[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.

                                  
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