665

1 (3) assuming or guaranteeing the obligations of

2 a derivatives clearing organization or a subsidiary;
3 or
4 (4) acquiring any type of equity interest or se-
5 curity of a derivatives clearing organization or a sub-
6 sidiary.
7 TITLE IV—CONSUMER FINAN-
8 CIAL PROTECTION AGENCY
9 ACT
10 SEC. 4001. SHORT TITLE.

11 This title may be cited as the ‘‘Consumer Financial

12 Protection Agency Act of 2009’’.
13 SEC. 4002. DEFINITIONS.

14 For the purposes of subtitles A through F of this

15 title, the following definitions shall apply:
16 (1) AFFILIATE.—The term ‘‘affiliate’’ means
17 any person that controls, is controlled by, or is
18 under common control with another person.
19 (2) AGENCY.—The term ‘‘Agency’’ means the
20 Consumer Financial Protection Agency.
21 (3) BANK HOLDING COMPANY.—The term
22 ‘‘bank holding company’’ has the same meaning as
23 in section 2(a) of the Bank Holding Company Act
hsrobinson on DSK69SOYB1PROD with BILLS

24 of 1956.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00665 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 666
1 (4) BOARD.—Except when used in connection
2 with the term ‘‘Board of Governors’’, the term
3 ‘‘Board’’ means the Consumer Financial Protection
4 Oversight Board.
5 (5) BOARD OF GOVERNORS.—The term ‘‘Board
6 of Governors’’ means the Board of Governors of the
7 Federal Reserve System.
8 (6) BUSINESS OF INSURANCE.—The term
9 ‘‘business of insurance’’ means the writing of insur-
10 ance or the reinsuring of risks by an insurer, includ-
11 ing all acts necessary to such writing or reinsuring
12 and the activities relating to the writing of insurance
13 or the reinsuring of risks conducted by persons who
14 act as, or are, officers, directors, agents, or employ-
15 ees of insurers or who are other persons authorized
16 to act on behalf of such persons.
17 (7) CONSUMER.—The term ‘‘consumer’’ means
18 an individual or an agent, trustee, or representative
19 acting on behalf of an individual.
20 (8) CONSUMER FINANCIAL PRODUCT OR SERV-

21 ICE.—The term ‘‘consumer financial product or

22 service’’ means any financial product, other than a
23 Federal tax return, or service to be used by a con-
hsrobinson on DSK69SOYB1PROD with BILLS

24 sumer primarily for personal, family, or household

25 purposes.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00666 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 667
1 (9) COVERED PERSON.—

2 (A) IN GENERAL.—The term ‘‘covered per-

3 son’’ means any person who engages directly or
4 indirectly in a financial activity, in connection
5 with the provision of a consumer financial prod-
6 uct or service.
7 (B) EXCLUSION.—The term ‘‘covered per-
8 son’’ shall not include the Secretary, the De-
9 partment of the Treasury, any agency or bu-
10 reau under the jurisdiction of the Secretary, or
11 any person collecting Federal taxes for the
12 United States to the extent such person is act-
13 ing in such capacity.
14 (10) CREDIT.—The term ‘‘credit’’ means the
15 right granted by a person to a consumer to defer
16 payment of a debt, incur debt and defer its payment,
17 or purchase property or services and defer payment
18 for such purchase.
19 (11) CREDIT UNION.—The term ‘‘credit union’’
20 means a Federal credit union or a State credit union
21 as defined in section 101 of the Federal Credit
22 Union Act.
23 (12) DEPOSIT.—The term ‘‘deposit’’—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (A) has the same meaning as in section

25 3(l) of the Federal Deposit Insurance Act; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00667 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 668
1 (B) includes a share in a member account
2 (as defined in section 101(5) of the Federal
3 Credit Union Act) at a credit union.
4 (13) DEPOSIT-TAKING ACTIVITY.—The term
5 ‘‘deposit-taking activity’’ means—
6 (A) the acceptance of deposits, the mainte-
7 nance of deposit accounts, or the provision of
8 services related to the acceptance of deposits;
9 (B) the acceptance of money, the provision
10 of other services related to the acceptance of
11 money, or the maintenance of members’ share
12 accounts by a credit union; or
13 (C) the receipt of money or its equivalent,
14 as the Director may determine by regulation or
15 order, received or held by the covered person
16 (or an agent for the person) for the purpose of
17 facilitating a payment or transferring funds or
18 value of funds by a consumer to a third party.
19 (14) DESIGNATED TRANSFER DATE.—The term
20 ‘‘designated transfer date’’ has the meaning pro-
21 vided in section 4602.
22 (15) DIRECTOR.—The term ‘‘Director’’ means
23 the Director of the Agency.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00668 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 669
1 (16) ENUMERATED CONSUMER LAWS.—The

2 term ‘‘enumerated consumer laws’’ means each of

3 the following:
4 (A) The Alternative Mortgage Transaction
5 Parity Act (12 U.S.C. 3801 et seq.).
6 (B) The Electronic Funds Transfer Act
7 (15 U.S.C. 1693 et seq.)
8 (C) The Equal Credit Opportunity Act (15
9 U.S.C. 1691 et seq.).
10 (D) The Fair Credit Reporting Act (15
11 U.S.C. 1681 et seq.), except with respect to sec-
12 tions 615(e) and 628 of such Act.
13 (E) The Fair Debt Collection Practices Act
14 (15 U.S.C. 1692 et seq.).
15 (F) Subsections (c), (d), (e), and (f) of sec-
16 tion 43 of the Federal Deposit Insurance Act
17 (12 U.S.C. 1831t).
18 (G) Sections 502, 503, 504, 505, 506,
19 507, 508, and 509 of the Gramm-Leach-Bliley
20 Act (15 U.S.C. 6802 et seq.).
21 (H) The Homeowners Protection Act of
22 1998.
23 (I) The Home Mortgage Disclosure Act
hsrobinson on DSK69SOYB1PROD with BILLS

24 (12 U.S.C. 2801 et seq.).

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00669 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 670
1 (J) The Real Estate Settlement Proce-
2 dures Act (12 U.S.C. 2601 et seq.).
3 (K) The Secure and Fair Enforcement for
4 Mortgage Licensing Act (12 U.S.C. 5101 et
5 seq.).
6 (L) The Truth in Lending Act (15 U.S.C.
7 1601 et seq.).
8 (M) The Truth in Savings Act (12 U.S.C.
9 4301 et seq.).
10 (17) FEDERAL BANKING AGENCY.—The term
11 ‘‘Federal banking agency’’ means the Board of Gov-
12 ernors, the Comptroller of the Currency, the Direc-
13 tor of the Office of Thrift Supervision, the Federal
14 Deposit Insurance Corporation, or the National
15 Credit Union Administration and the term ‘‘Federal
16 banking agencies’’ means all of such agencies.
17 (18) FAIR LENDING.—The term ‘‘fair lending’’
18 means fair, equitable, and nondiscriminatory access
19 to credit for both individuals and communities.
20 (19) FINANCIAL ACTIVITY.—

21 (A) IN GENERAL.—The term ‘‘financial ac-

22 tivity’’ means any of the following activities:
23 (i) Deposit-taking activities.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (ii) Extending credit and servicing

25 loans, including—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00670 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 671
1 (I) acquiring, purchasing, selling,
2 brokering, or servicing loans or other
3 extensions of credit;
4 (II) engaging in any other activ-
5 ity usual in connection with extensions
6 of credit or servicing loans, including
7 performing appraisals of real estate
8 and personal property.
9 (iii) Check cashing and check-guar-
10 anty services, including—
11 (I) authorizing a subscribing
12 merchant to accept personal checks
13 tendered by the merchant’s customers
14 in payment for goods and services;
15 and
16 (II) purchasing from a sub-
17 scribing merchant validly authorized
18 checks that are subsequently dishon-
19 ored.
20 (iv) Collecting, analyzing, maintain-
21 ing, and providing consumer report infor-
22 mation or other account information by
23 covered persons, including information re-
hsrobinson on DSK69SOYB1PROD with BILLS

24 lating to the credit history of consumers

25 and providing the information to a credit

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00671 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 672
1 grantor who is considering a consumer ap-
2 plication for credit or who has extended
3 credit to the borrower.
4 (v) Collection of debt related to any
5 consumer financial product or service.
6 (vi) Providing real estate settlement
7 services.
8 (vii) Leasing personal or real property
9 or acting as agent, broker, or adviser in
10 leasing such property if—
11 (I) the lease is on a non-oper-
12 ating basis;
13 (II) the initial term of the lease
14 is at least 90 days; and
15 (III) in the case of leases involv-
16 ing real property, at the inception of
17 the initial lease, the transaction is in-
18 tended to result in ownership of the
19 leased property to be transferred to
20 the lessee, subject to standards pre-
21 scribed by the Director.
22 (viii) Acting as an investment adviser
23 to any person (excluding an investment ad-
hsrobinson on DSK69SOYB1PROD with BILLS

24 viser that is a person regulated by the

25 Commodity Futures Trading Commission,

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00672 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 673
1 the Securities and Exchange Commission,
2 or any securities commission (or any agen-
3 cy or office performing like functions) of
4 any State).
5 (ix) Acting as financial adviser to any
6 person (excluding an investment adviser
7 that is a person regulated by the Com-
8 modity Futures Trading Commission, the
9 Securities and Exchange Commission, or
10 any securities commission (or any agency
11 or office performing like functions) of any
12 State), including—
13 (I) providing financial and other
14 related advisory services;
15 (II) providing educational
16 courses, and instructional materials to
17 consumers on individual financial
18 management matters;
19 (III) providing credit counseling
20 or tax planning services to any person
21 (excluding the preparation of returns,
22 or claims for refund, of tax imposed
23 by the Internal Revenue Code or ad-
hsrobinson on DSK69SOYB1PROD with BILLS

24 vice with respect to positions taken

25 therein, or services regulated by the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00673 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 674
1 Secretary of the Treasury under sec-
2 tion 330 of title 31, United States
3 Code); or
4 (IV) providing services to assist a
5 consumer with debt management or
6 debt settlement, with modifying the
7 terms of any extension of credit, or
8 with avoiding foreclosure.
9 (x) For purposes of this title, the fol-
10 lowing shall not be considered acting as fi-
11 nancial adviser:
12 (I) Publishing any bona fide
13 newspaper, news magazine or business
14 or financial publication of general and
15 regular circulation, including pub-
16 lishing market data, news, or data
17 analytics or investment information or
18 recommendations that are not tailored
19 to the individual needs of a particular
20 consumer.
21 (II) Providing advice, analyses,
22 or reports that do not relate to any
23 securities other than securities which
hsrobinson on DSK69SOYB1PROD with BILLS

24 are direct obligations of or obligations

25 guaranteed as to principal or interest

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00674 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 675
1 by the United States, or securities
2 issued or guaranteed by corporations
3 in which the United States has a di-
4 rect or indirect interest which shall
5 have been designated by the Secretary
6 of the Treasury, pursuant to section
7 3(a)(12) of the Securities Exchange
8 Act of 1934, as exempted securities
9 for the purposes of that Act.
10 (xi) Financial data processing by any
11 technological means, including providing
12 data processing, access to or use of data-
13 bases or facilities, or advice regarding
14 processing or archiving, if the data to be
15 processed, furnished, stored, or archived
16 are financial, banking, or economic, except
17 that it shall not be considered a ‘‘financial
18 activity’’ if with respect to financial data
19 processing the person—
20 (I) unknowingly or incidentally
21 transmits, processes, or stores finan-
22 cial data in a manner that such data
23 is undifferentiated from other types of
hsrobinson on DSK69SOYB1PROD with BILLS

24 data that the person transmits, proc-

25 esses, or stores;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00675 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 676
1 (II) does not provide to any con-
2 sumer a consumer financial product
3 or service in connection with or relat-
4 ing to in any manner financial data
5 processing; and
6 (III) does not provide a material
7 service to any covered person in con-
8 nection with the provision of a con-
9 sumer financial product or service.
10 (xii) Money transmitting.
11 (xiii) Sale, provision or issuance of
12 stored value, except that, in the case of a
13 sale, only if the seller influences the terms
14 or conditions of the stored value provided
15 to the consumer.
16 (xiv) Acting as a money services busi-
17 ness.
18 (xv) Acting as a custodian of money
19 or any financial instrument.
20 (xvi)(I) Any other activity that the Di-
21 rector defines, by regulation, as a financial
22 activity after finding that—
23 (aa) the activity has, or
hsrobinson on DSK69SOYB1PROD with BILLS

24 there is a substantial likelihood

25 that the activity will have, a ma-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00676 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 677
1 terial adverse impact on the cred-
2 itworthiness or financial well
3 being of consumers;
4 (bb) the activity is incidental
5 or complementary to any other fi-
6 nancial activity regulated by the
7 Agency; or
8 (cc) the activity is entered
9 into or conducted as a subterfuge
10 or with a purpose to evade any
11 requirement under this title, the
12 enumerated consumer laws, and
13 the authorities transferred under
14 subtitles F and H.
15 (II) For purposes of subclause (I)(bb),
16 the following activities provided to a cov-
17 ered person shall not be ‘‘incidental or
18 complementary’’:
19 (aa) Providing information prod-
20 ucts or services to a covered person
21 for identity authentication.
22 (bb) Providing information prod-
23 ucts or services for fraud or identify
hsrobinson on DSK69SOYB1PROD with BILLS

24 theft detection, prevention, or inves-

25 tigation.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00677 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 678
1 (cc) Providing document retrieval
2 or delivery services.
3 (dd) Providing public records in-
4 formation retrieval.
5 (ee) Providing information prod-
6 ucts or services for anti-money laun-
7 dering activities.
8 (B) BUSINESS OF INSURANCE EXCEP-

9 TION.—The term ‘‘financial activity’’ shall not

10 include the business of insurance.
11 (20) FINANCIAL PRODUCT OR SERVICE.—The

12 term ‘‘financial product or service’’ means any prod-

13 uct or service that, directly or indirectly, results
14 from or is related to engaging in 1 or more financial
15 activities.
16 (21) FOREIGN EXCHANGE.—The term ‘‘foreign
17 exchange’’ means the exchange, for compensation, of
18 currency of the United States or of a foreign govern-
19 ment for currency of another government.
20 (22) INSURED CREDIT UNION.—The term ‘‘in-
21 sured credit union’’ has the same meaning as in sec-
22 tion 101 of the National Credit Union Act.
23 (23) INSURED DEPOSITORY INSTITUTION.—The
hsrobinson on DSK69SOYB1PROD with BILLS

24 term ‘‘insured depository institution’’ has the same

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00678 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 679
1 meaning as in section 3 of the Federal Deposit In-
2 surance Act.
3 (24) MONEY SERVICES BUSINESS.—The term
4 ‘‘money services business’’ means a person that—
5 (A) receives currency, monetary value, or
6 payment instruments for the purpose of ex-
7 changing or transmitting the same by any
8 means, including transmission by wire, fac-
9 simile, electronic transfer, courier, the Internet,
10 or through bill payment services, or other busi-
11 nesses that facilitate third-party transfers with-
12 in the United States or to or from the United
13 States; or
14 (B) issues payment instruments or stored
15 value.
16 (25) MONEY TRANSMITTING.—The term
17 ‘‘money transmitting’’ means the receipt by a cov-
18 ered person of currency, monetary value, or payment
19 instruments for the purpose of transmitting the
20 same to any third-party by any means, including
21 transmission by wire, facsimile, electronic transfer,
22 courier, the Internet, or through bill payment serv-
23 ices.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (26) PAYMENT INSTRUMENT.—The term ‘‘pay-

25 ment instrument’’ means a check, draft, warrant,

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00679 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 680
1 money order, traveler’s check, electronic instrument,
2 or other instrument, payment of money, or monetary
3 value (other than currency).
4 (27) PERSON.—The term ‘‘person’’ means an
5 individual, partnership, company, corporation, asso-
6 ciation (incorporated or unincorporated), trust, es-
7 tate, cooperative organization, or other entity.
8 (28) PERSON REGULATED BY A STATE INSUR-

9 ANCE REGULATOR.—The term ‘‘person regulated by

10 a State insurance regulator’’ means any person who
11 is—
12 (A) engaged in the business of insurance,
13 and
14 (B) subject to regulation by any State in-
15 surance regulator,
16 but only to the extent that such person acts in such
17 capacity.
18 (29) PERSON REGULATED BY THE COMMODITY

19 FUTURES TRADING COMMISSION.—The term ‘‘person

20 regulated by the Commodity Futures Trading Com-
21 mission’’ means any futures commission merchant,
22 commodity trading adviser, commodity pool oper-
23 ator, introducing broker, boards of trade, derivatives
hsrobinson on DSK69SOYB1PROD with BILLS

24 clearing organizations, or multilateral clearing orga-

25 nizations to the extent that such person’s actions are

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00680 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 681
1 subject to the jurisdiction of the Commodity Futures
2 Trading Commission under the Commodity Ex-
3 change Act and any agent, employee, or contractor
4 acting on behalf of, registered with, or providing
5 services to such person but only to the extent the
6 person, or the employee, agent, or contractor of such
7 person, acts in a registered capacity.
8 (30) PERSON REGULATED BY THE SECURITIES

