigation is closed, subject to any applicable 
     statute of limitations.

     SEC. 818. ENFORCEMENT OMBUDSMAN.

       (a) In General.--Section 4 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78d), as amended by section 803, is 
     further amended by inserting after subsection (h) the 
     following:
       ``(i) Enforcement Ombudsman.--
       ``(1) Establishment.--The Commission shall have an 
     Enforcement Ombudsman, who shall be appointed by and report 
     directly to the Commission.
       ``(2) Duties.--The Enforcement Ombudsman shall--
       ``(A) act as a liaison between the Commission and any 
     person who is the subject of an investigation (including a 
     preliminary or informal investigation) by the Commission or 
     an administrative or judicial action brought by the 
     Commission in resolving problems that such persons may have 
     with the Commission or the conduct of Commission staff; and
       ``(B) establish safeguards to maintain the confidentiality 
     of communications between the persons described in 
     subparagraph (A) and the Enforcement Ombudsman.
       ``(3) Limitation.--In carrying out the duties of the 
     Enforcement Ombudsman under paragraph (2), the Enforcement 
     Ombudsman shall utilize personnel of the Commission to the 
     extent practicable. Nothing in this subsection shall be 
     construed as replacing, altering, or diminishing the 
     activities of any ombudsman or similar office of any other 
     agency.
       ``(4) Report.--The Enforcement Ombudsman shall submit to 
     the Commission and to the Committee on Financial Services of 
     the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate an annual report 
     that describes the activities and evaluates the effectiveness 
     of the Enforcement Ombudsman during the preceding year.''.
       (b) Deadline for Initial Appointment.--The Securities and 
     Exchange Commission shall appoint the initial Enforcement 
     Ombudsman under subsection (i) of section 4 of the Securities 
     Exchange Act of 1934, as added by subsection (a), not later 
     than 180 days after the date of the enactment of this Act.

     SEC. 819. ADEQUATE NOTICE.

       Section 21 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78u) is amended by adding at the end the following:
       ``(j) Adequate Notice Required Before Bringing an 
     Enforcement Action.--
       ``(1) In general.--No person shall be subject to an 
     enforcement action by the Commission for an alleged violation 
     of the securities laws or the rules and regulations issued 
     thereunder if such person did not have adequate notice of 
     such law, rule, or regulation.
       ``(2) Publishing of interpretation deemed adequate 
     notice.--With respect to an enforcement action, adequate 
     notice of a securities law or a rule or regulation issued 
     thereunder shall be deemed to have been provided to a person 
     if the Commission approved a statement or guidance, in 
     accordance with section 4I, with respect to the conduct that 
     is the subject of the enforcement action, prior to the time 
     that the person engaged in the conduct that is the subject of 
     the enforcement action.''.

     SEC. 820. ADVISORY COMMITTEE ON COMMISSION'S ENFORCEMENT 
                   POLICIES AND PRACTICES.

       (a) Establishment.--Not later than 6 months after the date 
     of the enactment of this Act, the Chairman shall establish an 
     advisory committee on the Commission's enforcement policies 
     and practices (in this section referred to as the 
     ``Committee'').
       (b) Duties.--
       (1) Analysis and recommendations.--
       (A) In general.--The Committee shall conduct an analysis of 
     the policies and practices of the Commission relating to the 
     enforcement of the securities laws and make recommendations 
     to the Commission regarding changes to such policies and 
     practices.
       (B) Specific matters included.--In carrying out 
     subparagraph (A), the Committee shall analyze and make 
     recommendations to the Commission regarding matters including 
     the following:
       (i) How the Commission's enforcement objectives and 
     strategies may be more effective.
       (ii) The Commission's enforcement practices and procedures 
     from the point of view of due process, the relationship of 
     enforcement action to notice of legal requirements, the 
     attribution of responsibility for violations, and the 
     protection of reputation and rights of privacy.
       (iii) The Commission's enforcement policies and practices 
     in light of its statutory responsibility to protect 
     investors, maintain fair, orderly, and efficient markets, and 
     facilitate capital formation.
       (iv) The appropriate blend of regulation, publicity, and 
     formal enforcement action and on methods of furthering 
     voluntary compliance.
       (v) Criteria for the selection and disposition of 
     enforcement actions, the adequacy of sanctions authorized by 
     law, and the suitability and effectiveness of sanctions 
     imposed by the Commission proceedings.
       (2) Report.--Not later than 1 year after the establishment 
     of the Committee under subsection (a), the Committee shall 
     submit to the Commission and the appropriate congressional 
     committees a report containing the results of the analysis 
     and the recommendations required by paragraph (1)(A).
       (c) Membership.--
       (1) Number and appointment.--The Committee shall be 
     composed of not less than 3 and not greater than 7 members 
     appointed by the Chairman.
       (2) Chairperson.--The Chairperson of the Committee shall be 
     designated by the Chairman at the time of appointment of the 
     members.
       (d) Support.--The Commission shall provide the Committee 
     with the administrative, professional, and technical support 
     required by the Committee to carry out its responsibilities 
     under this section.
       (e) Termination of Committee.--The Committee established by 
     subsection (a) shall terminate on the date that the report 
     required by subsection (b)(2) is submitted.
       (f) Consideration and Adoption of Recommendations by 
     Commission.--Not later than 180 days after the Committee 
     submits the report required by subsection (b)(2), the 
     Commission shall--
       (1) consider the analysis and recommendations included in 
     such report;
       (2) adopt such recommendations, with any modifications, as 
     the Commission considers appropriate; and
       (3) submit to the appropriate congressional committees a 
     report that--
       (A) lists each recommendation included in such report that 
     the Commission does not adopt or adopts with material 
     modifications; and
       (B) for each recommendation listed under subparagraph (A), 
     explains why the Commission does not consider it appropriate 
     or does not have sufficient authority to adopt the 
     recommendation or to adopt the recommendation without 
     material modification.
       (g) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate.
       (2) Chairman.--The term ``Chairman'' means the Chairman of 
     the Commission.
       (3) Commission.--The term ``Commission'' means the 
     Securities and Exchange Commission.
       (4) Securities laws.--The term ``securities laws'' has the 
     meaning given such term in section 3(a) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78c(a)).
       (h) Application of the Federal Advisory Committee Act.--The 
     Committee is an advisory committee for purposes of the 
     Federal Advisory Committee Act (5 U.S.C. App.).

     SEC. 821. PROCESS TO PERMIT RECIPIENT OF WELLS NOTIFICATION 
                   TO APPEAR BEFORE COMMISSION STAFF IN-PERSON.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, the Securities and Exchange 
     Commission shall establish a process under which, in any 
     instance in which the Commission staff provides a written 
     Wells notification to an individual informing the individual 
     that the Commission staff has made a preliminary 
     determination to recommend that the Commission bring an 
     administrative or judicial action against the individual, the 
     individual shall have the right to make an in-person 
     presentation before the Commission staff concerning such 
     recommendation and to be represented by counsel at such 
     presentation, at the individual's own expense.
       (b) Attendance by Commissioners.--Such process shall 
     provide that each Commissioner of the Commission, or a 
     designee of the Commissioner, may attend any such 
     presentation.
       (c) Report by Commission Staff.--Such process shall provide 
     that, before any Commission vote on whether to bring the 
     administrative or judicial action against the individual, the 
     Commission staff shall provide to each Commissioner a written 
     report on any such presentation, including any factual or 
     legal arguments made by the individual and any supporting 
     documents provided by the individual.

[[Page 8970]]



     SEC. 822. PUBLICATION OF ENFORCEMENT MANUAL.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Securities and Exchange 
     Commission shall approve, by vote of the Commission, and 
     publish an updated manual that sets forth the policies and 
     practices that the Commission will follow in the enforcement 
     of the securities laws (as defined in section 3(a) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c(a))). Such 
     manual shall include policies and practices required by this 
     Act, and by the amendments made by this Act, and shall be 
     developed so as to ensure transparency in such enforcement 
     and uniform application of such laws by the Commission.
       (b) Enforcement Plan and Report.--Beginning on the date 
     that is one year after the date of enactment of this Act, and 
     each year thereafter, the Securities and Exchange Commission 
     shall transmit to Congress and publish on its Internet 
     website an annual enforcement plan and report that shall--
       (1) detail the priorities of the Commission with regard to 
     enforcement and examination activities for the forthcoming 
     year;
       (2) report on the Commission's enforcement and examination 
     activities for the previous year, including an assessment of 
     how such activities comported with the priorities identified 
     for that year pursuant to paragraph (1);
       (3) contain an analysis of litigated decisions found not in 
     favor of the Commission over the preceding year;
       (4) contain a description of any emerging trends the 
     Commission has focused on as part of its enforcement program, 
     including whether and how the Commission has alerted or 
     communicated with those who may be subject to the 
     Commission's regulation of emerging trends;
       (5) contain a description of legal theories or standards 
     employed by the Commission in enforcement over the preceding 
     year that had not previously been employed, and a summary 
     justifying each such theory or standard; and
       (6) provide an opportunity and mechanism for public 
     comment.

     SEC. 823. PRIVATE PARTIES AUTHORIZED TO COMPEL THE SECURITIES 
                   AND EXCHANGE COMMISSION TO SEEK SANCTIONS BY 
                   FILING CIVIL ACTIONS.

       Title I of the Securities Exchange Act of 1934 (15 U.S.C. 
     78a et seq.) is amended by adding at the end the following:

     ``SEC. 41. PRIVATE PARTIES AUTHORIZED TO COMPEL THE 
                   COMMISSION TO SEEK SANCTIONS BY FILING CIVIL 
                   ACTIONS.

       ``(a) Termination of Administrative Proceeding.--In the 
     case of any person who is a party to a proceeding brought by 
     the Commission under a securities law, to which section 554 
     of title 5, United States Code, applies, and against whom an 
     order imposing a cease and desist order and a penalty may be 
     issued at the conclusion of the proceeding, that person may, 
     not later than 20 days after receiving notice of such 
     proceeding, and at that person's discretion, require the 
     Commission to terminate the proceeding.
       ``(b) Civil Action Authorized.--If a person requires the 
     Commission to terminate a proceeding pursuant to subsection 
     (a), the Commission may bring a civil action against that 
     person for the same remedy that might be imposed.
       ``(c) Standard of Proof in Administrative Proceeding.--
     Notwithstanding any other provision of law, in the case of a 
     proceeding brought by the Commission under a securities law, 
     to which section 554 of title 5, United States Code, applies, 
     a legal or equitable remedy may be imposed on the person 
     against whom the proceeding was brought only on a showing by 
     the Commission of clear and convincing evidence that the 
     person has violated the relevant provision of law.''.

     SEC. 824. CERTAIN FINDINGS REQUIRED TO APPROVE CIVIL MONEY 
                   PENALTIES AGAINST ISSUERS.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by inserting after section 4E the following:

     ``SEC. 4F. CERTAIN FINDINGS REQUIRED TO APPROVE CIVIL MONEY 
                   PENALTIES AGAINST ISSUERS.

       ``The Commission may not seek against or impose on an 
     issuer a civil money penalty for violation of the securities 
     laws unless the publicly available text of the order 
     approving the seeking or imposition of such penalty contains 
     findings, supported by an analysis by the Division of 
     Economic and Risk Analysis and certified by the Chief 
     Economist, of whether--
       ``(1) the alleged violation resulted in direct economic 
     benefit to the issuer; and
       ``(2) the penalty will harm the shareholders of the 
     issuer.''.

     SEC. 825. REPEAL OF AUTHORITY OF THE COMMISSION TO PROHIBIT 
                   PERSONS FROM SERVING AS OFFICERS OR DIRECTORS.

       (a) Under Securities Act of 1933.--Subsection (f) of 
     section 8A of the Securities Act of 1933 (15 U.S.C. 77h-1) is 
     repealed.
       (b) Under Securities Exchange Act of 1934.--Subsection (f) 
     of section 21C of the Securities Exchange Act of 1934 (15 
     U.S.C. 78u-3) is repealed.

     SEC. 826. SUBPOENA DURATION AND RENEWAL.

       Section 21(b) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78u(b)) is amended--
       (1) by inserting ``Subpoena.--'' after the enumerator;
       (2) by striking ``For the purpose of'' and inserting the 
     following:
       ``(1) In general.--For the purpose of''; and
       (3) by adding at the end the following:
       ``(2) Omnibus orders of investigation.--
       ``(A) Duration and renewal.--An omnibus order of 
     investigation shall not be for an indefinite duration and may 
     be renewed only by Commission action.
       ``(B) Definition.--In subparagraph (A), the term `omnibus 
     order of investigation' means an order of the Commission 
     authorizing 1 or more members of the Commission or its staff 
     to issue subpoenas under paragraph (1) to multiple persons in 
     relation to a particular subject matter area.''.

     SEC. 827. ELIMINATION OF AUTOMATIC DISQUALIFICATIONS.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et 
     seq.), as amended by this Act, is further amended by 
     inserting after section 4F the following:

     ``SEC. 4G. ELIMINATION OF AUTOMATIC DISQUALIFICATIONS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, a non-natural person may not be disqualified or 
     otherwise made ineligible to use an exemption or registration 
     provision, engage in an activity, or qualify for any similar 
     treatment under a provision of the securities laws or the 
     rules issued by the Commission under the securities laws by 
     reason of having, or a person described in subsection (b) 
     having, been convicted of any felony or misdemeanor or made 
     the subject of any judicial or administrative order, 
     judgment, or decree arising out of a governmental action 
     (including an order, judgment, or decree agreed to in a 
     settlement), or having, or a person described in subsection 
     (b) having, been suspended or expelled from membership in, or 
     suspended or barred from association with a member of, a 
     registered national securities exchange or a registered 
     national or affiliated securities association for any act or 
     omission to act constituting conduct inconsistent with just 
     and equitable principles of trade, unless the Commission, by 
     order, on the record after notice and an opportunity for 
     hearing, makes a determination that such non-natural person 
     should be so disqualified or otherwise made ineligible for 
     purposes of such provision.
       ``(b) Person Described.--A person is described in this 
     subsection if the person is--
       ``(1) a natural person who is a director, officer, 
     employee, partner, member, or shareholder of the non-natural 
     person referred to in subsection (a) or is otherwise 
     associated or affiliated with such non-natural person in any 
     way; or
       ``(2) a non-natural person who is associated or affiliated 
     with the non-natural person referred to in subsection (a) in 
     any way.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to limit any authority of the Commission, by 
     order, on the record after notice and an opportunity for 
     hearing, to prohibit a person from using an exemption or 
     registration provision, engaging in an activity, or 
     qualifying for any similar treatment under a provision of the 
     securities laws, or the rules issued by the Commission under 
     the securities laws, by reason of a circumstance referred to 
     in subsection (a) or any similar circumstance.''.

     SEC. 828. DENIAL OF AWARD TO CULPABLE WHISTLEBLOWERS.

       Section 21F(c) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78u-6(c)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (C), by striking ``or'' at the end;
       (B) in subparagraph (D), by striking the period and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(E) to any whistleblower who is responsible for, or 
     complicit in, the violation of the securities laws for which 
     the whistleblower provided information to the Commission.''; 
     and
       (2) by adding at the end the following:
       ``(3) Definition.--For purposes of paragraph (2)(E), a 
     person is responsible for, or complicit in, a violation of 
     the securities laws if, with the intent to promote or assist 
     the violation, the person--
       ``(A) procures, induces, or causes another person to commit 
     the offense;
       ``(B) aids or abets another person in committing the 
     offense; or
       ``(C) having a duty to prevent the violation, fails to make 
     an effort the person is required to make.''.

     SEC. 829. CLARIFICATION OF AUTHORITY TO IMPOSE SANCTIONS ON 
                   PERSONS ASSOCIATED WITH A BROKER OR DEALER.

       Section 15(b)(6)(A)(i) of the Securities Exchange Act of 
     1934 (15 U.S.C. 78o(b)(6)(A)(i)) is amended by striking 
     ``enumerated'' and all that follows and inserting 
     ``enumerated in subparagraph (A), (D), (E), (G), or (H) of 
     paragraph (4) of this subsection;''.

     SEC. 830. COMPLAINT AND BURDEN OF PROOF REQUIREMENTS FOR 
                   CERTAIN ACTIONS FOR BREACH OF FIDUCIARY DUTY.

       Section 36(b) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-35(b)) is amended by adding at the end the 
     following:
       ``(7) In any such action brought by a security holder of a 
     registered investment company on behalf of such company--
       ``(A) the complaint shall state with particularity all 
     facts establishing a breach of fiduciary duty, and, if an 
     allegation of any such facts is based on information and 
     belief, the complaint shall state with particularity all 
     facts on which that belief is formed; and
       ``(B) such security holder shall have the burden of proving 
     a breach of fiduciary duty by clear and convincing 
     evidence.''.

[[Page 8971]]



     SEC. 831. CONGRESSIONAL ACCESS TO INFORMATION HELD BY THE 
                   PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD.

       Section 105(b)(5) of the Sarbanes-Oxley Act of 2002 (15 
     U.S.C. 7215(b)(5)) is amended--
       (1) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C)'' and inserting ``subparagraphs (B), (C), and (D)''; 
     and
       (2) by adding at the end the following:
       ``(D) Availability to the congressional committees.--The 
     Board shall make available to the Committees specified under 
     section 101(h)--
       ``(i) such information as the Committees shall request; and
       ``(ii) with respect to any confidential or privileged 
     information provided in response to a request under clause 
     (i), including any information subject to section 104(g) and 
     subparagraph (A), or any confidential or privileged 
     information provided orally in response to such a request, 
     such information shall maintain the protections provided in 
     subparagraph (A), and shall retain its confidential and 
     privileged status in the hands of the Board and the 
     Committees.''.

     SEC. 832. ABOLISHING INVESTOR ADVISORY GROUP.

       The Public Company Accounting Oversight Board shall abolish 
     the Investor Advisory Group.

     SEC. 833. REPEAL OF REQUIREMENT FOR PUBLIC COMPANY ACCOUNTING 
                   OVERSIGHT BOARD TO USE CERTAIN FUNDS FOR MERIT 
                   SCHOLARSHIP PROGRAM.

       (a) In General.--Section 109(c) of the Sarbanes-Oxley Act 
     of 2002 (15 U.S.C. 7219(c)) is amended by striking paragraph 
     (2).
       (b) Conforming Amendments.--Section 109 of the Sarbanes-
     Oxley Act of 2002 (15 U.S.C. 7219) is amended--
       (1) in subsection (c), by striking ``Uses of Funds'' and 
     all that follows through ``The budget'' and inserting ``Uses 
     of Funds.--The budget''; and
       (2) in subsection (f), by striking ``subsection (c)(1)'' 
     and inserting ``subsection (c)''.

     SEC. 834. REALLOCATION OF FINES FOR VIOLATIONS OF RULES OF 
                   MUNICIPAL SECURITIES RULEMAKING BOARD.

       (a) In General.--Section 15B(c)(9) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o-4(c)(9)) is amended to 
     read as follows:
       ``(9) Fines collected for violations of the rules of the 
     Board shall be deposited and credited as general revenue of 
     the Treasury, except as otherwise provided in section 308 of 
     the Sarbanes-Oxley Act of 2002 or section 21F of this 
     title.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to fines collected after the date of enactment of 
     this Act.

 Subtitle B--Eliminating Excessive Government Intrusion in the Capital 
                                Markets

     SEC. 841. REPEAL OF DEPARTMENT OF LABOR FIDUCIARY RULE AND 
                   REQUIREMENTS PRIOR TO RULEMAKING RELATING TO 
                   STANDARDS OF CONDUCT FOR BROKERS AND DEALERS.

       (a) Repeal of Department of Labor Fiduciary Rule.--The 
     final rule of the Department of Labor titled ``Definition of 
     the Term `Fiduciary'; Conflict of Interest Rule--Retirement 
     Investment Advice'' and related prohibited transaction 
     exemptions published April 8, 2016 (81 Fed. Reg. 20946) shall 
     have no force or effect.
       (b) Stay on Rules Defining Certain Fiduciaries.--After the 
     date of enactment of this Act, the Secretary of Labor shall 
     not prescribe any regulation under the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1001 et seq.) defining 
     the circumstances under which an individual is considered a 
     fiduciary until the date that is 60 days after the Securities 
     and Exchange Commission issues a final rule relating to 
     standards of conduct for brokers and dealers pursuant to the 
     second subsection (k) of section 15 of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78o(k)).
       (c) Requirements Prior to Rulemaking Relating to Standards 
     of Conduct for Brokers and Dealers.--The second subsection 
     (k) of section 15 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o(k)), as added by section 913(g)(1) of the Dodd-
     Frank Wall Street Reform and Consumer Protection Act (12 
     U.S.C. 5301 et seq.), is amended by adding at the end the 
     following:
       ``(3) Requirements prior to rulemaking.--The Commission 
     shall not promulgate a rule pursuant to paragraph (1) before 
     providing a report to the Committee on Financial Services of 
     the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and making such 
     report available on the Commission's website describing 
     whether--
       ``(A) retail investors (and such other customers as the 
     Commission may provide) are being harmed due to brokers or 
     dealers operating under different standards of conduct than 
     those that apply to investment advisors under section 211 of 
     the Investment Advisers Act of 1940 (15 U.S.C. 80b-11);
       ``(B) alternative remedies will reduce any confusion or 
     harm to retail investors due to brokers or dealers operating 
     under different standards of conduct than those standards 
     that apply to investment advisors under section 211 of the 
     Investment Advisers Act of 1940 (15 U.S.C. 80b-11), 
     including--
       ``(i) simplifying the titles used by brokers, dealers, and 
     investment advisers; and
       ``(ii) enhancing disclosure surrounding the different 
     standards of conduct currently applicable to brokers, 
     dealers, and investment advisers;
       ``(C) the adoption of a uniform fiduciary standard of 
     conduct for brokers, dealers, and investment advisors would 
     adversely impact the commissions of brokers and dealers, the 
     availability of proprietary products offered by brokers and 
     dealers, and the ability of brokers and dealers to engage in 
     principal transactions with customers; and
       ``(D) the adoption of a uniform fiduciary standard of 
     conduct for brokers or dealers and investment advisors would 
     adversely impact retail investor access to personalized and 
     cost-effective investment advice, recommendations about 
     securities, or the availability of such advice and 
     recommendations.
       ``(4) Economic analysis.--The Commission's conclusions 
     contained in the report described in paragraph (3) shall be 
     supported by economic analysis.
       ``(5) Requirements for promulgating a rule.--The Commission 
     shall publish in the Federal Register alongside the rule 
     promulgated pursuant to paragraph (1) formal findings that 
     such rule would reduce confusion or harm to retail customers 
     (and such other customers as the Commission may by rule 
     provide) due to different standards of conduct applicable to 
     brokers, dealers, and investment advisors.
       ``(6) Requirements under investment advisers act of 1940.--
     In proposing rules under paragraph (1) for brokers or 
     dealers, the Commission shall consider the differences in the 
     registration, supervision, and examination requirements 
     applicable to brokers, dealers, and investment advisors.''.

     SEC. 842. EXEMPTION FROM RISK RETENTION REQUIREMENTS FOR 
                   NONRESIDENTIAL MORTGAGE.

       (a) In General.--Section 15G of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78o-11) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3)(B), by striking ``and'' at the end;
       (B) in paragraph (4)(B), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(5) the term `asset-backed security' refers only to an 
     asset-backed security that is comprised wholly of residential 
     mortgages.'';
       (2) in subsection (b)--
       (A) by striking paragraph (1); and
       (B) by striking ``(2) Residential mortgages.--'';
       (3) by striking subsection (h) and redesignating subsection 
     (i) as subsection (h); and
       (4) in subsection (h) (as so redesignated)--
       (A) by striking ``effective--'' and all that follows 
     through ``(1) with respect to'' and inserting ``effective 
     with respect to'';
       (B) in paragraph (1), by striking ``; and'' and inserting a 
     period; and
       (C) by striking paragraph (2).
       (b) Conforming Amendment.--Section 941 of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act is amended by 
     striking subsection (c).

     SEC. 843. FREQUENCY OF SHAREHOLDER APPROVAL OF EXECUTIVE 
                   COMPENSATION.

       Section 14A(a) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78n-1(a)) is amended--
       (1) in paragraph (1), by striking ``Not less frequently 
     than once every 3 years'' and inserting ``Each year in which 
     there has been a material change to the compensation of 
     executives of an issuer from the previous year''; and
       (2) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (2).

     SEC. 844. SHAREHOLDER PROPOSALS.

       (a) Resubmission Thresholds.--The Securities and Exchange 
     Commission shall revise section 240.14a-8(i)(12) of title 17, 
     Code of Federal Regulations to--
       (1) in paragraph (i), adjust the 3 percent threshold to 6 
     percent;
       (2) in paragraph (ii), adjust the 6 percent threshold to 15 
     percent; and
       (3) in paragraph (iii), adjust the 10 percent threshold to 
     30 percent.
       (b) Holding Requirement.--The Securities and Exchange 
     Commission shall revise the holding requirement for a 
     shareholder to be eligible to submit a shareholder proposal 
     to an issuer in section 240.14a-8(b)(1) of title 17, Code of 
     Federal Regulations, to--
       (1) eliminate the option to satisfy the holding requirement 
     by holding a certain dollar amount;
       (2) require the shareholder to hold 1 percent of the 
     issuer's securities entitled to be voted on the proposal, or 
     such greater percentage as determined by the Commission; and
       (3) adjust the 1 year holding period to 3 years.
       (c) Shareholder Proposals Issued by Proxies.--Section 14 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78n) is 
     amended by adding at the end the following:
       ``(j) Shareholder Proposals by Proxies Not Permitted.--An 
     issuer may not include in its proxy materials a shareholder 
     proposal submitted by a person in such person's capacity as a 
     proxy, representative, agent, or person otherwise acting on 
     behalf of a shareholder.''.

     SEC. 845. PROHIBITION ON REQUIRING A SINGLE BALLOT.

       Section 14 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78n) is amended by adding at the end the following:
       ``(k) Prohibition on Requiring a Single Ballot.--The 
     Commission may not require that a solicitation of a proxy, 
     consent, or authorization to vote a security of an issuer in 
     an election of members of the board of directors of the 
     issuer be made using a single ballot or card that lists both 
     individuals nominated by (or on behalf of) the issuer and 
     individuals nominated by (or on behalf of) other proponents 
     and permits the person granting the proxy, consent, or 
     authorization to select from among individuals in both 
     groups.''.

[[Page 8972]]



     SEC. 846. REQUIREMENT FOR MUNICIPAL ADVISOR FOR ISSUERS OF 
                   MUNICIPAL SECURITIES.

       Section 15B(d) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o-4(d)) is amended by adding at the end the 
     following:
       ``(3) An issuer of municipal securities shall not be 
     required to retain a municipal advisor prior to issuing any 
     such securities.''.

     SEC. 847. SMALL ISSUER EXEMPTION FROM INTERNAL CONTROL 
                   EVALUATION.

       Section 404(c) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7262(c)) is amended to read as follows:
       ``(c) Exemption for Smaller Issuers.--Subsection (b) shall 
     not apply with respect to any audit report prepared for an 
     issuer that has total market capitalization of less than 
     $500,000,000, nor to any issuer that is a depository 
     institution with assets of less than $1,000,000,000.''.

     SEC. 848. STREAMLINING OF APPLICATIONS FOR AN EXEMPTION FROM 
                   THE INVESTMENT COMPANY ACT OF 1940.

       Section 6(c) of the Investment Company Act of 1940 (15 
     U.S.C. 80a-6(c)) is amended--
       (1) by striking ``(c) The Commission'' and inserting the 
     following:
       ``(c) General Exemptive Authority.--
       ``(1) In general.--The Commission''; and
       (2) by adding at the end the following:
       ``(2) Application process.--
       ``(A) In general.--A person who wishes to receive an 
     exemption from the Commission pursuant to paragraph (1) shall 
     file an application with the Commission in such form and 
     manner and containing such information as the Commission may 
     require.
       ``(B) Publication; rejection of invalid applications.--
       ``(i) In general.--Not later than the end of the 5-day 
     period beginning on the date that the Commission receives an 
     application under subparagraph (A), the Commission shall 
     either--

       ``(I) publish the application, including by publication on 
     the website of the Commission; or
       ``(II) if the Commission determines that the application 
     does not comply with the proper form, manner, or information 
     requirements described under subparagraph (A), reject such 
     application and notify the applicant of the specific reasons 
     the application was rejected.

