Financial Consumers Association Act of 2012 - Authorizes the establishment of, and sets forth operational requirements for, a nonprofit corporation to be known as the Financial Consumers Association whose mission shall be to advance the rights and remedies available to consumers with respect to financial services, by developing initiatives to reduce the use of dangerous features in financial products and services, and to improve the flow of accurate information to consumers.
Includes among the Association's duties to: (1) represent and promote the interests of financial services consumers and negotiate on their behalf, (2) take affirmative measures to encourage membership by low- and moderate-income and minority consumers and disseminate information and advice, (3) monitor the availability and quality of financial services to low- and moderate-income constituencies and the elderly, and (4) develop data to assist financial services consumers in making informed decisions in the marketplace.
Gives the Association the right to include inserts in financial services mailings, in paper or by electronic means, that inform customers about the Association and its representation of financial services consumers and solicit information and contributions or membership fees.
Requires annual reports to the President and Congress on the Association's activities of the preceding year.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6667 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6667
To establish the Financial Consumers Association to advance the rights
and remedies available to consumers with respect to financial services
transactions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 13, 2012
Mr. Kucinich introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish the Financial Consumers Association to advance the rights
and remedies available to consumers with respect to financial services
transactions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Consumers Association Act
of 2012''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) financial services consumers and depositors are an
integral part of the financial system and are affected by the
safety and soundness of the financial industry;
(2) deceptive, illegal, and speculative financial practices
have harmed public confidence in the integrity and fairness of
many United States financial institutions, and threaten the
basic strengths of the United States economic system;
(3) contributing to the loss of public confidence are
perceptions of inadequate oversight and insufficient
independence between financial institutions and their
regulators;
(4) major factors contributing to the recent financial
crisis include regulatory failures to adequately police the
financial services markets for crime, unfair or deceptive
practices, fraud, lack of transparency, and mismanagement;
(5) the financial industry has enjoyed virtually unlimited
access to represent its interest before Congress, the courts,
and State and Federal regulators, while financial services
consumers have had limited representation before Congress and
financial regulatory entities;
(6) the resources available for organized representation of
consumers in the financial industry need to be expanded so
citizens can better monitor the performance of State and
Federal agencies that regulate their financial institutions and
participate in public policy debates regarding the oversight of
these financial institutions;
(7) the creation of a public purpose, democratically
controlled, self-funded, nationwide membership association of
financial services consumers is an effective way to enhance the
representation of consumers in the financial services industry
and to meet the expanding information needs of consumers in the
financial services market;
(8) the requirement that informational and statutory
inserts be included in the paper mailings and email
correspondence, digital or other electronic means, of covered
persons is essential to the creation, maintenance, and funding
of such an association;
(9) the Federal Government has a substantial interest in
the creation of a public purpose, democratically controlled,
self-funded, nationwide membership association of financial
services consumers to enhance their representation and to
effectively combat unsound financial practices;
(10) the creation of such an Association is not meant to
substitute for, but augment, the activities of existing or
future regulatory bodies whose sole or partial focus is the
protection of financial services consumers; and
(11) consumers have more complex financial choices today
than ever before, but not enough information with which to make
those choices.
(b) Purposes.--The purposes of this Act are--
(1) to establish a public purpose, nonprofit,
democratically controlled, membership association of financial
services consumers;
(2) to give the Association a mandate to inform and
represent financial services consumers, and to further the
effective and vigorous oversight of covered persons;
(3) to establish democratic rules of governance for the
Association; and
(4) to require any covered person to periodically include
inserts concerning the Association within their statements and
billing statements to financial services consumers.
SEC. 3. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Association.--The term ``Association'' means the
Financial Consumers Association established in accordance with
this Act.
(2) Association director.--The terms ``Association
director'' and ``director'' mean any person duly elected or
appointed to the Association board of directors pursuant to
this Act, except as the context otherwise requires.
(3) Insert carrier.--The term ``insert carrier'' includes
any email, digital, or other electronic notice or paper deposit
account statement which--
(A) indicates the balance on a deposit account; or
(B) involves an outstanding deposit account
contract or agreement between an insured depository
institution and a customer of such institution.
(4) Member.--The term ``member'' means any person who meets
the requirements for membership in the Association, as set
forth in this Act.
(5) Regulatory agency.--The term ``regulatory agency''
means any governmental office, agency, department, or
commission of the Federal Government, that regulates, monitors,
directs, or governs publicly traded corporations, financial
services, or consumer transactions.
(6) Regulatory proceeding.--The term ``regulatory
proceeding'' means any rulemaking, adjudication, or ancillary
proceeding conducted by any governmental office, agency,
department, or commission at the Federal, State, or local
level, that affects any covered person.