9 AND EXCHANGE COMMISSION.—The term ‘‘person

10 regulated by the Securities and Exchange Commis-
11 sion’’ means—
12 (A) a broker or dealer that is required to
13 be registered under the Securities Exchange Act
14 of 1934;
15 (B) an investment adviser that is reg-
16 istered under the Investment Advisers Act of
17 1940;
18 (C) an investment company that is re-
19 quired to be registered under the Investment
20 Company Act of 1940;
21 (D) a national securities exchange that is
22 required to be registered under the Securities
23 Exchange Act of 1934;
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00681 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 682
1 (E) a transfer agent that is required to be
2 registered under the Securities Exchange Act of
3 1934;
4 (F) a clearing corporation that is required
5 to be registered under the Securities Exchange
6 Act of 1934;
7 (G) any municipal securities dealer that is
8 registered with the Securities and Exchange
9 Commission;
10 (H) any self-regulatory organization that is
11 registered with the Securities and Exchange
12 Commission;
13 (I) any national securities exchange or
14 other entity that is required to be registered
15 under the Securities Exchange Act of 1934;
16 and
17 (J) the Municipal Securities Rulemaking
18 Board,
19 and any employee, agent, or contractor acting on be-
20 half of, registered with, or providing services to, any
21 such person, but only to the extent that the person,
22 or the employee agent, or contractor of such person,
23 acts in a registered capacity.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (31) PROVISION OF A CONSUMER FINANCIAL

25 PRODUCT OR SERVICE.—The terms ‘‘provision of a

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00682 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 683
1 consumer financial product or service’’ and ‘‘pro-
2 viding a consumer financial product or service’’
3 mean the advertisement, marketing, solicitation,
4 sale, disclosure, delivery, or account maintenance or
5 servicing of a consumer financial product or service.
6 (32) PERSON THAT PERFORMS INCOME TAX

7 PREPARATION ACTIVITIES FOR CONSUMERS.—The

8 term ‘‘person that performs income tax preparation

9 activities for consumers’’ means—
10 (A) any tax return preparer (as defined in
11 section 7701(a)(36) of the Internal Revenue
12 Code of 1986), regardless of whether com-
13 pensated, but only to the extent that the person
14 acts in such capacity;
15 (B) any person regulated by the Secretary
16 of the Treasury under section 330 of title 31,
17 United States Code, but only to the extent that
18 the person acts in such capacity; and
19 (C) any authorized IRS e-file Providers (as
20 defined for purposes of section 7216 of the In-
21 ternal Revenue Code of 1986), but only to the
22 extent that the person acts in such capacity.
23 (33) RELATED PERSON.—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (A) IN GENERAL.—The term ‘‘related per-

25 son’’, when used in connection with a covered

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00683 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 684
1 person that is not a bank holding company,
2 credit union, depository institution, means—
3 (i) any director, officer, employee
4 charged with managerial responsibility, or
5 controlling stockholder of, or agent for,
6 such covered person;
7 (ii) any shareholder, consultant, joint
8 venture partner, and any other person as
9 determined by the Director (by regulation
10 or on a case-by-case basis) who materially
11 participates in the conduct of the affairs of
12 such covered person; and
13 (iii) any independent contractor (in-
14 cluding any attorney, appraiser, or ac-
15 countant), with respect to such covered
16 person, who knowingly or recklessly par-
17 ticipates in any—
18 (I) violation of any law or regula-
19 tion; or
20 (II) breach of fiduciary duty.
21 (B) TREATMENT OF A RELATED PERSON

22 AS A COVERED PERSON.—Any person who is a

23 related person under subparagraph (A) shall be
hsrobinson on DSK69SOYB1PROD with BILLS

24 deemed to be a covered person for all purposes

25 of this title, any enumerated consumer law, and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00684 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 685
1 any law for which authorities were transferred
2 by subtitles F and H.
3 (34) SECRETARY.—The term ‘‘Secretary’’
4 means the Secretary of the Treasury.
5 (35) SERVICE PROVIDER.—

6 (A) IN GENERAL.—The term ‘‘service pro-

7 vider’’ means any person who provides a mate-
8 rial service to a covered person in the provision
9 of a consumer financial product or service, in-
10 cluding a person who—
11 (i) facilitates the design of, or oper-
12 ations relating to the provision of, the con-
13 sumer financial product or service;
14 (ii) has direct interaction with a con-
15 sumer (whether in person or via tele-
16 communication device or other similar
17 technology) regarding the consumer finan-
18 cial product or service; or
19 (iii) processes transactions relating to
20 the consumer financial product or service.
21 (B) EXCEPTIONS.—The term ‘‘service pro-
22 vider’’ shall not apply to a person solely by vir-
23 tue of such person providing or selling to a cov-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ered person—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00685 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 686
1 (i) a support service of a type pro-
2 vided to businesses generally or a similar
3 ministerial service;
4 (ii) a service that does not materially
5 affect the terms or conditions of the con-
6 sumer financial product or service, its per-
7 formance or operation, or the propensity of
8 a consumer to obtain or use such product
9 or service; or
10 (iii) time or space for an advertise-
11 ment for a consumer financial product or
12 service through print, newspaper, or elec-
13 tronic media.
14 (36) STATE.—The term ‘‘State’’ means any
15 State, territory, or possession of the United States,
16 the District of Columbia, Commonwealth of Puerto
17 Rico, Commonwealth of the Northern Mariana Is-
18 lands, Guam, American Samoa, or the United States
19 Virgin Islands.
20 (37) STORED VALUE.—The term ‘‘stored
21 value’’—
22 (A) means funds or monetary value rep-
23 resented in any electronic format, whether or
hsrobinson on DSK69SOYB1PROD with BILLS

24 not specially encrypted, and stored or capable

25 of storage on electronic media in such a way as

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00686 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 687
1 to be retrievable and transferred electronically;
2 and
3 (B) includes a prepaid debit card or prod-
4 uct (other than a card or product used solely
5 for telephone services) or any other similar
6 product,
7 regardless of whether the amount of the funds or
8 monetary value may be increased or reloaded.
9 Subtitle A—Establishment of the
10 Agency
11 SEC. 4101. ESTABLISHMENT OF THE CONSUMER FINANCIAL

12 PROTECTION AGENCY.

13 (a) AGENCY ESTABLISHED.—There is established the

14 Consumer Financial Protection Agency as an independent
15 agency to regulate the provision of consumer financial
16 products or services under this title, the enumerated con-
17 sumer laws, and the authorities transferred under sub-
18 titles F and H.
19 (b) PRINCIPAL OFFICE.—The principal office of the
20 Agency shall be located in the city of Washington, District
21 of Columbia, at 1 or more sites.
22 SEC. 4102. DIRECTOR.

23 (a) ESTABLISHMENT OF POSITION.—

hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00687 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 688
1 (1) IN GENERAL.—There is hereby established
2 the position of the Director of the Agency who shall
3 be the head of the Agency.
4 (2) AUTHORITY TO PRESCRIBE REGULA-

5 TIONS.—The Director may prescribe such regula-

6 tions and issue such orders in accordance with this
7 title as the Director may determine to be necessary
8 for carrying out this title and all other laws within
9 the Director’s jurisdiction.
10 (b) APPOINTMENT; TERM.—
11 (1) APPOINTMENT.—The Director shall be ap-
12 pointed by the President, by and with the advice and
13 consent of the Senate, from among individuals who
14 are citizens of the United States.
15 (2) TERM.—The Director shall be appointed for
16 a term of 5 years.
17 (3) REMOVAL.—The Director may be removed
18 before the end of a term only for cause.
19 (4) VACANCY.—
20 (A) IN GENERAL.—A vacancy in the posi-
21 tion of Director which occurs before the expira-
22 tion of the term for which a Director was ap-
23 pointed shall be filled in the manner established
hsrobinson on DSK69SOYB1PROD with BILLS

24 in paragraph (1) and the Director appointed to

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00688 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 689
1 fill such vacancy shall be appointed only for the
2 remainder of such term.
3 (B) ACTING DIRECTOR.—

4 (i) IN GENERAL.—In the event of a

5 vacancy in the position of Director or dur-
6 ing the absence or disability of the Direc-
7 tor, an Acting Director shall be appointed
8 in the manner provided in section 3345, of
9 title 5, United States Code.
10 (ii) AUTHORITY OF ACTING DIREC-

11 TOR.—Any individual serving as Acting Di-

12 rector under this subparagraph shall be
13 vested with all authority, duties, and privi-
14 leges of the Director.
15 (5) SERVICE AFTER END OF TERM.—An indi-
16 vidual may serve as Director after the expiration of
17 the term for which appointed until a successor Di-
18 rector has been appointed and qualified.
19 (c) PROHIBITION ON FINANCIAL INTERESTS.—The
20 Director shall not have a direct or indirect financial inter-
21 est in any covered person.
22 (d) COMPENSATION.—The Director shall receive com-
23 pensation at the rate prescribed for Level I of the Execu-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tive Schedule under section 5313 of title 5, United States

25 Code.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00689 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 690
1 SEC. 4103. CONSUMER FINANCIAL PROTECTION OVER-

2 SIGHT BOARD.

3 (a) ESTABLISHED.—There is hereby established the

4 Consumer Financial Protection Oversight Board as an in-
5 strumentality of the United States.
6 (b) DUTIES AND POWERS.—
7 (1) DUTY TO ADVISE DIRECTOR.—The Board
8 shall advise the Director on—
9 (A) the consistency of a proposed regula-
10 tion of the Director with prudential, market, or
11 systemic objectives administered by the agencies
12 that comprise the Board;
13 (B) the overall strategies and policies in
14 carrying out the duties of the Director under
15 this title; and
16 (C) actions the Director can take to en-
17 hance and ensure that all consumers are subject
18 to robust financial protection.
19 (2) LIMITATION ON POWERS.—The Board may
20 not exercise any executive authority, and the Direc-
21 tor may not delegate to the Board any of the func-
22 tions, powers, or duties of the Director.
23 (c) COMPOSITION.—The Board shall be comprised of
hsrobinson on DSK69SOYB1PROD with BILLS

24 7 members as follows:
25 (1) The Chairman of the Board of Governors.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00690 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 691
1 (2) The head of the agency responsible for
2 chartering and regulating national banks.
3 (3) The Chairperson of the Federal Deposit In-
4 surance Corporation.
5 (4) The Chairman of the National Credit Union
6 Administration.
7 (5) The Chairman of the Federal Trade Com-
8 mission.
9 (6) The Secretary of Housing and Urban Devel-
10 opment.
11 (7) The Chairman of the liaison committee of
12 representatives of State agencies to the Financial In-
13 stitutions Examination Council.
14 (d) REPRESENTATIVE OF ADDITIONAL INTERESTS.—
15 (1) COMPOSITION.—Notwithstanding subsection
16 (c), the President, by and with the advice and con-
17 sent of the Senate, shall appoint 5 additional mem-
18 bers of the Board from among experts in the fields
19 of consumer protection, fair lending and civil rights,
20 representatives of depository institutions that pri-
21 marily serve underserved communities, or represent-
22 atives of communities that have been significantly
23 impacted by higher-priced mortgage loans, as such
hsrobinson on DSK69SOYB1PROD with BILLS

24 communities are identified by the Director through

25 an analysis of data received by reason of the provi-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00691 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 692
1 sions of the Home Mortgage Disclosure Act of 1975
2 or other data on lending patterns.
3 (2) AFFILIATION.—With respect to members
4 appointed pursuant to paragraph (1), not more than
5 3 shall be members of any one political party.
6 (e) MEETINGS.—
7 (1) IN GENERAL.—The Board shall meet upon
8 notice by the Director, but in no event shall the
9 Board meet less frequently than once every 3
10 months.
11 (2) SPECIAL MEETINGS.—Any member of the
12 Board may, upon giving written notice to the Direc-
13 tor, require a special meeting of the Board.
14 (f) PROHIBITION ON ADDITIONAL COMPENSATION.—
15 Members of the Board may not receive additional pay, al-
16 lowances, or benefits by reason of their service on the
17 Board.
18 (g) COMPLAINTS RELATED TO REQUIRED OFFERING
19 OF SPECIFIC FINANCIAL PRODUCTS OR SERVICES.—The
20 Board shall establish procedures to receive and analyze
21 complaints from any person claiming that the Director is
22 not in compliance with the requirements under section
23 4311.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00692 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 693
1 SEC. 4104. EXECUTIVE AND ADMINISTRATIVE POWERS.

2 The Director may exercise all executive and adminis-

3 trative functions of the Agency, including to—
4 (1) establish regulations for conducting the
5 Agency’s general business in a manner not incon-
6 sistent with this title;
7 (2) bind the Agency and enter into contracts;
8 (3) direct the establishment of and maintain di-
9 visions or other offices within the Agency in order to
10 fulfill the responsibilities of this title, the enumer-
11 ated consumer laws, and the authorities transferred
12 under subtitles F and H, and to satisfy the require-
13 ments of other applicable law;
14 (4) coordinate and oversee the operation of all
15 administrative, enforcement, and research activities
16 of the Agency;
17 (5) adopt and use a seal;
18 (6) determine the character of and the necessity
19 for the Agency’s obligations and expenditures, and
20 the manner in which they shall be incurred, allowed,
21 and paid;
22 (7) delegate authority, at the Director’s discre-
23 tion, to any officer or employee of the Agency to
hsrobinson on DSK69SOYB1PROD with BILLS

24 take action under any provision of this title or under

25 other applicable law;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00693 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 694
1 (8) to implement this title and the Agency’s au-
2 thorities under the enumerated consumer laws and
3 under subtitles F and H through regulations, orders,
4 guidance, interpretations, statements of policy, ex-
5 aminations, and enforcement actions; and
6 (9) perform such other functions as may be au-
7 thorized or required by law.
8 SEC. 4105. ADMINISTRATION.

9 (a) OFFICERS.—The Director shall appoint the fol-

10 lowing officials:
11 (1) A secretary, who shall be charged with
12 maintaining the records of the Agency and per-
13 forming such other activities as the Director directs.
14 (2) A general counsel, who shall be charged
15 with overseeing the legal affairs of the Agency and
16 performing such other activities as the Director di-
17 rects.
18 (3) An inspector general, who shall have the au-
19 thority and functions of an inspector general of a
20 designated Federal entity under the Inspector Gen-
21 eral Act of 1978 (5 U.S.C. App. 3).
22 (4) An Ombudsperson, who shall—
23 (A) develop and maintain expertise in and
hsrobinson on DSK69SOYB1PROD with BILLS

24 understanding of the law relating to consumer

25 financial products;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00694 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 695
1 (B) at the request of a Federal agency or
2 a State agency, and with the prior approval of
3 the Director, advise such agency with respect to
4 actions that may affect consumers;
5 (C) advise consumers who may have a le-
6 gitimate potential or actual claim against a
7 Federal agency involving the provision of con-
8 sumer financial products regarding their rights
9 under this title;
10 (D) identify Federal agency actions that
11 have potential implications for consumers and,
12 if appropriate, and with the prior approval of
13 the Director, advise the relevant Federal agen-
14 cies with respect to those implications;
15 (E) provide information to private citizens,
16 civic groups, Federal agencies, State agencies,
17 and other interested parties regarding the
18 rights of those parties under this title;
19 (F) develop, maintain, and provide exper-
20 tise designed to assist covered persons, espe-
21 cially smaller depository institutions and other
22 smaller entities to comply with regulations and
23 other requirements issued to implement the pro-
hsrobinson on DSK69SOYB1PROD with BILLS

24 visions of this title, and where such assistance

25 for smaller depository institutions shall be pro-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00695 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 696
1 vided jointly by the Agency and the appropriate
2 Federal banking agency;
3 (G) develop procedures to assist covered
4 persons, especially smaller depository institu-
5 tions and other smaller entities, in responding
6 to or challenging actions taken by the Director
7 or the Agency to implement the provisions of
8 this title and to ensure that safeguards exist to
9 preserve the confidentiality of covered persons
10 using those procedures; and
11 (H) perform such other duties as the Di-
12 rector may delegate to the Ombudsperson.
13 (b) PERSONNEL.—
14 (1) APPOINTMENT.—
15 (A) IN GENERAL.—The Director may fix
16 the number of, and appoint and direct, all em-
17 ployees of the Agency.
18 (B) EXPEDITED HIRING.—The Director
19 may appoint, without regard to the provisions
20 of sections 3309 through 3318, of title 5,
21 United States Code, candidates directly to posi-
22 tions for which public notice has been given.
23 (C) HIRING VETERANS.—In hiring employ-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ees of the Agency, the Director shall establish

25 appropriate targets, including timetables, to

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00696 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 697
1 hire veterans (as defined in paragraphs (1) and
2 (2) of section 2108 of title 5, United States
3 Code) as employees of the Agency. In estab-
4 lishing appropriate targets under this para-
5 graph, the Director may consider, among other
6 relevant factors, the proportion of veterans
7 hired by Federal agencies with comparable
8 functions or types of occupations and their ex-
9 periences in hiring veterans.
10 (2) COMPENSATION.—
11 (A) PAY.—The Director shall fix, adjust,
12 and administer the pay for all employees of the
13 Agency without regard to the provisions of
14 chapter 51 or subchapter III of chapter 53 of
15 title 5, United States Code.
16 (B) BENEFITS.—The Director may provide
17 additional benefits to Agency employees if the
18 same type of benefits are then being provided
19 by the Board of Governors or, if not then being
20 provided, could be provided by the Board of
21 Governors under applicable provisions of law or
22 regulations.
23 (C) MINIMUM STANDARD.—The Director
hsrobinson on DSK69SOYB1PROD with BILLS

