Financial Product Safety Commission Act of 2009 - Establishes the Financial Product Safety Commission to: (1) promulgate consumer financial product safety rules; (2) establish a best practices guide for all providers of consumer financial products; (3) conduct continuing studies and investigations of consumer financial products industry practices; (4) award grants or enter into contracts for the conduct of such studies and investigations; (5) assist public and private organizations or groups of consumer financial product providers, administratively and technically, in the development of safety standards or guidelines that would assist them in complying with any Commission rule; (6) comment on selected agency rulemakings affecting consumer financial products; and (7) establish a consumer financial product customer hotline.
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1705 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1705
To create a Financial Product Safety Commission, to provide consumers
with stronger protections and better information in connection with
consumer financial products, and to give providers of consumer
financial products more regulatory certainty.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 25, 2009
Mr. Delahunt (for himself and Mr. Miller of North Carolina) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To create a Financial Product Safety Commission, to provide consumers
with stronger protections and better information in connection with
consumer financial products, and to give providers of consumer
financial products more regulatory certainty.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Financial Product
Safety Commission Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Establishment of Commission.
Sec. 5. Objectives and responsibilities.
Sec. 6. Coordination of enforcement.
Sec. 7. Authorities.
Sec. 8. Collaboration with Federal and State entities.
Sec. 9. Prohibited acts.
Sec. 10. Enforcement.
Sec. 11. Reports.
Sec. 12. Authorization of appropriations.
SEC. 2. FINDINGS.
Congress finds that--
(1) the Nation's multiagency financial services regulatory
structure has created a dispersion of regulatory
responsibility, which in turn has led to an inadequate focus on
protecting consumers from inappropriate consumer financial
products and practices;
(2) the absence of appropriate oversight has allowed
excessively costly or predatory consumer financial products and
practices to flourish; and
(3) the creation of a regulator whose sole focus is the
safety of consumer financial products would help address this
lack of consumer protection.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Commission, chairperson, and commissioner.--The terms
``Commission'', ``Chairperson'', and ``Commissioner'' mean the
Financial Product Safety Commission established under this Act
and the Chairperson and any Commissioner thereof, respectively.
(2) Consumer financial product.--The term ``consumer
financial product'' includes--
(A) any extension of credit, deposit account,
payment mechanism, or other product or service within
the scope of--
(i) the Truth in Savings Act (12 U.S.C.
4301 et seq.);
(ii) the Consumer Credit Protection Act (15
U.S.C. 1601 et seq.); or
(iii) article 3 (relating to negotiable
instruments) or article 4 (relating to bank
deposits) of the Uniform Commercial Code, as in
effect in any State;
(B) any other extension of credit, deposit account,
or payment mechanism; and
(C) any ancillary product, practice, or
transaction.
(3) Appropriate committees of the congress.--The term
``appropriate committees of Congress'' means the Committee on
Banking, Housing, and Urban Affairs and the Subcommittee on
Financial Services and General Government of the Committee on
Appropriations of the Senate, and the Committee on Financial
Services and the Subcommittee on Financial Services and General
Government of the Committee on Appropriations of the House of
Representatives, and any successor committees, as may be
constituted.
(4) Consumer.--The term ``consumer'' means any individual
and any small business concern, as defined in section 3 of the
Small Business Act (15 U.S.C. 632).
(5) Credit.--The term ``credit'' has the same meaning as in
section 103 of the Truth in Lending Act (15 U.S.C. 1602).
SEC. 4. ESTABLISHMENT OF COMMISSION.
(a) Establishment; Chairperson.--
(1) Establishment.--There is established the ``Financial
Product Safety Commission'' which shall be an independent
establishment, as defined in section 104(1) of title 5, United
States Code.
(2) Membership.--
(A) In general.--The Commission shall be comprised
of 5 commissioners, appointed by the President, by and
with the advice and consent of the Senate.
(B) Considerations.--In making appointments to the
Commission, the President shall consider individuals
who, by reason of their background and expertise in
areas related to consumer financial product safety, are
qualified to serve as members of the Commission.