(7) Statutory insert.--The term ``statutory insert'' means
any digital or printed statement, card, or envelope and
statement combination, or a statement, application, and pre-
addressed business reply envelope used by the Association to
solicit information and contributions or membership fees from
consumers, financial services customers, and to explain the
purpose, history, nature, activities, achievements, and
membership criteria of the Association.
(8) Appropriate committees of 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.
(9) Campaign contribution.--The term ``campaign
contribution'' means any money, good, service, credit, or other
benefit provided or promised for the purpose of electing an
Association Director.
(10) Campaign expenditure.--The term ``campaign
expenditure'' means any payment, use, distribution, or gift of
money or anything of value made or promised for the purpose of
electing an Association Director.
(11) Immediate family.--The term ``immediate family'' means
a person's spouse and legal dependents.
SEC. 4. ESTABLISHMENT OF THE ASSOCIATION.
(a) Charter.--There is authorized to be established a nonprofit
corporation by the interim board of directors to be known as the
``Financial Consumers Association''. The Association shall be subject
to the provisions of this Act, and, to the extent consistent with this
Act, to the District of Columbia Nonprofit Corporations Act. The main
office of the Association shall be located in Washington, DC.
(b) Nongovernmental Status.--The Association shall be a private
corporation and shall not, for any purpose, be considered to be a
department, agency, or instrumentality of the United States Government.
An officer or employee of the corporation shall not, for any purpose,
be considered to be an officer or employee of the Federal Government.
(c) Regional and Local Offices.--The Association may establish
regional offices as needed, in any of the several States.
(d) Bylaws.--Except as provided in this Act and in the District of
Columbia Nonprofit Corporations Act, the affairs of the Association
shall be regulated as determined in the bylaws of the Association.
(e) Nonprofit, Nonstock Status.--The Association chartered under
this section--
(1) shall be a nonprofit corporation; and
(2) may not issue any shares of stock or other securities
or pay any dividends.
(f) Membership.--The membership of the Association shall consist
solely of individuals who--
(1) are 16 years of age or older; and
(2) have contributed the required annual membership fee to
the Association.
(g) Membership Fee.--
(1) Initial fee.--Until the end of the 180-day period
beginning on the date of the first election of directors, the
annual membership fee of the Association shall be $10.
(2) Permanent membership fees determined by board of
directors.--After the end of the 180-day period referred to in
this subsection, the Association may, by vote of the board of
directors, alter the annual membership fee. The board of
directors shall adopt a reduced fee structure, offering
reduced-cost membership fees for low-income populations and
senior citizens.
(h) Political Contributions Prohibited.--The Association shall not
make any contributions to any political candidate or party, or to any
national or State political committee, as defined in the Federal
Election Campaign Act of 1971, or participate in or intervene in any
political campaign on behalf of, or in opposition to, any candidate for
public office.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS AND ALLOTMENTS OF GRANTS.
There is authorized to be appropriated to the Bureau, for the
purpose of establishing the Association, $5,000,000 for the fiscal year
ending 1 year after the date of enactment of this Act.
SEC. 6. MISSION, DUTIES, AND POWERS OF THE ASSOCIATION.
(a) Mission.--The Association shall advance the rights and remedies
available to consumers with respect to financial services, by
developing initiatives to reduce the use of dangerous features in
financial products and services, and to improve the flow of accurate
information from covered persons to consumers.
(b) Duties.--The duties of the Association shall be--
(1) to inform, educate, and advise consumers about the
actions of covered persons;
(2) to represent and promote the interests of consumers in
financial services, collectively, and, when necessary, to
negotiate on behalf of financial services consumers,
individually, with respect to covered persons;
(3) to take affirmative measures to encourage membership by
low- and moderate-income and minority consumers, and to
disseminate information and advice to consumers;
(4) to inform, insofar as possible, consumers about the
mission of the Association, including the procedures for
obtaining membership in the Association;
(5) to provide consumers with information about how
initiatives of covered person will affect consumers;
(6) to monitor the availability and quality of financial
services to low- and moderate-income constituencies and the
elderly; and
(7) to develop data to assist financial services consumers
in making informed decisions in the marketplace.
(c) Powers.--In addition to the rights and powers provided by other
provisions of this Act, the Association shall--
(1) represent the interests of consumers in general before
Federal regulatory agencies, legislative bodies, the courts,
and in other public forums;
(2) initiate, intervene as a party, or otherwise
participate on behalf of consumers in any regulatory proceeding
that the Association reasonably determines may affect the
interests of consumers;
(3) conduct, support, and assist research, surveys, and
investigations in financial services consumer matters;
(4) maintain up-to-date membership rolls, and to keep them
in confidence to the extent required by the provisions of this
Act;
(5) contract for services which cannot reasonably be
performed by its employees; and
(6) solicit and accept gifts, loans, grants, or other aid
in order to support activities concerning the interests of
financial services consumers, except that the Association may
not accept gifts, loans, or other aid from any financial
services providers or from any director, employee, agent, or
member of the immediate family of a director, employee, or
agent of any covered person.