24 shall at all times provide compensation and ben-

25 efits to classes of employees that, at a min-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00697 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 698
1 imum, are equivalent to the compensation and
2 benefits provided by the Board of Governors for
3 the corresponding class of employees in any fis-
4 cal year.
5 (c) SPECIFIC FUNCTIONAL UNITS.—
6 (1) RESEARCH.—The Agency shall establish a
7 unit whose functions shall include—
8 (A) conducting research on consumer fi-
9 nancial counseling and education, including—
10 (i) on the topics of debt, credit, sav-
11 ings, financial product usage, and financial
12 planning;
13 (ii) exploring effective methods, tools,
14 and approaches; and
15 (iii) identifying ways to incorporate
16 new technology for the delivery and evalua-
17 tion of financial counseling and education
18 efforts;
19 (B) researching, analyzing, and reporting
20 on—
21 (i) current and prospective develop-
22 ments in markets for consumer financial
23 products or services, including market
hsrobinson on DSK69SOYB1PROD with BILLS

24 areas of alternative consumer financial

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00698 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 699
1 products or services with high growth
2 rates;
3 (ii) consumer awareness, under-
4 standing, and use of disclosures and com-
5 munications regarding consumer financial
6 products or services;
7 (iii) consumer awareness and under-
8 standing of costs, risks, and benefits of
9 consumer financial products or services;
10 (iv) consumer behavior with respect to
11 consumer financial products or services, in-
12 cluding performance on mortgage loan;
13 and
14 (v) experiences of traditionally under-
15 served consumers, including un-banked and
16 under-banked consumers, regarding con-
17 sumer financial products or services;
18 (C) identifying priorities for consumer fi-
19 nancial education efforts, based on consumer
20 complaints, research or analysis conducted pur-
21 suant to subparagraph (A), or other informa-
22 tion; and
23 (D) testing and identifying methods of
hsrobinson on DSK69SOYB1PROD with BILLS

24 educating consumers to determine which meth-

25 ods are most effective.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00699 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 700
1 (2) COMMUNITY AFFAIRS.—The Director shall
2 establish a unit whose functions shall include pro-
3 viding information, guidance, and technical assist-
4 ance regarding the provision of consumer financial
5 products or services to traditionally underserved con-
6 sumers and communities.
7 (3) CONSUMER COMPLAINTS.—

8 (A) IN GENERAL.—The Director shall es-

9 tablish a unit whose functions shall include es-
10 tablishing a central database, or utilizing an ex-
11 isting database, for collecting and tracking in-
12 formation on consumer complaints about con-
13 sumer financial products or services and resolu-
14 tion of complaints.
15 (B) COORDINATION.—In performing the
16 functions described in subparagraph (A), the
17 Director shall coordinate with the Federal
18 banking agencies, other Federal agencies, and
19 other regulatory agencies or enforcement au-
20 thorities.
21 (C) DATA SHARING REQUIRED.—To the
22 extent permitted by law and the regulations
23 prescribed by the Director regarding the con-
hsrobinson on DSK69SOYB1PROD with BILLS

24 fidential treatment of information, the Director

25 shall share data relating to consumer com-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00700 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 701
1 plaints with Federal banking agencies, other
2 Federal agencies, and State regulators. To the
3 extent permitted by law and the regulations
4 prescribed by the Federal banking agencies and
5 other Federal agencies regarding the confiden-
6 tial treatment of information, the Federal bank-
7 ing agencies and other Federal agencies, respec-
8 tively, shall share data relating to consumer
9 complaints with the Director and the Agency.
10 (4) CONSUMER FINANCIAL EDUCATION.—

11 (A) IN GENERAL.—The Agency shall es-

12 tablish a unit to be named the Office of Finan-
13 cial Literacy, whose functions shall include ac-
14 tivities designed to facilitate the education of
15 consumers on consumer financial products and
16 services, including through the dissemination of
17 materials to consumers on such topics.
18 (B) DIRECTOR.—The Office of Financial
19 Literacy shall be headed by a director.
20 (C) DUTIES.—Such unit shall—
21 (i) develop goals for programs to be
22 provided by persons that provide consumer
23 financial education and counseling, includ-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ing programs through which such per-

25 sons—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00701 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 702
1 (I) provide one-on-one financial
2 counseling;
3 (II) help individuals understand
4 basic banking and savings tools;
5 (III) help individuals understand
6 their credit history and credit score;
7 (IV) assist individuals in efforts
8 to plan for major purchases, reduce
9 their debt, and improve their financial
10 stability; and
11 (V) work with individuals to de-
12 sign plans for long-term savings;
13 (ii) develop recommendations regard-
14 ing effective certification of persons pro-
15 viding programs, or performing the activi-
16 ties, described in clause (i), including rec-
17 ommendations regarding—
18 (I) certification processes and
19 standards for certification;
20 (II) appropriate certifying bodies;
21 and
22 (III) mechanisms for funding the
23 certification processes;
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00702 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 703
1 (iii) develop a technology tool to col-
2 lect data on financial education and coun-
3 seling outcomes; and
4 (iv) conduct research to identify effec-
5 tive methods, tools, technoloy, and strate-
6 gies to educate and counsel consumers
7 about personal finance management, in-
8 cluding on the topics of debt, credit, sav-
9 ings, financial product usage, and financial
10 planning.
11 (D) COORDINATION.—Such unit shall co-
12 ordinate with other units within the Agency in
13 carrying out its functions, including—
14 (i) working with the unit established
15 under paragraph (2) to—
16 (I) provide information and re-
17 sources to community organizations,
18 nonprofit organizations, and other en-
19 tities to assist in helping educate con-
20 sumers about consumer financial
21 products and services; and
22 (II) develop a marketing strategy
23 to promote financial education and
hsrobinson on DSK69SOYB1PROD with BILLS

24 one-on-one counseling; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00703 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 704
1 (ii) working with the unit established
2 under paragraph (1) to conduct research
3 related to consumer financial education
4 and counseling.
5 (d) SINGLE TOLL-FREE TELEPHONE NUMBER FOR

6 CONSUMER COMPLAINTS AND INQUIRIES.—

7 (1) CALL INTAKE SYSTEM.—The Consumer Fi-
8 nancial Protection Agency shall establish a single,
9 toll-free telephone number for consumer complaints
10 and inquiries concerning institutions regulated by
11 such agencies and a system for collecting and moni-
12 toring complaints and, as soon as practicable, a sys-
13 tem for routing such calls to the Federal financial
14 institution regulatory agency that primarily super-
15 vises the financial institution, or that is otherwise
16 the appropriate Federal agency to address the sub-
17 ject of the complaint or inquiry.
18 (2) ROUTING CALLS TO STATES.—To the extent
19 practicable, State agencies may receive appropriate
20 call transfers from the system established under
21 paragraph (1) if—
22 (A) the State agency’s system has the
23 functional capacity to receive calls routed by the
hsrobinson on DSK69SOYB1PROD with BILLS

24 system; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00704 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 705
1 (B) the State agency has satisfied any con-
2 ditions of participation in the system that the
3 Council, coordinating with State agencies
4 through the chairperson of the State Liaison
5 Committee, may establish.
6 (e) REPORT TO THE CONGRESS.—Before the end of
7 the 6-month period beginning on the date of the enact-
8 ment of this title, the Federal financial institution regu-
9 latory agencies shall submit a report to the Committee on
10 Financial Services of the House of Representatives and
11 the Committee on Banking, Housing, and Urban Affairs
12 of the Senate describing the agencies’ efforts to estab-
13 lish—
14 (1) a public interagency Web site for directing
15 and referring Internet consumer complaints and in-
16 quiries concerning any financial institution to the
17 Consumer Financial Protection Agency for purposes
18 of collecting, monitoring, and responding to such
19 complaints and, where appropriate, a system for re-
20 ferring complaints to the Federal financial institu-
21 tion regulatory agency, other Federal agency, or
22 State agency that is otherwise the appropriate agen-
23 cy to address the subject of the complaint or inquiry;
hsrobinson on DSK69SOYB1PROD with BILLS

24 and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00705 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 706
1 (2) a system to expedite the prompt and effec-
2 tive rerouting of any misdirected consumer com-
3 plaint or inquiry documents between or among the
4 agencies, with prompt referral of any complaint or
5 inquiry to the appropriate Federal financial institu-
6 tion regulatory agency, and to participating State
7 agencies.
8 (f) OFFICE OF FAIR LENDING AND EQUAL OPPOR-
9 TUNITY.—

10 (1) ESTABLISHMENT.—Before the end of the

11 180-day period beginning on the date of the enact-
12 ment of this title, the Director shall establish within
13 the Agency the Office of Fair Lending and Equal
14 Opportunity.
15 (2) FUNCTIONS.—The Office of Fair Lending
16 and Equal Opportunity shall have such powers and
17 duties as the Director may delegate the Office which
18 shall include the following functions:
19 (A) Providing oversight and enforcement of
20 Federal laws intended to ensure the fair, equi-
21 table, and nondiscriminatory access to credit for
22 both individuals and communities that are en-
23 forced by the Agency, including the Equal
hsrobinson on DSK69SOYB1PROD with BILLS

24 Credit Opportunity Act and the Home Mort-

25 gage Disclosure Act.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00706 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 707
1 (B) Coordinating fair lending enforcement
2 efforts of the Agency with other Federal agen-
3 cies and State regulators, as appropriate, to
4 promote consistent, efficient and effective en-
5 forcement of Federal fair lending laws.
6 (C) Working with private industry, fair
7 lending, civil rights, consumer and community
8 advocates on the promotion of fair lending com-
9 pliance and education.
10 (D) Providing annual reports to the Con-
11 gress on the Agency’s efforts to fulfill its fair
12 lending mandate.
13 (3) ADMINISTRATION OF OFFICE.—There is
14 hereby established the position of Assistant Director
15 of the Agency for Fair Lending and Equal Oppor-
16 tunity who—
17 (A) shall be appointed by the Director;
18 (B) shall carry out such duties as the Di-
19 rector may delegate to such Assistant Director;
20 and
21 (C) shall serve as the Director of the Of-
22 fice of Fair Lending and Equal Opportunity.
23 (4) PROHIBITIONS ON PARTICIPATION IN PRO-
hsrobinson on DSK69SOYB1PROD with BILLS

24 GRAMS WITH RESPECT TO CERTAIN INDICTED ORGA-

25 NIZATIONS.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00707 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 708
1 (A) PROHIBITION.—The Director of the
2 Office of Fair Lending and Equal Opportunity
3 may not allow a covered organization to partici-
4 pate in any program established by such Direc-
5 tor.
6 (B) COVERED ORGANIZATION.—In this
7 paragraph, the term ‘‘covered organization’’
8 means any of the following:
9 (i) Any organization that has been in-
10 dicted for a violation under any Federal or
11 State law governing the financing of a
12 campaign for election for public office or
13 any law governing the administration of an
14 election for public office, including a law
15 relating to voter registration.
16 (ii) Any organization that had its
17 State corporate charter terminated due to
18 its failure to comply with Federal or State
19 lobbying disclosure requirements.
20 (iii) Any organization that has filed a
21 fraudulent form with any Federal or State
22 regulatory agency.
23 (iv) Any organization that—
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00708 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 709
1 (I) employs any applicable indi-
2 vidual, in a permanent or temporary
3 capacity;
4 (II) has under contract or retains
5 any applicable individual; or
6 (III) has any applicable indi-
7 vidual acting on the organization’s be-
8 half or with the express or apparent
9 authority of the organization.
10 (C) ADDITIONAL DEFINITIONS.—In this
11 paragraph:
12 (i) The term ‘‘organization’’ includes
13 the Association of Community Organiza-
14 tions for Reform Now (in this paragraph
15 referred to as ‘‘ACORN’’) and any
16 ACORN-related affiliate.
17 (ii) The term ‘‘ACORN-related affil-
18 iate’’ means any of the following:
19 (I) Any State chapter of ACORN
20 registered with the Secretary of
21 State’s office in that State.
22 (II) Any organization that shares
23 directors, employees, or independent
hsrobinson on DSK69SOYB1PROD with BILLS

24 contractors with ACORN.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00709 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 710
1 (III) Any organization that has a
2 financial stake in ACORN.
3 (IV) Any organization whose fi-
4 nances, whether federally funded,
5 donor-funded, or raised through orga-
6 nizational goods and services, are
7 shared or controlled by ACORN.
8 (iii) The term ‘‘applicable individual’’
9 means an individual who has been indicted
10 for a violation under Federal or State law
11 relating to an election for Federal or State
12 office.
13 (D) REVISION OF FEDERAL ACQUISITION

14 REGULATION.—The Federal Acquisition Regu-

15 lation shall be revised to carry out the provi-
16 sions of this paragraph relating to contracts.
17 (E) SEVERABILITY.—If any provision of
18 this section or any application of such provision
19 to any person or circumstance is held to be un-
20 constitutional, the remainder of this section and
21 the application of the provision to any other
22 person or circumstance shall not be affected.
23 SEC. 4106. CONSUMER ADVISORY BOARD.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (a) ESTABLISHMENT REQUIRED.—The Director shall

25 establish a Consumer Advisory Board to advise and con-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00710 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 711
1 sult with the Director in the exercise of the functions of
2 the Director and the Agency under this title, the enumer-
3 ated consumer laws, and to provide information on emerg-
4 ing practices in the consumer financial products or serv-
5 ices industry.
6 (b) MEMBERSHIP.—
7 (1) IN GENERAL.—In appointing the members
8 of the Consumer Advisory Board, the Director shall
9 seek—
10 (A) to assemble experts in financial serv-
11 ices, community development, fair lending and
12 civil rights, consumer protection, and consumer
13 financial products or services; and
14 (B) to represent the interests of covered
15 persons and consumers.
16 (2) PROHIBITION ON MEMBERSHIP WITH RE-

17 SPECT TO CERTAIN INDICTED ORGANIZATIONS.—The

18 director may not appoint an employee of a covered

19 organization (as defined in section 4105(f)(4)(B)) to
20 the Consumer Advisory Board.
21 (c) POLITICAL AFFILIATION.—Not more than 1 more
22 than half of the members of the Consumer Advisory Board
23 may be members of the same political party.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00711 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 712
1 (d) MEETINGS.—The Consumer Advisory Board shall
2 meet from time to time at the call of the Director, but,
3 at a minimum, shall meet at least twice in each year.
4 (e) COMPENSATION AND TRAVEL EXPENSES.—Mem-
5 bers of the Consumer Advisory Board who are not full-
6 time employees of the United States shall—
7 (1) be entitled to receive compensation at a rate
8 fixed by the Director while attending meetings of the
9 Consumer Advisory Board, including travel time;
10 and
11 (2) be allowed travel expenses, including trans-
12 portation and subsistence, while away from their
13 homes or regular places of business.
14 SEC. 4107. COORDINATION.

15 (a) COORDINATION WITH OTHER FEDERAL AGEN-

16 CIES AND STATE REGULATORS.—The Director shall co-
17 ordinate with the Securities and Exchange Commission,
18 the Commodity Futures Trading Commission, the Sec-
19 retary of the Treasury, and other Federal agencies and
20 State regulators, as appropriate, to promote consistent
21 regulatory treatment of, and enforcement related to, con-
22 sumer and investment products, services, and laws.
23 (b) COORDINATION OF CONSUMER EDUCATION INI-
hsrobinson on DSK69SOYB1PROD with BILLS

24 TIATIVES.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00712 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 713
1 (1) IN GENERAL.—The Director shall coordi-
2 nate with each agency that is a member of the Fi-
3 nancial Literacy and Education Commission estab-
4 lished by the Financial Literacy and Education Im-
5 provement Act (20 U.S.C. 9701 et seq.) to assist
6 each agency in enhancing its existing financial lit-
7 eracy and education initiatives to better achieve the
8 goals in paragraph (2) and to ensure the consistency
9 of such initiatives across Federal agencies.
10 (2) GOALS OF COORDINATION.—In coordinating
11 with the agencies described in paragraph (1), the
12 Director shall seek to improve efforts to educate
13 consumers about financial matters generally, the
14 management of their own financial affairs, and their
15 judgments about the appropriateness of certain fi-
16 nancial products.
17 (c) COORDINATION.—The Agency may coordinate in-
18 vestigations, compliance examinations, information shar-
19 ing, and related activities in support of activities under-
20 taken pursuant to the Fair Housing Act by other Federal
21 agencies.
22 SEC. 4108. REPORTS TO THE CONGRESS.

