[House Report 114-538]
[From the U.S. Government Publishing Office]


114th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      114-538

======================================================================



 
          TAKING ACCOUNT OF BUREAUCRATS' SPENDING ACT OF 2016

                                _______
                                

  May 6, 2016.--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. 1486]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1486) to amend the Consumer Financial Protection 
Act of 2010 to bring the Bureau of Consumer Financial 
Protection into the regular appropriations process, and for 
other purposes, 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 ``Taking Account of Bureaucrats' 
Spending Act of 2016'' or the ``TABS Act of 2016''.

SEC. 2. BRINGING THE BUREAU 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 Bureau for fiscal year 2017 an amount 
        equal to the aggregate amount of funds transferred by the Board 
        of Governors to the Bureau during fiscal year 2015.''; and
                  (B) by redesignating paragraph (4) as paragraph (2).

                          Purpose and Summary

    Title X of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (P.L. 111-203) created the Bureau of Consumer 
Financial Protection (Bureau) as an independent agency housed 
within the Federal Reserve System, and charged it with 
regulating ``the offering and provision of consumer financial 
products or services'' under the federal consumer financial 
laws. Title X grants the Director of the Bureau the ``general 
authority'' to ``prescribe rules and issue orders and 
guidance'' to administer, enforce, and implement federal 
consumer financial laws.
    The Dodd-Frank Act authorizes the Bureau to fund itself 
outside the congressional appropriations process by drawing 
money from the Federal Reserve to the extent the Bureau's 
Director deems necessary. The Federal Reserve does not oversee 
the agency or exercise any authority over it, but the Federal 
Reserve must transfer to the Bureau whatever funds its Director 
requests, up to the following fixed percentages of the Federal 
Reserve's 2009 operating expenses:
         11 percent in fiscal year 2012, or $547.8 
        million;
         12 percent in fiscal year 2013, or $597.6 
        million; and
         12 percent each fiscal year thereafter, 
        subject to annual adjustments for inflation.
    If they were not diverted from the Federal Reserve to the 
Bureau, these funds would otherwise be forwarded from the 
Federal Reserve to the Treasury as part of the federal fisc.
    Given that the Bureau's funding is not appropriated by 
Congress, many observers have raised concerns about the lack of 
transparency in the Bureau's funding and expenditures and 
Congress's ability to exercise oversight of the Bureau. In 
light of these concerns, H.R. 1486 eliminates the direct 
funding of the Bureau by the Federal Reserve. Instead, it 
subjects the Bureau to the regular appropriations process; H.R. 
1486 authorizes to be appropriated to the Bureau for fiscal 
year 2017 an amount equal to the aggregate amount of funds 
transferred by the Federal Reserve to the Bureau during fiscal 
year 2015.