       ``(ii) Failure to publish application.--If the Commission 
     does not reject an application under clause (i)(II), but 
     fails to publish the application by the end of the time 
     period specified under clause (i), such application shall be 
     deemed to have been published on the date that is the end of 
     such time period.
       ``(3) Determination by commission.--
       ``(A) In general.--Not later than 45 days after the date 
     that the Commission publishes an application pursuant to 
     paragraph (2)(B), the Commission shall, by order--
       ``(i) approve the application;
       ``(ii) if the Commission determines that the application 
     would have been approved had the applicant provided 
     additional supporting documentation or made certain 
     amendments to the application--

       ``(I) provide the applicant with the specific additional 
     supporting documentation or amendments that the Commission 
     believes are necessary for the applicant to provide in order 
     for the application to be approved; and
       ``(II) request that the applicant withdraw the application 
     and re-submit the application with such additional supporting 
     documentation and amendments; or

       ``(iii) deny the application.
       ``(B) Extension of time period.--The Commission may extend 
     the time period described under subparagraph (A) by not more 
     than an additional 45 days, if--
       ``(i) the Commission determines that a longer period is 
     appropriate and publishes the reasons for such determination; 
     or
       ``(ii) the applicant consents to the longer period.
       ``(C) Time period for withdrawal.--If the Commission makes 
     a request under subparagraph (A)(ii) for an applicant to 
     withdraw an application, such application shall be deemed to 
     be denied if the applicant informs the Commission that the 
     applicant will not withdraw the application or if the 
     applicant does not withdraw the application before the end of 
     the 30-day period beginning on the date the Commission makes 
     such request.
       ``(4) Proceedings; notice and hearing.--If an application 
     is denied pursuant to paragraph (3), the Commission shall 
     provide the applicant with--
       ``(A) a written explanation for why the application was not 
     approved; and
       ``(B) an opportunity for hearing, if requested by the 
     applicant not later than 20 days after the date of such 
     denial, with such hearing to be commenced not later than 30 
     days after the date of such denial.
       ``(5) Result of failure to institute or commence 
     proceedings.--An application shall be deemed to have been 
     approved by the Commission, if--
       ``(A) the Commission fails to either approve, request the 
     withdrawal of, or deny the application, as required under 
     paragraph (3)(A), within the time period required under 
     paragraph (3)(A), as such time period may have been extended 
     pursuant to paragraph (3)(B); or
       ``(B) the applicant requests an opportunity for hearing, 
     pursuant to paragraph (4)(B), but the Commission does not 
     commence such hearing within the time period required under 
     paragraph (4)(B).
       ``(6) Rulemaking.--Not later than 180 days after the date 
     of enactment of this paragraph, the Commission shall issue 
     rules to carry out this subsection.''.

     SEC. 849. RESTRICTION ON RECOVERY OF ERRONEOUSLY AWARDED 
                   COMPENSATION.

       Section 10D(b)(2) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78j-4(b)(2)) is amended by inserting before the 
     period the following: ``, where such executive officer had 
     control or authority over the financial reporting that 
     resulted in the accounting restatement''.

     SEC. 850. EXEMPTIVE AUTHORITY FOR CERTAIN PROVISIONS RELATING 
                   TO REGISTRATION OF NATIONALLY RECOGNIZED 
                   STATISTICAL RATING ORGANIZATIONS.

       Section 15E of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o-7) is amended by adding at the end the following:
       ``(w) Commission Exemptive Authority.--The Commission, by 
     rules and regulations upon its own motion, or by order upon 
     application, may conditionally or unconditionally exempt any 
     person from any provision or provisions of this title or of 
     any rule or regulation thereunder, if and to the extent it 
     determines that such rule, regulation, or requirement is 
     creating a barrier to entry into the market for nationally 
     recognized statistical rating organizations or impeding 
     competition among such organizations, or that such an 
     exemption is necessary or appropriate in the public interest 
     and is consistent with the protection of investors.''.

     SEC. 851. RISK-BASED EXAMINATIONS OF NATIONALLY RECOGNIZED 
                   STATISTICAL RATING ORGANIZATIONS.

       Section 15E(p)(3) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78o-7(p)(3)) is amended--
       (1) in subparagraph (A)--
       (A) in the heading, by striking ``Annual'' and inserting 
     ``Risk-based'';
       (B) by striking ``an examination'' and inserting 
     ``examinations''; and
       (C) by striking ``at least annually''; and
       (2) in subparagraph (B), in the matter preceding clause 
     (i), by inserting ``, as appropriate,'' after ``Each 
     examination under subparagraph (A) shall include''.

     SEC. 852. TRANSPARENCY OF CREDIT RATING METHODOLOGIES.

       Section 15E(s) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o-7(s)) is amended--
       (1) in paragraph (2)(B), by inserting before the semicolon 
     the following: ``rated by the nationally recognized 
     statistical rating agency''; and
       (2) in paragraph (3)--
       (A) in subparagraph (A)(ix), by inserting before the period 
     the following: ``, except that the Commission may not require 
     the inclusion of references to statutory or regulatory 
     requirements or statutory provision headings or enumerators 
     for any specific disclosure'';
       (B) in subparagraph (B)(iv), by inserting before the period 
     the following: ``, except that the Commission may not require 
     the inclusion of references to statutory or regulatory 
     requirements or statutory provision headings or enumerators 
     for any specific disclosure''; and
       (C) by adding at the end the following:
       ``(C) No mandate on the organization of disclosures.--The 
     Commission may not mandate the specific organization of the 
     disclosures required under this paragraph.''.

     SEC. 853. REPEAL OF CERTAIN ATTESTATION REQUIREMENTS RELATING 
                   TO CREDIT RATINGS.

       Section 15E of the Securities Exchange Act of 1934 (15 
     U.S.C. 78o-7) is amended--
       (1) in subsection (c)(3)(B)--
       (A) in clause (i), by adding ``and'' at the end;
       (B) in clause (ii), by striking ``; and'' and inserting a 
     period; and
       (C) by striking clause (iii); and
       (2) in subsection (q)(2)--
       (A) in subparagraph (D), by adding ``and'' at the end;
       (B) in subparagraph (E), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (F).

     SEC. 854. LOOK-BACK REVIEW BY NRSRO.

       Section 15E(h)(4)(A) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78o-7(h)(4)(A)) is amended--
       (1) by striking ``Each nationally'' and inserting the 
     following:
       ``(i) In general.--Each nationally'';
       (2) by striking ``underwriter'' and inserting ``lead 
     underwriter'';
       (3) by striking ``in any capacity'';
       (4) by striking ``during the 1-year period preceding the 
     date an action was taken with respect to the credit rating'';
       (5) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and adjusting the margin of such 
     subclauses accordingly;
       (6) in subclause (I), as so redesignated, by inserting 
     before the semicolon the following: ``during the 1-year 
     period preceding the departure of the employee from the 
     nationally recognized statistical rating organization''; and
       (7) by adding at the end the following:
       ``(ii) Maintenance of ratings actions.--In the case of 
     maintenance of ratings actions, the requirement under clause 
     (i) shall only apply to employees of a person subject to a 
     credit rating of the nationally recognized statistical rating 
     organization or an issuer of a security or money market 
     instrument subject to a credit rating of the nationally 
     recognized statistical rating organization.''.

     SEC. 855. APPROVAL OF CREDIT RATING PROCEDURES AND 
                   METHODOLOGIES.

       Section 15E(r)(1)(A) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78o-7(r)(1)(A)) is amended by inserting ``, or the 
     Chief Credit Officer'' after ``performing a function similar 
     to that of a board''.

[[Page 8973]]



     SEC. 856. EXCEPTION FOR PROVIDING CERTAIN MATERIAL 
                   INFORMATION RELATING TO A CREDIT RATING.

       Section 15E(h)(3) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78o-7(h)(3)) is amended by adding at the end the 
     following:
       ``(C) Exception for providing certain material 
     information.--Rules issued under this paragraph may not 
     prohibit a person who participates in sales or marketing of a 
     product or service of a nationally recognized statistical 
     rating organization from providing material information, or 
     information believed in good faith to be material, to the 
     issuance or maintenance of a credit rating to a person who 
     participates in determining or monitoring the credit rating, 
     or developing or approving procedures or methodologies used 
     for determining the credit rating, so long as the information 
     provided is not intended to influence the determination of a 
     credit rating, or the procedures or methodologies used to 
     determine credit ratings.''.

     SEC. 857. REPEALS.

       (a) Repeals.--The following provisions of title IX of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act are 
     repealed, and the provisions of law amended or repealed by 
     such sections are restored or revived as if such sections had 
     not been enacted:
       (1) Section 912.
       (2) Section 914.
       (3) Section 917.
       (4) Section 918.
       (5) Section 919A.
       (6) Section 919B.
       (7) Section 919C.
       (8) Section 921.
       (9) Section 929T.
       (10) Section 929X.
       (11) Section 929Y.
       (12) Section 929Z.
       (13) Section 931.
       (14) Section 933.
       (15) Section 937.
       (16) Section 939B.
       (17) Section 939C.
       (18) Section 939D.
       (19) Section 939E.
       (20) Section 939F.
       (21) Section 939G.
       (22) Section 939H.
       (23) Section 946.
       (24) Subsection (b) of section 953.
       (25) Section 955.
       (26) Section 956.
       (27) Section 964.
       (28) Section 965.
       (29) Section 968.
       (30) Section 971.
       (31) Section 972.
       (32) Section 976.
       (33) Section 977.
       (34) Section 978.
       (35) Section 984.
       (36) Section 989.
       (37) Section 989A.
       (38) Section 989F.
       (39) Subsection (b) of section 989G.
       (40) Section 989I.
       (b) Conforming Amendments.--The Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5301) is 
     amended--
       (1) in the table of contents in section 1(b), by striking 
     the items relating to the sections described under paragraphs 
     (1) through (23), (25) through (38), and (40) of subsection 
     (a);
       (2) in section 953, by striking ``(a) Disclosure of Pay 
     Versus Performance.--''; and
       (3) in section 989G, by striking ``(a) Exemption.--''.

     SEC. 858. EXEMPTION OF AND REPORTING BY PRIVATE EQUITY FUND 
                   ADVISERS.

       Section 203 of the Investment Advisers Act of 1940 (15 
     U.S.C. 80b-3) is amended by adding at the end the following:
       ``(o) Exemption of and Reporting by Private Equity Fund 
     Advisers.--
       ``(1) In general.--Except as provided in this subsection, 
     no investment adviser shall be subject to the registration or 
     reporting requirements of this title with respect to the 
     provision of investment advice relating to a private equity 
     fund.
       ``(2) Maintenance of records and access by commission.--Not 
     later than 6 months after the date of enactment of this 
     subsection, the Commission shall issue final rules--
       ``(A) to require investment advisers described in paragraph 
     (1) to maintain such records and provide to the Commission 
     such annual or other reports as the Commission, taking into 
     account fund size, governance, investment strategy, risk, and 
     other factors, determines necessary and appropriate in the 
     public interest and for the protection of investors; and
       ``(B) to define the term `private equity fund' for purposes 
     of this subsection.''.

     SEC. 859. RECORDS AND REPORTS OF PRIVATE FUNDS.

       The Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et 
     seq.) is amended--
       (1) in section 204(b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``investors,'' and all 
     that follows and inserting ``investors.'';
       (ii) by striking subparagraph (B); and
       (iii) by striking ``this title--'' and all that follows 
     through ``to maintain'' and inserting ``this title to 
     maintain'';
       (B) in paragraph (3)(H)--
       (i) by striking ``, in consultation with the Council,''; 
     and
       (ii) by striking ``or for the assessment of systemic 
     risk'';
       (C) in paragraph (4), by striking ``, or for the assessment 
     of systemic risk'';
       (D) in paragraph (5), by striking ``or for the assessment 
     of systemic risk'';
       (E) in paragraph (6)(A)(ii), by striking ``, or for the 
     assessment of systemic risk'';
       (F) by striking paragraph (7) and redesignating paragraphs 
     (8) through (11) as paragraphs (7) through (10), 
     respectively; and
       (G) in paragraph (8) (as so redesignated), by striking 
     ``paragraph (8)'' and inserting ``paragraph (7)''; and
       (2) in section 211(e)--
       (A) by striking ``after consultation with the Council 
     but''; and
       (B) by striking ``subsection 204(b)'' and inserting 
     ``section 204(b)''.

     SEC. 860. DEFINITION OF ACCREDITED INVESTOR.

       (a) In General.--Section 2(a)(15) of the Securities Act of 
     1933 (15 U.S.C. 77b(a)(15)) is amended--
       (1) by redesignating clauses (i) and (ii) as subparagraphs 
     (A) and (G), respectively; and
       (2) in subparagraph (A) (as so redesignated), by striking 
     ``; or'' at the end and inserting a semicolon, and inserting 
     after such subparagraph the following:
       ``(B) any natural person whose individual net worth, or 
     joint net worth with that person's spouse, exceeds $1,000,000 
     (which amount, along with the amounts set forth in 
     subparagraph (C), shall be adjusted for inflation by the 
     Commission every 5 years to the nearest $10,000 to reflect 
     the change in the Consumer Price Index for All Urban 
     Consumers published by the Bureau of Labor Statistics) where, 
     for purposes of calculating net worth under this 
     subparagraph--
       ``(i) the person's primary residence shall not be included 
     as an asset;
       ``(ii) indebtedness that is secured by the person's primary 
     residence, up to the estimated fair market value of the 
     primary residence at the time of the sale of securities, 
     shall not be included as a liability (except that if the 
     amount of such indebtedness outstanding at the time of sale 
     of securities exceeds the amount outstanding 60 days before 
     such time, other than as a result of the acquisition of the 
     primary residence, the amount of such excess shall be 
     included as a liability); and
       ``(iii) indebtedness that is secured by the person's 
     primary residence in excess of the estimated fair market 
     value of the primary residence at the time of the sale of 
     securities shall be included as a liability;
       ``(C) any natural person who had an individual income in 
     excess of $200,000 in each of the 2 most recent years or 
     joint income with that person's spouse in excess of $300,000 
     in each of those years and has a reasonable expectation of 
     reaching the same income level in the current year;
       ``(D) any natural person who, by reason of their net worth 
     or income, is an accredited investor under section 230.215 of 
     title 17, Code of Federal Regulations (as in effect on the 
     day before the date of enactment of this subparagraph);
       ``(E) any natural person who is currently licensed or 
     registered as a broker or investment adviser by the 
     Commission, the Financial Industry Regulatory Authority, or 
     an equivalent self-regulatory organization (as defined in 
     section 3(a)(26) of the Securities Exchange Act of 1934), or 
     the securities division of a State or the equivalent State 
     division responsible for licensing or registration of 
     individuals in connection with securities activities;
       ``(F) any natural person the Commission determines, by 
     regulation, to have demonstrable education or job experience 
     to qualify such person as having professional knowledge of a 
     subject related to a particular investment, and whose 
     education or job experience is verified by the Financial 
     Industry Regulatory Authority or an equivalent self-
     regulatory organization (as defined in section 3(a)(26) of 
     the Securities Exchange Act of 1934); or''.
       (b) Repeal.--Section 413 of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (Public Law 111-203) is 
     hereby repealed.

     SEC. 861. REPEAL OF CERTAIN PROVISIONS REQUIRING A STUDY AND 
                   REPORT TO CONGRESS.

       The following provisions of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act are repealed:
       (1) Section 412.
       (2) Section 415.
       (3) Section 416.
       (4) Section 417.

     SEC. 862. REPEAL.

       (a) Repeal.--The following sections of title XV of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act are 
     repealed, and the provisions of law amended or repealed by 
     such sections are restored or revived as if such sections had 
     not been enacted:
       (1) Section 1502.
       (2) Section 1503.
       (3) Section 1504.
       (4) Section 1505.
       (5) Section 1506.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act is amended by striking the items relating to 
     sections 1502, 1503, 1504, 1505, and 1506.

             Subtitle C--Harmonization of Derivatives Rules

     SEC. 871. COMMISSIONS REVIEW AND HARMONIZATION OF RULES 
                   RELATING TO THE REGULATION OF OVER-THE-COUNTER 
                   SWAPS MARKETS.

       The Securities and Exchange Commission and the Commodity 
     Futures Trading Commission shall review each rule, order, and 
     interpretive guidance issued by either such Commission 
     pursuant to title VII of the Dodd-Frank Wall Street

[[Page 8974]]

     Reform and Consumer Protection Act (15 U.S.C. 8301 et seq.) 
     and, where the Commissions find inconsistencies in any such 
     rules, orders, or interpretive guidance, shall jointly issue 
     new rules, orders, or interpretive guidance to resolve such 
     inconsistencies.

     SEC. 872. TREATMENT OF TRANSACTIONS BETWEEN AFFILIATES.

       (a) Commodity Exchange Act.--Section 1a(47) of the 
     Commodity Exchange Act (7 U.S.C. 1a(47)) is amended by adding 
     at the end the following:
       ``(G) Treatment of swap transactions between affiliates.--
       ``(i) Exemption from swap rules.--Except as provided under 
     clause (ii), the Commission may not regulate a swap under 
     this Act if all of the following apply to such swap:

       ``(I) Affiliation.--One counterparty, directly or 
     indirectly, holds a majority ownership interest in the other 
     counterparty, or a third party, directly or indirectly, holds 
     a majority ownership interest in both counterparties.
       ``(II) Financial statements.--The affiliated counterparty 
     that holds the majority interest in the other counterparty or 
     the third party that, directly or indirectly, holds the 
     majority interests in both affiliated counterparties, reports 
     its financial statements on a consolidated basis under 
     generally accepted accounting principles or International 
     Financial Reporting Standards, or other similar standards, 
     and the financial statements include the financial results of 
     the majority-owned affiliated counterparty or counterparties.

       ``(ii) Requirements for exempted swaps.--With respect to a 
     swap described under clause (i):

       ``(I) Reporting requirement.--If at least one counterparty 
     is a swap dealer or major swap participant, that counterparty 
     shall report the swap pursuant to section 4r, within such 
     time period as the Commission may by rule or regulation 
     prescribe--

       ``(aa) to a swap data repository; or
       ``(bb) if there is no swap data repository that would 
     accept the agreement, contract or transaction, to the 
     Commission.

       ``(II) Risk management requirement.--If at least one 
     counterparty is a swap dealer or major swap participant, the 
     swap shall be subject to a centralized risk management 
     program pursuant to section 4s(j) that is reasonably designed 
     to monitor and to manage the risks associated with the swap.
       ``(III) Anti-evasion requirement.--The swap shall not be 
     structured to evade the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act in violation of any rule promulgated 
     by the Commission pursuant to section 721(c) of such Act.''.

       (b) Securities Exchange Act of 1934.--Section 3(a)(68) of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(68)) is 
     amended by adding at the end the following:
       ``(F) Treatment of security-based swap transactions between 
     affiliates.--
       ``(i) Exemption from security-based swap rules.--Except as 
     provided under clause (ii), the Commission may not regulate a 
     security-based swap under this Act if all of the following 
     apply to such security-based swap:

       ``(I) Affiliation.--One counterparty, directly or 
     indirectly, holds a majority ownership interest in the other 
     counterparty, or a third party, directly or indirectly, holds 
     a majority ownership interest in both counterparties.
       ``(II) Financial statements.--The affiliated counterparty 
     that holds the majority interest in the other counterparty or 
     the third party that, directly or indirectly, holds the 
     majority interests in both affiliated counterparties, reports 
     its financial statements on a consolidated basis under 
     generally accepted accounting principles or International 
     Financial Reporting Standards, or other similar standards, 
     and the financial statements include the financial results of 
     the majority-owned affiliated counterparty or counterparties.

       ``(ii) Requirements for exempted security-based swaps.--
     With respect to a security-based swap described under clause 
     (i):

       ``(I) Reporting requirement.--If at least one counterparty 
     is a security-based swap dealer or major security-based swap 
     participant, that counterparty shall report the security-
     based swap pursuant to section 13A, within such time period 
     as the Commission may by rule or regulation prescribe--

       ``(aa) to a security-based swap data repository; or
       ``(bb) if there is no security-based swap data repository 
     that would accept the agreement, contract or transaction, to 
     the Commission.

       ``(II) Risk management requirement.--If at least one 
     counterparty is a security-based swap dealer or major 
     security-based swap participant, the security-based swap 
     shall be subject to a centralized risk management program 
     pursuant to section 15F(j) that is reasonably designed to 
     monitor and to manage the risks associated with the security-
     based swap.
       ``(III) Anti-evasion requirement.--The security-based swap 
     shall not be structured to evade the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act in violation of any rule 
     promulgated by the Commission pursuant to section 761(b)(3) 
     of such Act.''.

       TITLE IX--REPEAL OF THE VOLCKER RULE AND OTHER PROVISIONS

     SEC. 901. REPEALS.

       (a) In General.--The following sections of title VI of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act are 
     repealed, and the provisions of law amended or repealed by 
     such sections are restored or revived as if such sections had 
     not been enacted:
       (1) Section 603.
       (2) Section 618.
       (3) Section 619.
       (4) Section 620.
       (5) Section 621.
       (b) Clerical Amendment.--The table of contents under 
     section 1(b) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act is amended by striking the items 
     relating to sections 603, 618, 619, 620, and 621.

            TITLE X--FED OVERSIGHT REFORM AND MODERNIZATION

     SEC. 1001. REQUIREMENTS FOR POLICY RULES OF THE FEDERAL OPEN 
                   MARKET COMMITTEE.

       The Federal Reserve Act (12 U.S.C. 221 et seq.) is amended 
     by inserting after section 2B the following new section:

     ``SEC. 2C. DIRECTIVE POLICY RULES OF THE FEDERAL OPEN MARKET 
                   COMMITTEE.

       ``(a) Definitions.--In this section the following 
     definitions shall apply:
       ``(1) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate.
       ``(2) Directive policy rule.--The term `Directive Policy 
     Rule' means a policy rule developed by the Federal Open 
     Market Committee that meets the requirements of subsection 
     (c) and that provides the basis for the Open Market 
     Operations Directive.
       ``(3) GDP.--The term `GDP' means the gross domestic product 
     of the United States as computed and published by the 
     Department of Commerce.
       ``(4) Intermediate policy input.--The term `Intermediate 
     Policy Input'--
       ``(A) may include any variable determined by the Federal 
     Open Market Committee as a necessary input to guide open-
     market operations;
       ``(B) shall include an estimate of, and the method of 
     calculation for, the current rate of inflation or current 
     inflation expectations; and
       ``(C) shall include, specifying whether the variable or 
     estimate is historical, current, or a forecast and the method 
     of calculation, at least one of--
       ``(i) an estimate of real GDP, nominal GDP, or potential 
     GDP;
       ``(ii) an estimate of the monetary aggregate compiled by 
     the Board of Governors of the Federal Reserve System and 
     Federal reserve banks; or
       ``(iii) an interactive variable or a net estimate composed 
     of the estimates described in clauses (i) and (ii).
       ``(5) Legislative day.--The term `legislative day' means a 
     day on which either House of Congress is in session.
       ``(6) Open market operations directive.--The term `Open 
     Market Operations Directive' means an order to achieve a 
     specified Policy Instrument Target provided to the Federal 
     Reserve Bank of New York by the Federal Open Market Committee 
     pursuant to powers authorized under section 14 of this Act 
     that guide open-market operations.
       ``(7) Policy instrument.--The term `Policy Instrument' 
     means--
       ``(A) the nominal Federal funds rate;
       ``(B) the nominal rate of interest paid on nonborrowed 
     reserves; or
       ``(C) the discount window primary credit interest rate most 
     recently published on the Federal Reserve Statistical Release 
     on selected interest rates (daily or weekly), commonly 
     referred to as the H.15 release.
       ``(8) Policy instrument target.--The term `Policy 
     Instrument Target' means the target for the Policy Instrument 
     specified in the Open Market Operations Directive.
       ``(9) Reference policy rule.--The term `Reference Policy 
     Rule' means a calculation of the nominal Federal funds rate 
     as equal to the sum of the following:
       ``(A) The rate of inflation over the previous four 
     quarters.
       ``(B) One-half of the percentage deviation of the real GDP 
     from an estimate of potential GDP.
       ``(C) One-half of the difference between the rate of 
     inflation over the previous four quarters and two percent.
       ``(D) Two percent.
       ``(b) Submitting a Directive Policy Rule.--Not later than 
     48 hours after the end of a meeting of the Federal Open 
     Market Committee, the Chairman of the Federal Open Market 
     Committee shall submit to the appropriate congressional 
     committees and the Comptroller General of the United States a 
     Directive Policy Rule and a statement that identifies the 
     members of the Federal Open Market Committee who voted in 
     favor of the Directive Policy Rule.
       ``(c) Requirements for a Directive Policy Rule.--A 
     Directive Policy Rule shall--
       ``(1) identify the Policy Instrument the Directive Policy 
     Rule is designed to target;
       ``(2) describe the strategy or rule of the Federal Open 
     Market Committee for the systematic quantitative adjustment 
     of the Policy Instrument Target to respond to a change in the 
     Intermediate Policy Inputs;
       ``(3) include a function that comprehensively models the 
     interactive relationship between the Intermediate Policy 
     Inputs;
       ``(4) include the coefficients of the Directive Policy Rule 
     that generate the current Policy Instrument Target and a 
     range of predicted future values for the Policy Instrument 
     Target if changes occur in any Intermediate Policy Input;

[[Page 8975]]

       ``(5) describe the procedure for adjusting the supply of 
     bank reserves to achieve the Policy Instrument Target;
       ``(6) include a statement as to whether the Directive 
     Policy Rule substantially conforms to the Reference Policy 
     Rule and, if applicable--
       ``(A) an explanation of the extent to which it departs from 
     the Reference Policy Rule;
       ``(B) a detailed justification for that departure; and
       ``(C) a description of the circumstances under which the 
     Directive Policy Rule may be amended in the future;
       ``(7) include a certification that the Directive Policy 
     Rule is expected to support the economy in achieving stable 
     prices and maximum natural employment over the long term;
       ``(8) include a calculation that describes with 
     mathematical precision the expected annual inflation rate 
     over a 5-year period; and
       ``(9) include a plan to use the most accurate data, subject 
     to all historical revisions, for inputs into the Directive 
     Policy Rule and the Reference Policy Rule.
       ``(d) GAO Report.--The Comptroller General of the United 
     States shall compare the Directive Policy Rule submitted 
     under subsection (b) with the rule that was most recently 
     submitted to determine whether the Directive Policy Rule has 
     materially changed. If the Directive Policy Rule has 
     materially changed, the Comptroller General shall, not later 
     than 7 days after each meeting of the Federal Open Market 
     Committee, prepare and submit a compliance report to the 
     appropriate congressional committees specifying whether the 
     Directive Policy Rule submitted after that meeting and the 
     Federal Open Market Committee are in compliance with this 
     section.
       ``(e) Changing Market Conditions.--
       ``(1) Rule of construction.--Nothing in this Act shall be 
     construed to require that the plans with respect to the 
     systematic quantitative adjustment of the Policy Instrument 
     Target described under subsection (c)(2) be implemented if 
     the Federal Open Market Committee determines that such plans 
     cannot or should not be achieved due to changing market 
     conditions.
       ``(2) GAO approval of update.--Upon determining that plans 
     described in paragraph (1) cannot or should not be achieved, 
     the Federal Open Market Committee shall submit an explanation 
     for that determination and an updated version of the 
     Directive Policy Rule to the Comptroller General of the 
     United States and the appropriate congressional committees 
     not later than 48 hours after making the determination. The 
     Comptroller General shall, not later than 48 hours after 
     receiving such updated version, prepare and submit to the 
     appropriate congressional committees a compliance report 
     determining whether such updated version and the Federal Open 
     Market Committee are in compliance with this section.
       ``(f) Directive Policy Rule and Federal Open Market 
     Committee Not in Compliance.--
       ``(1) In general.--If the Comptroller General of the United 
     States determines that the Directive Policy Rule and the 
     Federal Open Market Committee are not in compliance with this 
     section in the report submitted pursuant to subsection (d), 
     or that the updated version of the Directive Policy Rule and 
     the Federal Open Market Committee are not in compliance with 
     this section in the report submitted pursuant to subsection 
     (e)(2), the Chairman of the Board of Governors of the Federal 
     Reserve System shall, if requested by the chairman of either 
     of the appropriate congressional committees, not later than 7 
     legislative days after such request, testify before such 
     committee as to why the Directive Policy Rule, the updated 
     version, or the Federal Open Market Committee is not in 
     compliance.
       ``(2) GAO audit.--Notwithstanding subsection (b) of section 
     714 of title 31, United States Code, upon submitting a report 
     of noncompliance pursuant to subsection (d) or subsection 
     (e)(2) and after the period of 7 legislative days described 
     in paragraph (1), the Comptroller General shall audit the 
     conduct of monetary policy by the Board of Governors of the 
     Federal Reserve System and the Federal Open Market Committee 
     upon request of the appropriate congressional committee. Such 
     committee may specify the parameters of such audit.
       ``(g) Congressional Hearings.--The Chairman of the Board of 
     Governors of the Federal Reserve System shall, if requested 
     by the chairman of either of the appropriate congressional 
     committees and not later than 7 legislative days after such 
     request, appear before such committee to explain any change 
     to the Directive Policy Rule.''.