(3) Chairperson.--The Chairperson of the Commission shall
be appointed by the President, by and with the advice and
consent of the Senate, from among the members of the
Commission.
(4) Removal.--Any Commissioner may be removed by the
President for neglect of duty or malfeasance in office, but for
no other cause.
(b) Term; Vacancies.--
(1) In general.--Except as provided in paragraph (2)--
(A) the Commissioners first appointed under this
section shall be appointed for terms ending 3, 4, 5, 6,
and 7 years, respectively, after the date of enactment
of this Act, the term of each to be designated by the
President at the time of nomination; and
(B) each of their successors shall be appointed for
a term of 5 years from the date of the expiration of
the term for which the predecessor was appointed.
(2) Limitations.--Any Commissioner appointed to fill a
vacancy occurring prior to the expiration of the term for which
the predecessor thereof was appointed shall be appointed only
for the remainder of such term. A Commissioner may continue to
serve after the expiration of such term until a successor has
taken office, except that such Commissioner may not continue to
serve more than 1 year after the date on which the term of that
Commissioner would otherwise expire under this subsection.
(c) Restrictions on Outside Activities.--
(1) Political affiliation.--Not more than 3 Commissioners
may be affiliated with the same political party.
(2) Conflicts of interest.--No individual may serve as a
Commissioner if that individual--
(A) is in the employ of, holding any official
relation to, or married to any person engaged in
selling or devising consumer financial products;
(B) owns stock or bonds of substantial value in a
person so engaged;
(C) is in any other manner pecuniarily interested
in a person so engaged; or
(D) engages in any other business, vocation, or
employment.
(d) Vacancies; Quorum; Seal; Vice Chairperson.--
(1) Vacancies.--No vacancy on the Commission shall impair
the right of the remaining Commissioners to exercise all the
powers of the Commission.
(2) Quorum.--Three members of the Commission shall
constitute a quorum for the transaction of business, except
that--
(A) if there are only 3 members serving on the
Commission because of vacancies on the Commission, 2
members of the Commission shall constitute a quorum for
the transaction of business; and
(B) if there are only 2 members serving on the
Commission because of vacancies on the Commission, 2
members shall constitute a quorum for the 6-month
period (or the 1-year period, if the 2 members are not
affiliated with the same political party) beginning on
the date of the vacancy which caused the number of
Commissioners to decline to 2.
(3) Seal.--The Commission shall have an official seal, of
which judicial notice shall be taken.
(4) Vice chairperson.--The Commission shall annually elect
a Vice Chairperson to act in the absence or disability of the
Chairperson or in case of a vacancy in the office of the
Chairperson.
(e) Offices.--The Commission shall maintain a principal office and
such field offices as it determines necessary, and may meet and
exercise any of its powers at any other place.
(f) Functions of Chairperson; Request for Appropriations.--
(1) Duties.--The Chairperson shall be the principal
executive officer of the Commission, and shall exercise all of
the executive and administrative functions of the Commission,
including functions of the Commission with respect to--
(A) the appointment and supervision of personnel
employed by the Commission (and the Commission shall
fix their compensation at a level comparable to that
for employees of the Securities and Exchange
Commission);
(B) the distribution of business among personnel
appointed and supervised by the Chairperson and among
administrative units of the Commission; and
(C) the use and expenditure of funds.
(2) Governance.--In carrying out any of the functions of
the Chairperson under this subsection, the Chairperson shall be
governed by general policies of the Commission and by such
regulatory decisions, findings, and determinations as the
Commission may, by law, be authorized to make.
(3) Requests for appropriations.--Requests or estimates for
regular, supplemental, or deficiency appropriations on behalf
of the Commission may not be submitted by the Chairperson
without the prior approval of a majority vote of the
Commission.