                  Background and Need for Legislation

    The Bureau's Director sets the Bureau's budget each year. 
The budget is funded by a combination of: (1) the amount the 
Director actually requests from the Federal Reserve in a given 
fiscal year, and (2) unobligated balances brought forward from 
prior fiscal years. Unlike appropriations, which expire if 
unused, funds transferred to the Bureau by the Federal Reserve 
can be held unobligated for years and used to augment budgetary 
resources.
    For FY 2015, Director Richard Cordray set a Bureau budget 
of $582 million. He requested four transfers from the Federal 
Reserve totaling $485.1 million. But by bringing forward $139.5 
million in unobligated funds from FY 2014, the Bureau had total 
budgetary resources available for FY 2015 of $654.4 million, 
which exceeded its maximum transfer request level of $619 
million. By the end of FY 2015, the Bureau had spent 
approximately $559 million.
    Since its inception, the Bureau has grown rapidly. For its 
first full year of existence--FY 2012--the Bureau had a budget 
of $299.8 million and a full-time equivalent employee count of 
831. In FY 2013, its budget grew to $541.4 million, with 1,335 
employees. For FY 2016, its estimated budget is $605.9 million 
and 1,623 employees. For FY 2016, which ends September 30, 
2016, the Bureau will have paid $300.2 million in salary and 
benefits, or average compensation of $184,966 per employee.
    To obtain funding, the Bureau's Director simply sends a 
quarterly request letter to the Federal Reserve. In the most 
recent letter, for instance, Director Cordray stated: ``I have 
determined that $159,900,000 is the amount necessary to carry 
out the authorities of the Bureau for FY 2016 Q2, and I request 
that the Board transfer this amount to the Bureau 
immediately.''\1\
---------------------------------------------------------------------------
    \1\Letter from Richard Cordray, Director of the Consumer Financial 
Protection Bureau, to William Mitchell, Chief Financial Officer of the 
Board of Governors of the Federal Reserve System (Jan. 26, 2016), 
available at http://files.consumerfinance.gov/f/201602_cfpb_transfer-
request-letter_q2.pdf.
---------------------------------------------------------------------------
    By law, the Bureau is autonomous from the Federal Reserve 
System;\2\ the Federal Reserve is not permitted to review the 
Director's fund transfer requests or approve the Bureau's 
budget. Section 1017(a)(2)(C) of the Dodd-Frank Act also 
prohibits the House and Senate Appropriations Committees from 
reviewing any of the funds obtained by the Bureau from the 
Federal Reserve. In addition, Section 1017(a)(4)(E) provides 
that the Director has no obligation to consult with or obtain 
the consent of the Office of Management and Budget regarding 
the Bureau's budget.
---------------------------------------------------------------------------
    \2\Section 1012(c) of Dodd-Frank.
---------------------------------------------------------------------------
    There are two main types of federal financial regulators: 
product regulators and prudential regulators. The principal 
function of product regulators is to protect consumers or 
investors from fraudulent or misleading products and services 
offered in the market, whereas the principal function of 
prudential regulators is to protect financial institutions and 
their insured deposits by ensuring their safe and sound 
operation. These different functions have given rise to 
different methods for funding these agencies. Where agency and 
industry interests are presumed to be aligned, as in prudential 
supervision, Congress generally funds agency activities through 
industry assessments. For example, the Office of the 
Comptroller of the Currency (OCC), Federal Deposit Insurance 
Corporation (FDIC), and National Credit Union Administration 
(NCUA) are funded this way. But where agency and industry 
interests are presumed not to be aligned, as in policing 
markets for force and fraud, Congress has generally funded 
agency activities through appropriations. For example, the 
Federal Trade Commission (FTC), Securities and Exchange 
Commission (SEC), Consumer Product Safety Commission (CPSC), 
and Commodity Futures Trading Commission (CFTC), are funded 
principally through Congressional appropriations.
    The Bureau neither generates its own funding through 
assessments, nor is subject to the appropriations process. Its 
mission is clearly that of a product regulator rather than that 
of a prudential regulator. Accordingly, it should be funded 
through Congressional appropriations.

                                Hearings

    The Committee on Financial Services held hearings examining 
matters relating to H.R. 1486 on March 3, 2015, September 29, 
2015, and on March 16, 2016.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
April 13, 2016, and ordered H.R. 1486 to be reported favorably 
to the House as amended by a recorded vote of 33 yeas to 20 
nays (recorded vote no. FC-106, a quorum being present. Before 
the motion to report was offered, the Committee adopted an 
amendment in the nature of a substitute offered by Mr. Barr by 
voice vote.

                            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. The 
sole recorded vote was on a motion by Chairman Hensarling to 
report the bill favorably to the House as amended. The motion 
was agreed to by a recorded vote of 33 yeas to 20 nays (Record 
vote no. FC-106), a quorum being present.


                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of 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. 1486 
will promote increased accountability by making the Bureau of 
Consumer Financial Protection subject to the Congressional 
appropriations process.

