[House Report 113-347]
[From the U.S. Government Publishing Office]
113th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 113-347
======================================================================
BUREAU OF CONSUMER FINANCIAL PROTECTION ACCOUNTABILITY AND TRANSPARENCY
ACT OF 2013
_______
February 6, 2014.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3519]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3519) to amend the Consumer Financial Protection
Act of 2010 to make the Bureau of Consumer Financial Protection
an independent agency, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bureau of Consumer Financial
Protection Accountability and Transparency Act of 2013''.
SEC. 2. MAKING THE BUREAU AN INDEPENDENT AGENCY.
The Consumer Financial Protection Act of 2010 is amended--
(1) in section 1011--
(A) in subsection (a)--
(i) by striking ``in the Federal Reserve
System,''; and
(ii) by striking ``Bureau of Consumer
Financial Protection'' and inserting
``Financial Product Safety Commission''; and
(B) in subsection (e), by striking ``, including in
cities in which the Federal reserve banks, or branches
of such banks, are located,'';
(2) in section 1012(c), by striking paragraphs (2), (3), (4),
and (5); and
(3) in section 1014(b), by striking ``Not fewer than 6
members shall be appointed upon the recommendation of the
regional Federal Reserve Bank Presidents, on a rotating
basis.''.
SEC. 3. BRINGING THE BUREAU INTO THE REGULAR APPROPRIATIONS PROCESS.
Section 1017 of the Consumer Financial Protection Act of 2010 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 are authorized
to be appropriated such sums as may be necessary to carry out
this title for each of fiscal years 2014 and 2015.''; and
(B) by redesignating paragraph (4) as paragraph (2).
SEC. 4. 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 Financial Product Safety Commission.
Purpose and Summary
As a bureau of the Federal Reserve System, which is itself
an independent agency, the Consumer Financial Protection Bureau
(CFPB) is exempted from the Congressional budgetary and
appropriations process, instead receiving its funding directly
from the Federal Reserve with no oversight or control from
Congress or any executive branch agency or official.
Accordingly, Congress's traditional use of the ``power of the
purse'' to hold executive agencies accountable to the American
people is of little to no use when it conducts oversight of the
CFPB. H.R. 3519, the Bureau of Consumer Financial Protection
Accountability and Transparency Act of 2013, subjects the
funding for the CFPB to the regular congressional authorization
and appropriations processes.
Background and Need for Legislation
Under section 1017 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, the CFPB receives its funding from the
Board of Governors of the Federal Reserve System and is not
subject to the congressional authorization or the traditional
appropriations process. To obtain its funding, the Bureau
merely submits an annual budget proposal to the Board of
Governors based on the amount it expects to need, and the money
is transferred to its operating account. The only limitation on
the CFPB's funding is that it may not draw down more than 12
percent of the annual operating expenses of the Federal Reserve
System. As a general matter, the Federal Reserve's annual
excess cash is remitted to the Treasury, so every dollar spent
by the CFPB means one less dollar available for deficit
reduction.
Given the utter lack of budgetary constraints under which
it operates, it is not surprising that the Bureau has grown
rapidly. For its first full year of existence, fiscal year
2012, the CFPB had a budget of $299.8 million and a full-time
equivalent employee count of 831. In fiscal year 2013, its
budget grew to $541.4 million, with an employee count of 1,214;
for fiscal year 2014, its requested budget is $497.5 million
and 1,545 employees.
H.R. 3519 subjects the CFPB to the regular authorizing and
appropriations processes of Congress to bring more fiscal and
budgetary accountability to the CFPB.
Hearings
The Committee on Financial Services' Subcommittee on
Financial Institutions and Consumer Credit held a hearing on
H.R. 3519 on October 29, 2013.
Committee Consideration
The Committee on Financial Services met in open session on
November 20, 2013, and ordered H.R. 3519 to be reported
favorably to the House with an amendment by a recorded vote of
32 yeas to 24 nays (recorded vote no. FC-42), a quorum being
present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
1. A motion by Chairman Hensarling to report the bill (H.R.
3519) with an amendment to the House with a favorable
recommendation was agreed to by a record vote of 32 yeas to 24
nays (recorded vote no. FC-42).
RECORD VOTE NO. FC-42
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Hensarling................. X ........ ......... Ms. Waters....... ........ X .........
Mr. Bachus..................... X ........ ......... Mrs. Maloney (NY) ........ X .........
Mr. King (NY).................. X ........ ......... Ms. Velazquez.... ........ X .........
