H.R. 5534 — what changed

changed Section 1022(b) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5512(b)) is amended by adding at the end the following:

“(5) Procedures for Bureau guidance

changed “(A) Guidance requirements—The Director shall issue guidance that is necessary or appropriate to enable the Bureau to carry out Federal consumer financial law, including facilitating compliance with such law.Definitions—In this paragraph—

changed “(B) Guidance defined—For purposes of this paragraph, “(i) the term guidance—Bureau means—

changed “(i) means any written interpretive or legislative rule, interim final rule, bulletin, statement of policy, letter, examination manual, frequently asked question, or other document issued by “(I) the Bureau regarding compliance with a Federal consumer financial law that is exempt from notice and comment rulemaking requirements under section 553(b) Director of title 5, United States Code; andthe Bureau;

changed “(ii) does not include a complaint, consent order, judgment, or decision issued under subtitle E.“(II) the Deputy Director of the Bureau; and

added “(III) any employee of the Bureau described in section 1013(a)(1)(B); and

added “(ii) the term guidance—

added “(I) means—

added “(aa) an agency statement of general applicability and future effect, other than a regulatory action, that sets forth a policy on a statutory, regulatory, or technical issue or an interpretation of a statutory or regulatory issue; and

added “(bb) any written interpretive rule, bulletin, statement of policy, letter, examination manual, frequently asked question, notice, directive, news release, blog post, small entity compliance guide, or other authoritative document issued by the Bureau regarding compliance with a Federal consumer financial law; and

added “(II) does not include—

added “(aa) a purely internal Bureau policy;

added “(bb) a law enforcement communication such as a complaint, consent order, judgment, legal opinion, warning letter, investigatory letter, notice of hearing, civil investigative demand, subpoena, no-action letter, advisory opinion, or any request in lieu of the foregoing;

added “(cc) an individualized supervisory communication such as a supervisory letter, report of examination, memorandum of understanding, board resolution, matter requiring attention, or individualized communication or agreement pursuant to the supervisory authority of the Bureau; or

added “(dd) a decision issued under subtitle E.

added “(B) Guidance requirements—The Director shall issue guidance that is necessary or appropriate to enable the Bureau to carry out Federal consumer financial law, including facilitating compliance with such law.

“(C) Rulemaking

added “(i) Proposed rule—Not later than 18 months after the date of enactment of this paragraph, the Bureau shall publish in the Federal Register and on the website of the Bureau a proposed rule defining—

added “(I) each type of guidance the Bureau shall provide;

added “(II) the criteria the Bureau shall use for selecting each type of guidance;

removed “(i) Proposed rule—The Bureau shall publish in the Federal Register and on its website within 1 year after the date of the enactment of this paragraph a proposed rule defining—

removed “(I) each type of guidance it shall provide;

removed “(II) the criteria the Bureau will use for selecting each type of guidance;

“(III) the process and timelines for requests for guidance;

added “(IV) the time periods for the response of the Bureau to a request for each type of guidance; and

added “(V) a process for amending or revoking guidance issued under the rule, including a process for public input on any proposal to amend or revoke guidance, unless the Bureau determines public input is not required due to public exigency.

added “(ii) Final rule—Not later than 1 year after the date on which the proposed rule described in clause (i) is published, the Bureau shall publish a final rule based on the proposed rule.

added “(D) Reliance on Bureau guidance—No person shall be held liable for any act done or omitted in good faith in conformity with any applicable guidance from the Bureau or any predecessor agency that was in effect at the time of the act or omission, even if the guidance is later revoked, amended, or rendered inconsistent by guidance or action by the Bureau or a determination by a court of competent jurisdiction.

added “(E) Development of a penalty matrix

added “(i) Proposed rule—Not later than 18 months after the date of the enactment of this subparagraph, the Bureau shall publish in the Federal Register and on the website of the Bureau a proposed rule establishing guidelines for determining the size of any civil monetary penalties issued by the Bureau based on the severity of the actionable conduct in violation of a Federal consumer financial law and the level of culpability. The regulations prescribed under this paragraph shall, to the extent possible, align with any chart, matrix, rule, or guideline published by the Office of the Comptroller of the Currency, the Corporation, or the Board of Governors.

added “(ii) Final rule—Not later than 1 year after the date on which the proposed rule described in clause (i) is published, the Bureau shall publish a final rule based on the proposed rule.”

removed “(IV) the time periods for the response of the Bureau to a request for each type of guidance;

removed “(V) a process for amending or revoking guidance issued under the rule, including a process for public notice and comment on any proposal to amend or revoke guidance, unless the Bureau determines public notice and comment is not required due to public exigency.

removed “(ii) Final rule—The Bureau shall publish a final rule based on the proposed rule described in clause (i) within 18 months after the date of the enactment of this paragraph.

removed “(D) Reliance on Bureau guidance—No person shall be held liable for any act done or omitted in good faith in conformity with any applicable guidance from the Bureau or any predecessor agency that was in effect at the time of such act or omission, even if such guidance is later revoked, amended, or rendered inconsistent by guidance or action by the Bureau or a determination by a court of competent jurisdiction.

removed “(E) Development of a penalty matrix—Not later than 18 months after the date of the enactment of this subparagraph, the Bureau shall publish in the Federal Register and on its website a proposed rule establishing guidelines for determining the size of any civil monetary penalties issued by the Bureau based on the severity of the actionable conduct in violation of a Federal consumer financial law and the level of culpability. The regulations prescribed under this paragraph shall, to the fullest extent possible, align with any chart, matrix, rule, or guideline published by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, or the Board of Governors of the Federal Reserve System.”