Financial Product Safety Commission Act of 2018
This bill removes the Consumer Financial Protection Bureau from the Federal Reserve System, converts the bureau into an independent commission, and modifies its leadership structure.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5266 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 5266
To amend the Consumer Financial Protection Act of 2010 to make the
Bureau of Consumer Financial Protection an independent Financial
Product Safety Commission, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 13, 2018
Mr. Ross (for himself, Ms. Sinema, Mr. David Scott of Georgia, and Mrs.
Wagner) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Consumer Financial Protection Act of 2010 to make the
Bureau of Consumer Financial Protection an independent Financial
Product Safety Commission, 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 Product Safety Commission
Act of 2018''.
SEC. 2. MAKING THE BUREAU AN INDEPENDENT FINANCIAL PRODUCT SAFETY
COMMISSION.
The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et
seq.) is amended--
(1) in section 1011--
(A) in the heading of such section, by striking
``bureau of consumer financial protection'' and
inserting ``financial product safety commission'';
(B) in subsection (a)--
(i) in the heading of such subsection, by
striking ``Bureau'' and inserting
``Commission'';
(ii) by striking ``in the Federal Reserve
System,'';
(iii) by striking ``independent bureau''
and inserting ``independent commission'';
(iv) by striking ``Bureau of Consumer
Financial Protection'' and inserting
``Financial Product Safety Commission
(hereinafter in this section referred to as the
`Commission')''; and
(v) by striking ``Bureau'' each place such
term appears and inserting ``Commission'';
(C) by striking subsections (b), (c), and (d);
(D) by redesignating subsection (e) as subsection
(j);
(E) in subsection (j), as so redesignated--
(i) by striking ``, including in cities in
which the Federal reserve banks, or branches of
such banks, are located,''; and
(ii) by striking ``Bureau'' each place such
term appears and inserting ``Commission''; and
(F) by inserting after subsection (a) the following
new subsections:
``(b) Authority To Prescribe Regulations.--The Commission may
prescribe such regulations and issue such orders in accordance with
this title as the Commission may determine to be necessary for carrying
out this title and all other laws within the Commission's jurisdiction
and shall exercise any authorities granted under this title and all
other laws within the Commission's jurisdiction.
``(c) Composition of the Commission.--
``(1) In general.--The Commission shall be composed of 5
members who shall be appointed by the President, by and with
the advice and consent of the Senate, from among individuals
who--
``(A) are citizens of the United States; and
``(B) have strong competencies and experiences
related to consumer financial products and services.
``(2) Staggering.--The members of the Commission shall
serve staggered terms, which initially shall be established by
the President for terms of 1, 2, 3, 4, and 5 years,
respectively.
``(3) Terms.--
``(A) In general.--Each member of the Commission,
including the Chair, shall serve for a term of 5 years.
``(B) Removal.--The President may remove any member
of the Commission for inefficiency, neglect of duty, or
malfeasance in office.
``(C) Vacancies.--Any member of the Commission
appointed to fill a vacancy occurring before the
expiration of the term to which that member's
predecessor was appointed (including the Chair) shall
be appointed only for the remainder of the term.
``(D) Continuation of service.--Each member of the
Commission may continue to serve after the expiration
of the term of office to which that member was
appointed until a successor has been appointed by the
President and confirmed by the Senate, except that a
member may not continue to serve more than 1 year after
the date on which that member's term would otherwise
expire.
``(E) Other employment prohibited.--No member of
the Commission shall engage in any other business,
vocation, or employment.
``(d) Affiliation.--Not more than 3 members of the Commission shall
be members of any one political party.
``(e) Chair of the Commission.--
``(1) Initial chair.--The first member and Chair of the
Commission shall be the individual serving as Director of the
Bureau of Consumer Financial Protection on the day before the
date of the enactment of this subsection. Such individual shall
serve until the President has appointed all 5 members of the
Commission in accordance with subsection (c).
``(2) Subsequent chair.--Of the 5 members appointed in
accordance with subsection (c), the President shall appoint 1
member to serve as the subsequent Chair of the Commission.