23 (a) REPORTS REQUIRED.—The Director shall pre-

hsrobinson on DSK69SOYB1PROD with BILLS

24 pare and submit to the President and the appropriate

25 committees of the Congress a report at the beginning of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00713 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 714
1 each regular session of the Congress, beginning with the
2 session following the designated transfer date.
3 (b) CONTENTS.—The reports required by subsection
4 (a) shall include—
5 (1) a list of the significant regulations and or-
6 ders adopted by the Director, as well as other sig-
7 nificant initiatives conducted by the Director, during
8 the preceding year and the Director’s plan for regu-
9 lations, orders, or other initiatives to be undertaken
10 during the upcoming period;
11 (2) an analysis of complaints about consumer
12 financial products or services that the Agency has
13 received and collected in its central database on
14 complaints during the preceding year;
15 (3) a list, with a brief statement of the issues,
16 of the public supervisory and enforcement actions to
17 which the Agency is a party (including adjudication
18 proceedings conducted under subtitle E) during the
19 preceding year;
20 (4) the actions taken regarding regulations, or-
21 ders, and supervisory actions with respect to covered
22 persons which are not credit unions or depository in-
23 stitutions, including descriptions of the types of such
hsrobinson on DSK69SOYB1PROD with BILLS

24 covered persons, financial activities, and consumer

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00714 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 715
1 financial products or services affected by such regu-
2 lations, orders, and supervisory actions;
3 (5) an appraisal of significant actions, including
4 actions under Federal or State law, by State attor-
5 neys general or State regulators relating to this title,
6 the authorities transferred under subtitles F and H,
7 and the enumerated consumer laws;
8 (6) an analysis of the Agency’s efforts to fulfill
9 the fair lending mission of the Agency; and
10 (7) an appraisal of the regulatory and legal dif-
11 ficulties encountered by the Agency in carrying out
12 the mission and duties of the Agency with respect to
13 consumer protection, including a description of—
14 (A) the difficulties and hardships encoun-
15 tered with respect to coordinating with other
16 Federal and State government entities;
17 (B) the regulatory and enforcement limita-
18 tions placed on the Agency by this title;
19 (C) the practices of persons, covered and
20 uncovered under this title, that allow such per-
21 sons to harm consumers and escape regulation
22 or enforcement, including any trends identified;
23 and
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00715 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 716
1 (D) legislative and administrative rec-
2 ommendations with respect to solving or alle-
3 viating identified difficulties.
4 (c) ANNUAL APPEARANCE BEFORE THE CON-
5 GRESS.—The Director shall appear before the House
6 Committee on Financial Services at an annual hearing,
7 after the report is submitted under subsection (a)—
8 (1) to discuss the efforts, activities, objectives
9 and plans of the Agency; and
10 (2) discuss and answer questions concerning
11 such report.
12 SEC. 4109. FUNDING; FEES AND ASSESSMENTS; PENALTIES

13 AND FINES.

14 (a) TRANSFER OF FUNDS FROM THE BOARD OF

15 GOVERNORS.—
16 (1) TRANSFER REQUIRED.—Each year, begin-
17 ning on the designated transfer date, the Board of
18 Governors shall transfer funds in an amount equal-
19 ing 10 percent of the Federal Reserve System’s total
20 system expenses (as reported in the Budget Review
21 of the Board of Governors most recent Annual Re-
22 port to Congress) to the Director for the purposes
23 of carrying out the authorities granted in this title,
hsrobinson on DSK69SOYB1PROD with BILLS

24 under the enumerated consumer laws, and trans-

25 ferred under subtitles F and H.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00716 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 717
1 (2) PROCEDURES.—The Board of Governors, in
2 consultation with the Agency, shall make appro-
3 priate arrangements to transfer funds to the Direc-
4 tor in accordance with this subsection.
5 (b) FEES AND ASSESSMENTS.—
6 (1) ASSESSMENT REQUIRED.—

7 (A) IN GENERAL.—Taking into account

8 such other sums available to the Agency and
9 subject to the provisions of this subsection and
10 subsection (d), the Director shall assess fees on
11 covered persons to meet the Agency’s expenses
12 for carrying out the duties and responsibilities
13 of the Agency, including supervising such cov-
14 ered persons.
15 (B) BASIS FOR ASSESSMENT.—The Agency
16 shall assess fees on covered persons pursuant to
17 this subsection based on the size and complexity
18 of the covered person, and the compliance
19 record of the covered person under the enumer-
20 ated consumer laws, the laws and authorities
21 transferred under subtitles F and H, and this
22 title.
23 (2) REGULATIONS.—
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00717 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 718
1 (A) IN GENERAL.—The Director shall pre-
2 scribe regulations to govern the imposition and
3 collection of fees and assessments.
4 (B) FACTORS REQUIRED TO BE AD-

5 DRESSED.—Regulations prescribed by the Di-

6 rector under this subsection shall specify and
7 define—
8 (i) the basis of fees or assessments
9 (such as the outstanding number of con-
10 sumer credit accounts, off-balance sheet re-
11 ceivables attributable to the covered per-
12 son, total consolidated assets, total assets
13 under management, or volume of consumer
14 financial transactions or use of service pro-
15 viders);
16 (ii) the amount and frequency of fees
17 or assessments; and
18 (iii) such other factors that the Direc-
19 tor determines are appropriate, which shall
20 include a covered person’s compliance
21 record under the enumerated consumer
22 laws, the authorities transferred under
23 subtitles F and H, and this title.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) ASSESSMENTS ON DEPOSITORY INSTITU-

25 TION COVERED PERSONS.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00718 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 719
1 (A) DEPOSITORY INSTITUTION COVERED

2 PERSON DEFINED.—For purposes of this sec-

3 tion, the term ‘‘depository institution covered
4 person’’ means a covered person that is an in-
5 sured depository institution or credit union.
6 (B) ASSESSMENTS.—
7 (i) FEES REQUIRED.—The Director
8 shall assess fees for supervision as are ap-
9 propriate on depository institution covered
10 persons, taking into account the size and
11 complexity of the covered person, and the
12 compliance record of the covered person
13 under the enumerated consumer laws, the
14 laws and authorities transferred under
15 subtitles F and H, and this title.
16 (ii) LIMITATION ON CERTAIN FEES.—

17 The Agency shall not assess examination

18 fees on an institution referred to in section
19 4203(a), or an institution whose examina-
20 tion responsibilities have been delegated to
21 an appropriate agency, pursuant to section
22 4202(c)(11).
23 (iii) BASIS FOR FEE AMOUNTS.—Fees
hsrobinson on DSK69SOYB1PROD with BILLS

24 assessed by the Director under this sub-

25 paragraph may be established at levels nec-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00719 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 720
1 essary to meet the Agency’s expenses for
2 carrying out the duties and responsibilities
3 of the Director and the Agency under this
4 title with regard to depository institution
5 covered persons.
6 (C) COORDINATION DURING IMPLEMENTA-

7 TION PERIOD.—The Director and the agencies

8 responsible for chartering and or supervising
9 depository institution covered persons shall co-
10 ordinate on the levels of fees assessed on depos-
11 itory institution covered persons under this
12 paragraph, so that levels of assessments under
13 this subparagraph combined with levels of as-
14 sessments by agencies responsible for chartering
15 and or supervising depository institution cov-
16 ered persons shall be no more than the assess-
17 ments such depository institution covered per-
18 son was required to pay for the 12-month pe-
19 riod ending on December 31, 2009.
20 (D) MARGINAL ASSESSMENT RATE.—

21 (i) IN GENERAL.—In setting assess-

22 ment rates for depository institution cov-
23 ered persons, the Director shall not impose
hsrobinson on DSK69SOYB1PROD with BILLS

24 assessments that result in higher marginal

25 assessment rates for depository institution

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00720 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 721
1 covered persons with assets of less than
2 $25,000,000,000 than the marginal rates
3 for depository institutions covered persons
4 with assets that exceed that amount.
5 (ii) RULE OF CONSTRUCTION.—

6 Clause (i) shall not be construed as lim-

7 iting or impairing the authority of the Di-
8 rector to set assessments that would result
9 in higher marginal assessment rates on the
10 larger depository institution covered per-
11 sons.
12 (E) LIMITATIONS ON ASSESSMENTS.—

13 (i) ASSESSMENTS FOR ADMINISTRA-

14 TIVE COSTS.—Notwithstanding any provi-

15 sion in this title, no depository institution
16 covered person shall be charged an assess-
17 ment to be used for the supervision, exam-
18 ination, enforcement or regulation by the
19 Agency of nondepository covered persons.
20 (ii) AMOUNTS PAID FOR CONSUMER

21 COMPLIANCE SUPERVISION.—Notwith-

22 standing any provision in this title, no de-

23 pository institution covered person shall
hsrobinson on DSK69SOYB1PROD with BILLS

24 pay more for consumer compliance super-

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00721 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 722
1 vision than it paid before the date of en-
2 actment of this title.
3 (4) ASSESSMENTS ON NONDEPOSITORY COV-

4 ERED PERSONS.—

5 (A) NONDEPOSITORY COVERED PERSON

6 DEFINED.—For purposes of this section, the

7 term ‘‘nondepository covered person’’—
8 (i) means a covered person that is not
9 a credit union or insured depository insti-
10 tution; and
11 (ii) includes any bank holding com-
12 pany.
13 (B) ASSESSMENTS.—
14 (i) FEES REQUIRED.—The Director
15 shall assess fees for registration, examina-
16 tion, and supervision of nondepository cov-
17 ered persons.
18 (ii) BASIS FOR FEE AMOUNTS.—Fees

19 assessed by the Director under this sub-

20 paragraph may be established at levels nec-
21 essary to meet the Agency’s expenses for
22 carrying out the duties and responsibilities
23 of the Director and the Agency, including
hsrobinson on DSK69SOYB1PROD with BILLS

24 supervising such covered persons, taking

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00722 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 723
1 into account such other sums available to
2 the Agency.
3 (iii) REGISTRATION FEE MINIMUMS.—

4 Registration fees imposed on a nondeposi-

5 tory covered person under this paragraph
6 shall, at a minimum, be imposed on such
7 covered person at the time the person reg-
8 isters (or periodically renews any such reg-
9 istration) with the Agency, in accordance
10 with regulations prescribed by the Direc-
11 tor.
12 (C) NONDEPOSITORY COVERED PERSON

13 ASSESSMENT NOT LESS THAN FOR DEPOSITORY

14 COVERED PERSONS.—Assessment rates levied

15 by the Director under this section on a non-
16 depository institution covered persons shall be
17 no less than assessments levied by the Agency
18 under this section on a depository institution
19 covered person with similar characteristics.
20 (c) AUTHORIZATION OF APPROPRIATIONS.—
21 (1) IN GENERAL.—For the purposes of carrying
22 out the authorities granted in this title, under the
23 enumerated consumer laws, and the laws and au-
hsrobinson on DSK69SOYB1PROD with BILLS

24 thorities transferred under subtitles F and H, there

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00723 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 724
1 are authorized to be appropriated to the Director
2 such sums as may be necessary for any fiscal year.
3 (2) APPORTIONMENT.—Notwithstanding any
4 other provision of law, such amounts shall be subject
5 to apportionment under section 1517 of title 31,
6 United States Code, and restrictions that generally
7 apply to the use of appropriated funds in title 31,
8 United States Code, and other laws.
9 (3) OTHER AVAILABLE FUNDS TAKEN INTO AC-

10 COUNT.—Sums appropriated under this subsection

11 shall take into account such other sums available to
12 the Agency under this section.
13 (d) CONSUMER FINANCIAL PROTECTION AGENCY
14 DEPOSITORY INSTITUTION FUND.—
15 (1) ESTABLISHMENT.—
16 (A) IN GENERAL.—There is established in
17 the Treasury a separate fund to be known as
18 the ‘‘Consumer Financial Protection Agency
19 Depository Institution Fund’’ (hereafter in this
20 section referred to as the ‘‘CFPA Depository
21 Fund’’).
22 (B) AMOUNTS IN FUND NOT AVAILABLE

23 FOR CERTAIN PURPOSES.—Other than pursuant

hsrobinson on DSK69SOYB1PROD with BILLS

24 to subsection (f), amounts on deposit in the

25 CFPA Depository Fund shall not be used in the

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00724 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 725
1 supervision and examination of nondepository
2 institution covered persons.
3 (2) ALL TRANSFERRED FUNDS DEPOSITED.—

4 All amounts transferred to the Agency under sub-

5 section (a) shall be deposited into the CFPA Deposi-
6 tory Fund.
7 (3) ALL APPLICABLE SUPERVISORY FEES AND

8 ASSESSMENTS DEPOSITED.—The Director shall de-

9 posit all amounts received from assessments under
10 subsection (b)(3) in the CFPA Depository Fund.
11 (e) CONSUMER FINANCIAL PROTECTION AGENCY
12 NONDEPOSITORY INSTITUTION FUND.—
13 (1) ESTABLISHMENT.—
14 (A) IN GENERAL.—There is established in
15 the Treasury a separate fund called the Con-
16 sumer Financial Protection Agency Nondeposi-
17 tory Institution Fund (hereafter in this section
18 referred to as the ‘‘CFPA Nondepository
19 Fund’’).
20 (B) AMOUNTS IN FUND NOT AVAILABLE

21 FOR CERTAIN PURPOSES.—Other than pursuant

22 to subsection (f), amounts on deposit in the
23 CFPA Nondepository Fund shall not be used
hsrobinson on DSK69SOYB1PROD with BILLS

24 for the supervision and examination of deposi-

25 tory institution covered persons.

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00725 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 726
1 (2) ALL APPLICABLE SUPERVISORY FEES AND

2 ASSESSMENTS DEPOSITED.—The Director shall de-

3 posit all amounts received from assessments under
4 subsection (b)(4) in the CFPA Nondepository Fund.
5 (f) GENERAL PROVISIONS RELATING TO FUNDS.—
6 (1) MAINTENANCE OF FUNDS.—

7 (A) AGENCY FUNDS MAINTAINED BY

8 TREASURY.—The Consumer Financial Protec-

9 tion Agency Depository Institution Fund estab-
10 lished under subsection (d) and the Consumer
11 Financial Protection Agency Nondepository In-
12 stitution Fund established under subsection (e)
13 shall each be—
14 (i) maintained and administered by
15 the Secretary; and
16 (ii) maintained separately and not
17 commingled.
18 (B) AGENCY’S AUTHORITY.—Any provision
19 of this title forbidding the commingling or use
20 of the CFPA Depository Fund and the CFPA
21 Nondepository Fund shall not be construed as
22 limiting or impairing the authority of the Agen-
23 cy to use the same facilities and resources in
hsrobinson on DSK69SOYB1PROD with BILLS

24 the course of conducting supervisory and regu-

25 latory functions with respect to depository insti-

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00726 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 727
1 tutions and nondepository institutions, or to in-
2 tegrate such functions.
3 (C) ACCOUNTING REQUIREMENTS.—

4 (i) ACCOUNTING FOR USE OF FACILI-

5 TIES AND RESOURCES.—The Agency shall

6 keep a full and complete accounting of all
7 costs and expenses associated with the use
8 of any facility or resource used in the
9 course of any function specified in sub-
10 paragraph (B) and shall allocate, in the
11 manner provided in subparagraph (D), any
12 such costs and expenses incurred by the
13 Agency—
14 (I) with respect to depository in-
15 stitution covered persons, to the
16 CFPA Depository Fund; and
17 (II) with respect to nondepository
18 covered persons, to the CFPA Non-
19 depository fund.
20 (D) ALLOCATION OF ADMINISTRATIVE EX-

21 PENSES.—Any personnel, administrative, or

22 other overhead expense of the Agency shall be
23 allocated—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (i) fully to the CFPA Depository

25 Fund if the expense was incurred directly

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00727 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 728
1 as a result of the Agency’s responsibilities
2 solely with respect to depository institution
3 covered persons;
4 (ii) fully to the CFPA Nondepository
5 Fund, if the expense was incurred directly
6 as a result of the Agency’s responsibilities
7 solely with respect to nondepository cov-
8 ered persons;
9 (iii) between the CFPA Depository
10 Fund and the CFPA Nondepository Fund,
11 in amounts reflecting the relative degree to
12 which the expense was incurred as a result
13 of the activities of depository institution
14 covered persons, and nondepository covered
15 persons; and
16 (iv) if the Director is unable to make
17 a complete allocation under clause (i), (ii),
18 or (iii), between the CFPA Depository
19 Fund and the CFPA Nondepository Fund,
20 in amounts reflecting the relative propor-
21 tion that, as of the end of the preceding
22 year—
23 (I) the aggregate assets of all de-
hsrobinson on DSK69SOYB1PROD with BILLS

24 pository institution covered persons

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00728 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 729
1 bears to the aggregate assets of all
2 covered persons; and
3 (II) the aggregate assets of all
4 nondepository covered persons bears
5 to the aggregate assets of all covered
6 persons.
7 (E) AGENCY FUND.—The ‘‘Agency fund’’
8 means the Consumer Financial Protection
9 Agency Depository Institution Fund established
10 under subsection (d), and, the Consumer Fi-
11 nancial Protection Agency Nondepository Insti-
12 tution Fund established under subsection (e),
13 and the Consumer Financial Protection Agency
14 Civil Penalty Fund established under subsection
15 (g).
16 (2) INVESTMENT.—
17 (A) AMOUNTS IN FUNDS MAY BE IN-

18 VESTED.—The Director may request the Sec-

19 retary to invest the portion of any Agency fund
20 that, in the Director’s judgment, is not required
21 to meet the current needs of such fund.
22 (B) ELIGIBLE INVESTMENTS.—Invest-

23 ments pursuant to subparagraph (A) shall be

hsrobinson on DSK69SOYB1PROD with BILLS

24 made by the Secretary in obligations of the

25 United States or obligations that are guaran-

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00729 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 730
1 teed as to principal and interest by the United
2 States, with maturities suitable to the needs of
3 the Agency fund involved, as determined by the
4 Director.
5 (C) INTEREST AND PROCEEDS CRED-

6 ITED.—The interest on, and the proceeds from

7 the sale or redemption of, any obligations held
8 in the respective Agency Fund shall be credited
9 to and form a part of the respective Agency
10 Fund.
11 (3) USE OF FUNDS.—Funds obtained by, trans-
12 ferred to, or credited to any Agency fund shall be
13 immediately available to the Agency, and remain
14 available until expended, to pay the expenses of the
15 Agency in carrying out the duties and responsibil-
16 ities of the Director and the Agency, including the
17 payment of compensation of the Director and offi-
18 cers and employees of the Agency.
19 (2) FEES, ASSESSMENTS AND OTHER FUNDS

20 NOT GOVERNMENT FUNDS.—Funds obtained by or

21 transferred to any Agency fund shall not be con-
22 strued to be Government funds or appropriated
23 monies.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) AMOUNTS NOT SUBJECT TO APPORTION-

25 MENT.—Notwithstanding any other provision of law,

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00730 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 731
1 amounts in any Agency fund shall not be subject to
2 apportionment for purposes of chapter 15 of title 31,
3 United States Code, or under any other authority.
4 (g) PENALTIES AND FINES.—
5 (1) ESTABLISHMENT OF VICTIMS RELIEF

6 FUND.—There is established in the Treasury of the

7 United States a fund to be known as the ‘‘Consumer
8 Financial Protection Agency Civil Penalty Fund’’
9 (hereafter in this section referred to as the ‘‘Civil
10 Penalty Fund’’).
11 (2) DEPOSITS.—If the Agency obtains a civil
12 penalty against any person in any judicial or admin-
13 istrative action under this title, any law or authority
14 transferred under subtitles F and H, or any enumer-
15 ated consumer law, the Agency shall deposit into the
16 Civil Penalty Fund the amount of the penalty col-
17 lected.
18 (3) PAYMENT TO VICTIMS.—Amounts in the
19 Civil Penalty Fund shall be available to the Director,
20 without fiscal year limitation, for payments to the
21 victims of activities for which civil penalties have
22 been imposed under this title, the law and authori-
23 ties transferred under subtitles F and H, or any
hsrobinson on DSK69SOYB1PROD with BILLS

24 enumerated consumer law.