(g) Agenda and Priorities; Establishment and Comments.--Not later
than 30 days before the beginning of each fiscal year, the Commission
shall establish an agenda for Commission action under its jurisdiction
and, to the extent feasible, shall establish priorities for such
actions. Before establishing such agenda and priorities, the Commission
shall conduct a public hearing on the agenda and priorities, and shall
provide reasonable opportunity for the submission of comments.
SEC. 5. OBJECTIVES AND RESPONSIBILITIES.
(a) Objectives.--The objectives of the Commission are--
(1) to minimize unreasonable consumer risk associated with
buying and using consumer financial products;
(2) to prevent and eliminate practices that lead consumers
to incur unreasonable, inappropriate, or excessive debt, or
make it difficult for consumers to repay existing debt,
including practices or product features that are abusive,
fraudulent, unfair, deceptive, predatory, anticompetitive, or
otherwise inconsistent with consumer protection;
(3) to promote practices that assist and encourage
consumers to use credit and consumer financial products
responsibly, avoid excessive debt, and avoid unnecessary or
excessive charges derived from or associated with consumer
financial products;
(4) to ensure that providers of consumer financial products
provide credit based on the ability of the consumer to repay
the debt incurred;
(5) to ensure that consumer credit history is maintained,
reported, and used fairly and accurately;
(6) to maintain strong privacy protections for consumer
transactions, credit history, and other personal information
associated with the use of consumer financial products;
(7) to collect, investigate, resolve, and inform the public
about consumer complaints regarding consumer financial
products;
(8) to ensure a fair resolution of consumer disputes
regarding consumer financial products; and
(9) to take such other steps as are reasonable to protect
users of consumer financial products.
(b) Responsibilities.--The Commission shall--
(1) promulgate consumer financial product safety rules
that--
(A) ban abusive, fraudulent, unfair, deceptive,
predatory, anticompetitive, or otherwise anticonsumer
practices, products, or product features;
(B) place reasonable restrictions on consumer
financial products, practices, or product features to
reduce the likelihood that they may be provided in a
manner that is inconsistent with the objectives
specified in subsection (a); and
(C) establish requirements for such clear and
adequate warnings or other information, and the form
and manner of delivery of such warnings or other
information, as may be appropriate to advance the
objectives specified in subsection (a);
(2) establish and maintain a best practices guide for all
providers of consumer financial products;
(3) conduct such continuing studies and investigations of
consumer financial products industry practices as it determines
necessary;
(4) award grants or enter into contracts for the conduct of
such studies and investigations with any person (including a
governmental entity), as necessary to advance the objectives
specified in subsection (a);
(5) following publication of a rule, assist public and
private organizations or groups of consumer financial product
providers, administratively and technically, in the development
of safety standards or guidelines that would assist such
providers in complying with such rule;
(6) comment on selected rulemakings of agencies designated
in section 6(d) affecting consumer financial products; and
(7) establish and operate a consumer financial product
customer hotline which consumers can call to register
complaints and receive information on how to combat
anticonsumer products or practices.
(c) State Regulation of the Business of Insurance.--The Act
entitled ``An Act to express the intent of Congress with reference to
the regulation of the business of insurance'' and approved March 9,
1945 (15 U.S.C. 1011 et seq.) (commonly referred to as the ``McCarran-
Ferguson Act'') remains the law of the United States.
SEC. 6. COORDINATION OF ENFORCEMENT.
(a) In General.--Notwithstanding any concurrent or similar
authority of any other agency, the Commission shall enforce the
requirements of this Act.
(b) Rule of Construction.--The authority granted to the Commission
to make and enforce rules under this Act shall not be construed to
impair the authority of any other Federal department or agency to make
and enforce rules under any other provision of law, provided that any
portion of any rule promulgated by any other such department or agency
that conflicts with a rule promulgated by the Commission and that is
less protective of consumers than the rule promulgated by the
Commission shall be superseded by the rule promulgated by the
Commission, to the extent of the conflict. Any portion of any rule
promulgated by any other such department or agency that is not
superseded by a rule promulgated by the Commission shall remain in
force without regard to this Act.