     SEC. 1002. FEDERAL OPEN MARKET COMMITTEE BLACKOUT PERIOD.

       Section 12A of the Federal Reserve Act (12 U.S.C. 263) is 
     amended by adding at the end the following new subsection:
       ``(d) Blackout Period.--
       ``(1) In general.--During a blackout period, the only 
     public communications that may be made by members and staff 
     of the Committee with respect to macroeconomic or financial 
     developments or about current or prospective monetary policy 
     issues are the following:
       ``(A) The dissemination of published data, surveys, and 
     reports that have been cleared for publication by the Board 
     of Governors of the Federal Reserve System.
       ``(B) Answers to technical questions specific to a data 
     release.
       ``(C) Communications with respect to the prudential or 
     supervisory functions of the Board of Governors.
       ``(2) Blackout period defined.--For purposes of this 
     subsection, and with respect to a meeting of the Committee 
     described under subsection (a), the term `blackout period' 
     means the time period that--
       ``(A) begins immediately after midnight on the day that is 
     one week prior to the date on which such meeting takes place; 
     and
       ``(B) ends at midnight on the day after the date on which 
     such meeting takes place.
       ``(3) Exemption for chairman of the board of governors.--
     Nothing in this section shall prohibit the Chairman of the 
     Board of Governors of the Federal Reserve System from 
     participating in or issuing public communications.''.

     SEC. 1003. PUBLIC TRANSCRIPTS OF FOMC MEETINGS.

       Section 12A of the Federal Reserve Act (12 U.S.C. 263), as 
     amended by section 1002, is further amended by adding at the 
     end the following:
       ``(e) Public Transcripts of Meetings.--The Committee 
     shall--
       ``(1) record all meetings of the Committee; and
       ``(2) make the full transcript of such meetings available 
     to the public.''.

     SEC. 1004. MEMBERSHIP OF FEDERAL OPEN MARKET COMMITTEE.

       Section 12A(a) of the Federal Reserve Act (12 U.S.C. 
     263(a)) is amended--
       (1) in the first sentence, by striking ``five'' and 
     inserting ``six'';
       (2) in the second sentence, by striking ``One by the board 
     of directors'' and all that follows through the period at the 
     end and inserting the following: ``One by the boards of 
     directors of the Federal Reserve Banks of New York and 
     Boston; one by the boards of directors of the Federal Reserve 
     Banks of Philadelphia and Cleveland; one by the boards of 
     directors of the Federal Reserve Banks of Richmond and 
     Atlanta; one by the boards of directors of the Federal 
     Reserve Banks of Chicago and St. Louis; one by the boards of 
     directors of the Federal Reserve Banks of Minneapolis and 
     Kansas City; and one by the boards of directors of the 
     Federal Reserve Banks of Dallas and San Francisco.''; and
       (3) by inserting after the second sentence the following: 
     ``In odd numbered calendar years, one representative shall be 
     elected from each of the Federal Reserve Banks of Boston, 
     Philadelphia, Richmond, Chicago, Minneapolis, and Dallas. In 
     even-numbered calendar years, one representative shall be 
     elected from each of the Federal Reserve Banks of New York, 
     Cleveland, Atlanta, St. Louis, Kansas City, and San 
     Francisco.''.

     SEC. 1005. FREQUENCY OF TESTIMONY OF THE CHAIRMAN OF THE 
                   BOARD OF GOVERNORS OF THE FEDERAL RESERVE 
                   SYSTEM TO CONGRESS.

       (a) In General.--Section 2B of the Federal Reserve Act (12 
     U.S.C. 225b) is amended--
       (1) by striking ``semi-annual'' each place it appears and 
     inserting ``quarterly''; and
       (2) in subsection (a)(2)--
       (A) by inserting ``and October 20'' after ``July 20'' each 
     place it appears; and
       (B) by inserting ``and May 20'' after ``February 20'' each 
     place it appears.
       (b) Conforming Amendment.--Paragraph (12) of section 10 of 
     the Federal Reserve Act (12 U.S.C. 247b(12)) is amended by 
     striking ``semi-annual'' and inserting ``quarterly''.

     SEC. 1006. VICE CHAIRMAN FOR SUPERVISION REPORT REQUIREMENT.

       Paragraph (12) of section 10 of the Federal Reserve Act (12 
     U.S.C. 247(b)) is amended--
       (1) by redesignating such paragraph as paragraph (11); and
       (2) in such paragraph, by adding at the end the following: 
     ``In each such appearance, the Vice Chairman for Supervision 
     shall provide written testimony that includes the status of 
     all pending and anticipated rulemakings that are being made 
     by the Board of Governors of the Federal Reserve System. If, 
     at the time of any appearance described in this paragraph, 
     the position of Vice Chairman for Supervision is vacant, the 
     Vice Chairman for the Board of Governors of the Federal 
     Reserve System (who has the responsibility to serve in the 
     absence of the Chairman) shall appear instead and provide the 
     required written testimony. If, at the time of any appearance 
     described in this paragraph, both Vice Chairman positions are 
     vacant, the Chairman of the Board of Governors of the Federal 
     Reserve System shall appear instead and provide the required 
     written testimony.''.

     SEC. 1007. SALARIES, FINANCIAL DISCLOSURES, AND OFFICE STAFF 
                   OF THE BOARD OF GOVERNORS OF THE FEDERAL 
                   RESERVE SYSTEM.

       (a) In General.--Section 11 of the Federal Reserve Act (12 
     U.S.C. 248) is amended--
       (1) by redesignating the second subsection (s) (relating to 
     ``Assessments, Fees, and Other Charges for Certain 
     Companies'') as subsection (t); and
       (2) by inserting before subsection (w), as added by section 
     371(a), the following new subsections:
       ``(u) Ethics Standards for Members and Employees.--
       ``(1) Prohibited and restricted financial interests and 
     transactions.--The members and employees of the Board of 
     Governors of the Federal Reserve System shall be subject to 
     the provisions under section 4401.102 of title 5, Code of 
     Federal Regulations, to the same extent as such provisions 
     apply to an employee of the Securities and Exchange 
     Commission.
       ``(2) Treatment of brokerage accounts and availability of 
     account statements.--The members and employees of the Board 
     of Governors of the Federal Reserve System shall--
       ``(A) disclose all brokerage accounts that the member or 
     employee maintains, as well as any

[[Page 8976]]

     accounts in which the member or employee controls trading or 
     has a financial interest (including managed accounts, trust 
     accounts, investment club accounts, and accounts of spouses 
     or minor children who live with the member or employee); and
       ``(B) with respect to any securities account that the 
     member or employee is required to disclose to the Board of 
     Governors, authorize the brokers and dealers of such account 
     to send duplicate account statements directly to Board of 
     Governors.
       ``(3) Prohibitions related to outside employment and 
     activities.--The members and employees of the Board of 
     Governors of the Federal Reserve System shall be subject to 
     the prohibitions related to outside employment and activities 
     described under section 4401.103(c) of title 5, Code of 
     Federal Regulations, to the same extent as such prohibitions 
     apply to an employee of the Securities and Exchange 
     Commission.
       ``(4) Additional ethics standards.--The members and 
     employees of the Board of Governors of the Federal Reserve 
     System shall be subject to--
       ``(A) the employee responsibilities and conduct regulations 
     of the Office of Personnel Management under part 735 of title 
     5, Code of Federal Regulations;
       ``(B) the canons of ethics contained in subpart C of part 
     200 of title 17, Code of Federal Regulations, to the same 
     extent as such subpart applies to the employees of the 
     Securities and Exchange Commission; and
       ``(C) the regulations concerning the conduct of members and 
     employees and former members and employees contained in 
     subpart M of part 200 of title 17, Code of Federal 
     Regulations, to the same extent as such subpart applies to 
     the employees of the Securities and Exchange Commission.
       ``(v) Disclosure of Staff Salaries and Financial 
     Information.--The Board of Governors of the Federal Reserve 
     System shall make publicly available, on the website of the 
     Board of Governors, a searchable database that contains the 
     names of all members, officers, and employees of the Board of 
     Governors who receive an annual salary in excess of the 
     annual rate of basic pay for GS-15 of the General Schedule, 
     and--
       ``(1) the yearly salary information for such individuals, 
     along with any nonsalary compensation received by such 
     individuals; and
       ``(2) any financial disclosures required to be made by such 
     individuals.''.
       (b) Office Staff for Each Member of the Board of 
     Governors.--Subsection (l) of section 11 of the Federal 
     Reserve Act (12 U.S.C. 248) is amended by adding at the end 
     the following: ``Each member of the Board of Governors of the 
     Federal Reserve System may employ, at a minimum, 2 
     individuals, with such individuals selected by such member 
     and the salaries of such individuals set by such member. A 
     member may employ additional individuals as determined 
     necessary by the Board of Governors.''.

     SEC. 1008. AMENDMENTS TO POWERS OF THE BOARD OF GOVERNORS OF 
                   THE FEDERAL RESERVE SYSTEM.

       (a) In General.--Section 13(3) of the Federal Reserve Act 
     (12 U.S.C. 343(3)), as amended by section 111(b)(3), is 
     further amended--
       (1) in subparagraph (A)--
       (A) by inserting ``that pose a threat to the financial 
     stability of the United States'' after ``unusual and exigent 
     circumstances''; and
       (B) by inserting ``and by the affirmative vote of not less 
     than nine presidents of the Federal reserve banks'' after 
     ``five members'';
       (2) in subparagraph (B)--
       (A) in clause (i), by inserting at the end the following: 
     ``Federal reserve banks may not accept equity securities 
     issued by the recipient of any loan or other financial 
     assistance under this paragraph as collateral. Not later than 
     6 months after the date of enactment of this sentence, the 
     Board shall, by rule, establish--

       ``(I) a method for determining the sufficiency of the 
     collateral required under this paragraph;
       ``(II) acceptable classes of collateral;
       ``(III) the amount of any discount on the value of the 
     collateral that the Federal reserve banks will apply for 
     purposes of calculating the sufficiency of collateral under 
     this paragraph; and
       ``(IV) a method for obtaining independent appraisals of the 
     value of collateral the Federal reserve banks receive.''; and

       (B) in clause (ii)--
       (i) by striking the second sentence; and
       (ii) by inserting after the first sentence the following: 
     ``A borrower shall not be eligible to borrow from any 
     emergency lending program or facility unless the Board and 
     all Federal banking regulators with jurisdiction over the 
     borrower certify that, at the time the borrower initially 
     borrows under the program or facility, the borrower is not 
     insolvent.'';
       (3) by inserting ``financial institution'' before 
     ``participant'' each place such term appears;
       (4) in subparagraph (D)(i), by inserting ``financial 
     institution'' before ``participants''; and
       (5) by adding at the end the following new subparagraphs:
       ``(E) Penalty rate.--
       ``(i) In general.--Not later than 6 months after the date 
     of enactment of this subparagraph, the Board shall, with 
     respect to a recipient of any loan or other financial 
     assistance under this paragraph, establish by rule a minimum 
     interest rate on the principal amount of any loan or other 
     financial assistance.
       ``(ii) Minimum interest rate defined.--In this 
     subparagraph, the term `minimum interest rate' shall mean the 
     sum of--

       ``(I) the average of the secondary discount rate of all 
     Federal Reserve banks over the most recent 90-day period; and
       ``(II) the average of the difference between a distressed 
     corporate bond yield index (as defined by rule of the Board) 
     and a bond yield index of debt issued by the United States 
     (as defined by rule of the Board) over the most recent 90-day 
     period.

       ``(F) Financial institution participant defined.--For 
     purposes of this paragraph, the term `financial institution 
     participant'--
       ``(i) means a company that is predominantly engaged in 
     financial activities (as defined in section 102(a) of the 
     Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
     U.S.C. 5311(a))); and
       ``(ii) does not include an agency described in subparagraph 
     (W) of section 5312(a)(2) of title 31, United States Code, or 
     an entity controlled or sponsored by such an agency.''.
       (b) Conforming Amendment.--Section 11(r)(2)(A) of the 
     Federal Reserve Act (12 U.S.C. 248(r)(2)(A)) is amended--
       (1) in clause (ii)(IV), by striking ``; and'' and inserting 
     a semicolon;
       (2) in clause (iii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new clause:
       ``(iv) the available members secure the affirmative vote of 
     not less than nine presidents of the Federal reserve 
     banks.''.

     SEC. 1009. INTEREST RATES ON BALANCES MAINTAINED AT A FEDERAL 
                   RESERVE BANK BY DEPOSITORY INSTITUTIONS 
                   ESTABLISHED BY FEDERAL OPEN MARKET COMMITTEE.

       Subparagraph (A) of section 19(b)(12) of the Federal 
     Reserve Act (12 U.S.C. 461(b)(12)(A)) is amended by inserting 
     ``established by the Federal Open Market Committee'' after 
     ``rate or rates''.

     SEC. 1010. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF 
                   GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

       (a) In General.--Notwithstanding section 714 of title 31, 
     United States Code, or any other provision of law, the 
     Comptroller General of the United States shall annually 
     complete an audit of the Board of Governors of the Federal 
     Reserve System and the Federal reserve banks under subsection 
     (b) of such section 714 within 12 months after the date of 
     the enactment of this Act.
       (b) Report.--
       (1) In general.--Not later than 90 days after each audit 
     required pursuant to subsection (a) is completed, the 
     Comptroller General--
       (A) shall submit to Congress a report on such audit; and
       (B) shall make such report available to the Speaker of the 
     House, the majority and minority leaders of the House of 
     Representatives, the majority and minority leaders of the 
     Senate, the Chairman and Ranking Member of the committee and 
     each subcommittee of jurisdiction in the House of 
     Representatives and the Senate, and any other Member of 
     Congress who requests the report.
       (2) Contents.--The report under paragraph (1) shall include 
     a detailed description of the findings and conclusion of the 
     Comptroller General with respect to the audit that is the 
     subject of the report, together with such recommendations for 
     legislative or administrative action as the Comptroller 
     General may determine to be appropriate.
       (c) Repeal of Certain Limitations.--Subsection (b) of 
     section 714 of title 31, United States Code, is amended by 
     striking the second sentence.
       (d) Technical and Conforming Amendments.--
       (1) In general.--Section 714 of title 31, United States 
     Code, is amended--
       (A) in subsection (d)(3), by striking ``or (f)'' each place 
     such term appears;
       (B) in subsection (e), by striking ``the third undesignated 
     paragraph of section 13'' and inserting ``section 13(3)''; 
     and
       (C) by striking subsection (f).
       (2) Federal reserve act.--Subsection (s) (relating to 
     ``Federal Reserve Transparency and Release of Information'') 
     of section 11 of the Federal Reserve Act (12 U.S.C. 248) is 
     amended--
       (A) in paragraph (4)(A), by striking ``has the same meaning 
     as in section 714(f)(1)(A) of title 31, United States Code'' 
     and inserting ``means a program or facility, including any 
     special purpose vehicle or other entity established by or on 
     behalf of the Board of Governors of the Federal Reserve 
     System or a Federal reserve bank, authorized by the Board of 
     Governors under section 13(3), that is not subject to audit 
     under section 714(e) of title 31, United States Code'';
       (B) in paragraph (6), by striking ``or in section 
     714(f)(3)(C) of title 31, United States Code, the information 
     described in paragraph (1) and information concerning the 
     transactions described in section 714(f) of such title,'' and 
     inserting ``the information described in paragraph (1)''; and
       (C) in paragraph (7), by striking ``and section 13(3)(C), 
     section 714(f)(3)(C) of title 31, United States Code, and'' 
     and inserting ``, section 13(3)(C), and''.

     SEC. 1011. ESTABLISHMENT OF A CENTENNIAL MONETARY COMMISSION.

       (a) Findings.--Congress finds the following:
       (1) The Constitution endows Congress with the power ``to 
     coin money, regulate the value thereof''.
       (2) Following the financial crisis known as the Panic of 
     1907, Congress established the National Monetary Commission 
     to provide recommendations for the reform of the financial 
     and monetary systems of the United States.

[[Page 8977]]

       (3) Incorporating several of the recommendations of the 
     National Monetary Commission, Congress created the Federal 
     Reserve System in 1913. As currently organized, the Federal 
     Reserve System consists of the Board of Governors in 
     Washington, District of Columbia, and the Federal reserve 
     banks organized into 12 districts around the United States. 
     The stockholders of the 12 Federal reserve banks include 
     national and certain State-chartered commercial banks, which 
     operate on a fractional reserve basis.
       (4) Originally, Congress gave the Federal Reserve System a 
     monetary mandate to provide an elastic currency, within the 
     context of a gold standard, in response to seasonal 
     fluctuations in the demand for currency.
       (5) Congress also gave the Federal Reserve System a 
     financial stability mandate to serve as the lender of last 
     resort to solvent but illiquid banks during a financial 
     crisis.
       (6) In 1977, Congress changed the monetary mandate of the 
     Federal Reserve System to a dual mandate for maximum 
     employment and stable prices.
       (7) Empirical studies and historical evidence, both within 
     the United States and in other countries, demonstrate that 
     price stability is desirable because both inflation and 
     deflation damage the economy.
       (8) The economic challenge of recent years--most notably 
     the bursting of the housing bubble, the financial crisis of 
     2008, and the ensuing anemic recovery--have occurred at great 
     cost in terms of lost jobs and output.
       (9) Policymakers are reexamining the structure and 
     functioning of financial institutions and markets to 
     determine what, if any, changes need to be made to place the 
     financial system on a stronger, more sustainable path going 
     forward.
       (10) The Federal Reserve System has taken extraordinary 
     actions in response to the recent economic challenges.
       (11) The Federal Open Market Committee has engaged in 
     multiple rounds of quantitative easing, providing 
     unprecedented liquidity to financial markets, while 
     committing to holding short-term interest rates low for a 
     seemingly indefinite period, and pursuing a policy of credit 
     allocation by purchasing Federal agency debt and mortgage-
     backed securities.
       (12) In the wake of the recent extraordinary actions of the 
     Federal Reserve System, Congress--consistent with its 
     constitutional responsibilities and as it has done 
     periodically throughout the history of the United States--has 
     once again renewed its examination of monetary policy.
       (13) Central in such examination has been a renewed look at 
     what is the most proper mandate for the Federal Reserve 
     System to conduct monetary policy in the 21st century.
       (b) Establishment of a Centennial Monetary Commission.--
     There is established a commission to be known as the 
     ``Centennial Monetary Commission'' (in this section referred 
     to as the ``Commission'').
       (c) Study and Report on Monetary Policy.--
       (1) Study.--The Commission shall--
       (A) examine how United States monetary policy since the 
     creation of the Board of Governors of the Federal Reserve 
     System in 1913 has affected the performance of the United 
     States economy in terms of output, employment, prices, and 
     financial stability over time;
       (B) evaluate various operational regimes under which the 
     Board of Governors of the Federal Reserve System and the 
     Federal Open Market Committee may conduct monetary policy in 
     terms achieving the maximum sustainable level of output and 
     employment and price stability over the long term, 
     including--
       (i) discretion in determining monetary policy without an 
     operational regime;
       (ii) price level targeting;
       (iii) inflation rate targeting;
       (iv) nominal gross domestic product targeting (both level 
     and growth rate);
       (v) the use of monetary policy rules; and
       (vi) the gold standard;
       (C) evaluate the use of macro-prudential supervision and 
     regulation as a tool of monetary policy in terms of achieving 
     the maximum sustainable level of output and employment and 
     price stability over the long term;
       (D) evaluate the use of the lender-of-last-resort function 
     of the Board of Governors of the Federal Reserve System as a 
     tool of monetary policy in terms of achieving the maximum 
     sustainable level of output and employment and price 
     stability over the long term;
       (E) recommend a course for United States monetary policy 
     going forward, including--
       (i) the legislative mandate;
       (ii) the operational regime;
       (iii) the securities used in open-market operations; and
       (iv) transparency issues; and
       (F) consider the effects of the GDP output and employment 
     targets of the ``dual mandate'' (both from the creation of 
     the dual mandate in 1977 until the present time and estimates 
     of the future effect of the dual mandate ) on--
       (i) United States economic activity;
       (ii) actions of the Board of Governors of the Federal 
     Reserve System; and
       (iii) Federal debt.
       (2) Report.--Not later than 1 year after the date of the 
     enactment of this section, the Commission shall submit to 
     Congress and make publicly available a report containing a 
     statement of the findings and conclusions of the Commission 
     in carrying out the study under paragraph (1), together with 
     the recommendations the Commission considers appropriate. In 
     making such report, the Commission shall specifically report 
     on the considerations required under paragraph (1)(F).
       (d) Membership.--
       (1) Number and appointment.--
       (A) Appointed voting members.--The Commission shall contain 
     12 voting members as follows:
       (i) Six members appointed by the Speaker of the House of 
     Representatives, with four members from the majority party 
     and two members from the minority party.
       (ii) Six members appointed by the President Pro Tempore of 
     the Senate, with four members from the majority party and two 
     members from the minority party.
       (B) Chairman.--The Speaker of the House of Representatives 
     and the majority leader of the Senate shall jointly designate 
     one of the members of the Commission as Chairman.
       (C) Non-voting members.--The Commission shall contain 2 
     non-voting members as follows:
       (i) One member appointed by the Secretary of the Treasury.
       (ii) One member who is the president of a district Federal 
     reserve bank appointed by the Chair of the Board of Governors 
     of the Federal Reserve System.
       (2) Period of appointment.--Each member shall be appointed 
     for the life of the Commission.
       (3) Timing of appointment.--All members of the Commission 
     shall be appointed not later than 30 days after the date of 
     the enactment of this section.
       (4) Vacancies.--A vacancy in the Commission shall not 
     affect its powers, and shall be filled in the manner in which 
     the original appointment was made.
       (5) Meetings.--
       (A) Initial meeting.--The Commission shall hold its initial 
     meeting and begin the operations of the Commission as soon as 
     is practicable.
       (B) Further meetings.--The Commission shall meet upon the 
     call of the Chair or a majority of its members.
       (6) Quorum.--Seven voting members of the Commission shall 
     constitute a quorum but a lesser number may hold hearings.
       (7) Member of congress defined.--In this subsection, the 
     term ``Member of Congress'' means a Senator or a 
     Representative in, or Delegate or Resident Commissioner to, 
     the Congress.
       (e) Powers.--
       (1) Hearings and sessions.--The Commission or, on the 
     authority of the Commission, any subcommittee or member 
     thereof, may, for the purpose of carrying out this section, 
     hold hearings, sit and act at times and places, take 
     testimony, receive evidence, or administer oaths as the 
     Commission or such subcommittee or member thereof considers 
     appropriate.
       (2) Contract authority.--To the extent or in the amounts 
     provided in advance in appropriation Acts, the Commission may 
     contract with and compensate government and private agencies 
     or persons to enable the Commission to discharge its duties 
     under this section, without regard to section 3709 of the 
     Revised Statutes (41 U.S.C. 5).
       (3) Obtaining official data.--
       (A) In general.--The Commission is authorized to secure 
     directly from any executive department, bureau, agency, 
     board, commission, office, independent establishment, or 
     instrumentality of the Government, any information, including 
     suggestions, estimates, or statistics, for the purposes of 
     this section.
       (B) Requesting official data.--The head of such department, 
     bureau, agency, board, commission, office, independent 
     establishment, or instrumentality of the government shall, to 
     the extent authorized by law, furnish such information upon 
     request made by--
       (i) the Chair;
       (ii) the Chair of any subcommittee created by a majority of 
     the Commission; or
       (iii) any member of the Commission designated by a majority 
     of the commission to request such information.
       (4) Assistance from federal agencies.--
       (A) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis administrative support and other services 
     for the performance of the functions of the Commission.
       (B) Other departments and agencies.--In addition to the 
     assistance prescribed in subparagraph (A), at the request of 
     the Commission, departments and agencies of the United States 
     shall provide such services, funds, facilities, staff, and 
     other support services as may be authorized by law.
       (5) Postal service.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the United States.
       (f) Commission Personnel.--
       (1) Appointment and compensation of staff.--
       (A) In general.--Subject to rules prescribed by the 
     Commission, the Chair may appoint and fix the pay of the 
     executive director and other personnel as the Chair considers 
     appropriate.
       (B) Applicability of civil service laws.--The staff of the 
     Commission may be appointed without regard to the provisions 
     of title 5, United States Code, governing appointments in the 
     competitive service, and may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     that title relating to classification and General Schedule 
     pay rates, except that an individual so appointed may not 
     receive pay in excess of level V of the Executive Schedule.
       (2) Consultants.--The Commission may procure temporary and 
     intermittent services under

[[Page 8978]]

     section 3109(b) of title 5, United States Code, but at rates 
     for individuals not to exceed the daily equivalent of the 
     rate of pay for a person occupying a position at level IV of 
     the Executive Schedule.
       (3) Staff of federal agencies.--Upon request of the 
     Commission, the head of any Federal department or agency may 
     detail, on a reimbursable basis, any of the personnel of such 
     department or agency to the Commission to assist it in 
     carrying out its duties under this section.
       (g) Termination of Commission.--
       (1) In general.--The Commission shall terminate 6 months 
     after the date on which the report is submitted under 
     subsection (c)(2).
       (2) Administrative activities before termination.--The 
     Commission may use the period between the submission of its 
     report and its termination for the purpose of concluding its 
     activities, including providing testimony to the committee of 
     Congress concerning its report.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000, 
     which shall remain available until the date on which the 
     Commission terminates.

   TITLE XI--IMPROVING INSURANCE COORDINATION THROUGH AN INDEPENDENT 
                                ADVOCATE

     SEC. 1101. REPEAL OF THE FEDERAL INSURANCE OFFICE; CREATION 
                   OF THE OFFICE OF THE INDEPENDENT INSURANCE 
                   ADVOCATE.