Mr. Royce...................... X ........ ......... Mr. Watt......... ........ X .........
Mr. Lucas...................... X ........ ......... Mr. Sherman...... ........ X .........
Mr. Gary G. Miller (CA)........ X ........ ......... Mr. Meeks........ ........ X .........
Mrs. Capito.................... X ........ ......... Mr. Capuano...... ........ X .........
Mr. Garrett.................... X ........ ......... Mr. Hinojosa..... ........ X .........
Mr. Neugebauer................. X ........ ......... Mr. Clay......... ........ ........ .........
Mr. McHenry.................... X ........ ......... Mrs. McCarthy ........ ........ .........
(NY).
Mr. Campbell................... ........ ........ ......... Mr. Lynch........ ........ X .........
Mrs. Bachmann.................. X ........ ......... Mr. David Scott ........ X .........
(GA).
Mr. McCarthy (CA).............. X ........ ......... Mr. Al Green (TX) ........ X .........
Mr. Pearce..................... X ........ ......... Mr. Cleaver...... ........ X .........
Mr. Posey...................... X ........ ......... Ms. Moore........ ........ X .........
Mr. Fitzpatrick................ X ........ ......... Mr. Ellison...... ........ X .........
Mr. Westmoreland............... X ........ ......... Mr. Perlmutter... ........ ........ .........
Mr. Luetkemeyer................ X ........ ......... Mr. Himes........ ........ X .........
Mr. Huizenga (MI).............. X ........ ......... Mr. Peters (MI).. ........ X .........
Mr. Duffy...................... X ........ ......... Mr. Carney....... ........ X .........
Mr. Hurt....................... X ........ ......... Ms. Sewell (AL).. ........ X .........
Mr. Grimm...................... X ........ ......... Mr. Foster....... ........ X .........
Mr. Stivers.................... X ........ ......... Mr. Kildee....... ........ ........ .........
Mr. Fincher.................... X ........ ......... Mr. Murphy (FL).. ........ X .........
Mr. Stutzman................... X ........ ......... Mr. Delaney...... ........ X .........
Mr. Mulvaney................... X ........ ......... Ms. Sinema....... ........ X .........
Mr. Hultgren................... X ........ ......... Mrs. Beatty...... ........ X .........
Mr. Ross....................... X ........ ......... Mr. Heck (WA).... ........ X .........
Mr. Pittenger.................. X ........ .........
Mrs. Wagner.................... X ........ .........
Mr. Barr....................... X ........ .........
Mr. Cotton..................... X ........ .........
Mr. Rothfus.................... X ........ .........
----------------------------------------------------------------------------------------------------------------
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held hearings and
made findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee states that H.R. 3519
subjects the CFPB to the regular authorization and
appropriation processes of Congress.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 15, 2014.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3519, the Bureau
of Consumer Financial Protection Accountability and
Transparency Act of 2013.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 3519--Bureau of Consumer Financial Protection Accountability and
Transparency Act of 2013
Summary: Under current law, the Bureau of Consumer
Financial Protection (CFPB) operates as an autonomous agency
within the Federal Reserve System (FRS) with its operating
costs funded from FRS earnings. H.R. 3519 would establish the
CFPB as an independent agency (outside of the FRS) subject to
the annual appropriations process; the bill would authorize the
appropriation of funds for fiscal years 2014 and 2015 to cover
the agency's cost of operations.
CBO estimates that enacting H.R. 3519 would reduce direct
spending by $6.1 billion over the 2014-2023 period. Pay-as-you-
go procedures apply because enacting the legislation would
affect direct spending. Enacting the legislation would not
affect revenues.
In addition, CBO estimates that implementing H.R. 3519
would cost $730 million over the 2014-2016 period, assuming
appropriation of the necessary amounts to operate the CFPB for
part of 2014 and all of 2015.
H.R. 3519 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 3519 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014- 2019 2014- 2024
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority..................................... -225 -505 -532 -556 -571 -586 -603 -620 -638 -657 -668 -2,975 -6,161
Estimated Outlays.............................................. -146 -509 -528 -552 -569 -584 -600 -617 -635 -654 -667 -2,888 -6,061
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level.................................. 225 505 0 0 0 0 0 0 0 0 0 730 730
Estimated Outlays.............................................. 146 509 75 0 0 0 0 0 0 0 0 730 730
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO estimates that
the bill will be enacted near the middle of fiscal year 2014,
that the necessary amounts will be appropriated near the start
of each year, and that spending will follow historical patterns
for operation of the CFPB.