   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, Revised April 21, 2016.
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. 1486, the Taking 
Account of Bureaucrats' Spending Act of 2016.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Stephen 
Rabent.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 1486--Taking Account of Bureaucrats' Spending Act of 2016

    Summary: Under current law, the Bureau of Consumer 
Financial Protection (CFPB) is permanently authorized to spend 
amounts transferred from the Federal Reserve, subject to 
certain limits. H.R. 1486 would change the law so that spending 
for the CFPB would be subject to the annual appropriation 
process. The bill would authorize the appropriation of $485 
million for fiscal year 2017, the amount provided by the 
Federal Reserve in fiscal year 2015.
    CBO estimates that enacting H.R. 1486 would reduce direct 
spending by $6.6 billion over the 2017-2026 period; therefore, 
pay-as-you-go procedures apply. (Enacting the bill would not 
affect revenues.) CBO estimates that implementing the bill 
would cost $485 million over the 2017-2021 period, assuming 
appropriation of the specified amount.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits in one or 
more of the four consecutive 10-year periods beginning in 2027.
    H.R. 1486 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 effect of H.R. 1486 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--
                                          --------------------------------------------------------------------------------------------------------------
                                                                                                                                       2017-
                                             2017     2018     2019     2020     2021     2022     2023     2024     2025     2026     2021    2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              DECREASES IN DIRECT SPENDING
 
Estimated Budget Authority...............     -580     -638     -651     -664     -678     -692     -706     -720     -735     -750    -3,211     -6,814
Estimated Outlays........................     -377     -618     -646     -659     -673     -687     -701     -715     -730     -745    -2,973     -6,551
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Level......................      485        0        0        0        0        0        0        0        0        0       485        485
Estimated Outlays........................      315      170        0        0        0        0        0        0        0        0       485        485
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted near the beginning of fiscal year 2017, 
that the authorized amount will be appropriated in 2017, and 
that spending will follow historical patterns for operations of 
the CFPB.
    The Dodd-Frank Wall Street Reform and Consumer Financial 
Protection Act established the CFPB as an independent agency 
that is authorized to spend amounts from the Federal Reserve. 
H.R. 1486 would not affect the amount of federal revenues 
received by the Federal Reserve, but it would end CFPB's 
authority to spend those amounts. The CFPB's budget is expected 
to total $565 million (net of the effects of sequestration) in 
2016.

Direct Spending

    H.R. 1486 would terminate the permanent authority for the 
CFPB to be funded through transfers from the Federal Reserve. 
Based on information from the agency, CBO estimates that 
enacting that change would reduce direct spending by about $6.6 
billion over the 2017-2026 period.

Spending Subject to Appropriation

    H.R. 1486 would authorize an appropriation for CFPB in 2017 
equal to the $485 million transferred to the CFPB by the 
Federal Reserve in 2015. CBO has not estimated any 
authorizations for years after 2017 because H.R. 1486 would 
only authorize appropriations for the CFPB in 2017. However, 
CBO expects that operating the CFPB from 2018 through 2026 
would cost between $5 billion and $6 billion, assuming the CFPB 
continues its current activities and appropriations are 
provided each year.
    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. 1486, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON APRIL 13, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          By fiscal year, in millions of dollars--
                                  ----------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2016-     2016-
                                     2016     2017     2018     2019     2020     2021     2022     2023     2024     2025     2026     2021      2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET DECREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact...        0     -377     -618     -646     -659     -673     -687     -701     -715     -730     -745    -2,973    -6,551
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    Intergovernmental and private-sector impact: H.R. 1486 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous estimate: This estimate corrects a typographical 
error in the cost estimate CBO transmitted for the same bill on 
April 20, 2016. This version makes clear on page one that 
implementing the bill would cost $485 million over the 2017-
2021 period, assuming appropriation of the specified amount. 
That correction makes the reference to estimated discretionary 
costs consistent with other references to those costs in the 
estimate.
    Estimate prepared by: Federal Costs: Stephen Rabent and 
Kathleen Gramp; Impact on State, Local, and Tribal Governments: 
Rachel Austin; Impact on the Private Sector: Logan Smith.
    Estimate approved by: H. Samuel Papenfuss, 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. 1486 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(g) of H. Res. 5, 114th Cong. (2015), 
the Committee states that no provision of H.R. 1486 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(i) of H. Res. 5, 114th Cong. (2015), 
the Committee states that H.R. 1486 contains no directed 
rulemaking.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This Section cites H.R. 1486 as the ``Taking Account of 
Bureaucrats' Spending Act of 2016''.