       (a) Establishment.--Section 313 of title 31, United States 
     Code, is amended to read as follows (and conforming the table 
     of contents for chapter 3 of such title accordingly):

     ``Sec. 313. Office of the Independent Insurance Advocate

       ``(a) Establishment.--There is established in the 
     Department of the Treasury a bureau to be known as the Office 
     of the Independent Insurance Advocate (in this section 
     referred to as the `Office').
       ``(b) Independent Insurance Advocate.--
       ``(1) Establishment of position.--The chief officer of the 
     Office of the Independent Insurance Advocate shall be known 
     as the Independent Insurance Advocate. The Independent 
     Insurance Advocate shall perform the duties of such office 
     under the general direction of the Secretary of the Treasury.
       ``(2) Appointment.--The Independent Insurance Advocate 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate, from among persons having 
     insurance expertise.
       ``(3) Term.--
       ``(A) In general.--The Independent Insurance Advocate shall 
     serve a term of 6 years, unless sooner removed by the 
     President upon reasons which shall be communicated to the 
     Senate.
       ``(B) Service after expiration.--If a successor is not 
     nominated and confirmed by the end of the term of service of 
     the Independent Insurance Advocate, the person serving as 
     Independent Insurance Advocate shall continue to serve until 
     such time a successor is appointed and confirmed.
       ``(C) Vacancy.--An Independent Insurance Advocate who is 
     appointed to serve the remainder of a predecessor's 
     uncompleted term shall be eligible thereafter to be appointed 
     to a full 6 year term.
       ``(D) Acting official on financial stability oversight 
     council.--In the event of a vacancy in the office of the 
     Independent Insurance Advocate, and pending the appointment 
     and confirmation of a successor, or during the absence or 
     disability of the Independent Insurance Advocate, the 
     Independent Member shall appoint a federal official appointed 
     by the President and confirmed by the Senate from a member 
     agency of the Financial Stability Oversight Council, not 
     otherwise serving on the Council, who shall serve as a member 
     of the Council and act in the place of the Independent 
     Insurance Advocate until such vacancy, absence, or disability 
     concludes.
       ``(4) Employment.--The Independent Insurance Advocate shall 
     be an employee of the Federal Government within the 
     definition of employee under section 2105 of title 5, United 
     States Code.
       ``(c) Independence; Oversight.--
       ``(1) Independence.--The Secretary of the Treasury may not 
     delay or prevent the issuance of any rule or the promulgation 
     of any regulation by the Independent Insurance Advocate, and 
     may not intervene in any matter or proceeding before the 
     Independent Insurance Advocate, unless otherwise specifically 
     provided by law.
       ``(2) Oversight by inspector general.--The Office of the 
     Independent Insurance Advocate shall be an office in the 
     establishment of the Department of the Treasury for purposes 
     of the Inspector General Act of 1978 (5 U.S.C. App.).
       ``(d) Retention of Existing State Regulatory Authority.--
     Nothing in this section or section 314 shall be construed to 
     establish or provide the Office or the Department of the 
     Treasury with general supervisory or regulatory authority 
     over the business of insurance.
       ``(e) Budget.--
       ``(1) Annual transmittal.--For each fiscal year, the 
     Independent Insurance Advocate shall transmit a budget 
     estimate and request to the Secretary of the Treasury, which 
     shall specify the aggregate amount of funds requested for 
     such fiscal year for the operations of the Office of the 
     Independent Insurance Advocate.
       ``(2) Inclusions.--In transmitting the proposed budget to 
     the President for approval, the Secretary of the Treasury 
     shall include--
       ``(A) an aggregate request for the Independent Insurance 
     Advocate; and
       ``(B) any comments of the Independent Insurance Advocate 
     with respect to the proposal.
       ``(3) President's budget.--The President shall include in 
     each budget of the United States Government submitted to the 
     Congress--
       ``(A) a separate statement of the budget estimate prepared 
     in accordance with paragraph (1);
       ``(B) the amount requested by the President for the 
     Independent Insurance Advocate; and
       ``(C) any comments of the Independent Insurance Advocate 
     with respect to the proposal if the Independent Insurance 
     Advocate concludes that the budget submitted by the President 
     would substantially inhibit the Independent Insurance 
     Advocate from performing the duties of the office.
       ``(f) Assistance.--The Secretary of the Treasury shall 
     provide the Independent Insurance Advocate such services, 
     funds, facilities and other support services as the 
     Independent Insurance Advocate may request and as the 
     Secretary may approve.
       ``(g) Personnel.--
       ``(1) Employees.--The Independent Insurance Advocate may 
     fix the number of, and appoint and direct, the employees of 
     the Office, in accordance with the applicable provisions of 
     title 5, United States Code. The Independent Insurance 
     Advocate is authorized to employ attorneys, analysts, 
     economists, and other employees as may be deemed necessary to 
     assist the Independent Insurance Advocate to carry out the 
     duties and functions of the Office. Unless otherwise provided 
     expressly by law, any individual appointed under this 
     paragraph shall be an employee as defined in section 2105 of 
     title 5, United States Code, and subject to the provisions of 
     such title and other laws generally applicable to the 
     employees of the Executive Branch.
       ``(2) Compensation.--Employees of the Office shall be paid 
     in accordance with the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification and General Schedule pay rates.
       ``(3) Procurement of temporary and intermittent services.--
     The Independent Insurance Advocate may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for Level V of the Executive Schedule under 
     section 5316 of such title.
       ``(4) Details.--Any employee of the Federal Government may 
     be detailed to the Office with or without reimbursement, and 
     such detail shall be without interruption or loss of civil 
     service status or privilege. An employee of the Federal 
     Government detailed to the Office shall report to and be 
     subject to oversight by the Independent Insurance Advocate 
     during the assignment to the office, and may be compensated 
     by the branch, department, or agency from which the employee 
     was detailed.
       ``(5) Intergovernmental personnel.--The Independent 
     Insurance Advocate may enter into agreements under subchapter 
     VI of chapter 33 of title 5, United States Code, with State 
     and local governments, institutions of higher education, 
     Indian tribal governments, and other eligible organizations 
     for the assignment of intermittent, part-time, and full-time 
     personnel, on a reimbursable or non-reimbursable basis.
       ``(h) Ethics.--
       ``(1) Designated ethics official.--The Legal Counsel of the 
     Financial Stability Oversight Council, or in the absence of a 
     Legal Counsel of the Council, the designated ethics official 
     of any Council member agency, as chosen by the Independent 
     Insurance Advocate, shall be the ethics official for the 
     Independent Insurance Advocate.
       ``(2) Restriction on representation.--In addition to any 
     restriction under section 205(c) of title18, United States 
     Code, except as provided in subsections (d) through (i) of 
     section 205 of such title, the Independent Insurance Advocate 
     (except in the proper discharge of official duties) shall 
     not, with or without compensation, represent anyone to or 
     before any officer or employee of--
       ``(A) the Financial Stability Oversight Council on any 
     matter; or
       ``(B) the Department of Justice with respect to litigation 
     involving a matter described in subparagraph (A).
       ``(3) Compensation for services provided by another.--For 
     purposes of section 203 of title 18, United States Code, and 
     if a special government employee--
       ``(A) the Independent Insurance Advocate shall not be 
     subject to the restrictions of subsection (a)(1) of section 
     203,of title 18, United States Code, for sharing in 
     compensation earned by another for representations on matters 
     covered by such section; and
       ``(B) a person shall not be subject to the restrictions of 
     subsection (a)(2) of such section for sharing such 
     compensation with the Independent Insurance Advocate.
       ``(i) Advisory, Technical, and Professional Committees.--
     The Independent Insurance Advocate may appoint such special 
     advisory, technical, or professional committees as may be 
     useful in carrying out the functions of the Office and the 
     members of such committees may be staff of the Office, or 
     other persons, or both.
       ``(j) Mission and Functions.--
       ``(1) Mission.--In carrying out the functions under this 
     subsection, the mission of the Office shall be to act as an 
     independent advocate on

[[Page 8979]]

     behalf of the interests of United States policyholders on 
     prudential aspects of insurance matters of importance, and to 
     provide perspective on protecting their interests, separate 
     and apart from any other Federal agency or State insurance 
     regulator.
       ``(2) Office.--The Office shall have the authority--
       ``(A) to coordinate Federal efforts on prudential aspects 
     of international insurance matters, including representing 
     the United States, as appropriate, in the International 
     Association of Insurance Supervisors (or a successor entity) 
     and assisting the Secretary in negotiating covered agreements 
     (as such term is defined in subsection (q)) in coordination 
     with States (including State insurance commissioners) and the 
     United States Trade Representative;
       ``(B) to consult with the States (including State insurance 
     regulators) regarding insurance matters of national 
     importance and prudential insurance matters of international 
     importance;
       ``(C) to assist the Secretary in administering the 
     Terrorism Insurance Program established in the Department of 
     the Treasury under the Terrorism Risk Insurance Act of 2002 
     (15 U.S.C. 6701 note);
       ``(D) to observe all aspects of the insurance industry, 
     including identifying issues or gaps in the regulation of 
     insurers that could contribute to a systemic crisis in the 
     insurance industry or the United States financial system; and
       ``(E) to make determinations and exercise the authority 
     under subsection (m) with respect to covered agreements and 
     State insurance measures.
       ``(3) Membership on financial stability oversight 
     council.--
       ``(A) In general.--The Independent Insurance Advocate shall 
     serve, pursuant to section 111(b)(1)(J) of the Financial 
     Stability Act of 2010 (12 U.S.C. 5321(b)(1)(J)), as a member 
     on the Financial Stability Oversight Council.
       ``(B) Authority.--To assist the Financial Stability 
     Oversight Council with its responsibilities to monitor 
     international insurance developments, advise the Congress, 
     and make recommendations, the Independent Insurance Advocate 
     shall have the authority--
       ``(i) to regularly consult with international insurance 
     supervisors and international financial stability 
     counterparts;
       ``(ii) to consult with the Board of Governors of the 
     Federal Reserve System and the States with respect to 
     representing the United States, as appropriate, in the 
     International Association of Insurance Supervisors (including 
     to become a non-voting member thereof), particularly on 
     matters of systemic risk;
       ``(iii) to participate at the Financial Stability Board of 
     The Group of Twenty and to join with other members from the 
     United States including on matters related to insurance; and
       ``(iv) to participate with the United States delegation to 
     the Organization for Economic Cooperation and Development and 
     observe and participate at the Insurance and Private Pensions 
     Committee.
       ``(4) Limitations on participation in supervisory 
     colleges.--The Office may not engage in any activities that 
     it is not specifically authorized to engage in under this 
     section or any other provision of law, including 
     participation in any supervisory college or other meetings or 
     fora for cooperation and communication between the involved 
     insurance supervisors established for the fundamental purpose 
     of facilitating the effectiveness of supervision of entities 
     which belong to an insurance group.
       ``(k) Scope.--The authority of the Office as specified and 
     limited in this section shall extend to all lines of 
     insurance except--
       ``(1) health insurance, as determined by the Secretary in 
     coordination with the Secretary of Health and Human Services 
     based on section 2791 of the Public Health Service Act (42 
     U.S.C. 300gg-91);
       ``(2) long-term care insurance, except long-term care 
     insurance that is included with life or annuity insurance 
     components, as determined by the Secretary in coordination 
     with the Secretary of Health and Human Services, and in the 
     case of long-term care insurance that is included with such 
     components, the Secretary shall coordinate with the Secretary 
     of Health and Human Services in performing the functions of 
     the Office; and
       ``(3) crop insurance, as established by the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.).
       ``(l) Access to Information.--In carrying out the functions 
     required under subsection (j), the Office may coordinate with 
     any relevant Federal agency and any State insurance regulator 
     (or other relevant Federal or State regulatory agency, if 
     any, in the case of an affiliate of an insurer) and any 
     publicly available sources for the provision to the Office of 
     publicly available information. Notwithstanding any other 
     provision of law, each such relevant Federal agency and State 
     insurance regulator or other Federal or State regulatory 
     agency is authorized to provide to the Office such data or 
     information.
       ``(m) Preemption Pursuant to Covered Agreements.--
       ``(1) Standards.--A State insurance measure shall be 
     preempted pursuant to this section or section 314 if, and 
     only to the extent that the Independent Insurance Advocate 
     determines, in accordance with this subsection, that the 
     measure--
       ``(A) results in less favorable treatment of a non-United 
     States insurer domiciled in a foreign jurisdiction that is 
     subject to a covered agreement than a United States insurer 
     domiciled, licensed, or otherwise admitted in that State; and
       ``(B) is inconsistent with a covered agreement.
       ``(2) Determination.--
       ``(A) Notice of potential inconsistency.--Before making any 
     determination under paragraph (1), the Independent Insurance 
     Advocate shall--
       ``(i) notify and consult with the appropriate State 
     regarding any potential inconsistency or preemption;
       ``(ii) notify and consult with the United States Trade 
     Representative regarding any potential inconsistency or 
     preemption;
       ``(iii) cause to be published in the Federal Register 
     notice of the issue regarding the potential inconsistency or 
     preemption, including a description of each State insurance 
     measure at issue and any applicable covered agreement;
       ``(iv) provide interested parties a reasonable opportunity 
     to submit written comments to the Office; and
       ``(v) consider any comments received.
       ``(B) Scope of review.--For purposes of this subsection, 
     any determination of the Independent Insurance Advocate 
     regarding State insurance measures, and any preemption under 
     paragraph (1) as a result of such determination, shall be 
     limited to the subject matter contained within the covered 
     agreement involved and shall achieve a level of protection 
     for insurance or reinsurance consumers that is substantially 
     equivalent to the level of protection achieved under State 
     insurance or reinsurance regulation.
       ``(C) Notice of determination of inconsistency.--Upon 
     making any determination under paragraph (1), the Director 
     shall--
       ``(i) notify the appropriate State of the determination and 
     the extent of the inconsistency;
       ``(ii) establish a reasonable period of time, which shall 
     not be less than 30 days, before the determination shall 
     become effective; and
       ``(iii) notify the Committees on Financial Services and 
     Ways and Means of the House of Representatives and the 
     Committees on Banking, Housing, and Urban Affairs and Finance 
     of the Senate.
       ``(3) Notice of effectiveness.--Upon the conclusion of the 
     period referred to in paragraph (2)(C)(ii), if the basis for 
     such determination still exists, the determination shall 
     become effective and the Independent Insurance Advocate 
     shall--
       ``(A) cause to be published a notice in the Federal 
     Register that the preemption has become effective, as well as 
     the effective date; and
       ``(B) notify the appropriate State.
       ``(4) Limitation.--No State may enforce a State insurance 
     measure to the extent that such measure has been preempted 
     under this subsection.
       ``(5) Applicability of administrative procedures act.--
     Determinations of inconsistency made pursuant to paragraph 
     (2) shall be subject to the applicable provisions of 
     subchapter II of chapter 5 of title 5, United States Code 
     (relating to administrative procedure), and chapter 7 of such 
     title (relating to judicial review), except that in any 
     action for judicial review of a determination of 
     inconsistency, the court shall determine the matter de novo.
       ``(n) Consultation.--The Independent Insurance Advocate 
     shall consult with State insurance regulators, individually 
     or collectively, to the extent the Independent Insurance 
     Advocate determines appropriate, in carrying out the 
     functions of the Office.
       ``(o) Notices and Requests for Comment.--In addition to the 
     other functions and duties specified in this section, the 
     Independent Insurance Advocate may prescribe such notices and 
     requests for comment in the Federal Register as are deemed 
     necessary related to and governing the manner in which the 
     duties and authorities of the Independent Insurance Advocate 
     are carried out;
       ``(p) Savings Provisions.--Nothing in this section shall--
       ``(1) preempt--
       ``(A) any State insurance measure that governs any 
     insurer's rates, premiums, underwriting, or sales practices;
       ``(B) any State coverage requirements for insurance;
       ``(C) the application of the antitrust laws of any State to 
     the business of insurance; or
       ``(D) any State insurance measure governing the capital or 
     solvency of an insurer, except to the extent that such State 
     insurance measure results in less favorable treatment of a 
     non-United State insurer than a United States insurer; or
       ``(2) affect the preemption of any State insurance measure 
     otherwise inconsistent with and preempted by Federal law.
       ``(q) Retention of Authority of Federal Financial 
     Regulatory Agencies.--Nothing in this section or section 314 
     shall be construed to limit the authority of any Federal 
     financial regulatory agency, including the authority to 
     develop and coordinate policy, negotiate, and enter into 
     agreements with foreign governments, authorities, regulators, 
     and multinational regulatory committees and to preempt State 
     measures to affect uniformity with international regulatory 
     agreements.
       ``(r) Retention of Authority of United States Trade 
     Representative.--Nothing in this section or section 314 shall 
     be construed to affect the authority of the Office of the 
     United States Trade Representative pursuant to section 141 of 
     the Trade Act of 1974 (19 U.S.C. 2171) or any other provision 
     of law, including authority over the development and 
     coordination of United States international trade policy and 
     the administration of the United States trade agreements 
     program.
       ``(s) Congressional Testimony.--The Independent Insurance 
     Advocate shall appear before

[[Page 8980]]

     the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs at semi-annual hearings and shall provide 
     testimony, which shall include submitting written testimony 
     in advance of such appearances to such committees and to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate, on the following 
     matters:
       ``(1) Office activities.--The efforts, activities, 
     objectives, and plans of the Office.
       ``(2) Section 313(l) actions.--Any actions taken by the 
     Office pursuant to subsection (l) (regarding preemption 
     pursuant to covered agreements).
       ``(3) Insurance industry.--The state of, and developments 
     in, the insurance industry.
       ``(4) U.S. and global insurance and reinsurance markets.--
     The breadth and scope of the global insurance and reinsurance 
     markets and the critical role such markets plays in 
     supporting insurance in the United States and the ongoing 
     impacts of part II of the Nonadmitted and Reinsurance Reform 
     Act of 2010 on the ability of State regulators to access 
     reinsurance information for regulated companies in their 
     jurisdictions.
       ``(5) Other.--Any other matters as deemed relevant by the 
     Independent Insurance Advocate or requested by such 
     Committees.
       ``(t) Report Upon End of Term of Office.--Not later than 
     two months prior to the expiration of the term of office, or 
     discontinuation of service, of each individual serving as the 
     Independent Insurance Advocate, the Independent Insurance 
     Advocate shall submit a report to the Committees on Financial 
     Services and Ways and Means of the House of Representatives 
     and the Committees on Banking, Housing, and Urban Affairs and 
     Finance of the Senate setting forth recommendations regarding 
     the Financial Stability Oversight Council and the role, 
     duties, and functions of the Independent Insurance Advocate.
       ``(u) Definitions.--In this section and section 314, the 
     following definitions shall apply:
       ``(1) Affiliate.--The term `affiliate' means, with respect 
     to an insurer, any person who controls, is controlled by, or 
     is under common control with the insurer.
       ``(2) Covered agreement.--The term `covered agreement' 
     means a written bilateral or multilateral agreement regarding 
     prudential measures with respect to the business of insurance 
     or reinsurance that--
       ``(A) is entered into between the United States and one or 
     more foreign governments, authorities, or regulatory 
     entities; and
       ``(B) relates to the recognition of prudential measures 
     with respect to the business of insurance or reinsurance that 
     achieves a level of protection for insurance or reinsurance 
     consumers that is substantially equivalent to the level of 
     protection achieved under State insurance or reinsurance 
     regulation.
       ``(3) Insurer.--The term `insurer' means any person engaged 
     in the business of insurance, including reinsurance.
       ``(4) Federal financial regulatory agency.--The term 
     `Federal financial regulatory agency' means the Department of 
     the Treasury, the Board of Governors of the Federal Reserve 
     System, the Office of the Comptroller of the Currency, the 
     Office of Thrift Supervision, the Securities and Exchange 
     Commission, the Commodity Futures Trading Commission, the 
     Federal Deposit Insurance Corporation, the Federal Housing 
     Finance Agency, or the National Credit Union Administration.
       ``(5) Financial stability oversight council.--The term 
     `Financial Stability Oversight Council' means the Financial 
     Stability Oversight Council established under section 111(a) 
     of the Dodd-Frank Wall Street Reform and Consumer Protection 
     Act (12 U.S.C. 5321(a)).
       ``(6) Member agency.--The term `member agency' has the 
     meaning given such term in section 111(a) of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act (12 U.S.C. 
     5321(a)).
       ``(7) Non-united states insurer.--The term `non-United 
     States insurer' means an insurer that is organized under the 
     laws of a jurisdiction other than a State, but does not 
     include any United States branch of such an insurer.
       ``(8) Office.--The term `Office' means the Office of the 
     Independent Insurance Advocate established by this section.
       ``(9) State insurance measure.--The term `State insurance 
     measure' means any State law, regulation, administrative 
     ruling, bulletin, guideline, or practice relating to or 
     affecting prudential measures applicable to insurance or 
     reinsurance.
       ``(10) State insurance regulator.--The term `State 
     insurance regulator' means any State regulatory authority 
     responsible for the supervision of insurers.
       ``(11) Substantially equivalent to the level of protection 
     achieved.--The term `substantially equivalent to the level of 
     protection achieved' means the prudential measures of a 
     foreign government, authority, or regulatory entity achieve a 
     similar outcome in consumer protection as the outcome 
     achieved under State insurance or reinsurance regulation.
       ``(12) United states insurer.--The term `United States 
     insurer' means--
       ``(A) an insurer that is organized under the laws of a 
     State; or
       ``(B) a United States branch of a non-United States 
     insurer.''.
       (b) Pay at Level III of Executive Schedule.--Section 5314 
     of title 5, United States Code, is amended by adding at the 
     end the following new item:
       ``Independent Insurance Advocate, Department of the 
     Treasury.''.
       (c) Independence.--Section 111 of Public Law 93-495 (12 
     U.S.C. 250) is amended--
       (1) by inserting ``the Independent Insurance Advocate of 
     the Department of the Treasury,'' after ``Federal Housing 
     Finance Agency,''; and
       (2) by inserting ``or official'' before ``submitting 
     them''.
       (d) Transfer of Employees.--All employees of the Department 
     of Treasury who are performing staff functions for the 
     independent member of the Financial Stability Oversight 
     Council under section 111(b)(2)(J) of the Dodd-Frank Wall 
     Street Reform and Consumer Protection Act (12 U.S.C. 
     5321(b)(2)(J)) on a full-time equivalent basis as of the date 
     of enactment of this Act shall be eligible for transfer to 
     the Office of the Independent Insurance Advocate established 
     pursuant to the amendment made by subsection (a) of this 
     section for appointment as an employee and shall be 
     transferred at the joint discretion of the Independent 
     Insurance Advocate and the eligible employee. Any employee 
     eligible for transfer that is not appointed within 360 days 
     from the date of enactment of this Act shall be eligible for 
     detail under section 313(f)(4) of title 31, United States 
     Code.
       (e) Temporary Service; Transition.--Notwithstanding the 
     amendment made by subsection (a) of this section, during the 
     period beginning on the date of the enactment of this Act and 
     ending on the date on which the Independent Insurance 
     Advocate is appointed and confirmed pursuant to section 
     313(b)(2) of title 31, United States Code, as amended by such 
     amendment, the person serving, on such date of enactment, as 
     the independent member of the Financial Stability Oversight 
     Council pursuant to section 111(b)(1)(J) of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act (12 U.S.C. 
     5321(b)(1)(J)) shall act for all purposes as, and with the 
     full powers of, the Independent Insurance Advocate.
       (f) Comparability in Compensation Schedules.--Subsection 
     (a) of section 1206 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b(a)), 
     as amended by section 711(c)(11)(D), is further amended by 
     inserting ``the Office of the Independent Insurance Advocate 
     of the Department of the Treasury,'' before ``and the Farm 
     Credit Administration,''.
       (g) Senior Executives.--Subparagraph (D) of section 
     3132(a)(1) of title 5, United States Code, is amended by 
     inserting ``the Office of the Independent Insurance Advocate 
     of the Department of the Treasury,'' after ``Finance 
     Agency,''.

     SEC. 1102. TREATMENT OF COVERED AGREEMENTS.

       Subsection (c) of section 314 of title 31, United States 
     Code is amended--
       (1) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (2) by inserting before paragraph (2), as so redesignated, 
     the following new paragraph:
       ``(1) the Secretary of the Treasury and the United States 
     Trade Representative have caused to be published in the 
     Federal Register, and made available for public comment for a 
     period of not fewer than 30 days and not greater than 90 days 
     (which period may run concurrently with the 90-day period for 
     the covered agreement referred to in paragraph (3)), the 
     proposed text of the covered agreement;''.

                    TITLE XII--TECHNICAL CORRECTIONS

     SEC. 1201. TABLE OF CONTENTS; DEFINITIONAL CORRECTIONS.

       (a) Table of Contents.--The table of contents for the Dodd-
     Frank Wall Street Reform and Consumer Protection Act (Public 
     Law 111-203; 124 Stat. 1376) is amended by striking the items 
     relating to sections 407 through 414 and inserting the 
     following:

``Sec. 407. Exemption of and reporting by venture capital fund 
              advisers.
``Sec. 408. Exemption of and reporting by certain private fund 
              advisers.
``Sec. 409. Family offices.
``Sec. 410. State and Federal responsibilities; asset threshold for 
              Federal registration of investment advisers.
``Sec. 411. Custody of client assets.
``Sec. 414. Rule of construction relating to the Commodity Exchange 
              Act.
``Sec. 418. Qualified client standard.
``Sec. 419. Transition period.''.
       (b) Definitions.--Section 2 of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5301) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``section 3'' and inserting ``section 
     3(w)''; and
       (B) by striking ``(12 U.S.C. 1813)'' and inserting ``(12 
     U.S.C. 1813(w))'';
       (2) in paragraph (6), by striking ``1 et seq.'' and 
     inserting ``1a''; and
       (3) in paragraph (18)(A)--
       (A) by striking ```bank holding company',''; and
       (B) by inserting ```includes','' before ```including',''.

     SEC. 1202. ANTITRUST SAVINGS CLAUSE CORRECTIONS.

       Section 6 of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (12 U.S.C. 5303) is amended, in the second 
     sentence--
       (1) by inserting ``(15 U.S.C. 12(a))'' after ``Clayton 
     Act''; and
       (2) by striking ``Act, to'' and inserting ``Act (15 U.S.C. 
     45) to''.

     SEC. 1203. TITLE I CORRECTIONS.

       Title I of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (12 U.S.C. 5311 et seq.) is amended--

[[Page 8981]]

       (1) in section 102(a)(6) (12 U.S.C. 5311(a)(6)), by 
     inserting ``(12 U.S.C. 1843(k))'' after ``of 1956'' each 
     place that term appears;
       (2) in section 111(c)(3) (12 U.S.C. 5321(c)(3)), by 
     striking ``that agency or department head'' and inserting 
     ``the head of that member agency or department'';
       (3) in section 112 (12 U.S.C. 5322)--
       (A) in subsection (a)(2)--
       (i) in subparagraph (C) (as redesignated by section 151)--

       (I) by striking ``to monitor'' and inserting ``monitor''; 
     and
       (II) by striking ``to advise'' and inserting ``advise'';

       (ii) in subparagraph (H) (as redesignated by section 151), 
     by striking ``may''; and
       (B) in subsection (d)(5), by striking ``subsection and 
     subtitle B'' each place such term appears and inserting 
     ``subtitle''; and
       (4) in section 171(b)(4)(D) (12 U.S.C. 5371(b)(4)(D)), by 
     adding a period at the end.

     SEC. 1204. TITLE III CORRECTIONS.

       (a) In General.--Title III of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5401 et seq.) 
     is amended--
       (1) in section 327(b)(5) (12 U.S.C. 5437(b)(5)), by 
     striking ``in'' and inserting ``into'';
       (2) in section 333(b)(2) (124 Stat. 1539), by inserting 
     ``the second place that term appears'' before ``and 
     inserting''; and
       (3) in section 369(5) (124 Stat. 1559)--
       (A) in subparagraph (D)(i)--
       (i) in subclause (III), by redesignating items (aa), (bb), 
     and (cc) as subitems (AA), (BB), and (CC), respectively, and 
     adjusting the margins accordingly;
       (ii) in subclause (IV), by redesignating items (aa) and 
     (bb) as subitems (AA) and (BB), respectively, and adjusting 
     the margins accordingly;
       (iii) in subclause (V), by redesignating items (aa), (bb), 
     and (cc) as subitems (AA), (BB), and (CC), respectively, and 
     adjusting the margins accordingly; and
       (iv) by redesignating subclauses (III), (IV), and (V) as 
     items (bb), (cc), and (dd), respectively, and adjusting the 
     margins accordingly;
       (B) in subparagraph (F)--
       (i) in clause (ii), by adding ``and'' at the end;
       (ii) in clause (iii), by striking ``and'' at the end and 
     inserting a semicolon; and
       (iii) by striking clause (iv); and
       (C) in subparagraph (G)(i), by inserting ``each place such 
     term appears'' before ``and inserting''.
       (b) Effective Dates.--
       (1) Section 333.--The amendment made by subsection (a)(2) 
     of this section shall take effect as though enacted as part 
     of subtitle C of title III of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (124 Stat. 1538).
       (2) Section 369.--The amendments made by subsection (a)(3) 
     of this section shall take effect as though enacted as part 
     of subtitle E of title III of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (124 Stat. 1546).

     SEC. 1205. TITLE IV CORRECTION.

       Section 414 of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act (124 Stat. 1578) is amended in the 
     section heading by striking ``COMMODITIES'' and inserting 
     ``COMMODITY''.

     SEC. 1206. TITLE VI CORRECTIONS.

       (a) In General.--Section 610 of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (124 Stat. 1596) is 
     amended--
       (1) by striking subsection (b); and
       (2) by redesignating subsection (c) as subsection (b).
       (b) Effective Date.--The amendments made by subsection (a) 
     of this section shall take effect as though enacted as part 
     of section 610 of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act (124 Stat. 1611).

     SEC. 1207. TITLE VII CORRECTIONS.

       (a) In General.--Title VII of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (15 U.S.C. 8301 et seq.) 
     is amended--
       (1) in section 719(c)(1)(B) (15 U.S.C. 8307(c)(1)(B)), by 
     adding a period at the end;
       (2) in section 723(a)(1)(B) (124 Stat. 1675), by inserting 
     ``, as added by section 107 of the Commodity Futures 
     Modernization Act of 2000 (Appendix E of Public Law 106-554; 
     114 Stat. 2763A-382),'' after ``subsection (i)'';
       (3) in section 724(a), by striking ``adding at the end'' 
     and inserting ``inserting after subsection (e)'';
       (4) in section 734(b)(1) (124 Stat. 1718), by striking ``is 
     amended'' and all that follows through ``(B) in'' and 
     inserting ``is amended in'';
       (5) in section 741(b)(10) (124 Stat. 1732), by striking 
     ``1a(19)(A)(iv)(II)'' each place it appears and inserting 
     ``1a(18)(A)(iv)(II)''; and
       (6) in section 749 (124 Stat. 1746)--
       (A) in subsection (a)(2), by striking ``adding at the end'' 
     and inserting ``inserting after subsection (f)''; and
       (B) in subsection (h)(1)(B), by inserting ``the second 
     place that term appears'' before the semicolon.
       (b) Effective Date.--The amendments made by paragraphs (3), 
     (4), (5), and (6) of subsection (a) of this section shall 
     take effect as though enacted as part of part II of subtitle 
     A of title VII of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act (124 Stat. 1658).

     SEC. 1208. TITLE IX CORRECTIONS.

       Section 939(h)(1) of the Dodd-Frank Wall Street Reform and 
     Consumer Protection Act (124 Stat. 1887) is amended--
       (1) in the matter preceding subparagraph (A), by inserting 
     ``The'' before ``Commission''; and
       (2) by striking ``feasability'' and inserting 
     ``feasibility''.

     SEC. 1209. TITLE X CORRECTIONS.