The Dodd-Frank Wall Street Reform and Consumer Financial
Protection Act (Public Law 111-203) established the CFPB to
regulate the offering and provision of consumer financial
products. The annual operating costs of the CFPB are paid
through transfers from the earnings of the Federal Reserve and
are recorded as expenditures in the federal budget. CBO
estimates that the agency will spend about $6 billion over the
remaining months of fiscal year 2014 through 2024.
Direct spending
H.R. 3519 would terminate transfers from the FRS to fund
the CFPB's operating costs. CBO estimates that enacting this
change to the method of funding the agency would reduce direct
spending by about $6 billion over the 2014-2024 period.
Spending subject to appropriation
H.R. 3519 would authorize amounts necessary to carry out
the statutory authorities of the Financial Product Safety
Commission (as the CFPB would be renamed under the bill) for
fiscal years 2014 and 2015. CBO estimates that implementing
this provision would cost $730 million over the 2014-2016
period. Although spending for the CFPB beyond 2015 is not
authorized by the H.R. 3519, CBO estimates that continued
operations of the agency over the entire 2014-2024 period would
cost about $6 billion.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 3519, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON NOVEMBER 21, 2013
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014- 2019 2014- 2024
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN THE DEFICIT
Statutory Pay-As-You-Go Impact................................. -146 -509 -528 -552 -569 -584 -600 -617 -635 -654 -667 -2,888 -6,061
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Intergovernmental and private-sector impact: H.R. 3519
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Susan Willie; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Paige Piper/Bach.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of the section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 3519 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Duplication of Federal Programs
Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013),
the Committee states that no provision of H.R. 3519 establishes
or reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013),
the Committee states that H.R. 3519 does not direct any
rulemaking.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section cites H.R. 3519 as the ``Bureau of Consumer
Financial Protection Accountability and Transparency Act of
2013.''
Section 2. Making the bureau an independent agency
This section makes the CFPB a standalone independent
agency, no longer a bureau of the Federal Reserve System, and
renames it the ``Financial Product Safety Commission.''
Section 3. Bringing the bureau into the regular appropriations process
This section subjects the CFPB to the regular authorizing
and appropriations processes of Congress.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
CONSUMER FINANCIAL PROTECTION ACT OF 2010
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
* * * * * * *
Subtitle A--Bureau of Consumer Financial Protection
SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL
PROTECTION.
(a) Bureau Established.--There is established [in the Federal
Reserve System,] an independent bureau to be known as the
``[Bureau of Consumer Financial Protection] Financial Product
Safety Commission'', which shall regulate the offering and
provision of consumer financial products or services under the
Federal consumer financial laws. The Bureau shall be considered
an Executive agency, as defined in section 105 of title 5,
United States Code. Except as otherwise provided expressly by
law, all Federal laws dealing with public or Federal contracts,
property, works, officers, employees, budgets, or funds,
including the provisions of chapters 5 and 7 of title 5, shall
apply to the exercise of the powers of the Bureau.
* * * * * * *
(e) Offices.--The principal office of the Bureau shall be in
the District of Columbia. The Director may establish regional
offices of the Bureau[, including in cities in which the
Federal reserve banks, or branches of such banks, are located,]
in order to carry out the responsibilities assigned to the
Bureau under the Federal consumer financial laws.
SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS.
(a) * * *
* * * * * * *
(c) Autonomy of the Bureau.--
(1) * * *
[(2) Autonomy.--Notwithstanding the authorities
granted to the Board of Governors under the Federal
Reserve Act, the Board of Governors may not--
[(A) intervene in any matter or proceeding
before the Director, including examinations or
enforcement actions, unless otherwise
specifically provided by law;
[(B) appoint, direct, or remove any officer
or employee of the Bureau; or
[(C) merge or consolidate the Bureau, or any
of the functions or responsibilities of the
Bureau, with any division or office of the
Board of Governors or the Federal reserve
banks.
[(3) Rules and orders.--No rule or order of the
Bureau shall be subject to approval or review by the
Board of Governors. The Board of Governors may not
delay or prevent the issuance of any rule or order of
the Bureau.
[(4) Recommendations and testimony.--No officer or
agency of the United States shall have any authority to
require the Director or any other officer of the Bureau
to submit legislative recommendations, or testimony or
comments on legislation, to any officer or agency of
the United States for approval, comments, or review
prior to the submission of such recommendations,
testimony, or comments to the Congress, if such
recommendations, testimony, or comments to the Congress
include a statement indicating that the views expressed
therein are those of the Director or such officer, and
do not necessarily reflect the views of the Board of
Governors or the President.
