[House Report 114-55]
[From the U.S. Government Publishing Office]


114th Congress    }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                      {       114-55

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



 
      BUREAU OF CONSUMER FINANCIAL PROTECTION ADVISORY BOARDS ACT

                                _______
                                

 April 6, 2015.--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

                        [To accompany H.R. 1195]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1195) to amend the Consumer Financial Protection 
Act of 2010 to establish advisory boards, and for other 
purposes, having considered the same, report favorably thereon 
without amendment and recommend that the bill do pass.

                          Purpose and Summary

    H.R. 1195, the ``Bureau of Consumer Financial Protection 
Advisory Boards Act,'' would create a Small Business Advisory 
Board at the Bureau of Consumer Financial Protection (CFPB). 
The bill would also codify two other advisory committees 
created by the CFPB, the Credit Union Advisory Council and the 
Community Bank Advisory Council. Each board or council advises 
the CFPB regarding concerns of its established membership. The 
Director of the CFPB is required to appoint at least 15, but no 
more than 20, members to each board or council.

                  Background and Need for Legislation

    Section 1014 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (P.L. 111-203) establishes a Consumer 
Advisory Board to advise and consult with the CFPB in the 
exercise of its functions under the Federal consumer financial 
laws and to provide information on emerging practices in the 
consumer financial products or services industry. The CFPB has 
created three additional advisory committees: the Credit Union 
Advisory Council, the Community Bank Advisory Council, and the 
Academic Research Council.
    In order to ensure that small business owners have the 
opportunity to provide input to the CFPB, Representatives 
Pittenger and Heck introduced H.R. 1195, the Bureau of Consumer 
Financial Protection Small Business Advisory Board Act. This 
bill amends section 1014 of the Dodd-Frank Act to create a 
small business advisory board to advise the CFPB regarding 
small business concerns. There must be no fewer than 15 and no 
more than 20 members. Eligible members include individuals 
representing small business concerns that extend credit and 
service loans; provide real estate settlement services; sell, 
provide or issue prepaid cards; provide check cashing, check 
collection or check guarantee services; or collect, analyze or 
provide consumer report information.
    Appearing before the Financial Services Committee, Patrick 
Miller, President and Chief Executive Officer, CBC Federal 
Credit Union, testified as follows:

          Shortly after the CFPB was established, the Bureau's 
        leadership announced the creation of a credit union 
        advisory council (CUAC). This group, which CUNA 
        strongly supports, advises the agency on the impact of 
        the Bureau's proposals on credit unions. CUAC shares 
        information, analyses, recommendations and the unique 
        perspective of not-for-profit financial institutions 
        with the agency director and staff. However, since CUAC 
        is not required by law, it could be abolished at any 
        time. We believe CUAC is an important resource for the 
        agency and also provides a forum for credit union 
        officials to provide direct feedback to the agency on 
        how proposals and final rules will affect credit 
        unions' operations. Representatives Robert Pittenger 
        and Denny Heck have introduced H.R. 1195, the Bureau of 
        Consumer Financial Protection Advisory Boards Act, 
        which would codify the CFPB Credit Union Advisory 
        Council as a legal requirement and require the CFPB to 
        reimburse all CUAC members for their travel and lodging 
        expenses incurred to attend meetings of the CUAC. We 
        are strongly supportive of this legislation.

    In a letter to the Committee dated March 24, 2015, the 
Independent Community Bankers of America stated that ``[t]he 
Small Business Advisory Board would help ensure that small 
businesses, which play a critical role in job creation, are 
accommodated in CFPB rulemakings. Codification of the Community 
Bank and Credit Union Advisory Councils would ensure the 
advisory councils enjoy equivalent status to the Small Business 
Advisory Council. The Community Bank Advisory Council is an 
invaluable forum for community bankers and CFPB officials to 
share information and perspectives on the practical impact of 
rulemakings.''

                                Hearings

    The Committee on Financial Services held no hearings on 
H.R. 1195 in the 114th Congress. However, while the Committee 
did not hold a specific legislative hearing on this measure, it 
held a hearing entitled ``The Semi-Annual Report of the Bureau 
on Consumer Financial Protection'' on March 3, 2015, at which 
matters relating to this measure were discussed.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
March 25, 2015 and March 26, 2015, and ordered H.R. 1195 to be 
reported favorably to the House without amendment by a recorded 
vote of 53 yeas to 5 nays (Record vote no. FC-15), 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. The 
sole vote in committee was a motion by Chairman Hensarling to 
report the bill favorably to the House without amendment. The 
motion was agreed to by a recorded vote of 53 yeas to 5 nays 
(Record vote no. FC-15), a quorum being present.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      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. 1195 
will create the Small Business Advisory Board, thus providing 
small business owners who are affected by the Consumer 
Financial Protection Bureau's regulatory and enforcement 
activities with the opportunity to advise the Bureau, and will 
codify two other advisory committees previously created by the 
Bureau's director.