       (a) In General.--Title X of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5481 et seq.) 
     is amended--
       (1) in section 1002(12)(G) (12 U.S.C. 5481(12)(G)), by 
     striking ``Home Owners'' and inserting ``Homeowners'';
       (2) in section 1013(a)(1)(C) (12 U.S.C. 5493(a)(1)(C)), by 
     striking ``section 11(1) of the Federal Reserve Act (12 
     U.S.C. 248(1))'' and inserting ``subsection (l) of section 11 
     of the Federal Reserve Act (12 U.S.C. 248(l)'';
       (3) in section 1017(a)(2) (as so redesignated by section 
     712) (12 U.S.C. 5497(a)(5))--
       (A) in subparagraph (A), in the last sentence by striking 
     ``716(c) of title 31, United States Code'' and inserting 
     ``716 of title 31, United States Code''; and
       (B) in subparagraph (C), by striking ``section 3709 of the 
     Revised Statutes of the United States (41 U.S.C. 5)'' and 
     inserting ``section 6101 of title 41, United States Code'';
       (4) in section 1027(d)(1)(B) (12 U.S.C. 5517(d)(1)(B)), by 
     inserting a comma after ``(A)'';
       (5) in section 1029(d) (12 U.S.C. 5519(d)), by striking the 
     period after ``Commission Act'';
       (6) in section 1061(b)(7) (12 U.S.C. 5581(b)(7))--
       (A) by striking ``Secretary of the Department of Housing 
     and Urban Development'' each place that term appears and 
     inserting ``Department of Housing and Urban Development''; 
     and
       (B) in subparagraph (A), by striking ``(12 U.S.C. 5102 et 
     seq.)'' and inserting ``(12 U.S.C. 5101 et seq.)'';
       (7) in section 1063 (12 U.S.C. 5583)--
       (A) in subsection (f)(1)(B), by striking ``that''; and
       (B) in subsection (g)(1)(A)--
       (i) by striking ``(12 U.S.C. 5102 et seq.)'' and inserting 
     ``(12 U.S.C. 5101 et seq.)''; and
       (ii) by striking ``seq)'' and inserting ``seq.)'';
       (8) in section 1064(i)(1)(A)(iii) (12 U.S.C. 
     5584(i)(1)(A)(iii)), by inserting a period before ``If an'';
       (9) in section 1073(c)(2) (12 U.S.C. 5601(c)(2))--
       (A) in the paragraph heading, by inserting ``and 
     education'' after ``financial literacy''; and
       (B) by striking ``its duties'' and inserting ``their 
     duties'';
       (10) in section 1076(b)(1) (12 U.S.C. 5602(b)(1)), by 
     inserting before the period at the end the following: ``, the 
     Agency may, after notice and opportunity for comment, 
     prescribe regulations'';
       (11) in section 1077(b)(4)(F) (124 Stat. 2076), by striking 
     ``associates'' and inserting ``associate's'';
       (12) in section 1084(1) (124 Stat. 2081), by inserting a 
     comma after ``2009)'';
       (13) in section 1089 (124 Stat. 2092)--
       (A) in paragraph (3)--
       (i) in subparagraph (A), by striking ``and'' at the end; 
     and
       (ii) in subparagraph (B)(vi), by striking the period at the 
     end and inserting ``; and''; and
       (B) by redesignating paragraph (4) as subparagraph (C) and 
     adjusting the margins accordingly; and
       (14) in section 1098(6) (124 Stat. 2104), by inserting 
     ``the first place that term appears'' before ``and''.
       (b) Effective Date.--The amendments made by paragraphs 
     (11), (12), (13), (14), and (15) of subsection (a) shall take 
     effect as though enacted as part of subtitle H of title X of 
     the Dodd-Frank Wall Street Reform and Consumer Protection Act 
     (124 Stat. 2080).

     SEC. 1210. TITLE XII CORRECTION.

       Title XII of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (124 Stat. 2129) is amended, in section 
     1208(b) (12 U.S.C. 5626(b)), by inserting ``, as defined in 
     section 103(10) of the Riegle Community Development and 
     Regulatory Improvement Act of 1994 (12 U.S.C. 4702(10)),'' 
     after ``appropriated to the Fund''.

     SEC. 1211. TITLE XIV CORRECTION.

       Title XIV of the Dodd-Frank Wall Street Reform and Consumer 
     Protection Act (124 Stat. 2136) is amended, in section 
     1451(c) (12 U.S.C. 1701x-1(c)), by striking ``pursuant''.

     SEC. 1212. TECHNICAL CORRECTIONS TO OTHER STATUTES.

       (a) Alternative Mortgage Transaction Parity Act of 1982.--
     The Alternative Mortgage Transaction Parity Act of 1982 (12 
     U.S.C. 3801 et seq.) is amended--
       (1) in section 802(a)(3) (12 U.S.C. 3801(a)(3)), by 
     striking ``the Director of the Office of Thrift Supervision'' 
     and inserting ``the Consumer Law Enforcement Agency'';
       (2) in section 804 (12 U.S.C. 3803)--
       (A) in subsection (a), by striking ``the Director of the 
     Office of Thrift Supervision'' each place such term appears 
     and inserting ``the Comptroller of the Currency''; and
       (B) in subsection (d)(1), by striking the comma after 
     ``Administration''.
       (b) Bank Holding Company Act Amendments of 1970.--Section 
     106(b)(1) of the Bank Holding Company Act Amendments of 1970 
     (12 U.S.C. 1972(1)) is amended, in the undesignated matter at 
     the end, by striking ``Federal Deposit Insurance Company'' 
     and inserting ``Federal Deposit Insurance Corporation''.
       (c) Balanced Budget and Emergency Deficit Control Act.--
     Section 255(g)(1)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is 
     amended by striking ``Office of Thrift Supervision (20-4108-
     0-3-373).''.
       (d) Bretton Woods Agreements Act.--Section 68(a)(1) of the 
     Bretton Woods Agreements Act (22 U.S.C. 286tt(a)(1)) is 
     amended by striking ``Fund ,'' and inserting ``Fund,''.

[[Page 8982]]

       (e) CAN-SPAM Act of 2003.--Section 7(b)(1)(D) of the CAN-
     SPAM Act of 2003 (15 U.S.C. 7706(b)(1)(D)) is amended by 
     striking ``Director of the Office of Thrift Supervision'' and 
     inserting ``Comptroller of the Currency or the Board of 
     Directors of Federal Deposit Insurance Corporation, as 
     applicable''.
       (f) Children's Online Privacy Protection Act of 1998.--
     Section 1306(b)(2) of the Children's Online Privacy 
     Protection Act of 1998 (15 U.S.C. 6505(b)(2)) is amended by 
     striking ``Director of the Office of Thrift Supervision'' and 
     inserting ``Comptroller of the Currency or the Board of 
     Directors of Federal Deposit Insurance Corporation, as 
     applicable''.
       (g) Community Reinvestment Act of 1977.--The Community 
     Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
     amended--
       (1) in section 803(1)(C) (12 U.S.C. 2902(1)(C)), by 
     striking the period at the end and inserting a semicolon; and
       (2) in section 806 (12 U.S.C. 2905), by striking 
     ``companies,,'' and inserting ``companies,''.
       (h) Credit Repair Organizations Act.--Section 403(4) of the 
     Credit Repair Organizations Act (15 U.S.C. 1679a(4)) is 
     amended by striking ``103(e)'' and inserting ``103(f)''.
       (i) Depository Institution Management Interlocks Act.--
     Section 205(9) of the Depository Institution Management 
     Interlocks Act (12 U.S.C. 3204(9)) is amended by striking 
     ``Director of the Office of Thrift Supervision'' and 
     inserting ``appropriate Federal banking agency''.
       (j) Economic Growth and Regulatory Paperwork Reduction Act 
     of 1996.--Section 2227(a)(1) of the Economic Growth and 
     Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 
     252(a)(1)) is amended by striking ``the Director of the 
     Office of Thrift Supervision,''.
       (k) Electronic Fund Transfer Act.--The Electronic Fund 
     Transfer Act (15 U.S.C. 1693 et seq.) is amended--
       (1) in section 903 (15 U.S.C. 1693a)--
       (A) in paragraph (2), by striking ``103(i)'' and inserting 
     ``103(j)''; and
       (B) by redesignating the first paragraph designated as 
     paragraph (4) (defining the term ``Board''), as paragraph 
     (3);
       (2) in section 904(a) (15 U.S.C. 1693b(a))--
       (A) by redesignating the second paragraph designated as 
     paragraph (1) (relating to consultation with other agencies), 
     the second paragraph designated as paragraph (2) (relating to 
     the preparation of an analysis of economic impact), paragraph 
     (3), and paragraph (4), as subparagraphs (A), (B), (C), and 
     (D), respectively, and adjusting the margins accordingly;
       (B) by striking ``In prescribing such regulations, the 
     Board shall:'' and inserting the following:
       ``(3) Regulations.--In prescribing regulations under this 
     subsection, the Agency and the Board shall--'';
       (C) in paragraph (3)(C), as so redesignated, by striking 
     ``the Board shall''; and
       (D) in paragraph (3)(D), as so redesignated--
       (i) by inserting ``send promptly'' before ``any''; and
       (ii) by striking ``shall be sent promptly to Congress by 
     the Board'' and inserting ``to Congress'';
       (3) in section 909(c) (15 U.S.C. 1693g(c)), by striking 
     ``103(e)'' and inserting ``103(f)'';
       (4) in section 918(a)(4) (15 U.S.C. 1693o(a)(4), by 
     striking ``Act and'' and inserting ``Act; and'';
       (5) by redesignating the section added by section 1073(4) 
     of the Dodd-Frank Wall Street Reform and Consumer Protection 
     Act (relating to remittance transfers) (15 U.S.C. 1693o-1) as 
     section 920 of the Electronic Fund Transfer Act;
       (6) by redesignating the section headed ``Reasonable fees 
     and rules for payment card transaction'' (15 U.S.C. 1693o-2) 
     as section 921 of the Electronic Fund Transfer Act;
       (7) by redesignating the section headed ``Relation to State 
     laws'' (15 U.S.C. 1693q) as section 922 of the Electronic 
     Fund Transfer Act;
       (8) by redesignating the section headed ``Exemption for 
     State regulation'' (15 U.S.C. 1693r) as section 923 of the 
     Electronic Fund Transfer Act; and
       (9) by redesignating the section headed ``Effective date'' 
     (15 U.S.C. 1693 note) as section 924 of the Electronic Fund 
     Transfer Act.
       (l) Emergency Economic Stabilization Act of 2008.--Section 
     101(b) of the Emergency Economic Stabilization Act of 2008 
     (12 U.S.C. 5211(b)) is amended by striking ``the Director of 
     the Office of Thrift Supervision,''.
       (m) Equal Credit Opportunity Act.--The Equal Credit 
     Opportunity Act (15 U.S.C. 1691 et seq.) is amended--
       (1) in section 703 (15 U.S.C. 1691b)--
       (A) in each of subsections (c) and (d), by striking 
     ``paragraph'' each place that term appears and inserting 
     ``subsection''; and
       (B) in subsection (g), by adding a period at the end;
       (2) in section 704 (15 U.S.C. 1691c)--
       (A) in subsection (a)--
       (i) by striking ``Consumer Protection Financial Protection 
     Act of 2010 with'' and inserting ``Consumer Financial 
     Protection Act of 2010, compliance with'';
       (ii) in paragraph (1)--

       (I) by striking ``section 8'' and inserting ``Section 8''; 
     and
       (II) in subparagraph (C), by striking ``banks;'' and 
     inserting ``banks.'';

       (iii) in each of paragraphs (6) and (7), by striking the 
     semicolon at the end and inserting a period; and
       (iv) in paragraph (8), by striking ``; and'' and inserting 
     a period; and
       (B) in subsection (c), in the second sentence, by striking 
     ``subchapter'' and inserting ``title''; and
       (3) in section 706(k) (15 U.S.C. 1691e(k)), by striking ``, 
     (2), or (3)'' and inserting ``or (2)''.
       (n) Expedited Funds Availability Act.--The Expedited Funds 
     Availability Act (12 U.S.C. 4001 et seq.) is amended--
       (1) in section 605(f)(2)(A) (12 U.S.C. 4004(f)(2)(A)), by 
     striking ``,,'' and inserting a semicolon; and
       (2) in section 610(a)(2) (12 U.S.C. 4009(a)(2)), by 
     striking ``Director of the Office of Thrift Supervision'' and 
     inserting ``Comptroller of the Currency and the Board of 
     Directors of the Federal Deposit Insurance Corporation, as 
     appropriate,''.
       (o) Fair Credit Reporting Act.--The Fair Credit Reporting 
     Act (15 U.S.C. 1681 et seq.) is amended--
       (1) in section 603 (15 U.S.C. 1681a)--
       (A) in subsection (d)(2)(D), by striking ``(x)'' and 
     inserting ``(y)'';
       (B) in subsection (q)(5), by striking ``103(i)'' and 
     inserting ``103(j)''; and
       (C) in subsection (v), by striking ``Bureau'' and inserting 
     ``Federal Trade Commission'';
       (2) in section 604 (15 U.S.C. 1681b)--
       (A) in subsection (b)--
       (i) in paragraph (2)(B)(i), by striking ``section 
     615(a)(3)'' and inserting ``section 615(a)(4)'';
       (ii) in paragraph (3)(B)(ii), by striking ``clause 
     (B)(i)(IV)'' and inserting ``clause (i)(IV)'';
       (iii) in paragraph (4)(A)(ii), by inserting ``and'' after 
     the semicolon; and
       (iv) by striking ``section 609(c)(3)'' each place that term 
     appears and inserting ``section 609(c)''; and
       (B) in subsection (g)(5), by striking ``paragraph (2).--'' 
     and all that follows through ``The Bureau'' and inserting 
     ``paragraph (2).--The Agency'';
       (3) in section 605 (15 U.S.C. 1681c)--
       (A) in subsection (f), by striking ``who'' and inserting 
     ``which''; and
       (B) in subsection (h)(2)(A)--
       (i) by striking ``shall,,'' and inserting ``shall,''; and
       (ii) by striking ``Commission,,'' and inserting 
     ``Commission,'';
       (4) in paragraphs (1)(A), (1)(B)(i), (2)(A)(i), and (2)(B) 
     of section 605A(h) (15 U.S.C. 1681c-1(h))--
       (A) by striking ``103(i)'' each place that term appears and 
     inserting ``103(j)'' ; and
       (B) by striking ``open-end'' each place that term appears 
     and inserting ``open end'';
       (5) in section 607(e)(3)(A) (15 U.S.C. 1681e(e)(3)(A)), by 
     striking ``section 604(b)(4)(E)(i)'' and inserting ``section 
     604(b)(4)(D)(i)'';
       (6) in section 609 (15 U.S.C. 1681g)--
       (A) in subsection (a)(3)(C)(i), by striking ``section 
     604(b)(4)(E)(i)'' and inserting ``section 604(b)(4)(D)(i)'';
       (B) in subsection (c)(1)--
       (i) in the paragraph heading, by striking ``Commission'' 
     and inserting ``Bureau''; and
       (ii) in subparagraph (B)(vi), by striking ``603(w)'' and 
     inserting ``603(x)'';
       (C) in subsection (e)(2)(B)(ii)(II), by striking ``an''; 
     and
       (D) by striking ``The Commission'' each place that term 
     appears and inserting ``The Bureau'';
       (7) in section 610 (15 U.S.C. 1681h)--
       (A) in subsection (b)(1), by inserting ``section'' after 
     ``under''; and
       (B) in subsection (e), by inserting a comma after ``on the 
     report'';
       (8) in section 611 (15 U.S.C. 1681i), by striking ``The 
     Commission'' each place that term appears and inserting ``The 
     Agency'';
       (9) in section 612 (15 U.S.C. 1681j)--
       (A) in subsection (a)(1)--
       (i) by striking ``(w)'' and inserting ``(x)''; and
       (ii) in subparagraph (C), by striking ``603(w)'' each place 
     that term appears and inserting ``603(x)'';
       (B) in subsection (g), by striking ``televison'' and 
     inserting ``television''; and
       (C) by striking ``The Commission'' each place that term 
     appears and inserting ``The Bureau'';
       (10) in section 621 (15 U.S.C. 1681s)--
       (A) in subsection (a)(1), in the first sentence, by 
     striking ``, subsection (b)'';
       (B) in subsection (e)(2), by inserting a period after 
     ``provisions of this title''; and
       (C) in subsection (f)(2), by striking ``The Commission'' 
     and inserting ``The Agency'' and
       (11) in section 623(a)(5) (15 U.S.C. 1681s-2(a)(5)), by 
     striking ``of accounts.--(A) in general.--A person'' and 
     inserting ``of accounts.--
       ``(A) In general.--A person''.
       (p) Federal Credit Union Act.--Section 206(g)(7)(D)(iv) of 
     the Federal Credit Union Act (12 U.S.C. 1786(g)(7)(D)(iv)) is 
     amended by striking the semicolon at the end and inserting a 
     period.
       (q) Federal Deposit Insurance Act.--The Federal Deposit 
     Insurance Act (12 U.S.C. 1811 et seq.) is amended--
       (1) in section 3(q)(2)(C) (12 U.S.C. 1813(q)(2)(C)), by 
     adding ``and'' at the end;
       (2) in section 7 (12 U.S.C. 1817)--
       (A) in subsection (b)(2)--
       (i) in subparagraph (A), by striking ``(D)'' and inserting 
     ``(C)''; and
       (ii) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively; and
       (B) in subsection (e)(2)(C), by adding a period at the end;
       (3) in section 8 (12 U.S.C. 1818)--
       (A) in subsection (b)(3), by striking ``Act))'' and 
     inserting ``Act)''; and
       (B) in subsection (t)(2)(C), by striking ``depositors or'' 
     and inserting ``depositors; or'';
       (4) in section 11 (12 U.S.C. 1821)--

[[Page 8983]]

       (A) in subsection (d)(2)(I)(ii), by striking ``and section 
     21A(b)(4)''; and
       (B) in subsection (m), in each of paragraphs (16) and (18), 
     by striking the comma after ``Comptroller of the Currency'' 
     each place it appears; and
       (5) in section 26(a) (12 U.S.C. 1831c(a)), by striking 
     ``Holding Company Act'' each place that term appears and 
     inserting ``Holding Company Act of 1956''.
       (r) Federal Fire Prevention and Control Act of 1974.--
     Section 31(a)(5)(B) of the Federal Fire Prevention and 
     Control Act of 1974 (15 U.S.C. 2227(a)(5)(B)) is amended by 
     striking ``the Federal Deposit Insurance Corporation'' and 
     all that follows through the period and inserting ``or the 
     Federal Deposit Insurance Corporation under the affordable 
     housing program under section 40 of the Federal Deposit 
     Insurance Act.''.
       (s) Federal Home Loan Bank Act.--The Federal Home Loan Bank 
     Act (12 U.S.C. 1421 et seq.) is amended--
       (1) in section 10(h)(1) (12 U.S.C. 1430(h)(1)), by striking 
     ``Director of the Office of Thrift Supervision'' and 
     inserting ``Comptroller of the Currency or the Board of 
     Directors of the Federal Deposit Insurance Corporation, as 
     applicable''; and
       (2) in section 22(a) (12 U.S.C. 1442(a))--
       (A) in the matter preceding paragraph (1), by striking 
     ``Comptroller of the Currency'' and all that follows through 
     ``Supervision'' and inserting ``Comptroller of the Currency, 
     the Chairman of the Board of Governors of the Federal Reserve 
     System, the Chairperson of the Federal Deposit Insurance 
     Corporation, and the Chairman of the National Credit Union 
     Administration''; and
       (B) in the undesignated matter following paragraph (2), by 
     striking ``Comptroller of the Currency'' and all that follows 
     through ``Supervision'' and inserting ``Comptroller of the 
     Currency, the Chairman of the Board of Governors of the 
     Federal Reserve System, and the Chairman of the National 
     Credit Union Administration''.
       (t) Federal Reserve Act.--Paragraph (8)(B) of section 11(s) 
     of the Federal Reserve Act (headed ``Federal Reserve 
     Transparency and Release of Information'') (12 U.S.C. 248) is 
     amended by striking ``this section'' and inserting ``this 
     subsection''.
       (u) Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989.--The Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (Public Law 101-73; 103 
     Stat. 183) is amended in section 1121(6) (12 U.S.C. 3350(6)), 
     by striking ``the Office of Thrift Supervision,''.
       (v) Gramm-Leach-Bliley Act.--The Gramm-Leach-Bliley Act 
     (Public Law 106-102; 113 Stat. 1338) is amended--
       (1) in section 132(a) (12 U.S.C. 1828b(a)), by striking 
     ``the Director of the Office of Thrift Supervision,'';
       (2) in section 206(a) (15 U.S.C. 78c note), by striking 
     ``Except as provided in subsection (e), for'' and inserting 
     ``For'';
       (3) in section 502(e)(5) (15 U.S.C. 6802(e)(5)), by 
     striking ``a Federal'' and inserting ``, a Federal'';
       (4) in section 504(a)(2) (15 U.S.C. 6804(a)(2)), by 
     striking ``and, as appropriate, and with'' and inserting 
     ``and, as appropriate, with'';
       (5) in section 509(2) (15 U.S.C. 6809(2))--
       (A) by striking subparagraph (D); and
       (B) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (D) and (E), respectively; and
       (6) in section 522(b)(1)(A)(iv) (15 U.S.C. 
     6822(b)(1)(A)(iv)), by striking ``Director of the Office of 
     Thrift Supervision'' and inserting ``Comptroller of the 
     Currency and the Board of Directors of the Federal Deposit 
     Insurance Corporation, as appropriate''.
       (w) Helping Families Save Their Homes Act of 2009.--Section 
     104 of the Helping Families Save Their Homes Act of 2009 (12 
     U.S.C. 1715z-25) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``and the Director of the Office of Thrift 
     Supervision, shall jointly'' and inserting ``shall'';
       (ii) by striking ``Senate,'' and inserting ``Senate and'';
       (iii) by striking ``and the Office of Thrift Supervision''; 
     and
       (iv) by striking ``each such'' and inserting ``such''; and
       (B) in paragraph (1), by striking ``and the Office of 
     Thrift Supervision''; and
       (2) in subsection (b)(1)--
       (A) in subparagraph (A)--
       (i) in the first sentence--

       (I) by striking ``and the Director of the Office of Thrift 
     Supervision,''; and
       (II) by striking ``or the Director''; and

       (ii) in the second sentence, by striking ``and the Director 
     of the Office of Thrift Supervision''; and
       (B) in subparagraph (B), by striking ``and the Director of 
     the Office of Thrift Supervision''.
       (x) Home Mortgage Disclosure Act of 1975.--The Home 
     Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is 
     amended--
       (1) in section 304--
       (A) in subsection (b)(5)(A), by striking ``15 U.S.C. 
     1602(aa)(4)'' and inserting ``section 103(aa)(4) of the Truth 
     in Lending Act''; and
       (B) in subsection (j)(3) (12 U.S.C. 2803(j)(3)), by adding 
     a period at the end; and
       (2) in section 305(b)(1)(A) (12 U.S.C. 2804(b)(1)(A))--
       (A) in the matter preceding clause (i), by inserting ``by'' 
     before ``the appropriate Federal banking agency''; and
       (B) in clause (iii), by striking ``bank as,'' and inserting 
     ``bank, as''.
       (y) Home Owners' Loan Act.--The Home Owners' Loan Act (12 
     U.S.C. 1461 et seq.) is amended--
       (1) in section 5 (12 U.S.C. 1464)--
       (A) in subsection (d)(2)(E)(ii)--
       (i) in the first sentence, by striking ``Except as provided 
     in section 21A of the Federal Home Loan Bank Act, the'' and 
     inserting ``The''; and
       (ii) by striking ``, at the Director's discretion,'';
       (B) in subsection (i)(6), by striking ``the Office of 
     Thrift Supervision or'';
       (C) in subsection (m), by striking ``Director's'' each 
     place that term appears and inserting ``appropriate Federal 
     banking agency's'';
       (D) in subsection (n)(9)(B), by striking ``Director's'' and 
     inserting ``Comptroller's''; and
       (E) in subsection (s)--
       (i) in paragraph (1)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``of such Act)'' and all that follows through ``shall 
     require'' and inserting ``of such Act), the appropriate 
     Federal banking agency shall require''; and
       (II) in subparagraph (B), by striking ``other methods'' and 
     all that follows through ``determines'' and inserting ``other 
     methods as the appropriate Federal banking agency 
     determines'';

       (ii) in paragraph (2)--

       (I) by striking ``determined'' and all that follows through 
     ``may, consistent'' and inserting ``determined by appropriate 
     federal banking agency case-by-case.--The appropriate Federal 
     banking agency may, consistent''; and
       (II) by striking ``capital-to-assets'' and all that follows 
     through ``determines to be necessary'' and inserting 
     ``capital-to-assets as the appropriate Federal banking agency 
     determines to be necessary''; and

       (iii) in paragraph (3)--

       (I) by striking ``agency, may'' and inserting ``agency 
     may''; and
       (II) by striking ``the Comptroller'' and inserting ``the 
     appropriate Federal banking agency'';

       (2) in section 6(c) (12 U.S.C. 1465(c)), by striking 
     ``sections'' and inserting ``section'';
       (3) in section 10 (12 U.S.C. 1467a)--
       (A) in subsection (b)(6), by striking ``time'' and all that 
     follows through ``release'' and inserting ``time, upon the 
     motion or application of the Board, release'';
       (B) in subsection (c)(2)(H)--
       (i) in the matter preceding clause (i)--

       (I) by striking ``1841(p))'' and inserting ``1841(p)))''; 
     and
       (II) by inserting ``(12 U.S.C. 1843(k))'' before ``if--''; 
     and

       (ii) in clause (i), by inserting ``of 1956 (12 U.S.C. 
     1843(l) and (m))'' after ``Company Act''; and
       (C) in subsection (e)(7)(B)(iii)--
       (i) by striking ``Board of the Office of Thrift 
     Supervision'' and inserting ``Director of the Office of 
     Thrift Supervision''; and
       (ii) by inserting ``, as defined in section 2 of the Dodd-
     Frank Wall Street Reform and Consumer Protection Act (12 
     U.S.C. 5301)'' after ``transfer date''; and
       (4) in section 13 (12 U.S.C. 1468b), by striking ``the a'' 
     and inserting ``a''.
       (z) Housing Act of 1948.--Section 502(c)(3) of the Housing 
     Act of 1948 (12 U.S.C. 1701c(c)(3)) is amended by striking 
     ``Federal Home Loan Bank Agency'' and inserting ``Federal 
     Housing Finance Agency''.
       (aa) Housing and Urban Development Act of 1968.--Section 
     106(h)(5) of the Housing and Urban Development Act of 1968 
     (12 U.S.C. 1701x(h)(5)) is amended by striking ``authorised'' 
     and inserting ``authorized''.
       (bb) International Banking Act of 1978.--Section 15 of the 
     International Banking Act of 1978 (12 U.S.C. 3109) is 
     amended--
       (1) in each of subsections (a) and (b)--
       (A) by striking ``, and Director of the Office of Thrift 
     Supervision'' each place that term appears; and
       (B) by inserting ``and'' before ``Federal Deposit'' each 
     place that term appears;
       (2) in subsection (a), by striking ``Comptroller, 
     Corporation, or Director'' and inserting ``Comptroller of the 
     Currency, or Corporation''; and
       (3) in subsection (c)(4)--
       (A) by inserting ``and'' before ``the Federal Deposit''; 
     and
       (B) by striking ``, and the Director of the Office of 
     Thrift Supervision''.
       (cc) International Lending Supervision Act of 1983.--
     Section 912 of the International Lending Supervision Act of 
     1983 (12 U.S.C. 3911) is amended--
       (1) by amending the section heading to read as follows: 
     ``EQUAL REPRESENTATION FOR FEDERAL DEPOSIT INSURANCE 
     CORPORATION'';
       (2) by striking ``(a) In General.--'';
       (3) by striking subsection (b); and
       (4) by striking ``4'' and inserting ``3''.
       (dd) Interstate Land Sales Full Disclosure Act.--The 
     Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701 et 
     seq.) is amended in each of section 1411(b) (15 U.S.C. 
     1710(b)) and subsections (b)(4) and (d) of section 1418a (15 
     U.S.C. 1717a), by striking ``Secretary's'' each place that 
     term appears and inserting ``Director's''.
       (ee) Investment Advisers Act of 1940.--Section 224 of the 
     Investment Company Act of 1940 (15 U.S.C. 80b-18c) is amended 
     in the heading of the section by striking ``COMMODITIES'' and 
     inserting ``COMMODITY''.
       (ff) Legal Certainty for Bank Products Act of 2000.--
     Section 403(b)(1) of the Legal Certainty for Bank Products 
     Act of 2000 (7 U.S.C.