SEC. 7. INSERT AND NOTICE PROVISIONS.
(a) Inclusion in Statements of Covered Persons.--
(1) In general.--Each covered person shall include, or
cause its agent to prominently include, a statutory insert or
an Association insert in quarterly mailings to its customers
each year.
(2) Statutory insert.--The Association shall have the right
to have statutory inserts prominently included in the paper
mailings to the customers of each covered person once each
calendar quarter. The Association shall also have the right to
have covered persons send the information contained in the
statutory insert to financial services consumers once each
calendar quarter via email, digital or other electronic means.
The Association shall only pay the reasonable incremental costs
of the email, digital, or electronic distribution of such
information.
(3) Association inserts.--
(A) In general.--In addition, the Association shall
have the right to include in the mailings and via
email, digital or other electronic means, referred to
in paragraph (2) once each calendar quarter, an insert
that it prepares and furnishes to any institution
required to carry a statutory insert.
(B) Limitation.--An insert furnished by the
Association shall be limited to--
(i) soliciting information and
contributions or membership fees from financial
services consumers; and
(ii) explaining--
(I) the purpose, history, nature,
activities, and achievements of the
Association;
(II) that the Association
membership is open to any resident of
the United States who is 16 years of
age or older;
(III) that the Association is not
connected to any covered person;
(IV) that the Association is a
nonprofit association directed by its
financial services consumer members;
(V) the procedure for contributing
to or becoming a member of the
Association; and
(VI) the yearly membership fee.
(b) Federal Trade Commission Oversight.--Any covered person may, if
it believes that the contents of an insert are false or misleading,
submit the insert to the Federal Trade Commission for review. The
Federal Trade Commission shall review the insert and make a
determination promptly, but in no event later than 21 calendar days
after receipt of the insert. The Federal Trade Commission may
disapprove the insert for mailing if it finds that the insert is false
or misleading, or contains information not permitted by this section.
(c) Content of Statutory Inserts.--Each statutory insert required
by this Act shall contain--
(1) a written statement of the following information:
``(A) The Financial Consumers Association is a
financial services consumer membership organization
established under Federal law to inform and represent
financial services consumers.
``(B) The Association will work on behalf of
financial services consumers to prevent corporate
fraud, deceptive and criminal business practices, and
to ensure the protection of retirement funds and
investments.
``(C) The Association provides financial services
consumers with information and advice on a range of
consumer issues.
``(D) The Association also represents financial
services consumers before regulatory agencies and
legislative bodies.
``(E) The Association is a democratically
controlled consumer membership organization.
``(F) Although the Association has been established
under Federal law, as a consumer membership
organization, the Association is primarily supported by
membership fees, not public funds. Thus the Financial
Consumers Association depends on its membership base
for funding to undertake its information and
representation activities.
``(G) Anyone who is 16 years of age or older may
become a member of the Association by paying the annual
membership fee. The amount of the annual membership fee
shall be determined annually by the Association.
``(H) You may become a member simply by filling out
the attached application and mailing it and the
membership fee to the Financial Consumers Association
in the attached pre-addressed envelope.'';
(2) an application for Association membership, which
requests the name and address of the applicant, and indicates
the annual membership fee; and
(3) a pre-addressed business reply envelope for mailing the
application and membership fee to the Association.
(d) Other Requirements Applicable to Statutory Inserts.--With
respect to a statutory insert required by this Act--
(1) the statement, application, and pre-addressed business
reply envelope specified in this Act shall be presented to the
customer as a single document (except that the document may be
separable into different parts by tearing along perforated
lines);
(2) the statement and application shall be printed in at
least 10-point type; and
(3) the Association shall pay the cost of printing and
placement of the statutory insert in all appropriate mailings,
but shall not pay any postage costs if the insert weighs less
than 0.35 ounces.
SEC. 8. INTERIM BOARD.
(a) Establishment of Interim Board.--Members of the interim board
of directors of the Association shall be appointed not later than 6
months after the date of enactment of this Act, as follows:
(1) 3 members shall be appointed by the President of the
United States.
(2) 3 members shall be appointed by the Speaker of the
House of Representatives.
(3) 3 members shall be appointed by the President Pro
Tempore of the Senate.
(4) 1 member shall be appointed by the Minority Leader of
the House of Representatives.
(5) 1 member shall be appointed by the Minority Leader of
the Senate.
(b) Member Criteria.--Individuals considered for appointment to the
interim board shall, to the extent possible, represent different
regions of the United States, and represent categories of citizens'
organizations including--
(1) consumer groups;
(2) organizations representing low-income persons;
(3) labor unions;
(4) civil rights groups;
(5) neighborhood groups; and
(6) elderly groups.