[(5) Clarification of autonomy of the bureau in legal
proceedings.--The Bureau shall not be liable under any
provision of law for any action or inaction of the
Board of Governors, and the Board of Governors shall
not be liable under any provision of law for any action
or inaction of the Bureau.]
* * * * * * *
SEC. 1014. CONSUMER ADVISORY BOARD.
(a) * * *
(b) Membership.--In appointing the members of the Consumer
Advisory Board, the Director shall seek to assemble experts in
consumer protection, financial services, community development,
fair lending and civil rights, and consumer financial products
or services and representatives of depository institutions that
primarily serve underserved communities, and representatives of
communities that have been significantly impacted by higher-
priced mortgage loans, and seek representation of the interests
of covered persons and consumers, without regard to party
affiliation. [Not fewer than 6 members shall be appointed upon
the recommendation of the regional Federal Reserve Bank
Presidents, on a rotating basis.]
* * * * * * *
SEC. 1017. FUNDING; PENALTIES AND FINES.
(a) [Transfer of Funds From Board Of Governors] Budget,
Financial Management, and Audit.--
[(1) In general.--Each year (or quarter of such
year), beginning on the designated transfer date, and
each quarter thereafter, the Board of Governors shall
transfer to the Bureau from the combined earnings of
the Federal Reserve System, the amount determined by
the Director to be reasonably necessary to carry out
the authorities of the Bureau under Federal consumer
financial law, taking into account such other sums made
available to the Bureau from the preceding year (or
quarter of such year).
[(2) Funding cap.--
[(A) In general.--Notwithstanding paragraph
(1), and in accordance with this paragraph, the
amount that shall be transferred to the Bureau
in each fiscal year shall not exceed a fixed
percentage of the total operating expenses of
the Federal Reserve System, as reported in the
Annual Report, 2009, of the Board of Governors,
equal to--
[(i) 10 percent of such expenses in
fiscal year 2011;
[(ii) 11 percent of such expenses in
fiscal year 2012; and
[(iii) 12 percent of such expenses in
fiscal year 2013, and in each year
thereafter.
[(B) Adjustment of amount.--The dollar amount
referred to in subparagraph (A)(iii) shall be
adjusted annually, using the percent increase,
if any, in the employment cost index for total
compensation for State and local government
workers published by the Federal Government, or
the successor index thereto, for the 12-month
period ending on September 30 of the year
preceding the transfer.
[(C) Reviewability.--Notwithstanding any
other provision in this title, the funds
derived from the Federal Reserve System
pursuant to this subsection shall not be
subject to review by the Committees on
Appropriations of the House of Representatives
and the Senate.
[(3) Transition period.--Beginning on the date of
enactment of this Act and until the designated transfer
date, the Board of Governors shall transfer to the
Bureau the amount estimated by the Secretary needed to
carry out the authorities granted to the Bureau under
Federal consumer financial law, from the date of
enactment of this Act until the designated transfer
date.]
[(4)] (1) Budget and financial management.--
(A) * * *
* * * * * * *
[(E) Rule of construction.--This subsection
may not be construed as implying any obligation
on the part of the Director to consult with or
obtain the consent or approval of the Director
of the Office of Management and Budget with
respect to any report, plan, forecast, or other
information referred to in subparagraph (A) or
any jurisdiction or oversight over the affairs
or operations of the Bureau.
[(F) Financial statements.--The financial
statements of the Bureau shall not be
consolidated with the financial statements of
either the Board of Governors or the Federal
Reserve System.]
[(5)] (2) Audit of the bureau.--
(A) * * *
* * * * * * *
[(b) Consumer Financial Protection Fund.--
[(1) Separate fund in federal reserve established.--
There is established in the Federal Reserve a separate
fund, to be known as the ``Bureau of Consumer Financial
Protection Fund'' (referred to in this section as the
``Bureau Fund''). The Bureau Fund shall be maintained
and established at a Federal reserve bank, in
accordance with such requirements as the Board of
Governors may impose.
[(2) Fund receipts.--All amounts transferred to the
Bureau under subsection (a) shall be deposited into the
Bureau Fund.
[(3) Investment authority.--
[(A) Amounts in bureau fund may be
invested.--The Bureau may request the Board of
Governors to direct the investment of the
portion of the Bureau Fund that is not, in the
judgment of the Bureau, required to meet the
current needs of the Bureau.