(c) Agency Authority.--Any department or agency designated in
subsection (d) may exercise, for the purpose of enforcing compliance
with any requirement imposed under this Act, any authority conferred on
such department or agency by any other Act.
(d) Designated Departments and Agencies.--The departments and
agencies designated in this subsection are--
(1) the Board of Governors of the Federal Reserve System;
(2) the Federal Deposit Insurance Corporation;
(3) the Comptroller of the Currency;
(4) the Director of the Office of Thrift Supervision;
(5) the National Credit Union Administration;
(6) the Federal Housing Finance Authority;
(7) the Federal Housing Administration;
(8) the Secretary of Housing and Urban Development;
(9) the Federal Trade Commission; and
(10) any successor to the agencies, referred to in
paragraphs (1) through (9), as may be constituted.
(e) Coordination of Rulemaking.--Any department or agency
designated in subsection (d) that engages in a rulemaking affecting
consumer financial products shall consult with the Commission in the
promulgation of such rules.
SEC. 7. AUTHORITIES.
(a) Authority To Conduct Hearings or Other Inquiries.--
(1) In general.--The Commission may, by 1 or more of its
members, or by such agents or agency as it may designate,
conduct any hearing or other inquiry necessary or appropriate
to its functions anywhere in the United States.
(2) Member participation.--A Commissioner who participates
in a hearing, or other inquiry described in paragraph (1),
shall not be disqualified solely by reason of such
participation from subsequently participating in a decision of
the Commission in the same matter.
(3) Notice required.--The Commission shall publish notice
of any proposed hearing in the Federal Register, and shall
afford a reasonable opportunity for interested persons to
present relevant testimony and data.
(b) Commission Powers; Orders.--The Commission shall have the
power--
(1) to require, by special or general orders, any person to
submit in writing such reports and answers to questions as the
Commission may prescribe to carry out a specific regulatory or
enforcement function of the Commission, and such submission
shall be made within such reasonable period and under oath or
otherwise as the Commission may determine, and such order shall
contain a complete statement of the reasons that the Commission
requires the report or answers specified in the order to carry
out a specific regulatory or enforcement function of the
Commission;
(2) to administer oaths;
(3) to require by subpoena the attendance and testimony of
witnesses and the production of all documentary evidence
relating to the execution of its duties;
(4) in any proceeding or investigation to order testimony
to be taken by deposition before any person who is designated
by the Commission and has the power to administer oaths and, in
such instances, to compel testimony and the production of
evidence in the same manner as authorized under paragraph (3);
(5) to pay witnesses the same fees and mileage costs as are
paid in like circumstances in the courts of the United States;
(6) to accept voluntary and uncompensated services relevant
to the performance of the duties of the Commission,
notwithstanding the provisions of section 1342 of title 31,
United States Code, and to accept voluntary and uncompensated
services (but not gifts) relevant to the performance of the
duties of the Commission provided that any such services shall
not be from parties that have or are likely to have business
before the Commission;
(7) to--
(A) issue an order requiring compliance with
applicable legal requirements;
(B) issue a civil penalty order in accordance with
section 10(b);
(C) initiate, prosecute, defend, intervene in, or
appeal (other than to the Supreme Court of the United
States), through its own legal representative and in
the name of the Commission, any civil action, if the
Commission makes a written request to the Attorney
General of the United States for representation in such
civil action and the Attorney General does not, within
the 45-day period beginning on the date on which such
request was made, notify the Commission in writing that
the Attorney General will represent the Commission in
such civil action; and
(D) whenever the Commission obtains evidence that
any person has engaged in conduct that may constitute a
violation of Federal criminal law, including a
violation of section 9, transmit such evidence to the
Attorney General of the United States; and
(8) to delegate any of its functions or powers, other than
the power to issue subpoenas under paragraph (3), to any
officer or employee of the Commission.