(c) Eligibility.--To qualify for nomination or appointment as an
interim director of the Association representing a designated category
of citizens' organizations, an individual shall be an active officer,
employee, or member of a citizens' organization within such category or
previously have been an officer or employee of 1 or more such citizens'
organizations within such category for a cumulative period of at least
2 years.
(d) Duties of Interim Board.--The interim board of directors of the
Association shall--
(1) not later than 60 days after the date of appointment of
all members, incorporate the Association under the laws of the
District of Columbia, subject to the provisions and limitations
of this Act;
(2) manage the affairs of the Association until the first
elected board of directors takes office;
(3) inform the public of the existence, nature, and purpose
of the Association, and encourage such persons to join the
Association, participate in its activities, and contribute to
the Association;
(4) adopt procedures and standards, consistent with the
requirements of this Act, for the nomination and election of
the first elected board of directors of the Association;
(5) make all necessary preparations for the first election
of the board of directors of the Association, oversee the
election campaign, and tally the votes;
(6) conduct meetings of the interim board of directors at
least once every 3 months;
(7) keep minutes, financial books, and records which shall
reflect the acts and transactions of the interim board of
directors; and
(8) employ such interim staff as the interim board of
directors deem necessary to carry out their responsibilities
under this Act.
(e) Applicability of Certain Other Provisions of This Act.--Members
of the interim board of directors shall be subject to the requirements
of the applicable provisions of this Act.
(f) Limitation on Authority To Appear Before Other Bodies.--The
interim board of directors shall not engage in representation or
intervention on behalf of financial services consumers, except to the
extent necessary to maintain or exercise the powers granted and the
duties imposed upon interim directors by this Act.
(g) Conduct First General Election.--
(1) In general.--Once the membership of the Association
reaches 50,000, or within 18 months of the date of the
appointment of the last interim director, whichever occurs
first, the interim board of directors shall set a date for the
first general election of the board of directors, and shall
promptly notify each member of the Association.
(2) Timely election requirement.--The date set for the
election shall be not more than 90 days after notification as
provided in this Act.
(3) Exception.--Notwithstanding the provisions of this Act,
no election shall be held in an election district unless there
are at least 500 residents of any such district who are
Association members.
SEC. 9. DELEGATES.
(a) In General.--Members of the Association shall have duly elected
representatives who shall be elected in accordance with the provisions
of this Act.
(b) One Delegate To Be Elected From Each District.--1 delegate
shall be elected by the Association members from each Association
election district, except that an election shall not take place in an
election district if there is no candidate who has satisfied the
qualification requirements of this Act.
(c) Election Districts.--
(1) In general.--Each State of the United States shall be
considered an Association election district. The District of
Columbia shall also be considered an Association election
district.
SEC. 10. ELECTIONS OF DELEGATES.
(a) Voting Standard.--Each member of the Association shall be
entitled to cast 1 vote for a candidate for a delegate to represent
such member's district. Voting shall be by secret mail ballot.
(b) Eligibility Standards for Nomination as a Delegate.--To qualify
for nomination as a candidate for election as a delegate of the
Association, an individual shall--
(1) be a member of the Association and a resident of the
election district that such individual seeks to represent;
(2) submit to the Association, not less than 60 days and
not more than 120 days before the election, a nomination
petition signed by at least 25 Association members from the
election district that such individual seeks to represent;
(3) submit to the Association the statements required by
this Act; and
(4) satisfy all other requirements of this Act and any
applicable bylaws of the Association.
(c) Distribution of Election Material.--
(1) In general.--The Association shall mail to each member
the following documents concerning duly nominated candidates
for election as a delegate:
(A) An official ballot listing all such candidates
from the member's election district.
(B) The candidate's statement required by this Act
for each such candidate from the member's election
district.
(2) Summary and costs.--The delegate summaries shall have a
uniform format and shall provide information on the same
characteristics for each candidate. The costs for all mailings
described in this Act shall be borne by the Association.
(d) Limitation on Campaign Expenditures.--No candidate for election
as a delegate or director shall incur campaign expenditures for any
such election in an amount greater than the amount determined by
multiplying the number of members in the candidate's election district
by 150 percent of the cost of postage for a 1-ounce 1st class mailing.
(e) Limitation on Use of Campaign Contributions.--No candidate for
election as a delegate or to the board of directors may use any
campaign contribution for any purpose other than campaign expenditures.
Any unused contributions shall be donated to the Association not later
than 60 days after the election.
(f) Limitation on Amount of Campaign Contributions.--No candidate
for election as a delegate shall accept more than $250 in campaign
contributions from any one contributor in any election.