•HR 4173 IH

VerDate Nov 24 2008 01:12 Dec 03, 2009 Jkt 089200 PO 00000 Frm 00731 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 732
1 SEC. 4110. AMENDMENTS RELATING TO OTHER ADMINIS-

2 TRATIVE PROVISIONS.

3 (a) ACT OF OCTOBER 28, 1974.—Section 111 of

4 Public Law 93–495 (12 U.S.C. 250) is amended by insert-
5 ing ‘‘the Consumer Financial Protection Agency,’’ after
6 ‘‘Federal Deposit Insurance Corporation,’’.
7 (b) PAPERWORK REDUCTION ACT.—Section 2(5) of
8 the Paperwork Reduction Act (44 U.S.C. 3502(5)) by in-
9 serting ‘‘the Consumer Financial Protection Agency,’’
10 after ‘‘the Securities and Exchange Commission,’’.
11 SEC. 4111. EFFECTIVE DATE.

12 This subtitle shall take effect on the date of the en-

13 actment of this title.
14 Subtitle B—General Powers of the
15 Director and Agency
16 SEC. 4201. MANDATE AND OBJECTIVES.

17 (a) MANDATE.—The Director shall seek to promote

18 transparency, simplicity, fairness, accountability, and
19 equal access in the market for consumer financial products
20 or services.
21 (b) OBJECTIVES.—The Director may exercise the au-
22 thorities granted in this title, in the enumerated consumer
23 laws, and transferred under subtitles F and H for the pur-
hsrobinson on DSK69SOYB1PROD with BILLS

24 poses of ensuring that, with respect to consumer financial

25 products or services—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00732 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 733
1 (1) consumers have and can use the informa-
2 tion they need to make responsible decisions about
3 consumer financial products or services;
4 (2) consumers are protected from abuse, unfair-
5 ness, deception, and discrimination;
6 (3) markets for consumer financial products or
7 services operate fairly and efficiently with ample
8 room for sustainable growth and innovation; and
9 (4) traditionally underserved consumers and
10 communities have equal access to responsible finan-
11 cial services.
12 SEC. 4202. AUTHORITIES.

13 (a) IN GENERAL.—The Director may exercise the au-

14 thorities granted in this title, in the enumerated consumer
15 laws, and transferred under subtitles F and H, to admin-
16 ister, enforce, and otherwise implement the provisions of
17 this title, the authorities transferred in subtitles F and
18 H, and the enumerated consumer laws.
19 (b) RULEMAKING, ORDERS, AND GUIDANCE.—
20 (1) IN GENERAL.—The Director may prescribe
21 regulations and issue orders and guidance as may be
22 necessary or appropriate to enable it to administer
23 and carry out the purposes and objectives of this
hsrobinson on DSK69SOYB1PROD with BILLS

24 title, the authorities transferred under subtitles F

25 and H, and the enumerated consumer laws, and to

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00733 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 734
1 prevent evasions of this title, any such authority,
2 and any such law.
3 (2) STANDARDS FOR RULEMAKING.—In pre-
4 scribing a regulation under this title or pursuant to
5 the authorities transferred under subtitles F and H
6 or the enumerated consumer laws, the Director
7 shall—
8 (A) consider the potential benefits and
9 costs to consumers and covered persons, includ-
10 ing the potential reduction of consumers’ access
11 to consumer financial products or services, re-
12 sulting from such regulation; and
13 (B) consult with the Federal banking agen-
14 cies, State bank supervisors, the Federal Trade
15 Commission, or other Federal agencies, as ap-
16 propriate, regarding the consistency of a pro-
17 posed regulation with prudential, consumer pro-
18 tection, civil rights, market, or systemic objec-
19 tives administered by such agencies or super-
20 visors.
21 (3) EXEMPTIONS.—
22 (A) IN GENERAL.—The Director, by regu-
23 lation or order, may conditionally or uncondi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tionally exempt any covered person, service pro-

25 vider, or any consumer financial product or

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00734 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 735
1 service or any class of covered persons, class of
2 service providers, or consumer financial prod-
3 ucts or services, from any provision of this title,
4 any enumerated consumer law, or from any reg-
5 ulation under any such provision or law, as the
6 Director deems necessary or appropriate to
7 carry out the purposes and objectives of this
8 title taking into consideration the factors in
9 subparagraph (B).
10 (B) FACTORS.—In issuing an exemption
11 by regulation or order as permitted in subpara-
12 graph (A), the Director shall as appropriate
13 take into consideration the following:
14 (i) The total assets of the covered per-
15 son.
16 (ii) The volume of transactions involv-
17 ing consumer financial products or services
18 in which the covered person engages.
19 (iii) The extent to which the covered
20 person engages in 1 or more financial ac-
21 tivities.
22 (iv) Existing laws or regulations which
23 are applicable to the consumer financial
hsrobinson on DSK69SOYB1PROD with BILLS

24 product or service and the extent to which

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00735 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 736
1 such laws or regulations provide consumers
2 with adequate protections.
3 (C) RULE OF CONSTRUCTION.—No provi-
4 sion of this section shall be construed as alter-
5 ing, amending, or affecting any authority under
6 sections 304(a), 304(i), 305(a), and 306(b) of
7 the Home Mortgage Disclosure Act of 1975 and
8 sections 703(a)(1), 703(a)(2), 703(a)(3),
9 705(f), and 705(g) of the Equal Credit Oppor-
10 tunity Act for determining whether a covered
11 person should be provided an exemption.
12 (c) EXAMINATIONS AND REPORTS.—
13 (1) IN GENERAL.—Except as provided under
14 section 4203, the Director may on a periodic basis
15 examine a covered person or service provider, with
16 respect to any consumer financial product or service,
17 for purposes of ensuring compliance with the re-
18 quirements of this title, the enumerated consumer
19 laws, and any regulations prescribed by the Director
20 under this title or pursuant to the authorities trans-
21 ferred under subtitles F and H, and enforcing com-
22 pliance with such requirements.
23 (2) EXAMINATION PROGRAM.—The Director
hsrobinson on DSK69SOYB1PROD with BILLS

24 shall exercise any authority of the Director under

25 paragraph (1) in a manner designed to ensure that

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00736 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 737
1 such authorities are exercised with respect to cov-
2 ered persons or service providers, without regard to
3 charter or corporate form, based on the Director’s
4 assessment of the risks posed to consumers in the
5 relevant product markets and geographic markets,
6 and taking into consideration, as applicable, the fol-
7 lowing factors:
8 (A) The asset size of the covered persons.
9 (B) The volume of transactions involving
10 consumer financial products or services in
11 which the covered persons engage.
12 (C) The risks to consumers created by the
13 provision of such consumer financial products
14 or services.
15 (D) In the case of State-chartered institu-
16 tions, the extent to which such institutions are
17 subject to oversight by State authorities for
18 consumer protection.
19 (3) COORDINATION.—The Director shall coordi-
20 nate the Agency’s supervisory activities with the su-
21 pervisory activities conducted by the Federal bank-
22 ing agencies and the State bank supervisors, includ-
23 ing establishing their respective schedules for exam-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ining covered persons and requirements regarding

25 reports to be submitted by covered persons.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00737 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 738
1 (4) REPORTS.—The Director may require re-
2 ports from a covered person for purposes of ensuring
3 compliance with the requirements of this title, the
4 enumerated consumers laws, and any regulation pre-
5 scribed by the Director under this title or pursuant
6 to the authorities transferred under subtitles F and
7 H, and enforcing compliance with such require-
8 ments.
9 (5) CONTENT OF REPORTS.—The reports au-
10 thorized in paragraph (4) may include such informa-
11 tion as necessary to keep the Agency informed as
12 to—
13 (A) the compliance systems or procedures
14 of the covered person or any affiliate thereof,
15 with applicable provisions of this title or any
16 other law that the Agency has jurisdiction to
17 enforce; and
18 (B) matters related to the provision of con-
19 sumer financial products or services including
20 the servicing or maintenance of accounts or ex-
21 tensions of credit.
22 (6) USE OF EXISTING REPORTS.—In general,
23 the Agency shall, to the fullest extent possible, use—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (A) reports that a covered person, or any

25 affiliate thereof, or any service provider to such

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00738 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 739
1 covered person or affiliate, has provided or been
2 required to provide to a Federal or State agen-
3 cy; and
4 (B) information that has been reported
5 publicly.
6 (7) ACCESS BY THE AGENCY TO REPORTS OF

7 OTHER REGULATORS.—

8 (A) EXAMINATION AND FINANCIAL CONDI-

9 TION REPORTS.—Upon providing reasonable as-

10 surances of confidentiality, the Agency shall
11 have access to any report of examination or fi-
12 nancial condition, including a report containing
13 data regarding consumer complaints, made by a
14 Federal banking agency or other Federal agen-
15 cy having supervision of a covered person, or a
16 service provider, (other than returns and return
17 information described in section 6103 of the In-
18 ternal Revenue Code of 1986) and to all revi-
19 sions made to any such report.
20 (B) PROVISION OF OTHER REPORTS TO

21 AGENCY.—In addition to the reports described

22 in subparagraph (A), a Federal banking agency
23 may, in its discretion, furnish to the Agency
hsrobinson on DSK69SOYB1PROD with BILLS

24 any other report or other confidential super-

25 visory information concerning any insured de-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00739 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 740
1 pository institution, any credit union, or other
2 entity examined by such agency under authority
3 of any Federal law.
4 (8) ACCESS BY OTHER REGULATORS TO RE-

5 PORTS OF THE AGENCY.—

6 (A) EXAMINATION REPORTS.—Upon pro-

7 viding reasonable assurances of confidentiality,
8 a Federal banking agency, a State regulator, or
9 any other Federal agency having supervision of
10 a covered person shall have access to any report
11 of examination made by the Agency with re-
12 spect to the covered person or service provider,
13 and to all revisions made to any such report.
14 (B) PROVISION OF OTHER REPORTS TO

15 OTHER REGULATORS.—In addition to the re-

16 ports described in paragraph (A), the Agency
17 may, in the discretion of the Agency, furnish to
18 a Federal banking agency any other report or
19 other confidential supervisory information con-
20 cerning any insured depository institution, any
21 credit union, or other entity examined by the
22 Agency under authority of any Federal law.
23 (9) PRESERVATION OF AUTHORITY.—No provi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 sion in paragraph (3) shall be construed as pre-

25 venting the Agency from conducting an examination

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00740 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 741
1 authorized by this title or under the authorities
2 transferred under subtitles F and H or pursuant to
3 any enumerated consumer law. No provision of this
4 title shall be construed as limiting the authority of
5 the Director to require reports from a covered per-
6 son, as permitted under paragraph (4), regarding in-
7 formation owned or under the control of the covered
8 person, regardless of whether such information is
9 maintained, stored, or processed by another person.
10 (10) REPORTS OF TAX LAW NONCOMPLI-

11 ANCE.—The Director shall provide the Commis-

12 sioner of Internal Revenue with any report of exam-
13 ination or related information identifying possible
14 tax law noncompliance.
15 (11) DELEGATION.—
16 (A) IN GENERAL.—The Director may dele-
17 gate the examination authorities of the Agency
18 under this title to any appropriate agency, as
19 defined in section 4203, for any insured deposi-
20 tory institution or insured credit union that is
21 not subject to section 4203 upon a petition by
22 an appropriate agency.
23 (B) STANDARD FOR DELEGATION.—The
hsrobinson on DSK69SOYB1PROD with BILLS

24 Director shall provide such delegation if, in the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00741 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 742
1 Director’s sole discretion, the Director deter-
2 mines that—
3 (i) the delegation is consistent with
4 the public interest;
5 (ii) the appropriate agency is capable
6 of enforcing compliance with this title, and
7 with any regulation prescribed under this
8 title; and
9 (iii) such capability is comparable to
10 or superior to the capability of the Agency,
11 in terms of expertise, demonstrated com-
12 mitment, and overall effectiveness, in en-
13 forcing such compliance.
14 (C) EFFECT OF DELEGATION.—The in-
15 sured depository institution or insured credit
16 union shall be subject to the examination proc-
17 ess described in section 4203(b).
18 (D) NO EFFECT ON ENFORCEMENT.—The

19 Director’s delegation authority under this para-

20 graph shall not apply to the Director’s enforce-
21 ment responsibilities under subsection (e).
22 (d) EXCLUSIVE RULEMAKING AND EXAMINATION
23 AUTHORITY.—Notwithstanding any other provision of
hsrobinson on DSK69SOYB1PROD with BILLS

24 Federal law other than section 4203 and subsections (f)

25 and (h) of this section, to the extent that a Federal law

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00742 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 743
1 authorizes the Director and another Federal agency to
2 prescribe regulations, issue guidance, conduct examina-
3 tions, or require reports under that law for purposes of
4 assuring compliance with this title, any enumerated con-
5 sumer law, the laws for which authorities were transferred
6 under subtitles F and H, and any regulations prescribed
7 under this title or pursuant to any such authority, the Di-
8 rector shall have the exclusive authority to prescribe regu-
9 lations, issue guidance, conduct examinations, require re-
10 ports, or issue exemptions with regard to any person sub-
11 ject to that law and with respect to any activity regulated
12 under any enumerated consumer law.
13 (e) PRIMARY ENFORCEMENT AUTHORITY.—
14 (1) THE AGENCY TO HAVE PRIMARY ENFORCE-

15 MENT AUTHORITY.—To the extent that a Federal

16 law authorizes the Agency and another Federal
17 agency to enforce that law, the Agency shall have
18 primary authority to enforce that Federal law with
19 respect to any person in accordance with this sub-
20 section.
21 (2) COORDINATION WITH FEDERAL TRADE

22 COMMISSION.—

23 (A) NOTICE.—If the Commission is au-

hsrobinson on DSK69SOYB1PROD with BILLS

24 thorized to enforce any Federal law described in

25 paragraph (1), or a regulation prescribed under

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00743 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 744
1 any such Federal law, the Commission shall
2 serve written notice to the Director of any en-
3 forcement action at least 30 days prior to initi-
4 ating such an enforcement action, except that if
5 exigent circumstances are present, the Commis-
6 sion may provide notice immediately upon initi-
7 ating such enforcement action.
8 (B) INTERVENTION BY THE DIRECTOR.—

9 Upon receiving any notice under subparagraph

10 (A) with respect to an enforcement action, the
11 Director may intervene in such enforcement ac-
12 tion and upon intervening—
13 (i) be heard on all matters arising in
14 such enforcement action; and
15 (ii) file petitions for appeal in such
16 enforcement action.
17 (C) PENDENCY OF AGENCY ACTION.—

18 Whenever a civil action has been instituted by

19 or on behalf of the Agency for any violation of
20 any Federal law described in paragraph (1), or
21 a regulation prescribed under any such Federal
22 law, the Commission may not, during the pend-
23 ency of that action instituted by or on behalf of
hsrobinson on DSK69SOYB1PROD with BILLS

24 the Agency, institute a civil action under such

25 law or regulation against any defendant named

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00744 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 745
1 in the Agency complaint in such action for any
2 violation alleged in the Agency complaint.
3 (D) AGREEMENTS BETWEEN AGENCIES.—

4 (i) NEGOTIATIONS AUTHORIZED.—

5 The Director may negotiate an agreement

6 with the Commission to establish proce-
7 dures to ensure that the enforcement ac-
8 tions of the 2 agencies are appropriately
9 coordinated.
10 (ii) SCOPE OF NEGOTIATED AGREE-

11 MENT.—The terms of any agreement nego-

12 tiated pursuant to clause (i) may modify or
13 supersede the provisions of subparagraphs
14 (A), (B), and (C).
15 (3) COORDINATION WITH OTHER FEDERAL