(c) Noncompliance With Subpoena or Commission Order.--If a person
refuses to obey a subpoena or order of the Commission issued under
subsection (b), the Commission (subject to subsection (b)(7)) or the
Attorney General of the United States may bring an action in the United
States district court for the district and division in which the
inquiry is carried out or any other appropriate United States district
court seeking an order requiring compliance with the subpoena or order.
(d) Disclosure of Information.--No person shall be subject to civil
liability to any person (other than the Commission or the United
States) for disclosing information to the Commission.
(e) Customer and Revenue Data.--The Commission may, by rule,
require any provider of consumer financial products to provide to the
Commission such customer and revenue data as may be required to carry
out this Act.
(f) Purchase of Consumer Financial Products by Commission.--For
purposes of carrying out this Act, the Commission may purchase any
consumer financial product and it may require any provider of consumer
financial products to sell the product to the Commission at cost.
(g) Contract Authority.--The Commission is authorized to enter into
contracts with governmental entities, private organizations, or
individuals for the conduct of activities authorized by this Act.
(h) Budget Estimates and Requests; Legislative Recommendations;
Testimony; Comments on Legislation.--
(1) Budget copies to congress.--Whenever the Commission
submits any budget estimate or request to the President or the
Office of Management and Budget, it shall concurrently transmit
a copy of that estimate or request to the appropriate
committees of Congress.
(2) Legislative recommendation.--Whenever the Commission
submits any legislative recommendations, testimony, or comments
on legislation to the President or the Office of Management and
Budget, it shall concurrently transmit a copy thereof to the
appropriate committees of Congress. No officer or agency of the
United States shall have any authority to require the
Commission to submit its legislative recommendations,
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 appropriate committees of Congress.
SEC. 8. COLLABORATION WITH FEDERAL AND STATE ENTITIES.
(a) Preemption.--Nothing in this Act or any rule promulgated under
this Act may be construed to annul, alter, affect, or exempt any person
from complying with the laws of any State, except to the extent that
those laws are inconsistent with a consumer financial product safety
rule promulgated by the Commission, and then only to the extent of the
inconsistency. For purposes of this section, a State law is not
inconsistent with this Act or a consumer financial product safety rule,
or the purposes of the Act or rule, if the protection afforded by such
State law to any consumer is greater than the protection provided by
the consumer financial product safety rule or this Act. Nothing in this
Act or any rule promulgated under this Act precludes any remedy under
State law to or on behalf of a consumer.
(b) Programs To Promote Federal-State Cooperation.--
(1) In general.--The Commission shall establish a program
to promote cooperation between the Federal Government and State
governments for purposes of carrying out this Act.
(2) Authorities.--In implementing the program under
paragraph (1), the Commission may--
(A) accept from any State or local authority
engaged in activities relating to consumer protection
assistance in such functions as data collection,
investigation, and educational programs, as well as
other assistance in the administration and enforcement
of this Act which such States or local governments may
be able and willing to provide and, if so agreed, may
pay in advance or otherwise for the reasonable cost of
such assistance; and
(B) commission any qualified officer or employee of
any State or local government agency as an officer of
the Commission for the purpose of conducting
investigations.
(c) Cooperation of Federal Departments and Agencies.--The
Commission may obtain from any Federal department or agency such
statistics, data, program reports, and other materials as it may
determine necessary to carry out its functions under this Act. Each
such department or agency shall cooperate with the Commission and, to
the extent permitted by law, furnish such materials to the Commission.
The Commission and the heads of other departments and agencies engaged
in administering programs relating to consumer financial product safety
shall, to the maximum extent practicable, cooperate and consult in
order to ensure fully coordinated efforts.
SEC. 9. PROHIBITED ACTS.
It shall be unlawful for any person--
(1) to advertise, offer, or attempt to enforce any
agreement, term, change in term, fee, or charge in connection
with any consumer financial product, or engage in any practice,
that is not in conformity with this Act or an applicable
consumer financial product safety rule under this Act; or
(2) to fail or refuse to permit access to or copying of
records, or fail or refuse to establish or maintain records, or
fail or refuse to make reports or provide information to the
Commission, as required under this Act or any rule under this
Act.
