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Bill
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H.R. 2798 — what changed

CFPB Transparency and Accountability Reform Act

From Introduced in House to Reported in House. 4 sections amended between Introduced in House and Reported in House.

Sec. 102 Making the Bureau an independent agency led by a commission

The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.) is amended—

(1)
in section 1011—
(A)
in subsection (a)—
(i)
by striking “in the Federal Reserve System,”; and
(ii)
by striking “independent bureau” and inserting “independent agency”;
(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 new subsections:

changed “(b) Authority To Prescribe to prescribe regulations—The commission of 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 commission

“(1) In general—The management of the Bureau shall be vested in a commission, which shall be composed of 5 members who shall be appointed by the President, by and with the advice and consent of the Senate, and at least 2 of whom shall have private sector experience in the provision of 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—Except with respect to the initial staggered terms described under paragraph (2), 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.

“(6) Designation—The Chair shall be known as both the “Chair of the commission” of the Bureau and the “Chair of the Bureau”.

“(f) Initial quorum established—For the 6 month period beginning on the date of enactment of this subsection, 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 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 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)
changed in section 1012(c), by striking paragraphs (2), (3), (4), and (5); and1012(c)—
(A)
added in the heading, by striking “Autonomy of the Bureau” and inserting “Coordination with the Board of Governors”;
(B)
added by striking “(1) Coordination with the board of governors.—”; and
(C)
added 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.” and inserting “Not fewer than half of all members shall have private sector experience in the provision of consumer financial products and services.”.

Sec. 104 Conforming amendments

(a)
Consumer Financial Protection Act of 2010—
(1)
In general— Except as provided under paragraph (2), the Consumer Financial Protection 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 “Bureau”;
(B)
by striking “Director” each place such term appears and inserting “Bureau”, 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—
(A)
In general— The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.) is amended—
(i)
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”;
(ii)
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”;
(iii)
in section 1016(a), by striking “Director of the Bureau” and inserting “Chair of the Bureau”; and
(iv)
by striking section 1066.
(B)
Clerical amendment— The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by striking the item relating to section 1066.
(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 of the Bureau” each place such term appears and inserting “Chair of the Bureau”.
(c)
changed Electronic Fund Transfer Act— Section 920(a)(4)(C) 921(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.), 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 “Bureau”.
(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 Bureau of Consumer Financial Protection”.
(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 Bureau of Consumer Financial Protection”.
(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”.
(h)
Home Mortgage Disclosure Act of 1975— Section 307 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2806 et seq), 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 “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), as amended by section 1098A of the Consumer Financial Protection Act of 2010, is amended—
(1)
in section 1402—
(A)
by striking paragraph (1); and
(B)
by redesignating paragraphs (2) through (12) as paragraphs (1) through (11), respectively;
(2)
in section 1403(c)—
(A)
by striking “him” and inserting “the Bureau”; and
(B)
by striking “he” and inserting “the Bureau”;
(3)
in section 1407—
(A)
in subsection (c), by striking “he” and inserting “the Bureau”; and
(B)
in subsection (e), by striking “Director or anyone designated by him” and inserting “Bureau”;
(4)
in section 1411(a)—
(A)
by striking “his findings” and inserting “the findings of the Bureau”; and
(B)
by striking “his recommendation” and inserting “the recommendation of the Bureau”;
(5)
in section 1415—
(A)
in subsection (a), by striking “he may, in his discretion,” and inserting “the Bureau may, in the discretion of the Bureau,”;
(B)
in subsection (b)—
(i)
by striking “in his discretion” each place such term appears and inserting “in the discretion of the Bureau”;
(ii)
by striking “he deems” and inserting “the Bureau determines”; and
(iii)
by striking “he may deem” and inserting “the Bureau may determine”; and
(C)
in subsection (c), by striking “the Director, or any officer designated by him,” and inserting “the Bureau”;
(6)
in section 1416(a)—
(A)
by striking “Director of the Bureau of Consumer Financial Protection who may delegate any of his” and inserting “Bureau of Consumer Financial Protection, which may delegate any”;
(B)
by striking “his administrative” and inserting “administrative”; and
(C)
by striking “himself” and inserting “the commission of the Bureau”;
(7)
in section 1418a(b)(4), by striking “Secretary’s determination” and inserting “determination of the Bureau”; and
(8)
by striking “Director” each place such term appears and inserting “Bureau”.
(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 Bureau of Consumer Financial Protection (hereafter in this section referred to as the “Bureau”)”; and
(2)
by striking “Director” each place such term appears and inserting “Bureau”.
(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 and inserting “Bureau of Consumer Financial Protection”; and
(2)
in section 1503, by striking paragraph (10).
(l)
changed 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 “Bureau of Consumer Financial Protection”.the”.