[[Page 8984]]

     27a(b)(1)) is amended by striking ``that section'' and 
     inserting ``section''.
       (gg) Public Law 93-495.--Section 111 of Public Law 93-495 
     (12 U.S.C. 250) is amended by striking ``the Director of the 
     Office of Thrift Supervision,''.
       (hh) Revised Statutes of the United States.--Section 
     5136C(i) of the Revised Statutes of the United States (12 
     U.S.C. 25b(i)) is amended by striking ``Powers.--'' and all 
     that follows through ``In accordance'' and inserting 
     ``Powers.--In accordance''.
       (ii) Riegle Community Development and Regulatory 
     Improvement Act of 1994.--Section 117(e) of the Riegle 
     Community Development and Regulatory Improvement Act of 1994 
     (12 U.S.C. 4716(e)) is amended by striking ``the Director of 
     the Office of Thrift Supervision,''.
       (jj) S.A.F.E. Mortgage Licensing Act of 2008.--Section 1514 
     of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 
     5113) is amended in each of subsections (b)(5) and (c)(4)(C), 
     by striking ``Secretary's'' each place that term appears and 
     inserting ``Director's''.
       (kk) Securities Exchange Act of 1934.--The Securities 
     Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
       (1) in section 3D(d)(10)(A) (15 U.S.C. 78c-4(d)(10)(A)), by 
     striking ``taking'' and inserting ``take'';
       (2) in section 3E(b)(1) (15 U.S.C. 78c-5(b)(1)), by 
     striking ``though'' and inserting ``through'';
       (3) in section 4(g)(8)(A) (15 U.S.C. 78d(g)(8)(A)), by 
     striking ``(2)(A)(i)'' and inserting ``(2)(A)(ii)'';
       (4) in section 15 (15 U.S.C. 78o)--
       (A) in each of subparagraphs (B)(ii) and (C) of subsection 
     (b)(4), by striking ``dealer municipal advisor,,'' and 
     inserting ``dealer, municipal advisor,'';
       (B) by redesignating subsection (j) (relating to the 
     authority of the Commission) as subsection (p) and moving 
     that subsection after subsection (o);
       (C) as amended by section 841(d), by redesignating the 
     second subsection (k) and second subsection (l) (relating to 
     standard of conduct and other matters, respectively), as 
     added by section 913(g)(1) of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (124 Stat. 1828), as 
     subsections (q) and (r), respectively and moving those 
     subsections to the end; and
       (D) in subsection (m), by inserting ``the'' before ``same 
     extent'';
       (5) in section 15F(h) (15 U.S.C. 78o-10(h))--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``a'' after ``that 
     acts as an advisor to''; and
       (ii) in subparagraph (B), by inserting ``a'' after ``offers 
     to enter into''; and
       (B) in paragraph (5)(A)(i)--
       (i) by inserting ``(A)'' after ``(18)''; and
       (ii) in subclause (VII), by striking ``act of'' and 
     inserting ``Act of'';
       (6) in section 15G (15 U.S.C. 78o-11)--
       (A) in subsection (e)(4)(A), by striking ``subsection'' and 
     inserting ``section'';
       (B) in subsection (e)(4)(C)--
       (i) by striking ``129C(c)(2)'' and inserting 
     ``129C(b)(2)(A)''; and
       (ii) by inserting ``(15 U.S.C. 1639c(b)(2)(A))'' after 
     ``Lending Act''; and
       (C) in subsection (e)(5), by striking ``subsection'' and 
     inserting ``section''; and
       (7) in section 17A (15 U.S.C. 78q-1), by redesignating 
     subsection (g), as added by section 929W of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act (relating to 
     due diligence for the delivery of dividends, interest, and 
     other valuable property rights) as subsection (n) and moving 
     that subsection to the end.
       (ll) Telemarketing and Consumer Fraud and Abuse Prevention 
     Act.--Section 3(b) of the Telemarketing and Consumer Fraud 
     and Abuse Prevention Act (15 U.S.C. 6102(b)) is amended by 
     inserting before the period at the end the following: ``, 
     provided, however, nothing in this section shall conflict 
     with or supersede section 6 of the Federal Trade Commission 
     Act (15 U.S.C. 46)''.
       (mm) Title 5.--Title 5, United States Code, is amended--
       (1) in section 3132(a)(1)(D), as amended by section 711, by 
     striking ``the Office of Thrift Supervision,, the Resolution 
     Trust Corporation,''; and
       (2) in section 5314, by striking ``Director of the Office 
     of Thrift Supervision.''.
       (nn) Title 31.--
       (1) Amendments.--Title 31, United States Code, is amended--
       (A) by striking section 309; and
       (B) in section 714(d)(3)(B) by striking ``a audit'' and 
     inserting ``an audit''.
       (2) Analysis.--The analysis for subchapter I of chapter 3 
     of title 31, United States Code, is amended by striking the 
     item relating to section 309.
       (oo) Truth in Lending Act.--The Truth in Lending Act (15 
     U.S.C. 1601 et seq.) is amended--
       (1) in section 105 (15 U.S.C. 1604), by inserting 
     subsection (h), as added by section 1472(c) of the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act (124 Stat. 
     2187), before subsection (i), as added by section 1100A(7) of 
     that Act (124 Stat. 2108);
       (2) in section 106(f)(2)(B)(i) (15 U.S.C. 
     1605(f)(2)(B)(i)), by striking ``103(w)'' and inserting 
     ``103(x)'';
       (3) in section 121(b) (15 U.S.C. 1631(b)), by striking 
     ``103(f)'' and inserting ``103(g)'';
       (4) in section 122(d)(5) (15 U.S.C. 1632(d)(5)), by 
     striking ``section 603)'' and all that follows through 
     ``promulgate'' and inserting ``section 603), may 
     promulgate'';
       (5) in section 125(e)(1) (15 U.S.C. 1635(e)(1)), by 
     striking ``103(w)'' and inserting ``103(x)'';
       (6) in section 129 (15 U.S.C. 1639)--
       (A) in subsection (q), by striking ``(l)(2)'' and inserting 
     ``(p)(2)''; and
       (B) in subsection (u)(3), by striking ``Board'' each place 
     that term appears and inserting ``Agency'';
       (7) in section 129C (15 U.S.C. 1639c)--
       (A) in subsection (b)(2)(B), by striking the second period 
     at the end; and
       (B) in subsection (c)(1)(B)(ii)(I), by striking ``a 
     original'' and inserting ``an original'';
       (8) in section 148(d) (15 U.S.C. 1665c(d)), by striking 
     ``Bureau'' and inserting ``Board'';
       (9) in section 149 (15 U.S.C. 1665d)--
       (A) by striking ``the Director of the Office of Thrift 
     Supervision,'' each place that term appears;
       (B) by striking ``National Credit Union Administration 
     Bureau'' each place that term appears and inserting 
     ``National Credit Union Administration Board''; and
       (C) by striking ``Bureau of Directors of the Federal 
     Deposit Insurance Corporation'' each place that term appears 
     and inserting ``Board of Directors of the Federal Deposit 
     Insurance Corporation''; and
       (10) in section 181(1) (15 U.S.C. 1667(1)), by striking 
     ``103(g)'' and inserting ``103(h)''.
       (pp) Truth in Savings Act.--The Truth in Savings Act (12 
     U.S.C. 4301 et seq.) is amended in each of sections 269(a)(4) 
     (12 U.S.C. 4308(a)(4)), 270(a)(2) (12 U.S.C. 4309(a)(2)), and 
     274(6) (12 U.S.C. 4313(6)), by striking ``Administration 
     Bureau'' each place that term appears and inserting 
     ``Administration Board''.

  The Acting CHAIR. No amendment to that amendment in the nature of a 
substitute shall be in order except those printed in part B of House 
Report 115-163. Each such amendment may be offered only in the order 
printed in the report, by a Member designated in the report, shall be 
considered read, shall be debatable for the time specified in the 
report, equally divided and controlled by the proponent and an 
opponent, shall not be subject to amendment, and shall not be subject 
to a demand for division of the question.


               Amendment No. 1 Offered by Mr. Hensarling

  The Acting CHAIR. It is now in order to consider amendment No. 1 
printed in part B of House Report 115-163.
  Mr. HENSARLING. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 48, beginning on line 15, strike ``meetings of the 
     Council, whether or not open to the public,'' and insert 
     ``public meetings of the Council''.
       Page 48, after line 19, insert the following (and 
     redesignate the subsequent paragraph accordingly):
       ``(5) Transcription requirement for non-public meetings.--
     The Council shall create and preserve transcripts for all 
     non-public meetings of the Council.''.
       Amend section 361 to read as follows:

     SEC. 361. BRINGING THE FEDERAL DEPOSIT INSURANCE CORPORATION 
                   INTO THE APPROPRIATIONS PROCESS.

       (a) In General.--Section 10(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1820(a)) is amended--
       (1) by striking ``(a) The'' and inserting the following:
       ``(a) Powers.--
       ``(1) In general.--The'';
       (2) by inserting ``, subject to paragraph (2),'' after 
     ``The Board of Directors of the Corporation''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Appropriations requirement.--Except as provided under 
     paragraph (3), the Corporation may, only to the extent as 
     provided in advance by appropriations Acts, cover the costs 
     incurred in carrying out the provisions of this Act, 
     including with respect to the administrative costs of the 
     Corporation and the costs of the examination and supervision 
     of insured depository institutions.
       ``(3) Exception for certain programs.--Paragraph (2) shall 
     not apply to the Corporation's Insurance Business Line 
     Programs and Receivership Management Business Line Programs, 
     as in existence on the date of enactment of this paragraph, 
     and the proportion of the administrative costs of the 
     Corporation related to such programs.''.
       (b) Examination Fees.--Section 10(e)(1) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1820(e)(1)) is amended by 
     striking ``to meet the expenses of the Corporation in 
     carrying out such examinations'' and inserting ``and may be 
     expended by the Board only to the extent as provided in 
     advance by appropriations Acts to cover the costs incurred in 
     carrying out such examinations''.
       (c) Offset of Additional Fees.--The Federal Deposit 
     Insurance Corporation shall reduce the amount of insurance 
     premiums charged by the Corporation under the Federal Deposit 
     Insurance Act in an amount equal to any additional fees 
     charged by the Corporation by reason of the amendments made 
     by this section.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect

[[Page 8985]]

     to expenses paid and fees collected on or after October 1, 
     2017.
       Amend section 363 to read as follows:

     SEC. 363. BRINGING THE EXAMINATION AND SUPERVISION FUNCTIONS 
                   OF THE NATIONAL CREDIT UNION ADMINISTRATION 
                   INTO THE APPROPRIATIONS PROCESS.

       (a) Operating Fees.--Section 105(d) of the Federal Credit 
     Union Act (12 U.S.C. 1755(d)) is amended--
       (1) by striking ``All'' and inserting ``(1) All'';
       (2) by striking ``for the account of the Administration and 
     may be expended by the Board to defray the expenses incurred 
     in carrying out the provisions of this Act including the 
     examination and supervision of Federal credit unions'' and 
     inserting ``and may be expended by the Board only to the 
     extent as provided in advance by appropriations Acts, to 
     cover the costs incurred in carrying out the provisions of 
     this Act with respect to the costs of the examination and 
     supervision of Federal credit unions and the proportion of 
     the administrative costs of the Board related to the 
     examination and supervision of Federal credit unions''; and
       (3) by adding at the end the following:
       ``(2)(A) The Board may only use amounts in the NCUA 
     Operating Fund to the extent as provided in advance by 
     appropriations Acts, including to pay for the costs incurred 
     by the Board in carrying out the examination and supervision 
     of Federal credit unions and the proportion of the 
     administrative costs of the Board related to the examination 
     and supervision of Federal credit unions.
       ``(B) Subparagraph (A) shall not apply to the Board's 
     activities carried out pursuant to title II.''.
       (b) Staff Funding.--Section 120(j)(3) of the Federal Credit 
     Union Act (12 U.S.C. 1766(j)(3)) is amended--
       (1) by inserting ``related to the examination and 
     supervision of Federal credit unions under this Act and the 
     proportion of the administrative costs of the Board related 
     to the examination and supervision of Federal credit unions 
     under this Act'' before ``shall be paid''; and
       (2) by striking ``insured credit unions under this Act'' 
     and inserting ``Federal credit unions under this title, only 
     to the extent as provided in advance by appropriations 
     Acts''.
       (c) Use of Deposit Funds.--Section 202(c)(1)(B)(iv) of the 
     Federal Credit Union Act (12 U.S.C. 1782(c)(1)(B)(iv)) is 
     amended--
       (1) by striking ``The'' and inserting ``To the extent 
     provided for in advance by appropriations Acts, the''; and
       (2) by adding at the end the following new sentence: ``This 
     clause shall not apply to the Board's activities carried out 
     pursuant to this title.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to expenses paid and fees collected 
     on or after October 1, 2017.
       Page 297, line 18, strike ``Council'' and insert 
     ``Secretary of the Treasury''.
       Page 326, line 6, strike ``A'' and insert ``P''.
       Page 327, line 9, strike ``B'' and insert ``Q''.
       Page 329, line 3, strike ``C'' and insert ``R''.
       Page 330, line 5, strike ``D'' and insert ``S''.
       Page 370, beginning on line 24, strike ``Deadline for 
     appointment.--Not later than 60 days after the date of the 
     enactment of this Act, the'' and insert ``Appointment.--
     The''.
       Page 527, line 2, strike ``Independent Member'' and insert 
     ``President''.

  The Acting CHAIR. Pursuant to House Resolution 375, the gentleman 
from Texas (Mr. Hensarling) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. HENSARLING. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, this is an amendment that is purely technical in nature 
that addresses a few discrete issues in the amendment in the nature of 
a substitute.
  Specifically, it clarifies the noninsurance-related functions of the 
Federal Deposit Insurance Corporation and the National Credit Union 
Administration subject to congressional appropriations.
  This amendment will not--not--affect the ability of the NCUA to 
determine the appropriate allocation of expenses between their 
insurance and other functions for purpose of their overall funding, but 
it will, for the first time, give Congress the power of the purse--our 
constitutional power of the purse--over many of the FDIC and NCUA's 
operating expenses.
  Additionally, the amendment revises the vesting of the appointment 
power for certain positions and clarifies congressional access to 
nonpublic meetings of the Financial Stability Oversight Council.
  Mr. Chairman, I urge my colleagues to support the amendment and to 
support the underlying bill.
  I reserve the balance of my time.
  Mr. ELLISON. Mr. Chairman, I claim the time in opposition to the 
amendment.
  The Acting CHAIR. The gentleman from Minnesota is recognized for 5 
minutes.
  Mr. ELLISON. Mr. Chairman, this amendment, which was filed late, 
should be viewed as the first admission by the Republicans that H.R. 10 
would be bad for our financial markets and our economy.
  The amendment recognizes that it would be inappropriate for Members 
of Congress to attend nonpublic meetings of the council charged with 
reviewing sensitive financial information and discussing potential 
threats to our economy.
  I agree with the sponsor that this was one of many harmful provisions 
in the ``Wrong'' CHOICE Act.
  Here are a few more: the ``Wrong'' CHOICE Act eliminates the Office 
of Financial Research, which is tasked with studying emerging risks to 
our economy and informing the Financial Stability Oversight Council. 
The ``Wrong'' CHOICE Act stops the council from taking actions to 
prevent firms like AIG from threatening our economy. The ``Wrong'' 
CHOICE Act allows banks to choose the regulatory system that best suits 
their bottom line, even if doing so is bad for the economy and 
taxpayers.
  Mr. Chairman, the amendment also recognizes the dangers of subjecting 
our independent financial regulators to the partisan appropriations 
process, by restoring the Federal Deposit Insurance Corporation's and 
the National Credit Union Administration's independent funding when it 
comes to their responsibilities for unwinding failed banks and credit 
unions.
  I agree, this is important, but do you know what is also important 
and needing to be independent?
  The authority to supervise those entities before they fail.
  The bank and credit union regulators, including the Consumer 
Financial Protection Bureau, have important yet sensitive 
responsibilities to make sure that financial institutions follow rules 
that are good for the economy, good for consumers, but which some 
institutions would rather ignore.
  Subjecting these decisions to the appropriations process will result 
in fewer cops on the beat, weaker guardrails, and a greater likelihood 
of financial catastrophe.
  We have seen this happen before. One of the reasons for the failure 
of the housing giants, Fannie Mae and Freddie Mac, was that they had a 
woefully underfunded regulator without independent funding.
  Democrats fixed this when we created the independently funded Federal 
Housing Finance Agency in 2008. Since then, this agency has 
successfully made tough decisions to right both GSEs by putting them 
into conservatorship and cleaning up their businesses.
  Ignoring this success and history, H.R. 10 would once again strip 
away the independent funding of the GSE's regulator, as it would for 
all of the financial regulators.
  I am pleased that this amendment has recognized the problems taking 
away independent funding for our regulators, but, unfortunately, it 
doesn't go far enough. I oppose this amendment and I urge my colleagues 
to reject it and the entire ``Wrong'' CHOICE Act.
  Mr. Chairman, I reserve the balance of my time.
  Mr. HENSARLING. Mr. Chairman, I yield 1 minute to the gentleman from 
Ohio (Mr. Davidson).
  Mr. DAVIDSON. Mr. Chairman, I thank the chairman and the work of the 
committee for doing the work of the American people.
  Prior to coming to Congress, as a small-business owner and small-
business leader, I was feeling the pain of the Dodd-Frank Act, 
wondering whether anyone in Washington, D.C., was listening. Now that I 
have had the opportunity to serve just this 1 year now in Congress, I 
have gone around the district. I have gone around and talked to 
businessowners, to farmers, and to community bankers who have been 
suffering under this law.

[[Page 8986]]

  One of the things that hasn't been talked about is how the Dodd-Frank 
Act has harmed the SEC, how it has deprived people of due process. All 
but the wealthiest Americans are trapped in a system where the SEC has 
quasi-judicial hearings using administrative law judges. They have a 90 
percent win rate because they have all the keys. They can block 
discretion, they can block discovery, and they can limit the facts and 
limit the debate.
  So one of the good things that the Dodd-Frank reform--known as the 
CHOICE Act--accomplishes is ending this process so that people do have 
the right to due process in our courts.
  Mr. Chairman, I urge my colleagues to vote ``yes'' on H.R. 10 and to 
end the abuses of the previous era.
  Mr. ELLISON. Mr. Chairman, the late poet Maya Angelou had a saying: 
``When people show you who they really are, believe them.''
  So when the chief lobbyist for the American Bankers Association leads 
a pep rally before 1,500 bankers, we should pay attention. He probably 
means what he is saying.
  In March, he told ABA members about all the opportunities for banking 
with a Republican Congress, he crowed: ``I don't want a seat at the 
table. I want the table.''
  If we read this bill, we know what it looks like to give the 
financial services sector the whole table. We know they want the whole 
table.
  H.R. 10 is clever at undermining financial regulators, emboldening 
Wall Street, and making it incredibly easy to delay regulators at every 
step of the rulemaking process.
  It is important for the people of America to understand that when 
Republicans say they want to kill regulations, usually what they are 
talking about is safety regulations, regulations that make the water 
clean, the meat safe, and that financial product that you just bought 
not blow up in your face. They don't like regulations because 
regulations mean that the people who control some of these products 
can't just do whatever they want to do.
  But for the people in the United States, you should know that 
financial regulators are going to keep money in your pocket, they are 
going to stop people with way more resources than you have from picking 
your pocket.
  That is why we oppose this amendment. I think it is particularly 
important for people to realize that the rhetoric that we use 
denigrating regulation all the time is the same regulation that 
protects us, and that includes in the financial services sector.
  Mr. Chairman, how much time do I have remaining?
  The Acting CHAIR. The gentleman from Minnesota has 15 seconds 
remaining.
  Mr. ELLISON. Mr. Chairman, I yield back the balance of my time.
  Mr. HENSARLING. Mr. Chairman, may I inquire how much time I have 
remaining?
  The Acting CHAIR. The gentleman from Texas has 3 minutes remaining.
  Mr. HENSARLING. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, I know that my friend and colleague from the other side 
of the aisle spoke about rhetoric. Unfortunately, that is pretty well 
all we have heard from my friends on the other side of the aisle.
  I am absolutely fascinated, Mr. Chairman, how often Members on the 
other side of the aisle say: I care so much about community banks; I 
care so much about small business.
  But, Mr. Chairman, do you know how many amendments that they filed on 
H.R. 10?
  Let me count them. Zero. Zero amendments.
  Where is their bill to help small banks? Where is their bill to help 
credit unions?
  They don't have one, and they didn't offer any amendments, so that is 
all we hear.
  We hear the rhetoric about Wall Street, Mr. Chairman, but it is 
fascinating to me--don't take my word for it, but according to The 
Washington Post, The New York Times, and The Wall Street Journal, three 
of the largest publications in our country, they all say the same 
thing: Large, Wall Street banks support Dodd-Frank, and they oppose the 
Financial CHOICE Act.
  Now, why do they do that?
  Maybe it is because my friends on the other side of the aisle are 
only all too happy to preserve Wall Street bailouts. They wrote it into 
the law. They codified it into the law; and then they took the rest of 
us and created this thing called the orderly liquidation authority, 
which is nothing more than a taxpayer-funded bailout system. Trillions 
of dollars can be taken from taxpayers to bail out large banks. And 
they defend it. No wonder the large banks, seemingly, are satisfied 
with the Dodd-Frank Act.
  But who supports the Financial CHOICE Act?
  The credit unions support it and the community banks support it 
because they are suffering and dying under the weight of the load of 
the Dodd-Frank Act.
  Again, if we want to get this economy moving again, if we want to 
ensure that our hardworking constituents finally get the pay increase 
they deserve, that they finally get the future that they deserve, we 
must reject Dodd-Frank, and we must support not only this amendment, 
but the underlying Financial CHOICE Act.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Texas (Mr. Hensarling).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. ELLISON. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Texas will 
be postponed.


                      Amendment No. 2 Offered by 
                           Mr. Hollingsworth

  The Acting CHAIR. It is now in order to consider amendment No. 2 
printed in part B of House Report 115-163.
  Mr. HOLLINGSWORTH. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       At the end of title IV, insert the following:

  Subtitle X--Modernized Offering and Proxy Rules for Closed-End Funds

     SEC. 499A. PARITY FOR CLOSED-END COMPANIES REGARDING OFFERING 
                   AND PROXY RULES.

       (a) Revision to Rules.--Not later than 1 year after the 
     date of enactment of this Act, the Securities and Exchange 
     Commission shall revise any rules to the extent necessary to 
     allow any closed-end company, as defined in section 5(a)(2) 
     of the Investment Company Act of 1940 (15 U.S.C. 80a-5), that 
     is registered as an investment company under such Act to use 
     the securities offering and proxy rules that are available to 
     other issuers that are required to file reports under section 
     13 or section 15(d) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78m; 78o(d)). Any action that the Commission takes 
     pursuant to this subsection shall include the following:
       (1) The Commission shall revise section 230.405 of title 
     17, Code of Federal Regulations, to--
       (A) remove the exclusion of a registered closed-end company 
     from the definition of a well-known seasoned issuer provided 
     by that section; and
       (B) add registration statements filed on Form N-2 to the 
     definition of automatic shelf registration statement provided 
     by that section.
       (2) The Commission shall revise sections 230.168 and 
     230.169 of title 17, Code of Federal Regulations, to remove 
     the exclusion of a registered closed-end company from the 
     list of issuers that can use the exemptions provided by those 
     sections.
       (3) The Commission shall revise sections 230.163 and 
     230.163A of title 17, Code of Federal Regulations, to remove 
     a registered closed-end company from the list of issuers that 
     are ineligible to use the exemptions provided by those 
     sections.
       (4) The Commission shall revise section 230.134 of title 
     17, Code of Federal Regulations, to remove the exclusion of a 
     registered closed-end company from that section.
       (5) The Commission shall revise sections 230.138 and 
     230.139 of title 17, Code of Federal Regulations, to 
     specifically include any registered closed-end company as an 
     issuer to which those sections apply.
       (6) The Commission shall revise section 230.164 of title 
     17, Code of Federal Regulations, to remove a registered 
     closed-end company from the list of issuers that are excluded 
     from that section.
       (7) The Commission shall revise section 230.433, of title 
     17, Code of Federal Regulations, to specifically include any 
     registered

[[Page 8987]]

     closed-end company that is a well-known seasoned issuer as an 
     issuer to which that section applies.
       (8) The Commission shall revise section 230.415 of title 
     17, Code of Federal Regulations, to--
       (A) state that the registration for securities provided by 
     that section includes securities registered by any registered 
     closed-end company on Form N-2; and
       (B) eliminate the requirement that a Form N-2 registrant 
     must furnish the undertakings required by item 34.4 of Form 
     N-2.
       (9) The Commission shall revise section 230.497 of title 
     17, Code of Federal Regulations, to include a process for any 
     registered closed-end company to file a form of prospectus 
     that is parallel to the process for filing a form of 
     prospectus under section 230.424(b) of such title.
       (10) The Commission shall revise sections 230.172 and 
     230.173 of title 17, Code of Federal Regulations, to remove 
     the exclusion of an offering of any registered closed-end 
     company from those sections.
       (11) The Commission shall revise section 230.418 of title 
     17, Code of Federal Regulations, to provide that any 
     registered closed-end company that would otherwise meet the 
     eligibility requirements of General Instruction I.A of Form 
     S-3 shall be exempt from paragraph (a)(3) of that section.
       (12) The Commission shall revise section 240.14a-101 of 
     title 17, Code of Federal Regulations, to provide that any 
     registered closed-end company that would otherwise meet the 
     requirements of General Instruction I.A of Form S-3 shall be 
     deemed to meet the requirements of Form S-3 for purposes of 
     Schedule 14A.
       (13) The Commission shall revise section 243.103 of title 
     17, Code of Federal Regulations, to provide that paragraph 
     (a) of that section applies for purposes of Form N-2.
       (b) Revisions to Form N-2.--Not later than 1 year after the 
     date of enactment of this Act, the Commission shall revise 
     Form N-2 to--
       (1) include an item or instruction that is similar to item 
     12 on Form S-3 to provide that any registered closed-end 
     company that would otherwise meet the requirements of Form S-
     3 shall incorporate by reference its reports and documents 
     filed under the Securities Exchange Act of 1934 into its 
     registration statement filed on Form N-2; and
       (2) include an item or instruction that is similar to the 
     instruction regarding automatic shelf offerings by well-known 
     seasoned issuers on Form S-3 to provide that any registered 
     closed-end company that is a well-known seasoned issuer may 
     file automatic shelf offerings on Form N-2.
       (c) Treatment if Revisions Not Completed in a Timely 
     Manner.--If the Commission fails to complete the revisions 
     required by subsections (a) and (b) by the time required by 
     such subsections, any registered closed-end company shall be 
     entitled to treat such revisions as having been completed in 
     accordance with the actions required to be taken by the 
     Commission by such subsections until such time as such 
     revisions are completed by the Commission.
       (d) Rules of Construction.--
       (1) No effect on rule 482.--(1) Nothing in this section or 
     the amendments made by this section shall be construed to 
     impair or limit in any way a registered closed-end company 
     from using section 230.482 of title 17, Code of Federal 
     Regulations, to distribute sales material.
       (2) References.--Any reference in this section to a section 
     of title 17, Code of Federal Regulations, or to any form or 
     schedule means such rule, section, form, or schedule, or any 
     successor to any such rule, section, form, or schedule.

  The Acting CHAIR. Pursuant to House Resolution 375, the gentleman 
from Indiana (Mr. Hollingsworth) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentleman from Indiana.
  Mr. HOLLINGSWORTH. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I would like to commend the chairman of the Financial 
Services Committee for his hard work, and the entire Financial Services 
Committee for all the effort they have undertaken in today's debate of 
the Financial CHOICE Act.
  Mr. Chairman, I rise in support of my amendment to the Financial 
CHOICE Act of 2017. This amendment would allow for certain closed-end 
funds to be considered well-known seasoned issuers.
  Ultimately, the proposed amendment is built upon the foundation of 
lowering costs and increasing access for investors by allowing 
companies that meet certain criteria to have the same equivalence as 
bigger companies that also have access to capital markets by making 
them available to those fast lanes that allow them to issue shares.
  In 2005, the SEC put in place significant reforms that sought to 
modernize registration, communication, and offering processes for 
traditional operating companies. These reforms were designed to 
streamline the registration process, especially those for large 
reporting issuers or well-known seasoned issuers. Unfortunately, the 
SEC excluded registered closed-end funds from those reforms.
  A closed-end fund is nothing more than a pooled investment fund with 
a fixed number of shares that is structured, listed, and traded just 
like a stock on the stock exchange. Closed-end funds are crucial to 
retirement savings and investment vehicles that many retail investors 
use. About 3 million mom-and-pop investors rely on closed-end funds to 
meet their investment needs. These funds serve as a long-term source of 
capital, which, in turn, promotes job creation--something we can all 
agree needs to happen more in this country.
  Closed-end funds, though, are currently under attack by unfair 
onerous filing and offering regulations. This commonsense amendment 
would provide parity for these certain closed-end funds by streamlining 
their registration process, offering and communications processes that 
are currently available to other publicly traded companies. This unfair 
exclusion of closed-end funds has created an unlevel playing field.
  Giving qualifying closed-end funds the ability to enjoy well-known 
seasoned issuer status would help those funds better evaluate and 
assess the market for their offerings and would enable them to more 
quickly access capital markets. Those closed-end funds, an important 
vehicle for retail investors, would allow them to get capital to more 
job creators.
  There has been a steady decline in the number of closed-end funds and 
the number of new closed-end funds offerings because of this unlevel 
playing field. Since 2007, the number of closed-end funds has dropped 
by 20 percent.