SEC. 10. ENFORCEMENT.
(a) Criminal Penalties.--
(1) Knowing and willful violations.--Any person who
knowingly and willfully violates section 9 shall be fined not
more than $500,000, imprisoned not more than 1 year, or both
for each such violation.
(2) Executives and agents.--Any individual director,
officer, or agent of a business entity who knowingly and
willfully authorizes, orders, or performs any of the acts or
practices constituting in whole or in part a violation of
section 9 shall be subject to penalties under this section,
without regard to any penalties to which that person may be
otherwise subject.
(b) Civil Penalties.--
(1) In general.--Any person who violates section 9 shall be
subject to a civil penalty in an amount established under
paragraph (2). A violation of section 9 shall constitute a
separate civil offense with respect to each consumer financial
product transaction involved.
(2) Publication of schedule of penalties.--Not later than
December 1, 2009, and December 1 of each fifth year thereafter,
the Commission shall prescribe and publish in the Federal
Register a schedule of the maximum authorized civil penalty
that shall apply for any violation of section 9 that occurs on
or after January 1 of the year immediately following the date
of such publication.
(3) Relevant factors in determining amount of penalty.--In
determining the amount of any civil penalty in an action for a
violation of section 9, the Commission--
(A) shall consider--
(i) the nature of the consumer financial
product;
(ii) the severity of the unreasonable risk
to the consumer;
(iii) the number of products or services
sold or distributed;
(iv) the occurrence or absence of consumer
injury; and
(v) the appropriateness of such penalty in
relation to the size of the business of the
person charged; and
(B) shall ensure that penalties in each case are
sufficient to induce compliance by all regulated
entities.
(4) Compromise of penalty; deductions from penalty.--
(A) In general.--Any civil penalty under this
section may be compromised by the Commission.
(B) Considerations.--In determining the amount of
such penalty or whether it should be remitted or
mitigated and in what amount, the Commission--
(i) shall consider--
(I) the nature of the consumer
financial product;
(II) the severity of the
unreasonable risk to the consumer;
(III) the number of offending
products or services sold;
(IV) the occurrence or absence of
consumer injury; and
(V) the appropriateness of such
penalty to the size of the business of
the person charged; and
(ii) shall ensure that compromise penalties
remain sufficient to induce compliance by all
regulated entities.
(C) Amount.--The amount of a penalty compromised
under this paragraph, when finally determined, or the
amount agreed on compromise, may be deducted from any
sums owing by the United States to the person charged.
(c) Collection and Use of Penalties.--
(1) Establishment of fund.--There is established within the
Treasury of the United States a fund, into which shall be
deposited all criminal and civil penalties collected under this
section.
(2) Use of fund.--The fund established under this
subsection shall be used to defray the costs of the operations
of the Commission or, where appropriate, provide restitution to
harmed consumers.
(d) Private Enforcement.--
(1) In general.--A person may bring a civil action for a
violation of section 9 for equitable relief and other charges
and costs in an amount equal to the sum of--
(A) any actual damages sustained by such person as
a result of such violation, if actual damages resulted;
(B) twice the amount of any finance charge in
connection with the transaction, except that such
liability shall not be less than $1,000, such minimum
to be adjusted on an annual basis by the Commission
based upon the consumer price index; and
(C) reasonable attorney fees and costs.
(e) Jurisdiction.--
(1) In general.--Any action under this Act may be brought
in any appropriate United States district court, or in any
other court of competent jurisdiction, not later than 2 years
after the date of the discovery of the violation.
(2) Rules of construction.--This section does not bar a
person from asserting a violation of this Act in an action to
collect a debt, or if foreclosure has been initiated, as a
matter of defense by recoupment or set-off. An action under
this Act shall not be the basis for removal of an action to a
United States district court. Neither this section nor any
other section of this Act preempts or otherwise displaces
claims and remedies available under State law, except as
otherwise specifically provided in this Act.