Section 2. Bringing the Bureau into the regular appropriations process

    This section amends the Dodd-Frank Act to subject the 
Bureau to the congressional appropriations process. In 
addition, this section authorizes to be appropriated to the 
Bureau for Fiscal Year 2017 an amount equal to the aggregate 
amount of funds transferred by the Board of Governors of the 
Federal Reserve System to the Bureau during fiscal year 2015.

         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, and 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. 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) Financial operating plans and 
                forecasts.--The Director shall provide to the 
                Director of the Office of Management and Budget 
                copies of the financial operating plans and 
                forecasts of the Director, as prepared by the 
                Director in the ordinary course of the 
                operations of the Bureau, and copies of the 
                quarterly reports of the financial condition 
                and results of operations of the Bureau, as 
                prepared by the Director in the ordinary course 
                of the operations of the Bureau.
                  (B) Financial statements.--The Bureau shall 
                prepare annually a statement of--
                          (i) assets and liabilities and 
                        surplus or deficit;
                          (ii) income and expenses; and
                          (iii) sources and application of 
                        funds.
                  (C) Financial management systems.--The Bureau 
                shall implement and maintain financial 
                management systems that comply substantially 
                with Federal financial management systems 
                requirements and applicable Federal accounting 
                standards.
                  (D) Assertion of internal controls.--The 
                Director shall provide to the Comptroller 
                General of the United States an assertion as to 
                the effectiveness of the internal controls that 
                apply to financial reporting by the Bureau, 
                using the standards established in section 
                3512(c) of title 31, United States Code.
                  [(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) In general.--The Comptroller General 
                shall annually audit the financial transactions 
                of the Bureau in accordance with the United 
                States generally accepted government auditing 
                standards, as may be prescribed by the 
                Comptroller General of the United States. The 
                audit shall be conducted at the place or places 
                where accounts of the Bureau are normally kept. 
                The representatives of the Government 
                Accountability Office shall have access to the 
                personnel and to all books, accounts, 
                documents, papers, records (including 
                electronic records), reports, files, and all 
                other papers, automated data, things, or 
                property belonging to or under the control of 
                or used or employed by the Bureau pertaining to 
                its financial transactions and necessary to 
                facilitate the audit, and such representatives 
                shall be afforded full facilities for verifying 
                transactions with the balances or securities 
                held by depositories, fiscal agents, and 
                custodians. All such books, accounts, 
                documents, records, reports, files, papers, and 
                property of the Bureau shall remain in 
                possession and custody of the Bureau. The 
                Comptroller General may obtain and duplicate 
                any such books, accounts, documents, records, 
                working papers, automated data and files, or 
                other information relevant to such audit 
                without cost to the Comptroller General, and 
                the right of access of the Comptroller General 
                to such information shall be enforceable 
                pursuant to section 716(c) of title 31, United 
                States Code.
                  (B) Report.--The Comptroller General shall 
                submit to the Congress a report of each annual 
                audit conducted under this subsection. The 
                report to the Congress shall set forth the 
                scope of the audit and shall include the 
                statement of assets and liabilities and surplus 
                or deficit, the statement of income and 
                expenses, the statement of sources and 
                application of funds, and such comments and 
                information as may be deemed necessary to 
                inform Congress of the financial operations and 
                condition of the Bureau, together with such 
                recommendations with respect thereto as the 
                Comptroller General may deem advisable. A copy 
                of each report shall be furnished to the 
                President and to the Bureau at the time 
                submitted to the Congress.
                  (C) Assistance and costs.--For the purpose of 
                conducting an audit under this subsection, the 
                Comptroller General may, in the discretion of 
                the Comptroller General, employ by contract, 
                without regard to section 3709 of the Revised 
                Statutes of the United States (41 U.S.C. 5), 
                professional services of firms and 
                organizations of certified public accountants 
                for temporary periods or for special purposes. 
                Upon the request of the Comptroller General, 
                the Director of the Bureau shall transfer to 
                the Government Accountability Office from funds 
                available, the amount requested by the 
                Comptroller General to cover the full costs of 
                any audit and report conducted by the 
                Comptroller General. The Comptroller General 
                shall credit funds transferred to the account 
                established for salaries and expenses of the 
                Government Accountability Office, and such 
                amount shall be available upon receipt and 
                without fiscal year limitation to cover the 
                full costs of the audit and report.
  [(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) Establishment of victims relief fund.--There is 
        established in the Federal Reserve a separate fund, to 
        be known as the ``Consumer Financial Civil Penalty 
        Fund'' (referred to in this section as the ``Civil 
        Penalty Fund''). The Civil Penalty Fund shall be 
        maintained and established at a Federal reserve bank, 
        in accordance with such requirements as the Board of 
        Governors may impose. If the Bureau obtains a civil 
        penalty against any person in any judicial or 
        administrative action under Federal consumer financial 
        laws, the Bureau shall deposit into the Civil Penalty 
        Fund, the amount of the penalty collected.
          (2) Payment to victims.--Amounts in the Civil Penalty 
        Fund shall be available to the Bureau, without fiscal 
        year limitation, for payments to the victims of 
        activities for which civil penalties have been imposed 
        under the Federal consumer financial laws. To the 
        extent that such victims cannot be located or such 
        payments are otherwise not practicable, the Bureau may 
        use such funds for the purpose of consumer education 
        and financial literacy programs.
  [(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 is 
        authorized to be appropriated to the Bureau for fiscal 
        year 2017 an amount equal to the aggregate amount of 
        funds transferred by the Board of Governors to the 
        Bureau during fiscal year 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