[(B) Eligible investments.--Investments
authorized by this paragraph shall be made in
obligations of the United States or obligations
that are guaranteed as to principal and
interest by the United States, with maturities
suitable to the needs of the Bureau Fund, as
determined by the Bureau.
[(C) Interest and proceeds credited.--The
interest on, and the proceeds from the sale or
redemption of, any obligations held in the
Bureau Fund shall be credited to the Bureau
Fund.
[(c) Use of Funds.--
[(1) In general.--Funds obtained by, transferred to,
or credited to the Bureau Fund shall be immediately
available to the Bureau and under the control of the
Director, and shall remain available until expended, to
pay the expenses of the Bureau in carrying out its
duties and responsibilities. The compensation of the
Director and other employees of the Bureau and all
other expenses thereof may be paid from, obtained by,
transferred to, or credited to the Bureau Fund under
this section.
[(2) Funds that are not government funds.--Funds
obtained by or transferred to the Bureau Fund shall not
be construed to be Government funds or appropriated
monies.
[(3) Amounts not subject to apportionment.--
Notwithstanding any other provision of law, amounts in
the Bureau Fund and in the Civil Penalty Fund
established under subsection (d) shall not be subject
to apportionment for purposes of chapter 15 of title
31, United States Code, or under any other authority.]
[(d)] (b) Penalties and Fines.--
(1) * * *
* * * * * * *
[(e)] (c) Authorization of Appropriations; Annual Report.--
[(1) Determination regarding need for appropriated
funds.--
[(A) In general.--The Director is authorized
to determine that sums available to the Bureau
under this section will not be sufficient to
carry out the authorities of the Bureau under
Federal consumer financial law for the upcoming
year.
[(B) Report required.--When making a
determination under subparagraph (A), the
Director shall prepare a report regarding the
funding of the Bureau, including the assets and
liabilities of the Bureau, and the extent to
which the funding needs of the Bureau are
anticipated to exceed the level of the amount
set forth in subsection (a)(2). The Director
shall submit the report to the President and to
the Committee on Appropriations of the Senate
and the Committee on Appropriations of the
House of Representatives.
[(2) Authorization of appropriations.--If the
Director makes the determination and submits the report
pursuant to paragraph (1), there are hereby authorized
to be appropriated to the Bureau, for the purposes of
carrying out the authorities granted in Federal
consumer financial law, $200,000,000 for each of fiscal
years 2010, 2011, 2012, 2013, and 2014.
[(3) Apportionment.--Notwithstanding any other
provision of law, the amounts in paragraph (2) shall be
subject to apportionment under section 1517 of title
31, United States Code, and restrictions that generally
apply to the use of appropriated funds in title 31,
United States Code, and other laws.]
(1) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary to carry out this title for each of fiscal
years 2014 and 2015.
[(4)] (2) Annual report.--The Director shall prepare
and submit a report, on an annual basis, to the
Committee on Appropriations of the Senate and the
Committee on Appropriations of the House of
Representatives regarding the financial operating plans
and forecasts of the Director, the financial condition
and results of operations of the Bureau, and the
sources and application of funds of the Bureau,
including any funds appropriated in accordance with
this subsection.
* * * * * * *
MINORITY VIEWS
We believe that subjecting the Consumer Financial
Protection Bureau (CFPB or Bureau) to the appropriations
process would deprive it of its independence as a bank
regulator. Other bank regulators, including the Federal Reserve
(FRB), the Office of the Comptroller of the Currency (OCC) and
the Federal Deposit Insurance Corporation (FDIC), are generally
not subject to the appropriations process. The CFPB already has
a budget cap, which it cannot increase through assessments or
premiums the way other financial regulators can. The CFPB is
also required to testify to Congress on its budget twice
annually, making it one of the most accountable and transparent
agencies in the government. This change would profoundly weaken
the CFPB, politicizing what should be an independent financial
regulator and making it significantly more challenging for it
to fulfill its mission of protecting consumers, including
service members, students, seniors and the financial system at
large.
Maxine Waters.
Stephen F. Lynch.
Ruben Hinojosa.
Keith Ellison.
David Scott.
Michael E. Capuano.
Carolyn B. Maloney.
Kyrsten Sinema.
Joyce Beatty.
Bill Foster.
Daniel Kildee.
Al Green.
James A. Himes.
Denny Heck.
John Carney.
Gregory W. Meeks.
Terri Sewell.
Gwen Moore.
Wm. Lacy Clay.
Patrick Murphy.
Ed Perlmutter.
Emanuel Cleaver.
Brad Sherman.