(f) State Actions for Violations.--
(1) Authority of states.--In addition to such other
remedies as are provided under State law, if the chief law
enforcement officer of a State, or an official or agency
designated by a State, has reason to believe that any person
has violated or is violating section 9, the State--
(A) may bring an action to enjoin such violation in
any appropriate United States district court or in any
other court of competent jurisdiction;
(B) may bring an action on behalf of the residents
of the State to recover--
(i) damages for which the person is liable
to such residents under subsection (d) as a
result of the violation; and
(ii) civil penalties, as established under
subsection (b); and
(C) in the case of any successful action under
subparagraph (A) or (B), shall be awarded the costs of
the action and reasonable attorney fees, as determined
by the court.
(2) Rights of federal regulators.--
(A) Notice of state action.--A State shall serve
prior written notice of any action under paragraph (1)
upon the Commission and provide the Commission with a
copy of its complaint, except in any case in which such
prior notice is not feasible, in which case the State
shall serve such notice immediately upon instituting
such action.
(B) Commission authorization.--Upon notice of an
action under subparagraph (A), the Commission shall
have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on
all matters arising therein;
(iii) to remove the action to the
appropriate United States district court; and
(iv) to file petitions for appeal.
(3) Investigatory powers.--For purposes of bringing any
action under this subsection, nothing in this subsection or in
any other provision of Federal law shall prevent the chief law
enforcement officer of a State, or an official or agency
designated by a State, from exercising the powers conferred on
the chief law enforcement officer or such official by the laws
of such State to conduct investigations or to administer oaths
or affirmations or to compel the attendance of witnesses or the
production of documentary and other evidence.
(4) Limitation on state action while federal action
pending.--If the Commission has instituted a civil action or an
administrative action for a violation of section 9, a State may
not, during the pendency of such action, bring an action under
this section against any defendant named in the complaint of
the Commission for any violation of section 9 that is alleged
in that complaint.
SEC. 11. REPORTS.
(a) Reports to the Public.--The Commission shall determine what
reports should be produced and distributed to the public on a recurring
and ad hoc basis, and shall prepare and publish such reports on a
website that provides free access to the general public.
(b) Report to the President and Congress.--
(1) In general.--The Commission shall prepare and submit to
the President and the appropriate committees of Congress, at
the beginning of each regular session of Congress, a
comprehensive report on the administration of this Act for the
preceding fiscal year.
(2) Report content.--The reports required by this
subsection shall include--
(A) a thorough appraisal, including statistical
analyses, estimates, and long-term projections, of the
incidence and effects of practices associated with the
provision of consumer financial products that are
inconsistent with the objectives specified in section
5(a), with a breakdown, insofar as practicable, among
the various sources of injury, as the Commission finds
appropriate;
(B) a list of consumer financial product safety
rules prescribed or in effect during such year;
(C) an evaluation of the degree of observance of
consumer financial product safety rules, including a
list of enforcement actions, court decisions, and
compromises of civil penalties, by location and company
name;
(D) a summary of outstanding problems confronting
the administration of this Act in order of priority;
(E) an analysis and evaluation of public and
private consumer financial product safety research
activities;
(F) a list, with a brief statement of the issues,
of completed or pending judicial actions under this
Act;
(G) the extent to which technical information was
disseminated to the research and consumer communities
and consumer information was made available to the
public;
(H) the extent of cooperation between Commission
officials, representatives of the consumer financial
products industry, and other interested parties in the
implementation of this Act, including a log or summary
of meetings held between Commission officials and
representatives of industry and other interested
parties;
(I) an appraisal of significant actions of State
and local governments relating to the responsibilities
of the Commission;
(J) such recommendations for additional legislation
as the Commission deems necessary to carry out the
purposes of this Act; and
(K) the extent of cooperation with, and the joint
efforts undertaken by, the Commission in conjunction
with other regulators with whom the Commission shares
responsibilities for consumer financial product safety.
SEC. 12. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission for
purposes of carrying out this Act such sums as may be necessary.
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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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