16 AGENCY.—

17 (A) REFERRAL.—Any Federal agency

18 (other than the Federal Trade Commission)
19 that is authorized to enforce a Federal law de-
20 scribed in paragraph (1) may recommend in
21 writing to the Director that the Agency initiate
22 an enforcement proceeding to the extent the
23 Agency is authorized by that Federal law or by
hsrobinson on DSK69SOYB1PROD with BILLS

24 this title. The recommendation shall be accom-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00745 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 746
1 panied by a written explanation of the concerns
2 giving rise to the recommendation.
3 (B) BACKSTOP ENFORCEMENT AUTHORITY

4 OF OTHER FEDERAL AGENCY.—If the Agency

5 does not, before the end of the 120-day period
6 beginning on the date on which the Director re-
7 ceives a recommendation under subparagraph
8 (A), initiate an enforcement proceeding, the
9 other agency referred to in subparagraph (A)
10 may initiate an enforcement proceeding as per-
11 mitted by that Federal law.
12 (4) INSTITUTIONS SUBJECT TO SPECIAL EXAM-

13 INATION AND ENFORCEMENT PROCEDURES.—This

14 subsection shall not apply to institutions subject to

15 section 4203.
16 (f) PRESERVATION OF OTHER AUTHORITY.—
17 (1) ATTORNEY GENERAL.—No provision of this
18 title shall be construed as affecting any authority of
19 the Attorney General.
20 (2) SECRETARY OF THE TREASURY.—No provi-
21 sion of this title shall be construed as affecting any
22 authority of the Secretary of the Treasury, including
23 with respect to prescribing regulations, initiating en-
hsrobinson on DSK69SOYB1PROD with BILLS

24 forcement proceedings, or taking other actions with

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00746 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 747
1 respect to a person providing tax planning or tax
2 preparation services.
3 (3) FAIR HOUSING ACT.—No provision of this
4 title shall be construed as affecting any authority
5 arising under the Fair Housing Act.
6 (g) EFFECT ON OTHER AUTHORITY.—No provision
7 of this section or section 4203 shall be construed as modi-
8 fying or limiting the authority of any appropriate Federal
9 banking agency or the Director or Agency to interpret,
10 or take enforcement action under, any law or regulation
11 the interpretation or enforcement of which is committed
12 to the banking agency or the Director or Agency, which
13 shall include, in the case of the Director and the Agency,
14 this title, the enumerated consumer laws, and the regula-
15 tions prescribed under this title or such laws.
16 (h) PRESERVATION OF FEDERAL TRADE COMMIS-
17 SION AUTHORITY.—No provision of this title shall be con-
18 strued as modifying, limiting, or otherwise affecting the
19 authority of the Federal Trade Commission under the
20 Federal Trade Commission Act or other laws other than
21 the enumerated consumer laws.
22 SEC. 4203. EXAMINATION AND ENFORCEMENT FOR SMALL

23 BANKS, THRIFTS, AND CREDIT UNIONS.

hsrobinson on DSK69SOYB1PROD with BILLS

24 (a) SCOPE OF INSTITUTIONS SUBJECT TO THIS SEC-

25 TION.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00747 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 748
1 (1) INSTITUTIONS COVERED.—This section
2 shall apply to—
3 (A) any insured depository institution with
4 total assets of $10,000,000,000 or less; or
5 (B) any insured credit union with total as-
6 sets of $1,500,000,000 or less.
7 (2) APPROPRIATE AGENCY.—For purposes of
8 this title, the term ‘‘appropriate agency’’ means—
9 (A) in the case of an insured depository in-
10 stitution, the appropriate Federal banking
11 agency as such term is defined in section 3 of
12 the Federal Deposit Insurance Act; and
13 (B) in the case of an insured credit union,
14 the National Credit Union Administration.
15 (b) EXAMINATIONS.—
16 (1) IN GENERAL.—The appropriate agency
17 shall on a periodic basis examine, or require reports
18 from, an institution referred to in subsection (a) for
19 purposes of ensuring compliance with the require-
20 ments of this title, the enumerated consumer laws,
21 and any regulation prescribed by the Director under
22 this title or pursuant to the authorities transferred
23 under subtitles F and H, and enforcing compliance
hsrobinson on DSK69SOYB1PROD with BILLS

24 with such requirements.

25 (2) AGENCY ROLE IN EXAMINATIONS.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00748 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 749
1 (A) The appropriate agency shall provide
2 all reports, records, and documentation related
3 to the examination process to the Agency on a
4 timely and ongoing basis.
5 (B) The Director and Agency may, at its
6 discretion, include an examiner on any examina-
7 tion conducted under paragraph (1). The ap-
8 propriate agency shall involve such Agency ex-
9 aminer in the entire examination process, in-
10 cluding setting the scope of an examination,
11 participating in the examination, and providing
12 input on the examination report, matters re-
13 quiring attention and examination ratings.
14 (c) ENFORCEMENT.—
15 (1) IN GENERAL.—Notwithstanding any other
16 provision of this title other than this subsection, the
17 appropriate agency shall have primary authority to
18 enforce violations identified at institutions referred
19 to in subsection (a) of any of the requirements of
20 this title, the enumerated consumers laws, and any
21 regulation prescribed by the Director under this title
22 or pursuant to the authorities transferred under
23 subtitles F and H.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) COORDINATION WITH APPROPRIATE AGEN-

25 CY.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00749 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 750
1 (A) REFERRAL.—
2 (i) IN GENERAL.—The Agency may
3 recommend in writing to the appropriate
4 agency that the appropriate agency initiate
5 an enforcement proceeding to the extent
6 the appropriate agency is authorized by
7 that Federal law or by this title.
8 (ii) EXPLANATION.—Any rec-
9 ommendation under clause (i) shall be ac-
10 companied by a written explanation of the
11 concerns giving rise to the recommenda-
12 tion.
13 (B) BACKSTOP ENFORCEMENT AUTHORITY

14 OF AGENCY.—If the appropriate agency does

15 not, before the end of the 120-day period begin-
16 ning on the date on which the appropriate
17 agency receives a recommendation under sub-
18 paragraph (A), initiate an enforcement pro-
19 ceeding, the Agency may initiate an enforce-
20 ment proceeding as permitted by Federal law.
21 (d) ACTIONS ARISING OUT OF CONSUMER COM-
22 PLAINT SYSTEM.—Notwithstanding any provision of this
23 section, if through the consumer complaint system admin-
hsrobinson on DSK69SOYB1PROD with BILLS

24 istered by the Agency under section 4105(c)(3), the Direc-

25 tor has reasonable cause to believe that an institution re-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00750 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 751
1 ferred to in subsection (a) demonstrates noncompliance
2 with any provision of this title, the enumerated consumer
3 laws, or any regulation prescribed by the Director under
4 this title or pursuant to the authorities transferred under
5 subtitles F and H, the Director may directly investigate
6 such institution for such noncompliance and take any ac-
7 tion permitted under subtitle E that the Director deems
8 appropriate.
9 (e) REMOVAL OF APPROPRIATE AGENCY FOR PAR-
10 TICULAR INSTITUTION.—

11 (1) HEIGHTENED SUPERVISION.—The Direc-

12 tor—
13 (A) may provide notice to an appropriate
14 agency that the Director is considering issuing
15 a removal order under paragraph (2); and
16 (B) shall have an Agency examiner partici-
17 pate in the examination process under sub-
18 section (b) for at least 1 examination cycle.
19 (2) REMOVAL BY ORDER.—If, after the comple-
20 tion of at least 1 examination cycle following the
21 provision of notice to an appropriate agency under
22 paragraph (1), the Director determines in writing
23 that the appropriate agency has failed to adequately
hsrobinson on DSK69SOYB1PROD with BILLS

24 conduct consumer compliance examinations or bring

25 appropriate enforcement actions against an institu-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00751 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 752
1 tion referred to in subsection (a), the Director may
2 order the removal of the appropriate agency from its
3 responsibilities under this section for such institu-
4 tion.
5 (3) AGENCY AUTHORITY UPON REMOVAL.—

6 Upon removal pursuant to paragraph (2), the Agen-

7 cy shall examine and enforce against such institution
8 as if the institution were subject to section 4202.
9 (4) EFFECTIVE DATE.—An order under para-
10 graph (2) shall take effect 30 days after a deter-
11 mination by the Secretary of the Treasury pursuant
12 to paragraphs (5) and (6).
13 (5) AUTOMATIC APPEAL.—An order issued by
14 the Director pursuant to paragraph (2) shall be
15 automatically appealed to the Secretary.
16 (6) DECISION BY THE SECRETARY OF THE

17 TREASURY.—

18 (A) DETERMINATION.—The order issued

19 pursuant to paragraph (2) shall be deemed af-
20 firmed unless the Secretary of the Treasury de-
21 nies the determination of the Director within
22 120 days of the issuance of the order pursuant
23 to paragraph (2).
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) RULE OF CONSTRUCTION.—Nothing in

25 subparagraph (A) shall be construed as prohib-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00752 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 753
1 iting the Secretary of the Treasury from mak-
2 ing a determination to either affirm or deny an
3 order issued pursuant to paragraph (2) prior to
4 the passage of the time period in subparagraph
5 (A).
6 (7) REGULATIONS.—By the transfer date, the
7 Secretary shall issue regulations that establish the
8 standards the Director shall apply in making a de-
9 termination to remove an appropriate agency and
10 the process, procedures, and standards for an ap-
11 peal. Such standards shall require the Director to
12 consider at least the following in issuing an order re-
13 moving an appropriate agency for an institution re-
14 ferred to in subsection (a)(1):
15 (A) Reports of examination of such institu-
16 tion.
17 (B) Any enforcement actions taken by an
18 appropriate agency against such institution and
19 the results of those actions.
20 (C) Consumer complaints issued against
21 such institution.
22 (D) Actions taken by State attorneys gen-
23 eral and private rights of action against such
hsrobinson on DSK69SOYB1PROD with BILLS

24 institution.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00753 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 754
1 (f) POLICIES AND PROCEDURES.—Within 180 days
2 after the designated transfer date, the Agency and the ap-
3 propriate agency shall develop policies and procedures for
4 implementing this section.
5 (g) ASSESSMENTS.—
6 (1) LIMITATION ON CERTAIN FEES.—The Agen-
7 cy shall not assess examination fees on an institution
8 referred to in subsection (a).
9 (2) RULE OF CONSTRUCTION.—No provision of
10 this section shall be construed as preventing the ap-
11 propriate agency from assessing fees on an institu-
12 tion referred to in paragraph (1) to meet the appro-
13 priate agency’s expenses for carrying out such exam-
14 ination and supervision responsibilities pursuant to
15 this section.
16 SEC. 4204. SIMULTANEOUS AND COORDINATED SUPER-

17 VISORY ACTION.

18 (a) EXAMINATIONS.—A Federal banking agency and

19 the Agency shall, with respect to each insured depository
20 institution, credit union, or other covered person super-
21 vised by the Federal banking agency and the Agency, re-
22 spectively—
23 (1) coordinate the scheduling of examinations of
hsrobinson on DSK69SOYB1PROD with BILLS

24 the insured depository institution, and credit union,

25 or other covered person;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00754 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 755
1 (2) conduct simultaneous examinations of each
2 insured depository institution, credit union or other
3 covered person, unless such institution requests ex-
4 aminations to be conducted separately;
5 (3) share each draft report of examination with
6 the other agency and permit the receiving agency a
7 reasonable opportunity (which shall not be less than
8 a period of 30 days after the date of receipt) to com-
9 ment on the draft report before such report is made
10 final; and
11 (4) prior to issuing a final report of examina-
12 tion or taking supervisory action, an agency shall
13 take into consideration concerns, if any, raised in
14 the comments made by the other agency.
15 (b) COORDINATION WITH STATE BANK SUPER-
16 VISORS.—The Agency shall pursue arrangements and
17 agreements with State bank supervisors to coordinate ex-
18 aminations consistent with subsection (a).
19 (c) RESOLUTION OF CONFLICT IN SUPERVISION.—
20 (1) REQUEST OF DEPOSITORY INSTITUTION.—

21 (A) IN GENERAL.—If the proposed mate-

22 rial supervisory determinations of the Agency
23 and a Federal banking agency are conflicting,
hsrobinson on DSK69SOYB1PROD with BILLS

24 an insured depository institution, credit union,

25 or other covered person may request the agen-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00755 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 756
1 cies to coordinate and present a joint statement
2 of coordinated supervisory action.
3 (B) LIMITATION.—A request of an insured
4 depository institution, credit union, or other
5 covered person shall not be used to appeal a su-
6 pervisory rating or determination by the Agency
7 or a Federal banking agency.
8 (2) JOINT STATEMENT.—The agencies receiving
9 a request from an insured depository institution,
10 credit union, or covered person under paragraph (1)
11 shall provide a joint statement resolving the conflict
12 under such subparagraph before the end of the 30-
13 day period beginning on the date the agencies re-
14 ceive such request.
15 (d) APPEALS TO GOVERNING PANEL.—
16 (1) IN GENERAL.—If the agencies receiving a
17 request from an insured depository institution, credit
18 union, or covered person under subsection (c)(1) do
19 not issue a joint statement under subsection (c)(2),
20 or if either agency takes or attempts to take any su-
21 pervisory action relating to the request for the joint
22 statement without the consent of the other agency,
23 the insured depository institution, credit union, or
hsrobinson on DSK69SOYB1PROD with BILLS

24 other covered person may institute an appeal to a

25 governing panel under this subsection.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00756 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 757
1 (2) TIMETABLE.—Any appeal under paragraph
2 (1) with regard to a failure of agencies to issue a
3 joint statement shall be filed before the end of the
4 30-day period beginning at the end of the 30-day pe-
5 riod during which such joint statement was due
6 under subsection (c)(2).
7 (e) COMPOSITION OF GOVERNING PANEL.—The gov-
8 erning panel for an appeal under this section shall be com-
9 posed of—
10 (1) 2 individuals—
11 (A) 1 of whom is a representative from the
12 Agency;
13 (B) 1 of whom is a representative of the
14 Federal banking agency which received the re-
15 quest to which the appeal relates; and
16 (C) neither of whom—
17 (i) have participated in the material
18 supervisory determinations under appeal;
19 and
20 (ii) report directly or indirectly to the
21 individual who made the supervisory deter-
22 minations under appeal; and
23 (2) 1 individual who is a representative from—
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00757 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 758
1 (A) the Federal banking agency that heads
2 the Financial Institution Examination Council;
3 or
4 (B) if the Financial Institutions Examina-
5 tion Council is headed by a Federal banking
6 agency that is a party to the appeal, the Fed-
7 eral banking agency that is next scheduled to
8 head the Financial Institutions Examination
9 Council.
10 (f) CONDUCT OF APPEAL.—
11 (1) CONTENT OF FILING APPEAL.—The insured
12 depository institution, credit union, or other covered
13 person which institutes an appeal under subsection
14 (d)(1) shall include in the filing of such appeal all
15 the facts and legal arguments pertaining to the mat-
16 ter appealed.
17 (2) APPEARANCE.—The insured depository in-
18 stitution, credit union, or other covered person which
19 institutes an appeal under this section may appear
20 before the governing panel in person or by telephone,
21 through counsel, employees, or representatives of, or
22 for, such institution, credit union, or other covered
23 person.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) REQUESTS FOR ADDITIONAL INFORMA-

25 TION.—Any governing panel convened under this

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00758 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 759
1 section may request the insured depository institu-
2 tion, credit union, or other covered person, the
3 Agency, or the Federal banking agency to produce
4 additional information relevant to the appeal.
5 (4) FINAL WRITTEN DETERMINATIONS .—Any
6 governing panel convened under this section, by a
7 majority vote of the members of the panel, shall pro-
8 vide a final determination, in writing, within 30 days
9 of the filing of an informationally complete appeal,
10 or such longer period as the panel and the insured
11 depository institution, credit union, or other covered
12 person may jointly agree.
13 (5) PUBLIC INFORMATION.—A redacted copy of
14 any determination by a governing panel convened
15 under this section shall be made public upon the
16 issuance of such determination.
17 (g) PROHIBITION AGAINST RETALIATION.—The Di-
18 rector and the Federal banking agencies shall prescribe
19 regulations to provide safeguards from retaliation against
20 any insured depository institution, credit union, or other
21 covered person which institutes an appeal under this sec-
22 tion, as well as against any officer or and employee of any
23 such institution, credit union, or other person.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00759 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 760
1 (h) MATERIAL SUPERVISORY DETERMINATION DE-
2 FINED.—For purposes of this section, the term ‘‘material
3 supervisory determination’’—
4 (1) includes any action relating to any super-
5 vision or examinations; and
6 (2) does not include—
7 (A) a determination by any Federal bank-
8 ing agency to appoint a conservator or receiver
9 for an insured depository institution or a liqui-
10 dating agent for an insured credit union, as the
11 case may be, or a decision to take action pursu-
12 ant to section 38 of the Federal Deposit Insur-
13 ance Act or section 212 of the Federal Credit
14 Union Act, as the case may be; or
15 (B) any regulation or guidance, or order of
16 general applicability.
17 SEC. 4205. LIMITATIONS ON AUTHORITY OF AGENCY AND

18 DIRECTOR.

19 (a) EXCLUSION FOR MERCHANTS, RETAILERS, AND

20 SELLERS OF NONFINANCIAL SERVICES.—

21 (1) IN GENERAL.—Notwithstanding any provi-
22 sion of this title (other than paragraph (4)) and sub-
23 ject to paragraph (2), the Director and the Agency
hsrobinson on DSK69SOYB1PROD with BILLS