Sec. 202 Bringing the Bureau into the regular appropriations process

(a)
added In general— Section 1017 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497) is amended—

removed Section 1017 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5497) is amended—

(1)
renumbered was (3) in subsection (a)—
(A)
renumbered was (3)(2) by amending the heading of such subsection to read as follows: “Budget, financial management, and audit.—”;
(B)
renumbered was (3)(3) by striking paragraphs (1), (2), and (3);
(C)
renumbered was (3)(4) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2), respectively; and
(D)
renumbered was (3)(5) by striking subparagraphs (E) and (F) of paragraph (1), as so redesignated;
(2)
renumbered was (4) by striking subsections (b) and (c);
(3)
renumbered was (5) by redesignating subsections (d) and (e) as subsections (b) and (c), respectively; and
(4)
renumbered was (6) in subsection (c), as so redesignated—
(A)
renumbered was (6)(2) by striking paragraphs (1), (2), and (3) and inserting the following:

added “(1) Authorization of appropriations—There is authorized to be appropriated to the Bureau $650,000,000 for fiscal year 2024 to carry out the authorities of the Bureau.”

removed “(1) Authorization of appropriations—There is authorized to be appropriated to the Bureau from unobligated amounts contained in the Consumer Financial Civil Penalty Fund $650,000,000 for fiscal year 2024 to carry out the authorities of the Bureau.”

(B)
renumbered was (6)(3) by redesignating paragraph (4) as paragraph (2).
(b)
added Transfer of amounts from Civil Penalty Fund— On the date that funds are appropriated pursuant to section 1017(c)(1) of the Consumer Financial Protection Act of 2010 (as amended by subsection (a)) for fiscal year 2024, there is transferred an equal amount of funds from the Consumer Financial Civil Penalty Fund to the general fund of the Treasury.

Sec. 702 Bureau whistleblower incentives and protection

(a)
In general— The Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.) is amended by inserting after section 1017 the following:

“1017A. Whistleblower incentives and protection

“(a) Definitions—In this section:

“(1) Administrative proceeding or court action—The term administrative proceeding or court action means any judicial or administrative action brought by the Bureau that results in monetary sanctions exceeding $1,000,000.

“(2) Fund—The term Fund means the “Consumer Financial Civil Penalty Fund” established under section 1017(b)(1).

“(3) Monetary sanctions—The term monetary sanctions, when used with respect to any administrative proceeding or court action means any monies, including penalties, disgorgement, restitution, or interest, ordered to be paid or other amounts of relief obtained under section 1055(a)(2).

“(4) Original information—The term original information means information that—

“(A) is derived from the independent knowledge or analysis of a whistleblower;

“(B) is not known to the Bureau from any other source, unless the whistleblower is the original source of the information;

“(C) is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, or from the news media, unless the whistleblower is a source of the information; and

“(D) is not exclusively derived from an allegation made in an audit, examination, or investigation.

“(5) Successful enforcement—The term successful enforcement, when used with respect to any administrative proceeding or court action, includes any settlement of such action.

“(6) Whistleblower—The term whistleblower means any individual, or 2 or more individuals acting jointly, who provides original information relating to a violation of Federal consumer financial law, consistent with any rule issued by the Bureau under this section.

“(b) Awards

“(1) In general—In any administrative proceeding or court action the Bureau, subject to rules prescribed by the Bureau and subject to subsection (c), shall pay an award or awards to 1 or more whistleblowers who voluntarily provided original information that led to the successful enforcement of the administrative proceeding or court action in an aggregate amount equal to—

“(A) not less than the greater of—

“(i) 10 percent, in total, of monetary sanctions imposed and collected in the administrative proceeding or court action; or

“(ii) $50,000; and

“(B) not more than 30 percent, in total, of such monetary sanctions.

“(2) Payment of awards—Any amount paid under paragraph (1) shall be paid from the Fund.

“(3) Award maximum—Notwithstanding any other provision in this section, the maximum award to any single whistleblower is limited to $5,000,000.

“(c) Determination of amount of award; denial of award

“(1) Determination of amount of award

“(A) Discretion—The determination of the percentage amount of an award made under subsection (b) shall be in the discretion of the Bureau.

“(B) Criteria—In determining the percentage amount of an award made under subsection (b), the Bureau shall take into consideration—

“(i) the significance of the information provided by the whistleblower to the successful enforcement of the administrative proceeding or court action;

“(ii) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in an administrative proceeding or court action;

“(iii) the programmatic interest of the Bureau in deterring violations of Federal consumer financial law (including applicable rules) by making awards to whistleblowers who provide information that leads to the successful enforcement of such laws; and

“(iv) such additional relevant factors as the Bureau may establish by rule.