    H.R. 1486 would subject the Consumer Financial Protection 
Bureau (CFPB or Bureau) to the Congressional appropriations 
process, removing the independence necessary for the agency to 
act aggressively on behalf of American consumers and opening 
the door for the agency's opponents to shut it down once and 
for all.
    Prior to the Financial Crisis of 2008, federal banking 
regulators who shared consumer protection duties failed to 
adequately monitor consumer markets for abuses. This lack of 
supervision laid the groundwork for a financial catastrophe 
built on predatory mortgage loans that would eventually 
threaten the worldwide economy, resulting in millions of 
foreclosures, trillions in lost wealth and economic growth, and 
devastating unemployment among America's working class.
    In addition to reining in the financial institutions that 
acted so recklessly, the Dodd-Frank Act established a new 
independent agency with the sole responsibility to monitor 
consumer markets and ensuring safety and fairness in access to 
consumer credit products. While the Consumer Financial 
Protection Bureau (CFPB) faces a number of constraints on its 
authority, Congress provided the Bureau with an independent 
stream of funding insulated from powerful financial and 
political interests, similar to those of other regulators 
charged with monitoring financial markets.
    The CFPB is the only agency whose funding is subject to a 
statutory cap. While other agencies may raise whatever revenue 
necessary to cover their operating expenses, the CFPB is bound 
by a statutory limit on its expenditures.
    The CFPB is the only agency whose rules are subject to a 
veto by a vote of the other independent regulators. By a two-
thirds agreement, the Financial Stability Oversight Council can 
overturn CFPB rulemakings.
    The CFPB faces a yearly audit from the Government 
Accountability Office, required by the Dodd-Frank Act.
    The CFPB is the only banking regulator required to convene 
a Small Business Regulatory Enforcement panel prior to engaging 
in rulemakings in its jurisdiction. This ensures that the CFPB 
is accountable to small businesses and community financial 
institutions when exercising its regulatory authority.
    Finally, the Majority claims that putting the CFPB on 
appropriations will increase accountability, when in fact their 
plan is to starve the agency of funding and eliminate it for 
good. In 2013 when Republicans passed similar legislation, they 
claimed putting the CFPB on appropriations would save taxpayers 
$5.4 billion--but this claim could only be true if Congress 
eliminated funding for all CFPB activities in CBO's ten-year 
budget window.
    For the first time in history, the American consumer has a 
cop on the beat looking out for their interests in the consumer 
markets. Republicans, who did not support the creation of the 
Bureau, who attempted to stymie it by preventing a Director 
from being confirmed by the Senate, and who have objected to 
nearly every one of its attempts at regulating consumer 
markets, want to use the appropriations process to leave the 
consumer beat unsupervised.
    For these reasons, the Minority strongly opposed passage of 
H.R. 1486.
                                   Maxine Waters.
                                   Ed Perlmutter.
                                   Ruben Hinojosa.

                                  [all]