24 may not exercise any rulemaking, supervisory, en-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00760 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 761
1 forcement or other authority, including authority to
2 order assessments, under this title with respect to—
3 (A) credit extended directly by a merchant,
4 retailer, or seller of nonfinancial services to a
5 consumer, in a case in which the good or service
6 being provided is not itself a consumer financial
7 product or service, exclusively for the purpose
8 of enabling that consumer to purchase goods or
9 services directly from the merchant, retailer, or
10 seller of nonfinancial services; or
11 (B) collection of debt, directly by the mer-
12 chant, retailer, or seller of nonfinancial services,
13 arising from such credit extended.
14 (2) EXCEPTION FOR EXISTING AUTHORITY.—

15 The Director may exercise any rulemaking authority

16 regarding an extension of credit described in para-
17 graph (1)(A) or the collection of debt arising from
18 such extension, as may be authorized by the enumer-
19 ated consumer laws or any law or authority trans-
20 ferred under subtitle F or H.
21 (3) RULE OF CONSTRUCTION.—No provision of
22 this title shall be construed as modifying, limiting,
23 or superseding the authority of the Federal Trade
hsrobinson on DSK69SOYB1PROD with BILLS

24 Commission or any other agency with respect to

25 credit extended, or the collection of debt arising

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00761 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 762
1 from such extension, directly by a merchant, retailer,
2 or seller of nonfinancial services to a consumer ex-
3 clusively for the purpose of enabling that consumer
4 to purchase goods or services directly from the mer-
5 chant, retailer, or seller of nonfinancial services.
6 (4) EXCLUSION NOT APPLICABLE TO CERTAIN

7 CREDIT TRANSACTIONS.—Paragraph (1) shall not

8 apply to—
9 (A) any credit transaction, including the
10 collection of the debt arising from such exten-
11 sion, in which the merchant, retailer, or seller
12 of nonfinancial services assigns, sells, or other-
13 wise conveys such debt owed by the consumer
14 to another person; or
15 (B) any credit transaction—
16 (i) in which the credit provided sig-
17 nificantly exceeds the market value of the
18 product or service provided, and
19 (ii) with respect to which the Director
20 finds that the sale of the product or service
21 is done as a subterfuge so as to evade or
22 circumvent the provisions of this title.
23 (b) EXCLUSION FOR PERSONS REGULATED BY THE
hsrobinson on DSK69SOYB1PROD with BILLS

24 SECURITIES AND EXCHANGE COMMISSION.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00762 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 763
1 (1) IN GENERAL.—No provision of this title
2 shall be construed as altering, amending, or affect-
3 ing the authority of the Securities and Exchange
4 Commission or any securities commission (or any
5 agency or office performing like functions) of any
6 State to adopt rules, initiate enforcement pro-
7 ceedings, or take any other action with respect to a
8 person regulated by the Securities and Exchange
9 Commission or any securities commission (or any
10 agency or office performing like functions) of any
11 State. The Director and Agency shall have no au-
12 thority to exercise any power to enforce this title
13 with respect to a person regulated by the Securities
14 and Exchange Commission or any securities commis-
15 sion (or any agency or office performing like func-
16 tions) of any State.
17 (2) CONSULTATION AND COORDINATION.—Not-

18 withstanding paragraph (1), the Securities and Ex-

19 change Commission shall consult and coordinate
20 with the Director with respect to any rule (including
21 any advance notice of proposed rulemaking) regard-
22 ing an investment product or service that is the
23 same type of product as, or that competes directly
hsrobinson on DSK69SOYB1PROD with BILLS

24 with, a consumer financial product or service that is

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00763 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 764
1 subject to the jurisdiction of the Agency under this
2 title or under any other law.
3 (c) EXCLUSION FOR PERSONS REGULATED BY THE

4 COMMODITY FUTURES TRADING COMMISSION.—

5 (1) IN GENERAL.—No provision of this title
6 shall be construed as altering, amending, or affect-
7 ing the authority of the Commodity Futures Trading
8 Commission to adopt rules, initiate enforcement pro-
9 ceedings, or take any other action with respect to a
10 person regulated by the Commodity Futures Trading
11 Commission. The Director and the Agency shall
12 have no authority to exercise any power to enforce
13 this title with respect to a person regulated by the
14 Commodity Futures Trading Commission.
15 (2) CONSULTATION AND COORDINATION.—Not-

16 withstanding paragraph (1), the Commodity Futures

17 Trading Commission shall consult and coordinate
18 with the Director with respect to any rule (including
19 any advance notice of proposed rulemaking) regard-
20 ing a product or service that is the same type of
21 product as, or that competes directly with, a con-
22 sumer financial product or service that is subject to
23 the jurisdiction of the Agency under this title or
hsrobinson on DSK69SOYB1PROD with BILLS

24 under any other law.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00764 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 765
1 (d) EXCLUSION FOR PERSONS REGULATED BY A

2 STATE INSURANCE REGULATOR.—

3 (1) IN GENERAL.—No provision of this title
4 shall be construed as altering, amending, or affect-
5 ing the authority of any State insurance regulator to
6 adopt rules, initiate enforcement proceedings, or
7 take any other action with respect to a person regu-
8 lated by any State insurance regulator. Except as
9 provided in paragraphs (2) and (3), the Agency shall
10 have no authority to exercise any power to enforce
11 this title with respect to a person regulated by any
12 State insurance regulator.
13 (2) DESCRIPTION OF ACTIVITIES.—Paragraph

14 (1) shall not apply to any person described in such

15 paragraph to the extent such person is engaged in
16 any financial activity described in any subparagraph
17 of section 4002(19) or is otherwise subject to any of
18 the enumerated consumer laws or the authorities
19 transferred under subtitle F or H.
20 (3) PRESERVATION OF CERTAIN AUTHORI-

21 TIES.—Nothing in this title shall be construed as

22 limiting the authority of the Director and the Agen-
23 cy from exercising powers under this title with re-
hsrobinson on DSK69SOYB1PROD with BILLS

24 spect to the provision by a covered person of a prod-

25 uct or service, not otherwise subject to this title, for

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00765 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 766
1 or on behalf of a person regulated by a State insur-
2 ance regulator, in connection with a financial activ-
3 ity.
4 (e) EXCLUSION FOR PERSONS REGULATED BY THE

5 FEDERAL HOUSING FINANCE AGENCY.—No provision of

6 this title shall be construed as altering, amending, or af-
7 fecting the authority of the Federal Housing Finance
8 Agency to adopt rules, initiate enforcement proceedings,
9 or take any other action with respect to a person regulated
10 by the Federal Housing Finance Agency. The Director
11 and Agency shall have no authority to exercise any power
12 to enforce this title with respect to a person regulated by
13 the Federal Housing Agency. For purposes of this sub-
14 section, the term ‘‘person regulated by the Federal Hous-
15 ing Finance Agency’’ means any Federal home loan bank,
16 and any joint office of 1 or more Federal home loan banks.
17 (f) EXCLUSION FOR QUALIFIED RETIREMENT OR EL-
18 IGIBLE DEFERRED COMPENSATION PLANS AND AR-
19 RANGEMENTS.—

20 (1) IN GENERAL.—No provision of this title

21 shall be construed as altering, amending, or affect-
22 ing the authority of the Secretary of the Treasury,
23 the Secretary of Labor, or the Commissioner of In-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ternal Revenue to adopt regulations, initiate enforce-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00766 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 767
1 ment proceedings, or take any actions with respect
2 to—
3 (A) any retirement or eligible deferred
4 compensation plan or arrangement qualified
5 under or meeting the requirements of section
6 401(a), 403(a), 403(b), 457(b), 408 or 408A of
7 the Internal Revenue Code; or
8 (B) any educational savings arrangement
9 under section 529 of such Code.
10 (2) LIMITATION ON AGENCY AUTHORITY.—

11 (A) IN GENERAL.—The Director and the

12 Agency may not exercise any power to enforce
13 this title with respect to services provided di-
14 rectly (or indirectly if the services relate to the
15 operation of such plan or arrangement) to—
16 (i) any retirement or eligible deferred
17 compensation plan or arrangement quali-
18 fied under or meeting the requirements of
19 section 401(a), 403(a), 403(b), 457(b),
20 408, or 408A of the Internal Revenue
21 Code; or
22 (ii) any educational savings arrange-
23 ment under section 529 of such Code.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) SERVICES DEFINED.—For purposes

25 subparagraph (A), the term ‘‘services’’ shall in-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00767 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 768
1 clude, for example, services for custody and in-
2 vestment of assets, administration, compliance,
3 and participant assistance.
4 (g) EXCLUSION FOR ACCOUNTANTS, TAX PRE-
5 PARERS, AND ATTORNEYS.—
6 (1) IN GENERAL.—Except as permitted in para-
7 graph (2), the Director and the Agency may not ex-
8 ercise any rulemaking, supervisory, enforcement or
9 other authority, including authority to order assess-
10 ments, over—
11 (A) any person that is a certified public ac-
12 countant, permitted to practice as a certified
13 public accounting firm, or certified or licensed
14 for such purpose by a State, or any individual
15 who is employed by or holds an ownership inter-
16 est with respect to a person described in this
17 subparagraph when such person is performing
18 or offering to perform customary and usual ac-
19 counting activities, including the provision of
20 accounting, tax, advisory, other services that
21 are subject to the regulatory authority of a
22 state board of accountancy or a federal author-
23 ity, or other services that are incidental to such
hsrobinson on DSK69SOYB1PROD with BILLS

24 customary and usual accounting activities, to

25 the extent that such incidental services are not

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00768 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 769
1 offered or provided by the person separate and
2 apart from such customary and usual account-
3 ing activities and are not offered or provided to
4 consumers who are not receiving such cus-
5 tomary and usual accounting activities;
6 (B) any person other than a person de-
7 scribed in subparagraph (A) that performs in-
8 come tax preparation activities for consumers;
9 or
10 (C) any individual who is providing legal
11 advice or services for which a license to practice
12 law is required under the law of the State in
13 which the advice or services are provided and
14 which are performed within the scope of an at-
15 torney-client relationship established by an
16 agreement, but only to the extent of such legal
17 advice or services.
18 (2) NO EXCLUSION WITH RESPECT TO REG-

19 ISTRATION OF MOST ATTORNEYS.—Notwithstanding

20 paragraph (1), this subsection shall not apply to any

21 authority granted to the Director or the Agency
22 under section 4209 with respect to a licensed attor-
23 ney, except to the extent a licensed attorney is solely
hsrobinson on DSK69SOYB1PROD with BILLS

24 providing legal services in connection with—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00769 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 770
1 (A) the preparation and filing of a bank-
2 ruptcy petition; or
3 (B) court proceedings to avoid a fore-
4 closure.
5 (3) DESCRIPTION OF ACTIVITIES.—Paragraph

6 (1) shall not apply to—

7 (A) any person described in paragraph
8 (1)(A) to the extent such person is engaged in
9 any activity which is not a customary and usual
10 accounting activity described in paragraph
11 (1)(A) or incidental thereto but which is a fi-
12 nancial activity described in any subparagraph
13 of section 4002(19);
14 (B) any person described in paragraph
15 (1)(B) or (1)(C) to the extent such person is
16 engaged in any activity which is a financial ac-
17 tivity described in any subparagraph of section
18 4002(19); or
19 (C) any person described in paragraph
20 (1)(A), (1)(B) or (1)(C) that is otherwise sub-
21 ject to any of the enumerated consumer laws or
22 the authorities transferred under subtitle F or
23 H.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (h) EXCLUSION FOR REAL ESTATE LICENSEES.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00770 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 771
1 (1) IN GENERAL.—Except as permitted in para-
2 graph (2), the Director and the Agency may not ex-
3 ercise any rulemaking, supervisory, enforcement or
4 other authority, including authority to order assess-
5 ments, over a person that is licensed or registered as
6 a real estate broker, real estate agent, in accordance
7 with State law, but only to the extent that such per-
8 son—
9 (A) acts as a real estate agent or broker
10 for a buyer, seller, lessor, or lessee of real prop-
11 erty;
12 (B) brings together parties interested in
13 the sale, purchase, lease, rental, or exchange of
14 real property;
15 (C) negotiates, on behalf of any party, any
16 portion of a contract relating to the sale, pur-
17 chase, lease, rental, or exchange of real prop-
18 erty (other than in connection with providing fi-
19 nancing with respect to any such transaction);
20 (D) engages in any activity for which a
21 person engaged in the activity is required to be
22 registered or licensed as a real estate agent or
23 real estate broker under any applicable law; or
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00771 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 772
1 (E) offers to engage in any activity, or act
2 in any capacity, described in subparagraph (A),
3 (B), (C), or (D).
4 (2) DESCRIPTION OF ACTIVITIES.—Paragraph

5 (1) shall not apply to any person described in such

6 paragraph to the extent such person is engaged in
7 any financial activity described in any subparagraph
8 of section 4002(19) or is otherwise subject to any of
9 the enumerated consumer laws or the authorities
10 transferred under subtitle F or H.
11 (i) EXCLUSION FOR AUTO DEALERS.—
12 (1) IN GENERAL.—The Director and the Agen-
13 cy may not exercise any rulemaking, supervisory, en-
14 forcement or any other authority, including author-
15 ity to order assessments, over—
16 (A) a motor vehicle dealer that is primarily
17 engaged in the sale and servicing of motor vehi-
18 cles, the leasing and servicing of motor vehicles,
19 or both; or
20 (B) a person that—
21 (i) is controlled by, or is under com-
22 mon control with, one or more motor vehi-
23 cle dealers; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 (ii) primarily engages in the extension

25 of, or arranging for the extension of, retail

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00772 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 773
1 credit or retail leases involving motor vehi-
2 cles, where 90 percent of such extension,
3 or arranging for such extension, is made
4 with respect to customers of one or more
5 motor vehicle dealers that control such per-
6 son or with which such person is under
7 common control.
8 (2) CERTAIN FUNCTIONS EXCEPTED.—The pro-
9 visions of paragraph (1) shall not apply to any per-
10 son to the extent that person—
11 (A) provides consumers with any services
12 related to residential mortgages; or
13 (B) operates a line of business that in-
14 volves the extension of retail credit or retail
15 leases involving motor vehicles, and in which—
16 (i) the extension of retail credit or re-
17 tail leases is routinely provided directly to
18 consumers; and
19 (ii) the contract governing such exten-
20 sion of retail credit or retail leases is not
21 routinely assigned to a third party finance
22 or leasing source.
23 (3) NO IMPACT ON PRIOR AUTHORITY.—Noth-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ing in this subsection shall be construed to modify,

25 limit, or supersede the rulemaking or enforcement

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00773 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 774
1 authority over motor vehicle dealers that could be
2 exercised by any Federal department or agency on
3 the day prior to the enactment of this title.
4 (4) NO TRANSFER OF CERTAIN AUTHORITY.—

5 Notwithstanding subtitle F or any other provision of

6 law under this title, the consumer financial protec-
7 tion functions of the Board of Governors and the
8 Federal Trade Commission shall not be transferred
9 to the Director or the Agency to the extent such
10 functions are with respect to a person described
11 under paragraph (1).
12 (5) DEFINITIONS.—For purposes of this sub-
13 section:
14 (A) MOTOR VEHICLE.—The term ‘‘motor
15 vehicle’’ means any self-propelled vehicle de-
16 signed for transporting persons or property on
17 a street, highway, or other road.
18 (B) MOTOR VEHICLE DEALER.—The term
19 ‘‘motor vehicle dealer’’ means any person resi-
20 dent in the United States or any territory of
21 the United States, and licensed by a State, a
22 territory of the United States, or the District of
23 Columbia to engage in the sale of motor vehi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 cles.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00774 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 775
1 (j) NO AUTHORITY TO IMPOSE USURY LIMIT.—No
2 provision of this title shall be construed as conferring au-
3 thority on the Director or the Agency to establish a usury
4 limit applicable to an extension of credit offered or made
5 by a covered person to a consumer, unless explicitly au-
6 thorized by law.
7 (k) EXCLUSION FOR MANUFACTURED HOME RE-
8 TAILERS AND MODULAR HOME RETAILERS.—
9 (1) IN GENERAL.—The Director and the Agen-
10 cy may not exercise any rulemaking, supervisory, en-
11 forcement or other authority, including authority to
12 order assessments, over a person to the extent such
13 person—
14 (A) acts as an agent or broker for a buyer
15 or seller of a manufactured home or a modular
16 home;
17 (B) facilitates the purchase by a consumer
18 of a manufactured home or modular home, by
19 negotiating the purchase price or terms of the
20 sales contract (other than providing financing
21 with respect to such transaction); or
22 (C) offers to engage in any activity de-
23 scribed in subparagraphs (A) or (B).
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) DESCRIPTION OF ACTIVITIES.—Paragraph

25 (1) shall not apply to any person described in such

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00775 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 776
1 paragraph to the extent such person is engaged in
2 any financial activity described in any subparagraph
3 of section 4002(19) or is otherwise subject to any of
4 the enumerated consumer laws or the authorities
5 transferred under subtitle F or H.
6 (3) DEFINITIONS.—For purposes of this sub-
7 section:
8 (A) MANUFACTURED HOME.—The term
9 ‘‘manufactured home’’ has the meaning given
10 such term in section 603 of the National Manu-
11 factured Housing Construction and Safety
12 Standards Act of 1974 (42 U.S.C. 5402).
13 (B) MODULAR HOME.—The term ‘‘mod-
14 ular home’’ means a house built in a factory in
15 two or more modules that meet the State or
16 local building codes where the house will be lo-
17 cated and where such modules are transported
18 to the building site, installed on foundations,
19 and completed.
20 SEC. 4206. COLLECTION OF INFORMATION; CONFIDEN-