                              {time}  1500

  In 2007, there were 42 new closed-end fund issuances; in 2016, there 
were only 8. That is an 81 percent decline.
  What we can all agree on is that Americans need access to capital. 
They need access to the capital markets that will provide them the 
capital to thrive as they have created new products. Retail investors 
also need access to those investments in order to meet their particular 
needs.
  These closed-end funds should not have been hamstrung in their 
ability to access the advantages afforded to operating companies. It is 
time we provide parity in this marketplace by leveling the playing 
field.
  Mr. Chairman, I urge my colleagues to support this commonsense 
amendment, and I reserve the balance of my time.
  Mr. ELLISON. Mr. Chair, I rise in opposition.
  The Acting CHAIR. The gentleman from Minnesota is recognized for 5 
minutes.
  Mr. ELLISON. Mr. Chair, the Hollingsworth amendment seeks to insert a 
totally new and unvetted set of exemptions from the security laws for 
closed-end funds. These are the type of pooled investment vehicles that 
typically issue a fixed number of shares that, unlike mutual funds, are 
not redeemable on a daily basis by the fund, making them harder for 
investors to sell.
  The Financial Services Committee has had no hearings, no markups, no 
debate on these issues until now. Perhaps that is why the amendment has 
been mislabeled as only benefiting closed-end funds traded on an 
exchange with well-known seasoned issuer status.
  In fact, the amendment is much broader, as it would allow even 
illiquid, nontraded funds to claim multiple exemptions. This effort 
would make it harder for the Securities and Exchange Commission, or 
SEC, to police these products for investors.
  This last-minute, partisan approach is not the way that Congress 
should proceed in making laws, but it is consistent with this bill. 
Although Democrats conducted 41 hearings to develop Dodd-Frank, 
Republicans planned only 1 hearing on this bill. It is not surprising, 
then, that the ``Wrong''

[[Page 8988]]

CHOICE Act is a 600-page bill chock-full of bad partisan ideas and 
special interest wish lists that will harm our Nation's investors, 
consumers, and taxpayers.
  For example, the bill would severely undermine the ability of the 
SEC, our Wall Street cop on the beat, to protect investors and hold bad 
actors accountable. Specifically, it would remove valuable law 
enforcement tools, burden the SEC with onerous cost-benefit analysis, 
and generate more and more endless litigation, tying the agency up.
  Worse, the bill repeals the Department of Labor's fiduciary rule and 
effectively prevents the DOL or the SEC from ever moving forward to 
protect our Nation's investors and seniors from conflicted advice by 
unscrupulous financial advisers.
  I will say, most financial advisers are not unscrupulous, but for the 
ones that are, there needs to be authority in the law to stop them. We 
need the fiduciary rule. The ``Wrong'' CHOICE Act takes it away.
  But this should come as no surprise, since the Republicans in 
Congress have been relentless in their opposition to the DOL's 
commonsense requirement that financial advisers put their clients' 
interests ahead of their own when providing investment advice about 
retirement products.
  Their extreme partisan efforts to kill the fiduciary rule ignore the 
facts that 9 in 10 Americans reportedly agree with the rule. An 
overwhelming majority--65 percent--of Americans who voted for President 
Trump appear to support the regulation.
  Tellingly, just last week, after robust bipartisan debate, the 
Republican Governor of Nevada signed into law a bill requiring 
financial advisers to act in their clients' best interests.
  The ``Wrong'' CHOICE Act continues this partisan slant by also 
rolling back bipartisan efforts from this and past Congresses to craft 
legislation that helps grow small business and protect investors.
  Mr. Chair, we owe it to our constituents and the American people to 
work together to address real problems with real solutions that are 
thoroughly vetted. For that reason, I must oppose this bill and this 
amendment.
  I will add, my colleague on other side of the aisle, Mr. Chairman, 
said: Where is our bill? That would be Dodd-Frank.
  Mr. Chair, I reserve the balance of my time.
  Mr. HOLLINGSWORTH. Mr. Chairman, may I inquire how much time I have 
left?
  The Acting CHAIR. The gentleman from Indiana has 2 minutes remaining.
  Mr. HOLLINGSWORTH. Mr. Chair, I yield 1\1/2\ minutes to the gentleman 
from Michigan (Mr. Huizenga), the subcommittee chair.
  Mr. HUIZENGA. Mr. Chair, I support this amendment offered by 
Congressman Hollingsworth, who is a great member of our committee.
  But folks watching this, you have to understand what is going on. You 
just heard about how we are trying to roll back things, roll back 
bipartisan consensus. We have bipartisan consensus on this.
  This very issue was in a bill that was proposed by current OMB 
Director Mick Mulvaney. In fact, when it came out of committee, there 
were 4 ``no'' votes against it. The ranking member herself voted for 
this very issue in a Business Development Corporation bill, a BDC bill, 
that had been sponsored the last Congress. In addition, the omnibus 
bill that had passed had this very provision in it as well.
  So what you are seeing is hypocrisy, at best. Gamesmanship and 
politics really is probably what is going on.
  This amendment builds upon a bipartisan provision in the CHOICE Act 
that directs the SEC to do something that had been an oversight. It is 
streamlining these securities-offering provisions.
  I know it is complicated and very esoteric, but these well-known, 
seasoned issuers, or WKSIs as they are known, really have been a secure 
and safe way of investing for Joe and Janet retirement investor. That 
is what I like to the call them. It is my mom and dad and your mom and 
dad, us, and our brothers and sisters. It is retail investors. What 
this amendment does is conforms the filing and offering regulations for 
closed-end funds to those traditional operating companies.
  With that, I offer my support and encourage support. Let's stop the 
hypocrisy and politics.
  Mr. HOLLINGSWORTH. Mr. Chair, I would just build on that to say that 
every WKSI goes through the SEC review and comment period.
  What we are doing here is removing the duplicative SEC review and 
comment period, which only serves to delay capital getting out to 
businesses, which only serves to add cost to retail investors that use 
these pools.
  So I support the amendment, and I support the Financial CHOICE Act of 
2017.
  Mr. Chairman, I yield back the balance of my time.
  Mr. ELLISON. Mr. Chairman, we have discussed business development 
funds. We have not talked about closed-end funds in committee. This 
amendment introduces a new idea which has not been debated. For that 
reason alone, we should vote it down.
  We have got to have regular order around here. This is a complicated 
issue. All the avenues and all the different perspectives that need to 
be brought to bear should be done in committee, not right here.
  Mr. Chairman, for those reasons alone, I would ask for a strong 
``no'' vote on this particular amendment, and I yield back the balance 
of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Indiana (Mr. Hollingsworth).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. ELLISON. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Indiana will 
be postponed.


                 Amendment No. 3 Offered by Mr. Smucker

  The Acting CHAIR. It is now in order to consider amendment No. 3 
printed in part B of House Report 115-163.
  Mr. SMUCKER. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Add at the end of title V the following new subtitle:

 Subtitle T--Protection of Consumer Information by Consumer Reporting 
                                Agencies

     SEC. 596. SENSE OF CONGRESS RELATED TO PROTECTION OF CONSUMER 
                   INFORMATION BY CONSUMER REPORTING AGENCIES.

       (a) In General.--It is the sense of the Congress that 
     consumer reporting agencies and subsidiaries of consumer 
     reporting agencies should, when providing access to consumers 
     to the information contained in the file of the consumer 
     maintained by the consumer reporting agency, use strong 
     multi-factor authentication procedures to verify the identity 
     of consumers.
       (b) Definitions.--For purposes of this section, the terms 
     ``consumer'', ``consumer reporting agency'', and ``file'' 
     have the meanings given those terms in section 603 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681a).

  The Acting CHAIR. Pursuant to House Resolution 375, the gentleman 
from Pennsylvania (Mr. Smucker) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentleman from Pennsylvania.
  Mr. SMUCKER. Mr. Chairman, I start by thanking Chairman Hensarling 
and the committee and the staff for all the hard work that they have 
done on this very important bill.
  Mr. Chairman, protecting the personal information of Americans is 
critical to maintaining financial stability. Many of our families, 
friends, neighbors, and constituents have suffered from the threat of 
their personal information. While private industry works hard to 
implement strong protections for our online information, I believe that 
Congress has the responsibility to stay informed on the threats facing 
constituents in order to help protect those we represent from identity 
theft and IRS fraud.
  As you are aware, over the past few years, consumer reporting 
agencies have experienced numerous breaches of

[[Page 8989]]

information. High-profile data breaches occurred in 2017, 2015, 2013, 
and 2011, among others.
  A recent cyber attack on a CRA subsidiary allowed thieves to access 
taxpayer W-2s, giving them the ability to file fraudulent tax returns. 
Another attack exposed the Social Security numbers of an estimated 200 
million Americans.
  Protecting consumers and the constituents I serve in Pennsylvania's 
16th District is my duty in Congress, and this includes cyber activity.
  In 2015, the IRS paid out $5.8 billion in fraudulent refunds to 
identity thieves. While it is important to clarify that that is not 
attributable fully to the hacks that I have already referenced, we 
should work to improve consumer protections and help stop the wasteful 
abuse of taxpayer dollars.
  Our constituents rely on consumer reporting agencies to monitor their 
credit for theft or nefarious activities. My amendment simply 
encourages these agencies collecting our highly sensitive financial 
information to do everything they deem feasible to adequately protect 
our constituents from identity fraud that can wreak havoc on their 
financial stability and personal matters.
  CRAs collect large amounts of personal, confidential data. The facts 
show these companies are under constant attack by cyber thieves. 
Therefore, this language merely encourages them to use the strongest 
protection for consumer data.
  H.R. 10 takes critical steps to improving our consumer protections 
while improving our economic and regulatory environment. My amendment 
is about signaling our shared desire to protect our constituents and 
their data.
  Again, I would like to thank Chairman Hensarling for his work on this 
bill and for his support of this amendment, and I urge my colleagues to 
support this amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. ELLISON. Mr. Chairman, I claim the time in opposition.
  The Acting CHAIR. The gentleman from Minnesota is recognized for 5 
minutes.
  Mr. ELLISON. Mr. Chairman, I believe that there might be some merit 
to this amendment, but I still claim time in opposition.
  Because it wasn't brought up in committee, I think that there is a 
lot of hashing out of this particular amendment that could have 
happened and we might have been able to agree, but at this point in the 
process I have to claim time in opposition and I will explain why. I 
will say that, if we can work on it later, we will see what happens, 
but as now for now, we are urging a strong ``no.''
  I think the amendment is well-intentioned because it purports to 
address the growing problem of identity theft, something we all need to 
be concerned about. However, I am concerned that it may make it harder 
for some consumers who want to obtain their own reports, particularly 
those using the website annualcreditreport.com, to access their free 
annual consumer reports from nationwide credit reporting agencies, or 
CRAs.
  Also, the amendment purports to combat identity theft, but solely 
focuses on tougher authentication requirements for consumers who want 
to access their own files, not on all users who have access to consumer 
reports like landlords or employers. I think that is a weakness.
  The website annualcreditreport.com and reports maintained by the big 
three require consumers to provide personally identifiable information 
and to successfully answer several questions about information on the 
consumer files before giving them access to reports online.
  In a 2017 report, the Consumer Bureau noted that credit reporting 
complaints are consistently among the top three types of consumer 
complaints it handles. When consumers are denied online access, they 
have to mail copies of sensitive identifying documents in order to 
obtain their reports, which consumers note is time consuming as well as 
potentially not secure. This amendment could make that situation even 
worse.
  I also find it a little confusing that the House is considering this 
amendment to a bill that will hamstring the only Federal agency, the 
Consumer Bureau, that has rulemaking, supervisory, and enforcement 
authority over most consumer reporting agencies and has actually 
addressed many credit reporting problems.
  If Members support this amendment, then it simply does not make sense 
to me for the same Members to support H.R. 10, which will gut the 
Consumer Bureau's capacity to effectively address problems like 
identity theft.
  Before Dodd-Frank, the Federal Trade Commission was the only Federal 
agency with enforcement authority over the CRAs, but there was no 
entity with supervising authority. Dodd-Frank closed that gap by giving 
the Consumer Bureau the supervisory power to monitor CRAs' operations.
  Just this year, through the good work of the Consumer Bureau's 
examiners, the Consumer Bureau issued enforcement orders against all of 
the big three CRAs for misleading practices that harm consumers.
  I urge colleagues to oppose the amendment and reject the ``Wrong'' 
CHOICE Act. I hope next time we can talk about this legislation before 
it gets to the floor. That would be better and more proper.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SMUCKER. Mr. Chairman, I yield 1 minute to the gentleman from 
Missouri (Mr. Luetkemeyer).
  Mr. LUETKEMEYER. I thank the gentleman for yielding.
  Mr. Chair, it is not my intent today to oppose the amendment; 
however, I do want to express my reservations over the amendment from 
the gentleman from Pennsylvania. I think it is important that we set 
the record straight on a few points.
  The credit reporting agencies are not required to adhere to any sort 
of thorough data security standard. Unlike many other industries, the 
financial services industry has had Federal security requirements in 
place for nearly 20 years.

                              {time}  1515

  The amendment sponsor's press release last week said credit reporting 
agencies do not have any Federal requirements for cybersecurity 
practices. That is news to the House Banking Services Committee, which 
has authored some of those requirements. So it simply isn't the case.
  Credit reporting agencies are required to adhere to numerous data and 
consumer protection laws, including the Fair Credit Reporting Act and 
Gramm-Leach-Bliley Act, along with several Federal rules and standards 
on data security.
  I have some concerns that Congress should not be in the business of 
dictating specific security methodologies. The multifactor 
authentication procedures specified in the gentleman's amendment could 
be right sometimes, even many times, but circumstances, innovation, and 
the passage of time may indicate otherwise.
  As chairman of the Financial Services Subcommittee on Financial 
Institutions, we want to spend some time on trying to look at this 
issue and hope that the gentleman works with our committee.
  Mr. ELLISON. Mr. Chairman, I would like to talk about an issue 
somewhat related that is critical in this debate and would go a long 
way toward improving our economy and the chances of consumers.
  I have a bill, H.R. 435, the Credit Access and Inclusion Act. My 
amendment would help solve problems the Financial Services Committee 
has been discussing for more than a decade. This is not an amendment 
that I have submitted for disposition today, but I would like to bring 
to the attention of the body that this Credit Access and Inclusion Act 
was good legislation and should be taken up. It would address a problem 
of access to credit that the leader of this bill says he wants to 
solve.
  My bill would allow utility, telecom, public and Section 8 housing 
residents to build a credit score without debt. It provides affirmative 
permission for

[[Page 8990]]

utility, telecom, and housing providers to report on-time payment 
information to credit reporting agencies.
  I have introduced this bill in four consecutive Congresses. I 
introduced this bill with Mr. Pittenger as a lead. It has the support 
of many members of the committee, including Representatives Maloney, 
Duffy, Green, Stivers, Meeks, Love, Capuano, and more, a truly 
bipartisan piece of legislation.
  Why am I committed to passing the bill? Because 1 in 10 Americans do 
not have a credit score. These 26 million people are credit invisible, 
and they can have trouble getting an apartment and might pay more for 
insurance, and they will have a very hard time qualifying for a loan to 
buy a car or a home. Another 19 million are not scorable because there 
is too little information in their files. One in four African Americans 
and one in four Latinos are credit invisible and not scorable.
  Mr. Chair, I yield back the balance of my time.
  Mr. SMUCKER. Mr. Chairman, I yield 30 seconds to the gentleman from 
Texas (Mr. Hensarling).
  Mr. HENSARLING. Mr. Chair, I thank the gentleman from Pennsylvania 
for yielding me the time, and I thank him for his leadership.
  Indeed, the whole issue of data security is so vital to our 
constituents, so many of them have been victimized by identity theft. 
So I appreciate his leadership on this issue, and I know that Chairman 
Luetkemeyer in our committee will be leading on this issue. I support 
this underlying amendment.
  I do have some outstanding questions on what type of multifactor 
authentication would be required. I want to ensure that we do not 
specify the technology, that this is a sense of Congress provision. But 
I look forward to working very closely with Congressman Smucker to 
refine the concept as it goes forward, and I thank him for his 
leadership.
  Mr. SMUCKER. Mr. Chair, I thank both chairmen.
  This does not, obviously, replace any work that they are doing. This 
is a very, very important issue. This is a sense of Congress simply 
saying that we are very concerned about the security of the data of our 
constituents, and we are asking that to be looked at. But certainly 
there is a lot of work to be done, and I look forward to working with 
both the chairmen on this issue.
  Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Pennsylvania (Mr. Smucker).
  The amendment was agreed to.


                  Amendment No. 4 Offered by Mr. Faso

  The Acting CHAIR. It is now in order to consider amendment No. 4 
printed in part B of House Report 115-163.
  Mr. FASO. Mr. Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:
       Add at the end of title V the following new subtitle:

   Subtitle T--Dividend Waiver Authority for Mutual Holding Companies

     SEC. 596. DIVIDEND WAIVER AUTHORITY FOR MUTUAL HOLDING 
                   COMPANIES.

       Section 10(o)(11) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(o)(11)) is amended--
       (1) in subparagraph (D)--
       (A) in clause (i), by adding ``and'' at the end;
       (B) in clause (ii), by striking ``; and'' and inserting a 
     period; and
       (C) by striking clause (iii);
       (2) by amending subparagraph (E) to read as follows:
       ``(E) Valuation.--The appropriate Federal banking agency 
     may not consider waived dividends in determining an 
     appropriate exchange ratio in the event of a full conversion 
     to stock form.''; and
       (3) by adding at the end the following new subparagraph:
       ``(F) Rule of construction.--Nothing in this paragraph 
     shall be construed to authorize the appropriate Federal 
     banking agency to require a vote of members of a mutual 
     holding company to approve one or more dividend waivers or to 
     place any additional restrictions on dividend waivers by 
     mutual holding companies that are inconsistent with or exceed 
     the requirements set forth in this paragraph.''.

  The Acting CHAIR. Pursuant to House Resolution 375, the gentleman 
from New York (Mr. Faso) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from New York.
  Mr. FASO. Mr. Chair, I yield myself such time as I may consume.
  Mr. Chair, I rise today to express my support for the Financial 
CHOICE Act, to express my appreciation to Chairman Hensarling and the 
committee for all their fine work, and to offer an amendment that will 
help small community banks, organized as mutual holding companies, 
attract investors and maintain longevity in communities across America 
and in upstate New York, which I represent.
  Seven years since its enactment, it has become glaringly apparent 
that Dodd-Frank has worked to advantage big banks on Wall Street; but 
for many of my constituents, the most detrimental aspects of Dodd-Frank 
to upstate New York aren't necessarily what is going on on Wall Street 
but, rather, the damage it has inflicted upon small community banks and 
Main Street.
  As has been highlighted here today, the U.S. is losing community 
banks at a rate of one per day. These disappearing institutions are 
neighborhood banks that are willing to make loans to families for 
mortgages or home equity, to small businesses to cover payroll and 
investment, investing in our communities, sponsoring our kids' baseball 
teams, and understanding the core principles of the communities that 
they serve.
  Mr. Chairman, my amendment is quite simple. It seeks to help all 
community banks that elect to raise capital through a mutual holding 
company, or an MHC, charter.
  Dodd-Frank and the implementing Federal Reserve regulations came down 
hard on these mutual holding companies, putting onerous, expensive 
regulations on these mutual holding companies just for them to waive 
the receipts of dividends, a practice which was common pre-Dodd-Frank, 
and it worked very well.
  In New York State, banks such as the Bank of Greene County, NorthEast 
Community Bank, Lake Shore Savings Bank, and many others throughout the 
Empire State and throughout the country have been burdened by Dodd-
Frank's nonsensical dividend waiver rules. My amendment cuts the red 
tape, restores the dividend waiver process to what it was prior to 
Dodd-Frank, and frees up capital to be reinvested in our communities.
  I ask my colleagues to support my amendment, and I reserve the 
balance of my time.
  Mr. ELLISON. Mr. Chair, I claim the time in opposition.
  The Acting CHAIR. The gentleman from Minnesota is recognized for 5 
minutes.
  Mr. ELLISON. Mr. Chairman, this amendment is another example of 
Republicans choosing to prioritize the interests of corporate insiders 
over consumers, which is what the ``Wrong'' CHOICE Act really 
symbolizes. We should not prevent regulators from addressing potential 
conflicts of interest but, instead, let all shareholders have their 
voice be heard.
  While Democrats stand ready to work on targeted reforms to help 
responsible community banks and credit unions, we will reject any 
ideological legislation that puts our financial system and economy at 
risk of another crash and that gives a leg up to Wall Street and 
predatory lenders to rip off consumers all over again.
  Republicans like to pretend that Wall Street reform destroyed our 
financial system and economy, but the alternative facts have no basis 
in reality. Thanks to Wall Street reform and other Democratic policies, 
our economy has made significant gains since the depths of the 
financial crisis.
  Since Dodd-Frank became law, we have set a record, with 86 
consecutive months of private sector job growth, during which the 
economy created more than 16 million private sector jobs. Let me assure 
you, much more work needs to be done, but this record is important and 
must be noted.
  Financial institutions are thriving since the passage of Dodd-Frank. 
According to the FDIC, banks are posting record profits since the 
crisis. Profits for community banks increased more than 10 percent in 
the past year. In

[[Page 8991]]

2010, the banking industry set an all-time record with $171 billion in 
profits. Business lending has increased 75 percent since Dodd-Frank 
became law. Credit union membership has expanded by more than 16 
million members since 2010, an increase of 18 percent.
  This has happened in part because we have a system that is fairer, 
because bad actors are held accountable. The highly successful Consumer 
Financial Protection Bureau was established and has returned nearly $12 
billion to 29 million consumers who were ripped off by unfair, 
deceptive, and abusive practices of bad actors. This tough consumer 
enforcement approach has put the entire financial industry on notice to 
follow the law and treat their consumers fairly or suffer the 
consequences.
  So the economy is doing well, financial institutions are doing well, 
and consumers are finally being protected. The last thing we should do 
is go back to a failed, weak regulatory model that gave us bank 
bailouts and the Great Recession. But that is what the Republicans are 
offering the American people with this bill.
  I urge my colleagues to reject this amendment and the ``Wrong'' 
CHOICE Act, and I reserve the balance of my time.
  Mr. FASO. Mr. Chair, how much time do I have remaining?
  The Acting CHAIR. The gentleman from New York has 3 minutes 
remaining.
  Mr. FASO. Mr. Chair, I have listened to the statement of the 
gentleman from Minnesota, and I have to say I am reminded of what 
former Senator Moynihan said about we are all entitled to our own 
opinion, but not our own facts, and here are the facts.
  The banks that are organized as mutual holding companies organize 
that way. They are owned by their depositors, and they have also been 
able to sell publicly traded stock, but they keep a majority position 
in the mutual holding company. Why? Because they want to maintain the 
community involvement. They want to maintain the community ownership 
and not have their bank taken over by a distanced series of investors. 
That is what is exactly happening with the Bank of Greene County, for 
instance, in my district.
  The Bank of Greene County, as a mutual holding company, they own 55 
percent of the bank. So it is owned by the depositors, the public 
shareholders, 45 percent; but because of Dodd-Frank and because of the 
change in the regulatory process that was eliminated in Dodd-Frank, 
every time the mutual holding company has dividends, annually, to 
waive, they must send a notice to every depositor. A depositor who 
might have $5 in the account or $50,000, they have to mail a notice to 
them. It costs them $150,000 a year that is simply wasted, and that 
money can't be reinvested in our community.
  Mr. Chair, I regret that the minority is misrepresenting what we are 
trying to do here. We are defending the interests of small community 
banks organized as mutual holding companies that want to keep their 
ownership of their bank local. In fact, the bank that I am talking 
about, they don't even securitize their mortgages. They underwrite and 
they keep all their mortgages locally in their portfolio.
  Mr. Chair, I reserve the balance of my time.
  Mr. ELLISON. I yield 1 minute to the gentlewoman from California (Ms. 
Pelosi), the minority leader.
  Ms. PELOSI. Mr. Chair, I thank the gentleman for yielding. I thank 
Mr. Ellison and our ranking member, Congresswoman Waters, for their 
great leadership on behalf of American consumers, American investors, 
and American taxpayers.
  I rise in opposition to the amendment and to the bill.
  Mr. Chair, today House Republicans are pushing a dangerous Wall 
Street first bill that would drag us right back to the days of the 
Great Recession. Eight years ago, unchecked recklessness on Wall Street 
ignited a financial meltdown that devastated families in every State in 
the Union: hundreds of thousands of people lost their jobs every month, 
and the unemployment rate soared to 10 percent; more than 11 million 
Americans lost their homes through foreclosure; $13 trillion in wealth, 
including families' hard-earned retirement savings and college savings, 
was destroyed.
  On the night of Thursday, September 18, 2008, the Treasury Secretary 
came to the Capitol for an emergency meeting with congressional 
leaders, Democrats and Republicans from the House and the Senate, to 
inform us of the financial meltdown. Secretary Paulson described the 
financial meltdown, which was horrific. When I asked the Chairman of 
the Federal Reserve, Mr. Bernanke, what he thought of what he was 
telling us, Chairman Bernanke told us that, if we did not act 
immediately, we would not have an economy by Monday.
  We would not have an economy by Monday.
  Tens of millions of middle class families across America still bear 
the scars. You saw on the right the rise of the Tea Party, on the left, 
Occupy Wall Street.
  The Democratic Congress vowed that Main Street taxpayers must never 
again pay the price for the recklessness of some on Wall Street. I 
don't paint everybody there with the same brush, but many on Wall 
Street, the predatory lenders and profiteers, had abused American 
families for far too long.
  With Dodd-Frank, Democrats enacted the strongest Wall Street consumer 
financial protections in history, critical reforms to protect 
hardworking Americans and to insist on accountability from Wall Street.

                              {time}  1530

  The Consumer Financial Protection Bureau that the law created has 
returned nearly $12 billion worth of compensation to 29 million wronged 
Americans--many of them seniors, many of them servicemembers.
  But with this bill, the Republicans will undo these safeguards, 
eviscerate the Consumer Bureau, and take our country back to the days 
of massive taxpayer bailouts. We cannot let that happen.
  Our Republican colleagues have named this dreadful and dangerous 
legislation, this Wall Street-first legislation, the Financial CHOICE 
Act. The Financial CHOICE Act to prey on investors, to prey on 
consumers, to prey on taxpayers. That is the choice they want to give 
the financial institutions.
  But let's look at the appalling choices it represents. Instead of 
protecting consumers, Republicans choose to help those who try to cheat 
consumers. Instead of protecting seniors, Republicans choose to help 
those who prey on retirement savings. Instead of protecting men and 
women in uniform, Republicans choose to help those who take advantage 
of our servicemembers' families while our heroes are defending our 
freedom on the battlefield. Instead of advancing an economy that works 
for everyone, Republicans choose to help the special interests get 
richer and to stick working people with a bill for a bailout when it 
goes wrong.
  They have always been handmaidens of the special interests. We know 
that. But even for them, when we think we have seen it all, this really 
takes them to a new low.
  So they call it the Financial CHOICE Act, but these are not the 
choices that the American people want. They are choices of the 
Republican Party that puts Wall Street first, that are handmaidens of 
special interests.
  So while Director Comey testified in the Senate earlier today, on 
this side of the Capitol, House Republicans are feeding working 
families to the wolves on Wall Street.
  As I said, I don't paint all on Wall Street with the same brush. The 
pervasive incentives baked into the Republican bill will enable the 
predatory to punish the honest.
  Now, here we go. Think of it. We have a Consumer Financial Protection 
Bureau, 29 million Americans benefitting from $12 billion in 
compensation. Oh, they don't like that. They want to do away with that.
  The Volcker Rule, which would prevent the financial institutions from 
taking risk at taxpayers' expense, the classic Republican: privatize 
the gain, nationalize the risk. If we win, the private sector and these 
banks benefit. If we lose, the taxpayer pays the tab.