(g) Prohibition on Acceptance of Certain Contributions.--A
candidate for election as a delegate may not accept political action
committee contributions or other campaign contributions the board of
directors determines to be unacceptable.
(h) Duties and Powers of Delegates.--Each delegate shall have the
following duties and powers:
(1) Annual survey.--To survey Association members in the
delegate's election district at least 1 time each year to
ascertain members' concerns using written surveys provided by
the Association up to 50 percent of the survey questions in
which may be provided by the delegate.
(2) Liaison.--To act as a liaison between the board of
directors and the members in the delegate's election district,
including transmitting any comments, writings, and suggestions
concerning the Association from members in the delegate's
election district to the board of directors and informing such
members of the board's response to their statements.
(3) Office planning.--To develop plans for the organization
of regional and local offices.
(4) Voting on changes in articles of incorporation, bylaws,
and major policies.--To vote at the annual meeting of delegates
and at special meetings of delegates called by the board of
directors on amendments to the bylaws or the articles of
incorporation or on matters involving changes in major policies
or operations of the Association.
(5) Approval of rules.--To approve rules proposed by the
board of directors for the nomination and election of the
directors.
(6) Voting at annual and special meetings.--To vote on
other items submitted to delegates by the board of directors at
annual and special meetings.
(7) Other duties and powers.--To carry out all other duties
and exercise all other powers accorded to delegates under this
Act.
(i) Annual Meetings.--
(1) Time and place.--An annual meeting of delegates shall
be held in the month of July on a date and in a manner
determined by the board of directors at least 6 months in
advance of the meeting.
(2) Procedures.--
(A) Voting.--All delegates shall be eligible to
attend, participate in, and vote in the annual meeting
of delegates.
(B) Quorum.--A majority of the delegates shall
constitute a quorum.
(C) One person; one vote.--Each delegate shall have
1 vote at such meetings.
(D) Majority vote.--A majority vote of the
delegates shall indicate approval by the delegates of
any items submitted for the consideration of the
delegates.
(E) Absentee voting.--The first elected board of
directors shall establish procedures for absentee
voting.
(3) Agenda.--Items may be placed on the meeting's agenda by
any of the following methods:
(A) By request of any director or delegate not less
than 5 days and not more than 4 months in advance of
the date of such meeting.
(B) By petition which--
(i) contains the valid signatures of at
least 5 percent of the members in any
delegate's election district or at least 1
percent of the total membership; and
(ii) was filed with the board of directors
not less than 5 days and not more than 4 months
in advance of the date of such meeting.
(4) Form of meeting.--The form of the annual meeting of
delegates shall be as provided in the laws of the District of
Columbia regarding nonprofit corporations.
(5) Open meetings.--
(A) Meetings open to public.--The annual meeting of
delegates shall be open to the public.
(B) Members opportunity to be heard.--Members shall
be given a reasonable opportunity at any annual meeting
to present any comment, criticism, or suggestion
concerning the Association, but members may not vote at
such meetings.
(6) Minutes.--Complete minutes of each annual meeting shall
be kept and shall be distributed to 1 Federal depository
library in each election district.
(j) Terms and Conditions of Office.--
(1) In general.--The term of office for any delegate shall
be 3 years.
(2) Maximum number of terms.--No delegate shall serve more
than 2 terms.
(3) Service without pay other than reimbursement for
expenses.--Delegates of the Association shall serve without
compensation, except that delegates may be reimbursed for
actual expenses incurred by them in the performance of their
duties.
(k) Vacancy.--
(1) In general.--If a vacancy occurs in any position of
delegate, the board of directors shall appoint, as the
successor for the balance of the term, the person who--
(A) meets the requirements specified in this Act;
and
(B) had the highest vote total in the most recent
delegate election from the district in which such
vacancy occurred of all candidates (who meet the
requirements specified in this Act) other than the
candidate whose failure to continue to serve as
delegate created the vacancy.
(2) Alternative method of appointment.--If any vacancy
referred to in paragraph (1) cannot be filled in the manner
described in such paragraph, the board of directors, by vote of
not less than \2/3\ of all directors, shall appoint within 60
days of the occurrence of the vacancy a successor from the same
election district for the remainder of the current term. The
person appointed by the board of directors shall meet the
qualifications for delegate.
(l) Recall.--Any delegate shall be removed from office by the board
of directors if not less than 40 percent of the members from the
delegate's election district who voted in the last election have signed
a petition for recall.
SEC. 11. BOARD OF DIRECTORS.
(a) Management of Association.--The affairs of the Association
shall be managed by a board of directors, which shall be elected by the
delegates of the Association in accordance with the provisions of this
Act. The board of directors shall consist of 17 members. Twelve
directors shall constitute a quorum.
(b) One Person; One Vote.--Each director shall have one vote on the
board of directors.