``(3) Authority.--The Chair shall be the principal
executive officer of the Commission, and shall exercise all of
the executive and administrative functions of the Commission,
including with respect to--
``(A) the appointment and supervision of personnel
employed under the Commission (other than personnel
employed regularly and full time in the immediate
offices of members of the Commission other than the
Chair);
``(B) the distribution of business among personnel
appointed and supervised by the Chair and among
administrative units of the Commission; and
``(C) the use and expenditure of funds.
``(4) Limitation.--In carrying out any of the Chair's
functions under the provisions of this subsection the Chair
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.
``(5) Requests or estimates related to appropriations.--
Requests or estimates for regular, supplemental, or deficiency
appropriations on behalf of the Commission may not be submitted
by the Chair without the prior approval of the Commission.
``(f) Initial Quorum Established.--The first member and Chair of
the Commission described under subsection (e)(1) shall constitute a
quorum for the transaction of business until the President has
appointed all 5 members of the Commission in accordance with subsection
(c). Following such appointment of 5 members, the quorum requirements
of subsection (g) shall apply.
``(g) No Impairment by Reason of Vacancies.--No vacancy in the
members of the Commission after the establishment of an initial quorum
under subsection (f) shall impair the right of the remaining members of
the Commission to exercise all the powers of the Commission. Three
members of the Commission shall constitute a quorum for the transaction
of business, except that if there are only 3 members serving on the
Commission because of vacancies in the Commission, 2 members of the
Commission shall constitute a quorum for the transaction of business.
If there are only 2 members serving on the Commission because of
vacancies in the Commission, 2 members shall constitute a quorum for
the 6-month period beginning on the date of the vacancy which caused
the number of Commission members to decline to 2.
``(h) Seal.--The Commission shall have an official seal.
``(i) Compensation.--
``(1) Chair.--The Chair shall receive compensation at the
rate prescribed for level I of the Executive Schedule under
section 5313 of title 5, United States Code.
``(2) Other members of the commission.--The 4 other members
of the Commission shall each receive compensation at the rate
prescribed for level II of the Executive Schedule under section
5314 of title 5, United States Code.'';
(2) in section 1012(c), by striking paragraphs (2), (3),
(4), and (5); and
(3) in section 1014(b), by striking ``Not fewer than 6
members shall be appointed upon the recommendation of the
regional Federal Reserve Bank Presidents, on a rotating
basis.''.
SEC. 3. DEEMING OF NAME.
Any reference in a law, regulation, document, paper, or other
record of the United States to the Bureau of Consumer Financial
Protection, except in subsection (e)(1) of section 1011 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5491), as added by this
Act, shall be deemed a reference to the Financial Product Safety
Commission.
SEC. 4. CONFORMING AMENDMENTS.
(a) Consumer Financial Protection Act of 2010.--
(1) In general.--Except as provided under paragraph (2),
the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481
et seq.) is amended--
(A) by striking ``Director of the Bureau'' each
place such term appears, other than where such term is
used to refer to a Director other than the Director of
the Bureau of Consumer Financial Protection, and
inserting ``Financial Product Safety Commission'';
(B) by striking ``Director'' each place such term
appears and inserting ``Financial Product Safety
Commission'', other than where such term is used to
refer to a Director other than the Director of the
Bureau of Consumer Financial Protection; and
(C) in section 1002, by striking paragraph (10).
(2) Exceptions.--The Consumer Financial Protection Act of
2010 (12 U.S.C. 5481 et seq.) is amended--
(A) in section 1013(c)(3)--
(i) by striking ``Assistant Director of the
Bureau for'' and inserting ``Head of the Office
of''; and
(ii) in subparagraph (B), by striking
``Assistant Director'' and inserting ``Head of
the Office'';
(B) in section 1013(g)(2)--
(i) by striking ``Assistant director'' and
inserting ``Head of the office''; and
(ii) by striking ``an assistant director''
and inserting ``a Head of the Office of
Financial Protection for Older Americans'';
(C) in section 1016(a), by striking ``Director of
the Bureau'' and inserting ``Chair of the Financial
Product Safety Commission''; and
(D) in section 1066(a), by striking ``Director of
the Bureau is'' and inserting ``first member of the
Commission is''.
(b) Dodd-Frank Wall Street Reform and Consumer Protection Act.--The
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5301 et seq.) is amended--
(1) in section 111(b)(1)(D), by striking ``Director'' and
inserting ``Chair of the Financial Product Safety Commission'';
and
(2) in section 1447, by striking ``Director of the Bureau''
each place such term appears and inserting ``Financial Product
Safety Commission''.
(c) Electronic Fund Transfer Act.--Section 920(a)(4)(C) of the
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(a)(4)(C)), as added by
section 1075(a)(2) of the Consumer Financial Protection Act of 2010, is
amended by striking ``Director of the Bureau of Consumer Financial
Protection'' and inserting ``Financial Product Safety Commission''.
(d) Expedited Funds Availability Act.--The Expedited Funds
Availability Act (12 U.S.C. 4001 et seq.), as amended by section 1086
of the Consumer Financial Protection Act of 2010, is amended by
striking ``Director of the Bureau'' each place such term appears and
inserting ``Financial Product Safety Commission''.
(e) Federal Deposit Insurance Act.--Section 2 of the Federal
Deposit Insurance Act (12 U.S.C. 1812), as amended by section 336(a) of
the Dodd-Frank Wall Street Reform and Consumer Protection Act, is
amended by striking ``Director of the Consumer Financial Protection
Bureau'' each place such term appears and inserting ``Chair of the
Financial Product Safety Commission''.
(f) Federal Financial Institutions Examination Council Act of
1978.--Section 1004(a)(4) of the Federal Financial Institutions
Examination Council Act of 1978 (12 U.S.C. 3303(a)(4)), as amended by
section 1091 of the Consumer Financial Protection Act of 2010, is
amended by striking ``Director of the Consumer Financial Protection
Bureau'' and inserting ``Chair of the Financial Product Safety
Commission''.
(g) Financial Literacy and Education Improvement Act.--Section 513
of the Financial Literacy and Education Improvement Act (20 U.S.C.
9702), as amended by section 1013(d)(5) of the Consumer Financial
Protection Act of 2010, is amended by striking ``Director'' each place
such term appears and inserting ``Chair of the Financial Product Safety
Commission''.
(h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home
Mortgage Disclosure Act of 1975, as amended by section 1094(6) of the
Consumer Financial Protection Act of 2010, is amended by striking
``Director of the Bureau of Consumer Financial Protection'' each place
such term appears and inserting ``Financial Product Safety
Commission''.
(i) Interstate Land Sales Full Disclosure Act.--The Interstate Land
Sales Full Disclosure Act, as amended by section 1098A of the Consumer
Financial Protection Act of 2010, is amended--
(1) by amending section 1402(1) to read as follows:
``(1) `Chair' means the Chair of the Financial Product
Safety Commission;''; and
(2) in section 1416(a), by striking ``Director of the
Bureau of Consumer Financial Protection'' and inserting
``Chair''.
(j) Real Estate Settlement Procedures Act of 1974.--Section 5 of
the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604), as
amended by section 1450 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, is amended--
(1) by striking ``The Director of the Bureau of Consumer
Financial Protection (hereafter in this section referred to as
the `Director')'' and inserting ``The Financial Product Safety
Commission''; and
(2) by striking ``Director'' each place such term appears
and inserting ``Financial Product Safety Commission''.
(k) S.A.F.E. Mortgage Licensing Act of 2008.--The S.A.F.E. Mortgage
Licensing Act of 2008 (12 U.S.C. 5101 et seq.), as amended by section
1100 of the Consumer Financial Protection Act of 2010, is amended--
(1) by striking ``Director'' each place such term appears
in headings and text, other than where such term is used in the
context of the Director of the Office of Thrift Supervision,
and inserting ``Financial Product Safety Commission''; and
(2) in section 1503, by striking paragraph (10).
(l) Title 44, United States Code.--Section 3513(c) of title 44,
United States Code, as amended by section 1100D(b) of the Consumer
Financial Protection Act of 2010, is amended by striking ``Director of
the Bureau'' and inserting ``Financial Product Safety Commission''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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