   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, April 3, 2015.
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. 1195, the Bureau 
of Consumer Financial Protection Advisory Boards Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 1195--Bureau of Consumer Financial Protection Advisory Boards Act

    Summary: H.R. 1195 would amend current law to establish 
three groups to provide advice to the Bureau of Consumer 
Financial Protection (CFPB). The boards would provide 
information to the CFPB about the practices of small 
businesses, credit unions, and community banks that offer 
financial products to consumers.
    CBO estimates that implementing H.R. 1195 would increase 
direct spending by $9 million over the 2015-2025 period; 
therefore, pay-as-you-go procedures apply. CBO estimates that 
enacting the bill would not affect revenues. Implementing H.R. 
1195 would not affect discretionary spending because the CFPB 
is permanently authorized to spend amounts transferred from the 
Federal Reserve System.
    H.R. 1195 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. 1195 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--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2016    2017    2018    2019    2020    2021    2022    2023    2024    2025   2016-2020  2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority........................       1       1       1       1       1       1       1       1       1       1         4          9
Estimated Outlays.................................       1       1       1       1       1       1       1       1       1       1         4         9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1195 will be enacted near the end of fiscal year 2015 and that 
spending will follow historical patterns for similar 
activities. The CFPB is permanently authorized to spend amounts 
transferred from the Federal Reserve System; because such 
spending is not subject to appropriation, CFPB expenditures are 
recorded in the budget as direct spending.
    H.R. 1195 would amend current law to establish three groups 
to provide advice to the CFPB:
           The Small Business Advisory Board would 
        provide information on the practices of small 
        businesses that offer financial products and services;
           The Credit Union Advisory Council would 
        provide advice to the agency on financial products or 
        services that affect credit unions; and
           The Community Bank Advisory Council would 
        provide advice on financial products or services that 
        affect community banks.
    Based on information from the CFPB, CBO estimates that the 
agency would spend about $200,000 annually for each new 
advisory group for compensation, travel, and support of board 
meetings. In addition, CBO expects the CFPB would add two staff 
positions to provide ongoing administrative support for the 
boards at an annual cost of about $250,000. In total, CBO 
estimates that enacting H.R. 1195 would increase direct 
spending by about $850,000 each year or about $9 million over 
the 2016-2025 period.
    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. 1195, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON MARCH 26, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2015    2016    2017    2018    2019    2020    2021    2022    2023    2024    2025   2015-2020  2015-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact............       0       1       1       1       1       1       1       1       1       1       1         4         9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.

    Intergovernmental and private-sector impact: H.R. 1195 
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; 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

    The Committee estimates that three advisory committees 
within the meaning of section 5(b) of the Federal Advisory 
Committee Act would be created by this legislation and that the 
advisory committees established herein comply with the 
requirements set forth in such section 5(b).

                  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. 1195 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. 1195 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. 1195 does not require any 
directed rulemakings.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 1195 as the ``Bureau of Consumer 
Financial Protection Advisory Boards Act.''

Section 2. Establishment of advisory boards within the Bureau of 
        Consumer Financial Protection

    This section amends the Consumer Financial Protection Act 
of 2010 (12 U.S.C. 5494) to insert a new section requiring the 
Director of the CFPB to establish a Small Business Advisory 
Board to advise and consult with the Bureau in the exercise of 
the CFPB's functions under the Federal consumer financial laws 
and to provide information on emerging small business 
practices, including regional trends and concerns.
    This section also requires the Director of the CFPB to 
establish a Credit Union Advisory Council and a Community Bank 
Advisory Council to advise and consult with the CFPB on 
consumer financial products or services that impact credit 
unions and community banks.
    For each of the Small Business Advisory Board, the Credit 
Union Advisory Council, and the Community Bank Advisory 
Council, the Director is required to appoint no fewer than 15 
and no more than 20 members. In appointing members to the Small 
Business Advisory Board, the Director is encouraged to ensure 
the participation of minority- and women-owned small business 
concerns and their interests, without regard to party 
affiliation. In appointing members to the Credit Union Advisory 
Council and Community Bank Advisory Council, the Director is 
encouraged to ensure the participation of credit unions and 
community banks predominantly serving traditionally underserved 
communities and populations and their interests, without regard 
to political affiliation. The board and two councils must each 
meet at least twice each year, and members who are not full-
time employees of the United States are permitted compensation 
and travel expenses for attending meetings.

         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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

       DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT


SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Dodd-Frank 
Wall Street Reform and Consumer Protection Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

     * * * * * * *

            TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

     * * * * * * *

           Subtitle A--Bureau of Consumer Financial Protection

     * * * * * * *
Sec. 1014A. Advisory Boards.

           *       *       *       *       *       *       *


            TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

SEC. 1001. SHORT TITLE.

  This title may be cited as the ``Consumer Financial 
Protection Act of 2010''.

           *       *       *       *       *       *       *


Subtitle A--Bureau of Consumer Financial Protection

           *       *       *       *       *       *       *


SEC. 1014A. ADVISORY BOARDS.

  (a) Small Business Advisory Board.--
          (1) Establishment.--The Director shall establish a 
        Small Business Advisory Board--
                  (A) to advise and consult with the Bureau in 
                the exercise of the Bureau's functions under 
                the Federal consumer financial laws applicable 
                to eligible financial products or services; and
                  (B) to provide information on emerging 
                practices of small business concerns that 
                provide eligible financial products or 
                services, including regional trends, concerns, 
                and other relevant information.
          (2) Membership.--
                  (A) Number.--The Director shall appoint no 
                fewer than 15 and no more than 20 members to 
                the Small Business Advisory Board.
                  (B) Qualification.--Members appointed 
                pursuant to subparagraph (A) shall be 
                representatives of small business concerns 
                that--
                          (i) provide eligible financial 
                        products or services;
                          (ii) are service providers to covered 
                        persons; and
                          (iii) use consumer financial products 
                        or services in financing the business 
                        activities of such concern.
                  (C) Additional considerations.--In appointing 
                members pursuant to subparagraph (A), the 
                Director is encouraged to ensure the 
                participation of minority- and women-owned 
                small business concerns and their interests, 
                without regard to party affiliation.
          (3) Meetings.--The Small Business Advisory Board--
                  (A) shall meet from time to time at the call 
                of the Director; and
                  (B) shall meet at least twice each year.
  (b) Credit Union Advisory Council.--
          (1) Establishment.--The Director shall establish a 
        Credit Union Advisory Council to advise and consult 
        with the Bureau on consumer financial products or 
        services that impact credit unions.
          (2) Membership.--The Director shall appoint no fewer 
        than 15 and no more than 20 members to the Credit Union 
        Advisory Council. In appointing such members, the 
        Director is encouraged to ensure the participation of 
        credit unions predominantly serving traditionally 
        underserved communities and populations and their 
        interests, without regard to party affiliation.
          (3) Meetings.--The Credit Union Advisory Council--
                  (A) shall meet from time to time at the call 
                of the Director; and
                  (B) shall meet at least twice each year.
  (c) Community Bank Advisory Council.--
          (1) Establishment.--The Director shall establish a 
        Community Bank Advisory Council to advise and consult 
        with the Bureau on consumer financial products or 
        services that impact community banks.
          (2) Membership.--The Director shall appoint no fewer 
        than 15 and no more than 20 members to the Community 
        Bank Advisory Council. In appointing such members, the 
        Director is encouraged to ensure the participation of 
        community banks predominantly serving traditionally 
        underserved communities and populations and their 
        interests, without regard to party affiliation.
          (3) Meetings.--The Community Bank Advisory Council--
                  (A) shall meet from time to time at the call 
                of the Director; and
                  (B) shall meet at least twice each year.
  (d) Compensation and Travel Expenses.--Members of the Small 
Business Advisory Board, the Credit Union Advisory Council, or 
the Community Bank Advisory Council who are not full-time 
employees of the United States shall--
          (1) be entitled to receive compensation at a rate 
        fixed by the Director while attending meetings of the 
        Small Business Advisory Board, the Credit Union 
        Advisory Council, or the Community Bank Advisory 
        Council, including travel time; and
          (2) be allowed travel expenses, including 
        transportation and subsistence, while away from their 
        homes or regular places of business.
  (e) Definitions.--In this section--
          (1) the term ``eligible financial product or 
        service'' means a financial product or service that is 
        offered or provided for use by consumers primarily for 
        personal, family, or household purposes as described in 
        clause (i), (iii), (v), (vi), or (ix) of section 
        1002(15)(A); and
          (2) the term ``small business concern'' has the 
        meaning given such term in section 3 of the Small 
        Business Act (15 U.S.C. 632).

           *       *       *       *       *       *       *


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