(c) Terms of Office.--The term of office for a director shall be 3
years, except as provided otherwise in this Act, and no director shall
serve more than 2 consecutive terms.
(d) Powers and Duties of Board.--The board of directors, shall, in
addition to its other responsibilities under this Act--
(1) conduct meetings of the board of directors at least
once every 6 months, which shall be open to the public, unless
the board of directors by a majority votes to adjourn into
executive session;
(2) conduct an annual delegate meeting;
(3) limit matters discussed in executive session only to
personnel actions, potential or pending civil or criminal
proceedings involving the Association, and material which would
result in an unwarranted invasion of personal privacy if
discussed in open sessions;
(4) keep minutes, financial records, and other records
which shall reflect the acts and transactions of the board of
directors;
(5) cause the financial books of the Association to be
audited by a qualified certified public accountant at least
once each fiscal year;
(6) prepare quarterly statements and an annual report
indicating the substantive activities and financial operations
of the Association;
(7) approve the bylaws of the Association, consistent with
the requirements of this Act;
(8) make available to the public and include on the
Association's web page, documents prepared by or filed with the
Association within the preceding 5 years, including--
(A) minutes of the board of directors meeting;
(B) director's or executive director's financial
statements;
(C) candidates' financial statements; and
(D) candidates' personal statements; and
(9) conduct 4 mailings each year to the membership of the
Association, to inform the membership about the work of the
Association and to conduct the business of the Association.
(e) Election of Officers.--At the first regular meeting of the
board of directors at which a majority of its members are present,
subsequent to the installation of new directors following each annual
election, the board shall elect by majority vote of directors present
and voting, and from among the directors, a president, a vice
president, a secretary, and a treasurer. The board may also elect a
comptroller and such other officers as it deems necessary.
(f) Executive Director of Association.--
(1) In general.--The board of directors shall hire and
supervise an executive director for the Association.
(2) Duties of executive director.--The executive director
shall implement the policies established by the board of
directors, employ and discharge Association employees, and
manage the offices, facilities, and employees of the
Association.
(3) Eligibility standards.--Any applicant for the position
of executive director, and each executive director, shall
satisfy the requirements for director eligibility established
by this Act.
(4) Term limit.--The executive director shall only be
eligible to serve as an employee of the Association for 6
consecutive years. After such 6-year term, the executive
director shall be prohibited from serving as an agent,
consultant, attorney, accountant, or subcontractor for the
Association, and shall be ineligible to receive any monetary
compensation from the Association.
(g) No Compensation for Association Directors.--A member of the
board of directors of the Association may not receive any compensation
for his or her services as a director, but shall be reimbursed for
wages actually lost in an amount not to exceed $160 per day, and for
necessary expenses including travel expenses incurred in the discharge
of Association duties.
(h) Bonding Requirement for Staff.--Any director or staff of the
Association eligible to receive, handle, or disburse funds on behalf of
the Association shall be bonded. The cost of such bonds shall be paid
for by the Association.
(i) Annual Financial Statements of Directors.--Each director and
the executive director of the Association shall file annually with the
board of directors a director's financial statement, which shall
include the same information required by this Act for members seeking
election as delegates or directors of the Association.
(j) Annual Meetings.--
(1) In general.--An annual meeting of members of the
Association shall be held in the month of July, on a date and
at a place within the United States to be determined by the
board of directors at least 6 months in advance of the meeting.
(2) Agenda.--Items may be placed on the annual meeting
agenda--
(A) by request of any director, not less than 10
days and not more than 4 months in advance of the date
of such meeting; and
(B) by petition containing the valid signatures of
at least 500 members of the Association, which petition
shall be filed with the board of directors not less
than 10 days and not more than 4 months in advance of
the date of such meeting.
(3) Notice of agenda.--The executive director shall present
proposed agenda items to the membership through its regular
mailings.
(4) Public meetings.--The annual meeting of Association
members shall be open to the public, except that seating
preference shall be given to Association members. Association
members shall be given a reasonable opportunity at such
meetings to present comments, criticisms, and suggestions
concerning the Association.
(5) Minutes.--Complete minutes of the annual meetings shall
be kept and distributed to all depository libraries in the
United States and placed on the Association's webpage.
(k) Vacancy.--In the event that a board member position becomes
vacant, the board of directors shall install the person having the
highest vote total in the last election who was not elected to the
board. If this is impossible, the board of directors, by vote of not
less than \2/3\ of all directors, shall appoint a successor within 60
days for the remainder of the current term. The person appointed by the
board of directors shall meet all qualifications for board members.
(l) Recall.--
(1) In general.--Any director shall be removed from the
board of directors by the board of directors if not fewer than
40 percent of the delegates or members of a director's election
district who voted in the last election have signed a petition
for recall.
(2) Limitations.--No petition to recall a director under
paragraph (1) may be filed within 6 months of his or her
election. An election pursuant to the filing of a recall
petition shall be conducted in accordance with the provisions
of this Act. A director recalled may become a candidate in the
election triggered by the filing of the recall petition. The
director recalled shall continue to serve until the installment
in office of his or her successor, or until his or her
reelection. The election triggered by the filing of a recall
petition shall be conducted via one of the Association's
quarterly mailings.
SEC. 12. ELECTION OF DIRECTORS.
(a) Election of the Board of Directors.--
(1) Regular election procedures.--
(A) One delegate; one vote.--Each delegate shall
cast 1 vote for 1 candidate for the board of directors.
(B) Top 17 candidates become directors.--The 17
candidates receiving the largest number of votes shall
become the directors.
(2) Runoff election.--
(A) In general.--In the event of a tie involving
the 17th position on the board of directors, a runoff
election shall be conducted.
(B) Voting and candidate eligibility.--Any delegate
may vote for 1 candidate in the runoff election, and
only those nominees involved in the tie that included
the 17th position shall be eligible for the runoff
election.
(3) Applicability to all board elections.--The requirements
of this section shall apply to the first election of directors
conducted by the interim board of directors pursuant to this
Act, as well as to all subsequent elections.
SEC. 13. QUALIFICATIONS.
(a) Candidate's Statement.--Any person seeking nomination as a
candidate for election to the board of directors of the Association
shall file a candidate statement with the Association, not less than 60
days and not more than 120 days prior to the election. The contents of
a candidate statement may not contain false statements, and the
Association may, by bylaw or interim board of directors' procedure,
impose a uniform limitation on the length of all candidate statements.
(b) Financial Statement.--Any person seeking nomination as a
candidate for election to the board of directors shall file with the
Association, not less than 60 days and not more than 120 days prior to
the election. Each candidate's financial statement shall include the
following information for the candidate and the immediate family of the
candidate:
(1) Preceding 5 years' business and financial
relationships.--A detailed list of any business or financial
relationships during the preceding 5 years with any covered
person or organization of covered persons, including any
attorney, legislative agent, officer, or director relationship.
(2) Current and preceding 5 years' corporate positions.--A
list of all corporate and organizational directorships or other
offices and all fiduciary relationships currently held or held
at any time during the preceding 5 years.
(3) Investments of $1,000 or more in any financial services
corporation.--A list of all financial services corporations in
which the candidate holds securities worth $1,000 or more at
current market value and the dollar value of each such holding.
(4) Other information.--Such other information as the board
of directors may require by bylaw.
(c) Affirmation of Truth of Statements.--Each candidate for
election as a delegate or director shall affirm in writing, that the
information in such candidate's financial statement is true and
complete and that the candidate has complied with all the campaign
contribution and campaign expenditure requirements of this Act and any
such bylaws of the Association. Each candidate shall furnish the board
of directors with such information regarding campaign contributions and
expenditures as the board may request.
(d) Ineligibility of Interim Directors and Staff During First
Election.--No interim director shall be eligible for election as a
delegate or director during the first election. The executive director
and other Association staff persons, including interim staff persons,
shall not be eligible for election as a delegate or director while
serving as executive director or staff person, or for 1 year after such
service is terminated.
(e) Ineligibility of Delegates and Directors To Hold Other Public
Office.--No delegate or director shall hold any elective Federal,
State, or local office or be a candidate for such office, or be
appointed to hold such office, unless such appointee receives no
compensation other than reimbursement of expenses.
(f) Ineligibility of Officers, Directors, Employees, and
Shareholders of Covered Persons.--Any director, officer, or employee of
a covered person, any person who owns common stock or other securities
of covered persons in an aggregate amount in excess of $10,000, any
agent, consultant, attorney, or accountant for a covered person, and
any member of the immediate family of any such person shall be
ineligible to be a delegate or a director.
(g) Ineligibility of Officers and Employees of Federal or State
Depository Institution Regulatory Agencies.--No officer or employee of
any State or Federal agency that regulates depository institutions or
any member of the immediate family of any such officer or employee
shall be eligible to be a delegate or a director.
(h) Ineligibility of Officers and Employees of Agencies.--No
officer or employee of any Federal, State, or local agency that
regulates any covered person shall be eligible to be a director of the
Association.
SEC. 14. BALLOT ISSUES.
(a) Procedure for Obtaining Membership Vote on Issues.--Issues may
be placed on a ballot for vote by the general membership if--
(1) a majority of the board of directors votes to place an
issue before the membership for vote;
(2) a petition is received by the board of directors
which--
(A) contains the valid signatures of at least 1,000
members in any district or at least 1 percent of the
total membership; and
(B) requests that an issue be placed on a ballot is
received by the board of directors; or
(3) a majority of the delegates vote to place an issue
before the membership for a vote.
(b) Procedures for Conducting Vote on Issues.--
(1) Time for election.--Upon certification of a vote of the
directors or delegates which meets the requirements of
paragraph (1) or (3) of subsection (a) or the receipt of a
petition which meets the requirement of subsection (a)(2), the
board of directors shall place the issue on a special ballot
and schedule a date for a vote on the issue to be held within 2
months after receipt of the certification or petition.
(2) Mail ballot.--The board of directors shall send or have
sent by mail to each member, not later than 30 days after
receipt of a petition or certification pursuant to this
section, an official ballot containing the issue for membership
vote.
(3) Vote cast by return mail.--Each member may cast a vote
regarding the ballot issue by returning the ballot, properly
marked, to the head office of the Association by the date and
time fixed for the balloting pursuant to this subsection.
(4) Secret ballot.--Voting shall be by secret ballot.
(5) Vote tally.--The board of directors shall tally votes
with all reasonable speed and inform the membership and
delegates promptly of the outcome of the vote.
SEC. 15. ACCESS TO MEMBER MAILINGS.
No person may use any list of members of the Association, or any
part of such list, for purposes other than the conduct of the business
of the Association, as prescribed in this Act. The board of directors
shall, however, develop criteria for providing Association member
access through Association mailings to the Association's membership for
Association purposes only. No person shall disclose any such list or
part thereof to another person, unless there is substantial reason to
believe that such list or part thereof is intended to be used for the
lawful purposes described in this Act.
SEC. 16. PROHIBITED ACTS.
(a) Covered Persons.--No covered person or officer, employee, or
agent of any covered person may interfere or threaten to interfere with
or cause any interference with the provision of financial services of,
or penalize or threaten to penalize or cause to be penalized, any
person who contributes to the Association or participates in any of its
activities, in retribution for such contribution or participation.
(b) General Prohibition.--No person may act with intent to prevent,
interfere with, or hinder the activities permitted under this Act.
SEC. 17. PENALTIES.
A violation of any provision of this Act by a covered person or
officer, employee, or agent thereof or of the Association shall be
subject to a civil penalty of not more than $10,000 for each violation,
to be levied by the Federal Trade Commission.
SEC. 18. ADMINISTRATIVE ENFORCEMENT.
Compliance with the provisions of this Act shall be enforced by the
Federal Trade Commission in the same manner and with the same power and
authority as the Federal Trade Commission has under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.).
SEC. 19. DISSOLUTION OF THE ASSOCIATION.
If, after the end of the 3-year period beginning on the date on
which the Association is incorporated, the Association's membership
remains below 25,000 members during any 1-year period, the board of
directors of the Association shall dissolve the Association. Upon the
termination, dissolution, or winding up of the Association in any
manner or for any reason, voluntary or involuntary, its assets, if any,
remaining after the payment or provision for payment of all liabilities
of the Association shall be distributed to, and only to, 1 or more
charitable organizations. No part of the income or assets of the
Association shall inure to any of its members, directors, or officers,
or be distributed to any such person during the life of the Association
or upon its dissolution, except in payment of a legal obligation owed
to such person. At the time of dissolution, any unexpended funds
appropriated by Congress for the establishment of the Association shall
be returned to the United States Treasury.
SEC. 20. REPORTS.
(a) Report to the President and Congress.--
(1) In general.--The Association shall prepare and submit
to the President and the appropriate committees of Congress, at
the beginning of each regular session of Congress, a report on
the Association's activities for the preceding fiscal year.
(2) Report content.--The reports required by this
subsection shall include--
(A) an appraisal of the performance of Federal
financial regulatory agencies, including reports on the
compliance of Federal financial regulatory agencies
with their legal missions and mandates;
(B) the extent to which regulatory agencies should
disseminate specified information to the research and
consumer communities and consumer information to the
public;
(C) an appraisal of significant actions of State
and local governments relating to the protection of
financial consumers;
(D) recommendations for financial consumer
protection legislation; and
(E) an overview of covered persons' compliance with
the law.
SEC. 21. RELATIONSHIP TO EXISTING LAW.
Nothing in this Act shall be construed to limit the right of any
individual or group of individuals to initiate, intervene in, or
otherwise participate in any proceeding before a regulatory agency or
court, nor to relieve any regulatory agency, court, or other public
body of any obligation, or affect its discretion to permit intervention
or participation by a consumer or group or class of consumers or
citizens in any proceeding or activity.
SEC. 22. CONSTRUCTION.
The provisions of this Act shall be construed in such a manner as
best to enable the Association to effectively represent and protect the
interests of financial services consumers.
SEC. 23. SEVERABILITY.
If any provision of this Act shall be declared invalid, the other
provisions of this Act shall remain in effect.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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