“(2) Denial of award—No award under subsection (b) may be made—

“(A) to any whistleblower who is, or was at the time the whistleblower acquired the original information submitted to the Bureau, a member, officer, or employee of an entity described in subclauses (I) through (V) of subsection (h)(1)(C)(i);

“(B) to any whistleblower who is convicted of a criminal violation related to the administrative proceeding or court action for which the whistleblower otherwise could receive an award under this section;

“(C) to any whistleblower who is found to be liable for the conduct in the administrative proceeding or court action, or a related action, for which the whistleblower otherwise could receive an award under this section;

“(D) to any whistleblower who planned and initiated the conduct at issue in the administrative proceeding or court action for which the whistleblower otherwise could receive an award under this section;

“(E) to any whistleblower who submits information to the Bureau that is based on the facts underlying the administrative proceeding or court action previously submitted by another whistleblower;

“(F) to any whistleblower who knowingly and willfully makes any false, fictitious, or fraudulent statement or representation, or who makes or uses any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement or entry; and

“(G) to any whistleblower who fails to submit information to the Bureau in such form as the Bureau may, by rule, require.

“(d) Representation

“(1) Permitted representation—Any whistleblower who makes a claim for an award under subsection (b) may be represented by counsel.

“(2) Required representation

“(A) In general—Any whistleblower who anonymously makes a claim for an award under subsection (b) shall be represented by counsel if the whistleblower submits the information upon which the claim is based.

“(B) Disclosure of identity—Prior to the payment of an award, a whistleblower shall disclose the identity of the whistleblower and provide such other information as the Bureau may require, directly or through counsel of the whistleblower.

“(e) No contract necessary—No contract or other agreement with the Bureau is necessary for any whistleblower to receive an award under subsection (b), unless otherwise required by the Bureau by rule.

“(f) Appeals—Any determination made under this section, including whether, to whom, or in what amount to make awards, shall be in the discretion of the Bureau. Any such determination, except the determination of the amount of an award if the award was made in accordance with subsection (b), may be appealed to the appropriate court of appeals of the United States not more than 30 days after the determination is issued by the Bureau. The court shall review the determination made by the Bureau in accordance with section 706 of title 5, United States Code.

“(g) Reports to Congress—Not later than October 30 of each year, the Bureau shall transmit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the Bureau’s whistleblower award program under this section, including a description of the number of awards granted and the types of cases in which awards were granted during the preceding fiscal year.

“(h) Protection of whistleblowers

“(1) Confidentiality

“(A) In general—Except as provided in subparagraphs (B) and (C), the Bureau and any officer or employee of the Bureau, may not disclose any information, including information provided by a whistleblower to the Bureau, which could reasonably be expected to reveal the identity of a whistleblower, except in accordance with the provisions of section 552a of title 5, United States Code, unless and until required to be disclosed to a defendant or respondent in connection with a public proceeding instituted by the Bureau or any entity described in subparagraph (C). For purposes of section 552 of title 5, United States Code, this paragraph shall be considered a statute described in subsection (b)(3)(B) of such section 552.

“(B) Effect—Nothing in this paragraph is intended to limit the ability of the Attorney General to present such evidence to a grand jury or to share such evidence with potential witnesses or defendants in the course of an ongoing criminal investigation.

“(C) Availability to Government agencies

changed “(i) In general—Without the loss of its status as confidential in the hands of the Bureau, all information referred to in subparagraph (A) may, in the discretion of the Bureau, when determined by the Bureau to be necessary or appropriate, be made available to—to-—

“(I) the Department of Justice;

“(II) an appropriate department or agency of the Federal Government, acting within the scope of its jurisdiction;

“(III) a State attorney general in connection with any criminal investigation;

“(IV) an appropriate department or agency of any State, acting within the scope of its jurisdiction; and

“(V) a foreign regulatory authority.

“(ii) Maintenance of information—Each of the entities, agencies, or persons described in clause (i) shall maintain information described in that clause as confidential, in accordance with the requirements in subparagraph (A).

“(2) Rights retained—Nothing in this section shall be deemed to diminish the rights, privileges, or remedies of any whistleblower under section 1057, any other Federal or State law, or under any collective bargaining agreement.

“(i) Rulemaking authority—The Bureau shall have the authority to issue such rules as may be necessary or appropriate to implement the provisions of this section.

“(j) Original information—Information submitted to the Bureau by a whistleblower in accordance with rules implementing this section shall not lose its status as original information solely because the whistleblower submitted such information prior to the effective date of such rules, provided such information was submitted after the date of enactment of this section.”

(b)
Clerical amendment— The table of contents under section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 1017 the following: