CFPB Stability Act of 2022
This bill restructures the leadership and funding of the Consumer Financial Protection Bureau.
Specifically, the bill removes the bureau from the Federal Reserve System. Additionally, the bill eliminates the positions of director and deputy director and establishes a five-person panel appointed by the President and confirmed by the Senate, with not more than three members belonging to any one political party.
Under the bill, the inspector general of the bureau must be appointed by the President and confirmed by the Senate. Under current law, the inspector general of the Federal Reserve Board also serves as the inspector general of the bureau.
Further, the source of funding for the bureau is changed from Federal Reserve System transfers to annual appropriations. Under current law, the transfers from the Federal Reserve System permit the bureau to be funded outside of the annual appropriations process.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5280 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 5280
To amend the Consumer Financial Protection Act of 2010 to subject the
Bureau of Consumer Financial Protection to the regular appropriations
process, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 15, 2022
Mr. Toomey (for himself and Mr. Hagerty) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Consumer Financial Protection Act of 2010 to subject the
Bureau of Consumer Financial Protection to the regular appropriations
process, 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 ``CFPB Stability Act of 2022''.
SEC. 2. MAKING THE BUREAU A COMMISSION.
(a) In General.--The Consumer Financial Protection Act of 2010 (12
U.S.C. 5481 et seq.) is amended--
(1) in section 1011--
(A) in subsection (a), by striking ``in the Federal
Reserve System,'';
(B) by striking subsections (b), (c), and (d);
(C) by redesignating subsection (e) as subsection
(j);
(D) in subsection (j), as so redesignated, by
striking ``, including in cities in which the Federal
reserve banks, or branches of such banks, are
located,''; and
(E) by inserting after subsection (a) the
following:
``(b) Authority To Prescribe Regulations.--The Bureau may prescribe
such regulations and issue such orders in accordance with this title as
the Bureau may determine to be necessary for carrying out this title
and all other laws within the Bureau's jurisdiction and shall exercise
any authorities granted under this title and all other laws within the
Bureau's jurisdiction.
``(c) Composition of the Bureau.--
``(1) In general.--The Bureau shall be composed of 5
members who shall be appointed by the President, by and with
the advice and consent of the Senate.
``(2) Staggering.--The members of the Bureau 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 Bureau,
including the Chair, shall serve for a term of 5 years.
``(B) Removal.--The President may remove any member
of the Bureau for inefficiency, neglect of duty, or
malfeasance in office.
``(C) Vacancies.--Any member of the Bureau
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
Bureau 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 Bureau shall engage in any other business,
vocation, or employment.
``(d) Affiliation.--Not more than 3 members of the Bureau shall be
members of any one political party.
``(e) Chair of the Bureau.--
``(1) Initial chair.--The first member and Chair of the
Bureau shall be the individual serving as Chair of the Bureau
of Consumer Financial Protection on the day before the date of
the enactment of this subsection.
``(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 Bureau.
``(3) Authority.--The Chair shall be the principal
executive officer of the Bureau, and shall exercise all of the
executive and administrative functions of the Bureau, including
with respect to--
``(A) the appointment and supervision of personnel
employed under the Bureau (other than personnel
employed regularly and full time in the immediate
offices of members of the Bureau other than the Chair);
``(B) the distribution of business among personnel
appointed and supervised by the Chair and among
administrative units of the Bureau; 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 Bureau and by such
regulatory decisions, findings, and determinations as the
Bureau 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 Bureau may not be submitted by
the Chair without the prior approval of the Bureau.
``(6) Term.--The term of each Chair serving under this
subsection shall expire on the earlier of--
``(A) the date that is 5 years after the date on
which the Chair began serving; and
``(B) the date on which the individual who was
President while the Chair was serving leaves office.
``(f) Initial Quorum Established.--The first member and Chair of
the Bureau described under subsection (e)(1) shall constitute a quorum
for the transaction of business until the President has appointed all 5
members of the Bureau 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 Bureau after the establishment of an initial quorum
under subsection (f) shall impair the right of the remaining members of
the Bureau to exercise all the powers of the Bureau. Three members of
the Bureau shall constitute a quorum for the transaction of business,
except that if there are only 3 members serving on the Bureau because
of vacancies in the Bureau, 2 members of the Bureau shall constitute a
quorum for the transaction of business. If there are only 2 members
serving on the Bureau because of vacancies in the Bureau, 2 members
shall constitute a quorum for the 6-month period beginning on the date
of the vacancy which caused the number of Bureau members to decline to
2.
``(h) Seal.--The Bureau 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 bureau.--The 4 other members of
the Bureau 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);
(3) in section 1013(a), by striking paragraph (2) and
inserting the following:
``(2) Compensation.--Notwithstanding any otherwise
applicable provision of title 5, United States Code, concerning
compensation, including the provisions of chapter 51 and
chapter 53, the rates of basic pay for all employees of the
Bureau may be set and adjusted by the Chair.''; and
(4) 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.''.
(b) Presidential Appointment of Inspector General of the Financial
Product Safety Bureau.--The Inspector General Act of 1978 (5 U.S.C.
App.) is amended--
(1) in section 8G--
(A) in subsection (a)(2), by striking ``and the
Bureau of Consumer Financial Protection'';
(B) in subsection (c), by striking ``For the
purposes of implementing this section'' and all that
follows through the end of the subsection; and
(C) in subsection (g)(3), by striking ``and the
Bureau of Consumer Financial Protection''; and
(2) in section 12--
(A) in paragraph (1), by inserting ``the Chair of
the Bureau of Consumer Financial Protection;'' after
``the President of the Export-Import Bank;''; and
(B) in paragraph (2), by inserting ``the Bureau of
Consumer Financial Protection,'' after ``the Export-
Import Bank,''.
SEC. 3. SUBJECTING THE BUREAU OF CONSUMER FINANCIAL PROTECTION TO THE
REGULAR APPROPRIATIONS PROCESS.
(a) In General.--Section 1017 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5497) is amended--
(1) in subsection (a)--
(A) in the subsection heading, by striking
``Transfer of Funds From Board Of Governors.--'' and
inserting ``Budget and Financial Management.--'';
(B) by striking paragraphs (1) through (3);
(C) by redesignating paragraphs (4) and (5) as
paragraphs (1) and (2), respectively; and
(D) in paragraph (1), as so redesignated--
(i) in the paragraph heading, by striking
``Budget and financial management.--'' and
inserting ``In general.--'';
(ii) by striking subparagraph (E); and
(iii) by redesignating subparagraph (F) as
subparagraph (E);
(2) by striking subsections (b) and (c);
(3) by redesignating subsections (d) and (e) as subsections
(b) and (c), respectively;
(4) in subsection (b), as so redesignated--
(A) in paragraph (2)--
(i) in the first sentence, by inserting
``direct'' before ``victims''; and
(ii) by striking the second sentence; and
(B) by adding at the end the following:
``(3) Treatment of excess amounts.--If, after the Bureau
obtains a civil penalty in a judicial or administrative action
under Federal consumer financial laws, deposits that civil
penalty into the Civil Penalty Fund under paragraph (1), and,
under paragraph (2), makes payments to all of the direct
victims of activities for which that civil penalty was imposed,
amounts remain in the Civil Penalty Fund with respect to that
civil penalty, the Bureau shall transfer those excess amounts
to the general fund of the Treasury.''; and
(5) in subsection (c), as so redesignated--
(A) by striking paragraphs (1) through (3) and
inserting the following:
``(1) Authorization of appropriations.--There is authorized
to be appropriated such funds as may be necessary to carry out
this title for fiscal year 2024.''; and
(B) by redesignating paragraph (4) as paragraph
(2).
(b) Effective Date.--The amendments made by this section shall take
effect on October 1, 2023.
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 the term appears, other than where the term is
used to refer to a Director other than the Director of
the Bureau of Consumer Financial Protection, and
inserting ``Chair of the Bureau'';
(B) by striking ``Director'' each place the term
appears and inserting ``Chair'', other than where the
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) in the matter preceding subparagraph
(A), 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''; and
(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''.
(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''; and
(2) in section 1447, by striking ``Director'' each place
the term appears and inserting ``Chair''.
(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 ``Chair of the Bureau of Consumer Financial
Protection''.
(d) Expedited Funds Availability Act.--The Expedited Funds
Availability Act (12 U.S.C. 4001 et seq.) is amended by striking
``Director of the Bureau'' each place the term appears and inserting
``Chair of the Bureau''.
(e) Federal Deposit Insurance Act.--Section 2 of the Federal
Deposit Insurance Act (12 U.S.C. 1812) is amended by striking
``Director of the Consumer Financial Protection Bureau'' each place the
term appears and inserting ``Chair of the Consumer Financial Protection
Bureau''.
(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)) is amended by
striking ``Director of the Consumer Financial Protection Bureau'' and
inserting ``Chair of the Consumer Financial Protection Bureau''.
(g) Financial Literacy and Education Improvement Act.--Section 513
of the Financial Literacy and Education Improvement Act (20 U.S.C.
9702) is amended by striking ``Director'' each place the term appears
and inserting ``Chair''.
(h) Home Mortgage Disclosure Act of 1975.--Section 307 of the Home
Mortgage Disclosure Act of 1975 (12 U.S.C. 2806) is amended by striking
``Director of the Bureau of Consumer Financial Protection'' each place
the term appears and inserting ``Chair of the Bureau of Consumer
Financial Protection''.
(i) Interstate Land Sales Full Disclosure Act.--The Interstate Land
Sales Full Disclosure Act (15 U.S.C. 1701 et seq.) is amended--
(1) in section 1402 (15 U.S.C. 1701), by striking paragraph
(1) and inserting the following:
``(1) `Chair' means the Chair of the Bureau of Consumer
Financial Protection;''; and
(2) by striking ``Director'' each place the term appears
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) 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 Chair of the Bureau of
Consumer Financial Protection (hereafter in this section
referred to as the `Chair')''; and
(2) by striking ``Director'' each place the term appears
and inserting ``Chair''.
(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.) is amended--
(1) by striking ``Director'' each place the term appears in
headings and text, other than where the term is used in the
context of the Director of the Office of Thrift Supervision,
and inserting ``Chair''; and
(2) in section 1503 (12 U.S.C. 5102), by striking paragraph
(10) and inserting the following:
``(10) Chair.--The term `Chair' means the Director of the
Bureau of Consumer Financial Protection.''.
(l) Title 44, United States Code.--Section 3513(c) of title 44,
United States Code is amended by striking ``Director of the Bureau of
Consumer Financial Protection'' and inserting ``Chair of the Bureau of
Consumer Financial Protection''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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