[[Page 8992]]

  Something that had nothing to do with the Dodd-Frank bill, the 
fiduciary rule, which only simply said that financial advisers should 
have the interest of the investor they are advising at heart. This bill 
says no. We are doing away with the very compromised, I might say, 
fiduciary rule to protect investors.
  So as I say, I don't paint all of Wall Street with the same brush. 
The American people want to know who stands with them. I know you want 
me not to talk about this because it is the truth about what you are 
doing to the American people, but as the minority leader, I have the 
right to speak on the floor. You had plenty of time to spread your 
malicious legislation to hurt the American people. I am using my time 
to speak the truth to them about what this bill does to their financial 
stability.
  The American people want to know who stands with them and who stands 
with the special interests. My Republican colleagues, in the name of 
hardworking American families, I use my time on behalf of America's 
hardworking families, not on behalf of special interests.
  I urge my colleagues to make the choice to reject this dastardly Wall 
Street-first bill and to vote in support of our men and women in 
uniform, our seniors who have built our country, in support of those 
hardworking Americans who are saving for their children's education, 
hoping to achieve the American Dream of homeownership, and do not want 
to be preyed upon by Republicans in Congress.
  Mr. FASO. Mr. Chairman, I yield the balance of my time to the 
gentleman from Texas (Mr. Hensarling), the distinguished chairman of 
the committee.
  Mr. HENSARLING. May I inquire how much time is remaining, Mr. 
Chairman?
  The Acting CHAIR. The gentleman from New York has 1 minute remaining. 
The gentleman from Minnesota has 1\1/2\ minutes remaining, and the 
gentleman from Minnesota has the right to close.
  Mr. HENSARLING. Mr. Chairman, the last time this body listened to the 
minority leader and enacted Dodd-Frank, permanent Wall Street bailouts 
were enshrined into law. That is what the gentlewoman represents, but 
somehow we did not hear that in her speech. The last time we listened 
to the gentlewoman from California, what we see is that working 
Americans have not received a pay increase. Their paychecks are 
stagnant and their savings remain decimated the last time we listened 
to the gentlewoman from California, the minority leader. Since we 
listened to her, we have seen that free checking has been cut in half, 
bank fees have gone up, mortgages are more difficult to come by and 
they are more expensive to close. That is the last time we listened to 
the gentlewoman from California, the minority leader.
  Her counsel must be rejected, as should the Washington elitism that 
is represented by her philosophy must be rejected as well. It is why 
Dodd-Frank must be rejected and why the Financial CHOICE Act must be 
enacted.
  Mr. Chairman, I support the amendment from the gentleman from New 
York.
  Mr. FASO. Mr. Chair, I yield back the balance of my time.
  Mr. ELLISON. Mr. Chair, I don't know if it was the last time, but one 
of the many times that we listened to Nancy Pelosi, we passed the Dodd-
Frank Act, which protected consumers to the tune of 29 million of them 
to return $11.5 billion to $12 billion back to their families. I think 
that Nancy Pelosi has a pretty good record of helping out consumers. I 
think consumers of America would appreciate $11.5 billion returned to 
their family budgets.
  The last time we listened to Nancy Pelosi, we saw a Dodd-Frank which 
has stabilized markets, which gave us 85 consecutive months of private 
sector job growth.
  But the last time we heard from these free-market, Ayn Randian 
conservatives, oh, boy, these guys ran the economy straight into the 
ditch with their deregulatory schemes and their hostility to any kind 
of regulation on Big Business.
  We saw unemployment rates well north of 10 percent in many parts of 
this country; we saw home values plummet; and we saw mass foreclosures, 
all because of the failed Ayn Randian, free-market fundamentalist 
attitudes that we see so often on the other side of the aisle.
  I will just note to my freshman friend that the minority leader can 
talk as long as she wants. You might want to check the rules on that 
one.
  Mr. Chair, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from New York (Mr. Faso).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. ELLISON. Mr. Chair, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from New York 
will be postponed.


                 Amendment No. 5 Offered by Ms. McSally

  The Acting CHAIR. It is now in order to consider amendment No. 5 
printed in part B of House Report 115-163.
  Ms. McSally. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       At the end of title V, add the following:

          Subtitle T--Legitimate Financial Transactions Report

     SEC. 596. TREASURY REPORT ON LEGITIMATE FINANCIAL 
                   TRANSACTIONS.

       Not later than the end of the 90-day period beginning on 
     the date of the enactment of this Act, the Secretary of the 
     Treasury shall issue a report to the Congress on--
       (1) the Secretary's efforts to ensure that legitimate 
     financial transactions move freely and globally; and
       (2) how the Secretary coordinates on such efforts with 
     Federal bank regulators, financial institutions, and money 
     service businesses.

  The Acting CHAIR. Pursuant to House Resolution 375, the gentlewoman 
from Arizona (Ms. McSally) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Arizona.
  Ms. McSALLY. Mr. Chairman, I rise today in strong support of my 
amendment to H.R. 10, the Financial CHOICE Act.
  Since Dodd-Frank was signed into law, we have seen more than 1,900 
community financial institutions in the U.S. close.
  Additionally, rules promulgated to combat money laundering in 
transnational organizations have had unintended consequences on 
legitimate businesses along the border.
  In my home State of Arizona, banks and legitimate businesses along 
the U.S.-Mexico border have been particularly hard hit by ambiguous and 
onerous regulations. In the last decade, Arizona has lost 70 percent of 
its community banks.
  These regulations, which were meant to minimize risk and combat money 
laundering, have actually contributed to high transaction costs and 
imposed substantial difficulties for legitimate companies engaged in 
cash-intensive types of businesses, like ranchers and farmers.
  Many banking institutions have closed their doors, and others have 
dropped customers participating in cross-border commerce. As a result, 
individuals and local businesses, some of them family-owned who have 
been operating in the region for generations, have since lost access to 
banking services and the capital they rely on.
  I strongly support Federal efforts to combat money laundering and 
illicit activities, and I understand how transnational criminal 
organizations can exploit vulnerabilities in the financial system for 
their own gain. However, limiting the availability of banking services 
and hampering cross-border transactions to legitimate businesses has 
negative impacts on communities in my district. Should this be the 
result of regulations handed down by Washington, the Treasury 
Department should examine ways to remove these unintended consequences.
  As such, my amendment simply asks the Department of Treasury to 
review

[[Page 8993]]

existing regulations and submit a report to Congress regarding its 
efforts to work with Federal bank regulators, financial institutions, 
and money service businesses to ensure that legitimate financial 
transactions can move freely and globally.
  It is critical that the new administration engage with small 
businesses and local stakeholders in the Southwest to ensure legitimate 
cross-border commerce can continue to be a major contributor to our 
economy. It is imperative we do everything we can to find a balance 
between economic needs of border communities while maintaining strong 
safeguards against illicit activities.
  This amendment is supported by the Fresh Produce Association, the 
Electronic Transactions Association, and the Arizona Bankers 
Association.
  Mr. Chairman, I urge my colleagues to support my amendment, and I 
reserve the balance of my time.
  Mr. ELLISON. Mr. Chair, I rise in opposition to the amendment.
  The Acting CHAIR. The gentleman from Minnesota is recognized for 5 
minutes.
  Mr. ELLISON. Mr. Chair, let me recognize that the problem that 
Representative McSally is trying to address here is a legitimate 
problem that we think needs to be focused on.
  I must oppose it because it is inadequate and simply not enough. It 
would be good if we could get together and try to come up with a 
bipartisan solution to this problem that she has, I think, identified 
as a legitimate issue.
  But ensuring that legitimate financial transactions move freely and 
globally, particularly key remittance channels for vulnerable 
populations, is a subject of great importance and one on which I and my 
Democratic colleagues remain focused.
  Many of us represent districts with significant immigrant populations 
from Central and South America, the Caribbean, Africa, all across the 
globe. We have heard just how critical it is for immigrants here in the 
United States to be able to send money that sustain their loved ones 
back home.
  While I am pleased that there is a bipartisan recognition about the 
need to preserve critical remittance channels for legitimate 
transactions, I must say that I am deeply concerned by some of the 
rhetoric and proposals that we have seen from the Trump administration, 
which make me fear that access to remittances, particularly for 
vulnerable populations, may be in jeopardy.
  Not only has the President been overtly anti-immigrant in his 
rhetoric during the 2016 campaign and since, he put out an alarming 
proposal about how he would force Mexico to pay for a wall on our 
Southern border. He proposed cutting off access to remittance transfers 
for anyone who couldn't document their immigration status until Mexico 
agreed to pay an extortion payment of between $5 billion and $10 
billion.
  I also note that while it is essential that legitimate financial 
transactions move freely and globally, it is equally important that 
illegitimate and illicit transactions do not.
  For this reason, I am concerned that the amendment before us falls 
short in that it fails to call the administration to disclose how it 
plans to curtail the flow of illicit funds, particularly funds which 
may be coming from key adversaries like the Russian Federation.
  One doesn't have to look far to see that, despite record fines and 
numerous enforcement actions, global megabanks have continued to 
facilitate shady transactions even when such transactions are highly 
suspicious, have no economic rationale, and even likely involve money 
laundering and tax evasion.
  One example of concern, Deutsche Bank, which operates in the U.S. and 
around the globe, was found by the Federal Reserve, New York State, and 
the United Kingdom to have facilitated a massive fraudulent trading 
scheme that allowed $10 billion to flow out of Russia to unknown 
locales.

                              {time}  1545

  In order to better understand the scheme, I recently joined with a 
number of my colleagues in writing to the Treasury Secretary to ask for 
any and all records of suspicious activity related to Deutsche Bank's 
2011 scheme in the Department's possession, including the names and 
identities of all parties who participated in, or benefited from, the 
scheme.
  But, like much of the oversight Democrats are conducting on this 
administration, this request has apparently fallen on deaf ears.
  So, again, I do appreciate the intent of the amendment--I even 
commend Representative McSally for identifying this is an important 
issue--it should have gone further in demanding that this 
administration disclose how it will curtail well-known schemes being 
used to facilitate fraud. So I must urge a ``no'' vote, but I look 
forward to working with Representative McSally on this important issue.
  Mr. Chairman, I yield back the balance of my time.
  Ms. McSALLY. Mr. Chairman, I appreciate my colleague recognizing that 
this is a problem and saying he agrees with it, but then doesn't 
support the amendment because it is not enough. I don't understand 
that. I had hoped that he would support the amendment, and then we 
could continue to work together on other initiatives as well.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Arizona (Ms. McSally).
  The amendment was agreed to.


                  Amendment No. 6 Offered by Mr. Buck

  The Acting CHAIR. It is now in order to consider amendment No. 6 
printed in part B of House Report 115-163.
  Mr. BUCK. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Page 400, line 22, insert ``(a) In General.
     --'' before ``Within''.
       Page 401, after line 2, insert the following:S0634
       (b) GSA Study.--
       (1) Study.--The Administrator of General Services shall 
     carry out a study to determine--
       (A) the Consumer Law Enforcement Agency's office real 
     estate leasing needs, in light of the changes to the Agency's 
     structure made by this Act;
       (B) whether the office space referenced in subsection (a) 
     is the most cost-effective use of taxpayer money in meeting 
     those needs, relative to alternative leasing options in the 
     Washington, D.C. Metropolitan Area; and
       (C) if there is a Government department or agency that has 
     building needs that could be met by moving all or a portion 
     of the employees of such department or agency to the property 
     described under subsection (a).
       (2) Report.--Not later than the end of the 6-month period 
     beginning on the date of the enactment of this Act, the 
     Administrator of General Services shall issue a report to the 
     Congress containing all findings and determinations made in 
     carrying out the study required under paragraph (1).
       (3) Authority to sell property.--If, after carrying out the 
     study required under paragraph (1), the Administrator of 
     General Services determines that--
       (A) the Consumer Law Enforcement Agency's office real 
     estate leasing needs have changed in light of the changes to 
     the Agency's structure made by this Act, and
       (B) that there is no Government department or agency that 
     has building needs that could be met by moving all or a 
     portion of the employees of such department or agency to the 
     property described under subsection (a),

     the Administrator may sell such property to the highest 
     bidder, so long as the revenue from the sale exceeds the 
     combined cost of building such property and the cost of the 
     most recently completed renovation of such property.

  The Acting CHAIR. Pursuant to House Resolution 375, the gentleman 
from Colorado (Mr. Buck) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Colorado.
  Mr. BUCK. Mr. Chairman, I rise today to explain my amendment to the 
Financial CHOICE Act.
  Since the passage of Dodd-Frank, the Consumer Financial Protection 
Bureau has been unaccountable to Congress and harmed small businesses 
across this country. I am thankful for the work done by Chairman 
Hensarling to rein in this out-of-control agency.
  With the United States nearly $20 trillion in debt, we must do 
everything possible to bring financial accountability to our Federal 
Government.

[[Page 8994]]

Spending at this rate will leave us not only financially bankrupt but 
morally bankrupt as well. It is immoral to spend money we don't have 
today and force our children to pay in the future.
  Despite this, the Consumer Financial Protection Bureau decided it was 
necessary to renovate their headquarters, estimated at more than $200 
million, over $50 million more than the building is worth. Even in 
their initial designs, a lavish two-story waterfall and four-story 
glass staircase were more important than the financial prosperity of 
our children.
  The Financial CHOICE Act makes changes to the CFPB, which will likely 
result in different real estate needs for the agency. My amendment is 
simple: it will require an assessment of whether the current CFPB 
building is a good use of taxpayer dollars. If not, it authorizes the 
General Services Administration to sell the building to the highest 
bidder, generating hundreds of millions of dollars by offloading a 
property that is unnecessary for the Federal Government to own.
  Just a few months ago, my first grandchild, nicknamed Bear, was born. 
When he grows older, I want to tell him I did everything in my power to 
fight the out-of-control spending that plagues our generation. This 
amendment is part of that fight for Bear and all of our grandchildren.
  This amendment requires our government to use taxpayer dollars 
efficiently, and it reinforces a culture of fiscal restraint and 
bureaucratic decisionmaking.
  I encourage all of my colleagues to support this commonsense and 
fiscally responsible amendment, and I reserve the balance of my time.
  Mr. ELLISON. Mr. Chairman, I rise in opposition to the amendment.
  The Acting CHAIR. The gentleman from Minnesota is recognized for 5 
minutes.
  Mr. ELLISON. Mr. Chairman, as if the CHOICE Act was not bad enough, 
this amendment piles on to the Republicans' misguided attacks on the 
highly successful Consumer Financial Protection Bureau.
  I don't understand why my Republican friends don't get--29 million 
people got $11.5 billion of their money back because unscrupulous 
financial services firms unlawfully took their money. I would think we 
could get together on that. I would think we could agree that that is 
an important thing to work on. And now we are trying to mess with their 
building, for the sake of the children, no less.
  The Bureau's inspector general conducted a thorough investigation of 
the Republican's made-up suggestion that the Consumer Financial 
Protection Bureau's building renovations were inappropriate.
  The inspector general released an audit back in 2015, that stated:

       We determined that construction costs appear reasonable 
     based on comparisons to an independent cost estimate and the 
     costs of two comparable building renovations identified by 
     the U.S. General Services Administration. We also determined 
     that potential renovation costs are below the amount 
     previously budgeted and obligated for the renovation. . . . 
     Current controls for approving, managing, and documenting 
     renovation costs and project decisions are designed 
     appropriately. . . .

  May we put this issue to bed that there is some nefarious plot going 
on with the building? It wasn't legitimate when they first raised it. 
It is not legitimate now. And trying to bring a big deal up about their 
building, which is an issue that has been resolved, is not going to 
benefit the children of tomorrow. I think it will benefit the children 
for those 29 million families to get $12 billion back. Now, that might 
help some kids. That might pay for some lunches, some school fees, and 
a whole bunch of other things to help families. But just messing with 
the CFPB over their building will not help anyone.
  Even if the House Republicans are not willing to thank the Consumer 
Financial Protection Bureau for all it has done, I am.
  The Consumer Financial Protection Bureau has been a tough independent 
watchdog, has done a great job on behalf of American consumers, and has 
done a great job for American financial firms which do honest work. 
Imagine, Mr. Chairman, being a financial services firm that is actually 
selling a good product at a fair price and you have somebody down the 
street cutting corners, ripping off consumers, and you are losing your 
competitive advantage because you are honest. The Consumer Financial 
Protection Bureau helps keep good financial firms good and not create 
this pervasive sentence to drag them in the wrong direction.
  The Consumer Financial Protection Bureau maintains a transparent 
database that has collected over 1.1 million consumer complaints about 
financial institutions, and 97 percent of those have received a timely 
response.
  The Consumer Financial Protection Bureau has demystified financial 
transactions by requiring simple know-before-you-owe disclosures, and 
providing educational and comparison shopping tools so that consumers 
are empowered to make the right choice for them and their families.
  Perhaps one of the Consumer Financial Protection Bureau's most 
notable accomplishments to date was its investigation of Wells Fargo's 
fraudulent account scandal. Let me tell you, Wells Fargo's fraudulent 
account scandal definitely hurt families and kids in those families, 
and the CFPB's good work helped those families.
  Last September, the Consumer Financial Protection Bureau fined Wells 
Fargo $100 million for secretly opening up 2 million unauthorized 
accounts on behalf of its consumers and ordered the bank to compensate 
customers it harmed. This marks the largest penalty the Consumer 
Financial Protection Bureau has imposed to date. And that, Mr. 
Chairman, has helped families and children.
  I urge my colleagues to reject this amendment, to stop the petty 
stuff about the building. This has been reviewed by independent people. 
It is really just a waste of time.
  Mr. Chairman, I urge a ``no'' vote, and I yield back the balance of 
my time.
  Mr. BUCK. Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Colorado (Mr. Buck).
  The question was taken; and the Acting Chair announced that the ayes 
appeared to have it.
  Mr. ELLISON. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Colorado 
will be postponed.


                    Announcement by the Acting Chair

  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on those amendments printed in part B of House Report 
115-163 on which further proceedings were postponed, in the following 
order:
  Amendment No. 1 by Mr. Hensarling of Texas.
  Amendment No. 2 by Mr. Hollingsworth of Indiana.
  Amendment No. 4 by Mr. Faso of New York.
  Amendment No. 6 by Mr. Buck of Colorado.
  The Chair will reduce to 2 minutes the minimum time for any 
electronic vote after the first vote in this series.


               Amendment No. 1 Offered by Mr. Hensarling

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Texas (Mr. 
Hensarling) on which further proceedings were postponed and on which 
the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 232, 
noes 185, not voting 13, as follows:

                             [Roll No. 295]

                               AYES--232

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis

[[Page 8995]]


     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Bridenstine
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Chaffetz
     Cheney
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Costello (PA)
     Cramer
     Crawford
     Cuellar
     Culberson
     Curbelo (FL)
     Davidson
     Davis, Rodney
     Denham
     Dent
     DeSantis
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     Lamborn
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (PA)
     Newhouse
     Noem
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NOES--185

     Adams
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Cohen
     Connolly
     Conyers
     Cooper
     Correa
     Courtney
     Crist
     Crowley
     Davis (CA)
     Davis, Danny
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gonzalez (TX)
     Gottheimer
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Peterson
     Pingree
     Pocan
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--13

     Aguilar
     Clyburn
     Costa
     Cummings
     DeFazio
     Dunn
     Engel
     Johnson, Sam
     LaMalfa
     Maloney, Carolyn B.
     Marino
     Napolitano
     Reichert

                              {time}  1616

  Mrs. DINGELL, Mr. CARSON of Indiana, Ms. WASSERMAN SCHULTZ, Messrs. 
BUTTERFIELD, RUPPERSBERGER, Mrs. MURPHY of Florida, and Mr. GOTTHEIMER 
changed their vote from ``aye'' to ``no.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


              Amendment No. 2 Offered by Mr. Hollingsworth

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Indiana 
(Mr. Hollingsworth) on which further proceedings were postponed and on 
which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 2-minute vote.
  The vote was taken by electronic device, and there were--ayes 231, 
noes 180, not voting 19, as follows:

                             [Roll No. 296]

                               AYES--231

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Bridenstine
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Chaffetz
     Cheney
     Coffman
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Cooper
     Costello (PA)
     Cramer
     Crawford
     Cuellar
     Culberson
     Curbelo (FL)
     Davidson
     Davis, Rodney
     Denham
     Dent
     DeSantis
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gottheimer
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (PA)
     Newhouse
     Noem
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Smith (MO)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NOES--180

     Adams
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Cohen
     Connolly
     Conyers
     Correa
     Courtney
     Crist

[[Page 8996]]


     Crowley
     Davis (CA)
     Davis, Danny
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gonzalez (TX)
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Peterson
     Pingree
     Pocan
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--19

     Aguilar
     Bishop (UT)
     Clyburn
     Cole
     Costa
     Cummings
     DeFazio
     Engel
     Green, Al
     Johnson, Sam
     Lamborn
     Lynch
     Maloney, Carolyn B.
     Marino
     Meadows
     Napolitano
     Polis
     Reichert
     Smith (NE)


                    Announcement by the Acting Chair

  The Acting CHAIR (during the vote). There is 1 minute remaining.

                              {time}  1620

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  Stated for:
  Mr. SMITH of Nebraska. Mr. Chair, I was unavoidably detained. Had I 
been present, I would have voted ``yea'' on rollcall No. 296.
  Mr. COLE. Mr. Chair, I was unavoidably detained. Had I been present, 
I would have voted ``yea'' on rollcall No. 296.


                  Amendment No. 4 Offered by Mr. Faso

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from New York 
(Mr. Faso) on which further proceedings were postponed and on which the 
ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 2-minute vote.
  The vote was taken by electronic device, and there were--ayes 235, 
noes 184, not voting 11, as follows:

                             [Roll No. 297]

                               AYES--235

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Bridenstine
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Chaffetz
     Cheney
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Costello (PA)
     Cramer
     Crawford
     Cuellar
     Culberson
     Curbelo (FL)
     Davidson
     Davis, Rodney
     Denham
     Dent
     DeSantis
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gibbs
     Gohmert
     Gonzalez (TX)
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamborn
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (PA)
     Newhouse
     Noem
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NOES--184

     Adams
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Cohen
     Connolly
     Conyers
     Cooper
     Correa
     Courtney
     Crist
     Crowley
     Davis (CA)
     Davis, Danny
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gottheimer
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Peterson
     Pingree
     Pocan
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--11

     Aguilar
     Clyburn
     Costa
     Cummings
     DeFazio
     Engel
     Johnson, Sam
     Maloney, Carolyn B.
     Marino
     Napolitano
     Reichert

                              {time}  1624

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


                  Amendment No. 6 Offered by Mr. Buck

  The Acting CHAIR. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Colorado 
(Mr. Buck) on which further proceedings were postponed and on which the 
ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.

[[Page 8997]]




                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIR. This is a 2-minute vote.
  The vote was taken by electronic device, and there were--ayes 233, 
noes 185, not voting 12, as follows:

                             [Roll No. 298]

                               AYES--233

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Bridenstine
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Chaffetz
     Cheney
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Costello (PA)
     Cramer
     Crawford
     Cuellar
     Culberson
     Curbelo (FL)
     Davidson
     Davis, Rodney
     Denham
     Dent
     DeSantis
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamborn
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (PA)
     Newhouse
     Noem
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NOES--185

     Adams
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Cohen
     Connolly
     Conyers
     Cooper
     Correa
     Courtney
     Crist
     Crowley
     Davis (CA)
     Davis, Danny
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gonzalez (TX)
     Gottheimer
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Peterson
     Pingree
     Pocan
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--12

     Aguilar
     Clyburn
     Costa
     Cummings
     DeFazio
     Engel
     Johnson, Sam
     Maloney, Carolyn B.
     Marino
     Napolitano
     Reichert
     Shuster

                              {time}  1628

  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  The Acting CHAIR. The question is on the amendment in the nature of a 
substitute, as amended.
  The amendment was agreed to.
  The Acting CHAIR. Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Hultgren) having assumed the chair, Mr. Simpson, Acting Chair of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 10) to 
create hope and opportunity for investors, consumers, and entrepreneurs 
by ending bailouts and Too Big to Fail, holding Washington and Wall 
Street accountable, eliminating red tape to increase access to capital 
and credit, and repealing the provisions of the Dodd-Frank Act that 
make America less prosperous, less stable, and less free, and for other 
purposes, and, pursuant to House Resolution 375, he reported the bill 
back to the House with an amendment adopted in the Committee of the 
Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the amendment 
reported from the Committee of the Whole?
  If not, the question is on the amendment in the nature of a 
substitute, as amended.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. HENSARLING. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 5-
minute vote on passage of the bill will be followed by a 5-minute vote 
on agreeing to the Speaker's approval of the Journal, if ordered.
  The vote was taken by electronic device, and there were--yeas 233, 
nays 186, not voting 11, as follows:

                             [Roll No. 299]

                               YEAS--233

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (MI)
     Bishop (UT)
     Black
     Blackburn
     Blum
     Bost
     Brady (TX)
     Brat
     Bridenstine
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Chaffetz
     Cheney
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Costello (PA)
     Cramer
     Crawford
     Culberson
     Curbelo (FL)
     Davidson
     Davis, Rodney
     Denham
     Dent
     DeSantis
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Farenthold
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Harper
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.

[[Page 8998]]


     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamborn
     Lance
     Latta
     Lewis (MN)
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Meehan
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (PA)
     Newhouse
     Noem
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Pittenger
     Poe (TX)
     Poliquin
     Posey
     Ratcliffe
     Reed
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Rooney, Thomas J.
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tiberi
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NAYS--186

     Adams
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Bishop (GA)
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Cohen
     Connolly
     Conyers
     Cooper
     Correa
     Courtney
     Crist
     Crowley
     Cuellar
     Davis (CA)
     Davis, Danny
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Ellison
     Eshoo
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gonzalez (TX)
     Gottheimer
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Lipinski
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan Grisham, M.
     Lujan, Ben Ray
     Lynch
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Murphy (FL)
     Nadler
     Neal
     Nolan
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Peterson
     Pingree
     Pocan
     Polis
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sinema
     Sires
     Slaughter
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Walz
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--11

     Aguilar
     Clyburn
     Costa
     Cummings
     DeFazio
     Engel
     Johnson, Sam
     Maloney, Carolyn B.
     Marino
     Napolitano
     Reichert


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). There are 2 minutes 
remaining.

                              {time}  1638

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mr. REICHERT. Mr. Speaker, on rollcall No. 299, I missed the vote due 
to a personal illness. Had I been present, I would have voted ``yes.''
  Stated against:
  Mr. ENGEL. Mr. Speaker, I am unavoidably detained in my Congressional 
District. Had I been present to vote on H.R. 10, the Financial CHOICE 
Act of 2017, I would have voted ``no.''


                          PERSONAL EXPLANATION

  Mrs. NAPOLITANO. Mr. Speaker, I was absent during rollcall votes No. 
295, No. 296, No. 297, No. 298, and No. 299 due to my spouse's health 
situation in California. Had I been present, I would have voted ``nay'' 
on the Hensarling Amendment. I would have also voted ``nay'' on the 
Hollingsworth Amendment. I would have also voted ``nay'' on the Faso 
Amendment. I would have also voted ``nay'' on the Buck Amendment. I 
would have also voted ``nay'' on the Final Passage of H.R. 10--
Financial CHOICE Act of 2017.


                          PERSONAL EXPLANATION

  Mr. COSTA. Mr. Speaker, I was unable to be present for rollcall votes 
taken on the House floor on June 8, 2017 as I had to return to 
California for medical reasons. Had I been present, I would have voted 
``no'' on rollcall Vote No. 295, ``no'' on rollcall Vote No. 296, 
``no'' on rollcall Vote No. 297, ``no'' on rollcall vote No. 298, 
``no'' on rollcall Vote No. 299.


                          PERSONAL EXPLANATION

  Mr. AGUILAR. Mr. Speaker, I was not present for votes on Thursday, 
June 8, 2017 because of a family obligation. Had I been present, I 
would have voted ``no'' on rollcall No. 295, on Agreeing to the 
Hensarling Amendment; ``no'' on rollcall No. 296, on Agreeing to the 
Hollingsworth Amendment; ``no'' on rollcall No. 297, on Agreeing to the 
Faso Amendment; ``no'' on rollcall No. 298, on Agreeing to the Buck 
Amendment; and ``no'' on rollcall No. 299, on Passage of H.R. 10, the 
Financial Choice Act.


                          PERSONAL EXPLANATION

  Mr. MARINO. Mr. Speaker, I was unable to attend votes on June 8, 
2017, on account of attending my son's graduation. Had I been present, 
I would have voted as follows: ``Yea'' for rollcall vote 295, ``yea'' 
for rollcall vote 296, ``yea'' for rollcall vote 297, ``yea'' for 
rollcall vote 298, and ``yea'' for rollcall vote 299.

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