21 TIALITY REGULATIONS.

22 (a) COLLECTION OF INFORMATION.—

23 (1) IN GENERAL.—In conducting research on
hsrobinson on DSK69SOYB1PROD with BILLS

24 the provision of consumer financial products or serv-

25 ices, the Director shall have the power to gather in-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00776 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 777
1 formation from time to time regarding the organiza-
2 tion, business conduct, and practices of covered per-
3 sons or service providers.
4 (2) SPECIFIC AUTHORITY.—In order to gather
5 such information, the Director shall have the
6 power—
7 (A) to gather and compile information;
8 (B) to require persons to file with the
9 Agency, in such form and within such reason-
10 able period of time as the Director may pre-
11 scribe, by regulation or order, annual or special
12 reports, or answers in writing to specific ques-
13 tions, furnishing information the Director may
14 require; and
15 (C) to make public such information ob-
16 tained by it under this section as is in the pub-
17 lic interest in reports or otherwise in the man-
18 ner best suited for public information and use.
19 (b) CONFIDENTIALITY REGULATIONS.—The Director
20 shall prescribe regulations regarding the confidential
21 treatment of information obtained from persons in connec-
22 tion with the exercise of any authority of the Agency or
23 Director under this title and the enumerated consumer
hsrobinson on DSK69SOYB1PROD with BILLS

24 laws and the authorities transferred under subtitles F and

25 H.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00777 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 778
1 (c) PRIVACY CONSIDERATIONS.—In collecting infor-
2 mation from any person, publicly releasing information
3 held by the Agency, or requiring covered persons to pub-
4 licly report information, the Director and the Agency shall
5 take steps to ensure that proprietary, personal or con-
6 fidential consumer information that are protected from
7 public disclosure under section 552(b) or 552a of title 5,
8 United States Code, or any other provision of law are not
9 made public under this title.
10 SEC. 4207. MONITORING; ASSESSMENTS OF SIGNIFICANT

11 REGULATIONS; REPORTS.

12 (a) MONITORING.—
13 (1) IN GENERAL.—The Agency shall monitor
14 for risks to consumers in the provision of consumer
15 financial products or services, including develop-
16 ments in markets for such products or services.
17 (2) MEANS OF MONITORING.—Such monitoring
18 may be conducted by examinations of covered per-
19 sons or service providers, analysis of reports ob-
20 tained from covered persons or service providers, as-
21 sessment of consumer complaints, surveys and inter-
22 views of covered persons, service providers, and con-
23 sumers, and review of available databases.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) CONSIDERATIONS.—In allocating the re-

25 sources of the Agency to perform the monitoring re-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00778 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 779
1 quired by this section, the Director may consider,
2 among other factors—
3 (A) likely risks and costs to consumers as-
4 sociated with buying or using a type of con-
5 sumer financial product or service;
6 (B) consumers’ understanding of the risks
7 of a type of consumer financial product or serv-
8 ice;
9 (C) the state of the law that applies to the
10 provision of a consumer financial product or
11 service, including the extent to which the law is
12 likely to adequately protect consumers;
13 (D) rates of growth in the provision of a
14 consumer financial product or service;
15 (E) extent, if any, to which the risks of a
16 consumer financial product or service may dis-
17 proportionately affect traditionally underserved
18 consumers, if any; or
19 (F) types, number, and other pertinent
20 characteristics of covered persons that provide
21 the product or service.
22 (4) REPORTS.—The Agency shall publish at
23 least 1 report of significant findings of the moni-
hsrobinson on DSK69SOYB1PROD with BILLS

24 toring required by paragraph (1) in each calendar

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00779 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 780
1 year, beginning in the calendar year that is 1 year
2 after the designated transfer date.
3 (b) ASSESSMENT OF SIGNIFICANT REGULATIONS.—
4 (1) IN GENERAL.—The Agency shall conduct an
5 assessment of each significant regulation prescribed
6 or order issued by the Director under this title,
7 under the authorities transferred under subtitles F
8 and H or pursuant to any enumerated consumer law
9 that addresses, among other relevant factors, the ef-
10 fectiveness of the regulation in meeting the purposes
11 and objectives of this title and the specific goals
12 stated by the Director.
13 (2) BASIS FOR ASSESSMENT.—The assessment
14 shall reflect available evidence and any data that the
15 Agency reasonably may collect.
16 (3) REPORTS.—The Agency shall publish a re-
17 port of an assessment under this subsection not
18 later than 3 years after the effective date of the reg-
19 ulation or order, unless the Director determines that
20 3 years is not sufficient time to study or review the
21 impact of the regulation, but in no event shall the
22 Agency publish a report of such assessment more
23 than 5 years after the effective date of the regula-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tion or order.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00780 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 781
1 (4) PUBLIC COMMENTED REQUIRED.—Before

2 publishing a report of its assessment, the Agency

3 shall invite, with sufficient time allotted, public com-
4 ment on, and may hold public hearings on, rec-
5 ommendations for modifying, expanding, or elimi-
6 nating the newly adopted significant regulation or
7 order.
8 (c) INFORMATION GATHERING.—In conducting any
9 monitoring or assessment required by this section, the
10 Agency may gather information through a variety of meth-
11 ods, including by conducting surveys or interviews of con-
12 sumers.
13 SEC. 4208. AUTHORITY TO RESTRICT MANDATORY

14 PREDISPUTE ARBITRATION.

15 (a) IN GENERAL.—The Director, by regulation, may

16 prohibit or impose conditions or limitations on the use of
17 any agreement between a covered person and a consumer
18 for a consumer financial product or service providing for
19 arbitration of any future dispute between the parties if
20 the Director finds that such a prohibition or imposition
21 of conditions or limitations are in the public interest and
22 for the protection of consumers.
23 (b) EFFECTIVE DATE.—Notwithstanding any other
hsrobinson on DSK69SOYB1PROD with BILLS

24 provision of law, any regulation prescribed by the Director

25 under subsection (a) shall apply, consistent with the terms

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00781 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 782
1 of the regulation, to any agreement between a consumer
2 and a covered person entered into after the end of the
3 180-day period beginning on the effective date of the regu-
4 lation, as established by the Director.
5 SEC. 4209. REGISTRATION AND SUPERVISION OF NON-

6 DEPOSITORY COVERED PERSONS.

7 (a) RISK-BASED PROGRAMS.—

8 (1) IN GENERAL.—The Agency shall develop
9 risk-based programs to supervise covered persons
10 that are not credit unions, depository institutions, or
11 persons excluded under section 4205 by prescribing
12 registration requirements, reporting requirements,
13 and examination standards and procedures.
14 (2) BASIS FOR PROGRAMS.—The risk-based su-
15 pervisory programs established pursuant to para-
16 graph (1) shall be based on—
17 (A) relevant registration and reporting in-
18 formation about such covered persons, as deter-
19 mined by the Agency; and
20 (B) the Agency’s assessment of risks posed
21 to consumers in the relevant geographic mar-
22 kets and markets for consumer financial prod-
23 ucts and services.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (b) REGISTRATION.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00782 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 783
1 (1) IN GENERAL.—The Director shall prescribe
2 regulations regarding registration requirements for
3 covered persons that are not credit unions or deposi-
4 tory institutions.
5 (2) CONSULTATION WITH STATE AGENCIES.—

6 In developing and implementing registration require-

7 ments under this subsection, the Agency shall con-
8 sult with State agencies regarding requirements or
9 systems for registration (including coordinated or
10 combined systems), where appropriate.
11 (3) EXCEPTION FOR RELATED PERSONS.—The

12 Agency shall not impose requirements regarding the

13 registration of a related person.
14 (4) REGISTRATION INFORMATION.—Subject to
15 regulations prescribed by the Director, the Agency
16 shall publicly disclose the registration information
17 about a covered person which is not a bank holding
18 company, credit union, or depository institution for
19 the purposes of facilitating the ability of consumers
20 to identify the covered person as registered with the
21 Agency.
22 (c) REPORTING REQUIREMENTS.—
23 (1) IN GENERAL.—The Agency may require re-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ports from covered persons that are not credit

25 unions or depository institutions, or service providers

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00783 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 784
1 thereto, for the purposes of facilitating supervision
2 of such covered persons or service providers.
3 (2) CONSISTENCY OF REPORTING REQUIRE-

4 MENTS AND RISK-BASED STANDARDS.—The Agency

5 shall impose reporting requirements under this sub-
6 section that are consistent with the risk-based stand-
7 ards developed and implemented under this section
8 and the registration information pertaining to the
9 relevant types or classes of covered persons.
10 (3) CONTENTS OF REPORTS.—Reporting re-
11 quirements imposed under this paragraph may in-
12 clude information regarding—
13 (A) the nature of the covered person’s
14 business;
15 (B) the covered person’s name, legal form,
16 ownership and management structure, and re-
17 lated persons;
18 (C) the covered person’s locations of oper-
19 ation;
20 (D) the covered person’s types and number
21 of consumer financial products and services
22 provided by the covered person;
23 (E) compliance with any requirement im-
hsrobinson on DSK69SOYB1PROD with BILLS

24 posed or enforced by the Agency, including any

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00784 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 785
1 requirement relating to registration, licensing,
2 fees, or assessments; and
3 (F) the financial condition of such covered
4 person, including a related person, for the pur-
5 pose of assessing the ability of such person to
6 perform its obligation to consumers.
7 (4) EXCEPTION FOR RELATED PERSONS.—

8 Other than reports permitted under paragraph

9 (3)(F) or in connection with a supervisory action or
10 examination or pursuant to the powers granted in
11 subtitle E, the Agency shall not impose requirements
12 regarding reports of any related person.
13 (d) EXAMINATIONS.—
14 (1) EXAMINATIONS REQUIRED.—The Agency
15 shall conduct examinations of covered persons that
16 are not credit unions or depository institutions as
17 part of the programs implemented under paragraphs
18 (2) and (3) of section 4202(c).
19 (2) EXAMINATION STANDARDS AND PROCE-

20 DURES.—The Director shall establish risk-based

21 standards and procedures for conducting examina-
22 tions of covered persons required to be examined
23 under paragraph (1), including the frequency and
hsrobinson on DSK69SOYB1PROD with BILLS

24 scope of such examinations, except that the Agency

25 shall conduct examinations of such covered persons

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00785 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 786
1 that are determined to pose the highest risk to con-
2 sumers based on factors determined by the Director,
3 such as the operations, sales practices, or consumer
4 financial products or services provided by such cov-
5 ered persons.
6 (e) AUTHORITY TO COLLECT INFORMATION REGARD-
7 ING FEES OR ASSESSMENTS.—To the extent permitted by
8 Federal law, the Agency may obtain from the Secretary
9 of the Treasury information relating to a covered person
10 which is not a bank holding company, credit union, or de-
11 pository institution, including information regarding com-
12 pliance with a reporting or registration requirement under
13 the subchapter II of chapter 53 of title 31, United States
14 Code, for the purposes of, and only to the extent necessary
15 in, investigating, determining, or enforcing compliance
16 with a requirement relating to any fee or assessment im-
17 posed by the Agency under this title.
18 SEC. 4210. EFFECTIVE DATE.

19 This subtitle shall take effect on the designated

20 transfer date.
21 Subtitle C—Specific Authorities
22 SEC. 4301. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE

23 ACTS OR PRACTICES.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (a) IN GENERAL.—The Agency may take any action

25 authorized under subtitle E to prevent a person from com-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00786 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 787
1 mitting or engaging in an unfair, deceptive, or abusive act
2 or practice under Federal law in connection with any
3 transaction with a consumer for a consumer financial
4 product or service, or the offering of a consumer financial
5 product or service.
6 (b) REGULATIONS.—
7 (1) IN GENERAL.—The Director may prescribe
8 regulations identifying as unlawful unfair, deceptive,
9 or abusive acts or practices in connection with any
10 transaction with a consumer for a consumer finan-
11 cial product or service or the offering of a consumer
12 financial product or service.
13 (2) INCLUDES PREVENTION MEASURES.—Regu-

14 lations prescribed under this section may include re-

15 quirements for the purpose of preventing such acts
16 or practices.
17 (c) UNFAIRNESS.—
18 (1) IN GENERAL.—The Director and the Agen-
19 cy shall have no authority under this section to de-
20 clare an act or practice in connection with a trans-
21 action with a consumer for a consumer financial
22 product or service, or the offering of a consumer fi-
23 nancial product or service, to be unlawful on the
hsrobinson on DSK69SOYB1PROD with BILLS

24 grounds that such act or practice is unfair unless

25 the Agency has a reasonable basis to conclude that

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00787 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 788
1 the act or practice causes or is likely to cause sub-
2 stantial injury to consumers which is not reasonably
3 avoidable by consumers and such substantial injury
4 is not outweighed by countervailing benefits to con-
5 sumers or to competition.
6 (2) ESTABLISHED PUBLIC POLICY AS FAC-

7 TOR.—In determining whether an act or practice is

8 unfair, the Agency may consider established public
9 policies as evidence to be considered with all other
10 evidence.
11 (d) CONSULTATION.—In prescribing any regulation
12 under this section, the Director shall consult with the Fed-
13 eral banking agencies, State bank supervisors, the Federal
14 Trade Commission, or other Federal agencies, as appro-
15 priate, regarding the consistency of a proposed regulation
16 with prudential, consumer protection, civil rights, market,
17 or systemic objectives administered by such agencies or
18 supervisors.
19 SEC. 4302. DISCLOSURES.

20 (a) IN GENERAL.—The Director may prescribe regu-

21 lations to ensure the timely, appropriate and effective dis-
22 closure to consumers of the costs, benefits, and risks asso-
23 ciated with any consumer financial product or service.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (b) COORDINATION WITH OTHER LAWS.—In pre-

25 scribing regulations under subsection (a), the Director

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00788 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 789
1 shall take into account disclosure requirements under
2 other laws in order to enhance consumer compliance and
3 reduce regulatory burden.
4 (c) COMPLIANCE.—
5 (1) MODEL DISCLOSURES.—The Agency may
6 provide model disclosures to facilitate compliance
7 with the requirements of regulations prescribed
8 under this section.
9 (2) PER SE COMPLIANCE.—Compliance by a
10 covered person with the model disclosures issued by
11 the Agency under this subsection shall per se con-
12 stitute compliance with the disclosure requirements
13 of this section.
14 (3) ADDITIONAL GUIDANCE.—The Agency may
15 issue exemptions, no action letters, and other guid-
16 ance to promote compliance with disclosures require-
17 ments of regulations prescribed under this section.
18 (d) COMBINED MORTGAGE LOAN DISCLOSURE.—
19 Within 1 year after the designated transfer date, the Di-
20 rector shall propose for public comment regulations and
21 model disclosures that combine the disclosures required
22 under the Truth in Lending Act and the Real Estate Set-
23 tlement Procedures Act into a single, integrated disclosure
hsrobinson on DSK69SOYB1PROD with BILLS

24 for mortgage loan transactions covered by those laws, un-

25 less the Director determines that any proposal issued by

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00789 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 790
1 the Board of Governors and the Department of Housing
2 and Urban Development carries out the same purpose.
3 SEC. 4303. SALES PRACTICES.

4 The Director may prescribe regulations and issue or-

5 ders and guidance regarding the manner, settings, and cir-
6 cumstances for the provision of any consumer financial
7 products or services to ensure that the risks, costs, and
8 benefits of the products or services, both initially and over
9 the term of the products or services, are fully and accu-
10 rately represented to consumers.
11 SEC. 4304. PILOT DISCLOSURES.

12 (a) PILOT DISCLOSURES.—The Agency shall estab-

13 lish standards and procedures for approval of pilot disclo-
14 sures to be provided or made available by a covered person
15 to consumers in connection with the provision of a con-
16 sumer financial product or service, or the offering of a
17 consumer financial product or service.
18 (b) STANDARDS.—The procedures shall provide that
19 a pilot disclosure must be limited in time and scope and
20 reasonably designed to contribute materially to the under-
21 standing of consumer awareness and understanding of,
22 and responses to, disclosures or communications about the
23 risks, costs, and benefits of consumer financial products
hsrobinson on DSK69SOYB1PROD with BILLS

24 or services.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00790 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 791
1 (c) TRANSPARENCY.—The procedures shall provide
2 for public disclosure of pilots, but the Agency may limit
3 disclosure to the extent necessary to encourage covered
4 persons to conduct effective pilots.
5 SEC. 4305. ADOPTING OPERATIONAL STANDARDS TO

6 DETER UNFAIR, DECEPTIVE, OR ABUSIVE

7 PRACTICES.

8 (a) AUTHORITY TO PRESCRIBE STANDARDS.—The

9 States are encouraged to prescribe standards applicable
10 to covered persons who are not insured depository institu-
11 tions or credit unions, or service providers, to deter and
12 detect unfair, deceptive, abusive, fraudulent, or illegal
13 transactions in the provision of consumer financial prod-
14 ucts or services, including standards for—
15 (1) background checks for principals, officers,
16 directors, or key personnel;
17 (2) registration, licensing, or certification;
18 (3) bond or other appropriate financial require-
19 ments to provide reasonable assurance of ability to
20 perform its obligations to consumers;
21 (4) creating and maintaining records of trans-
22 actions or accounts; or
23 (5) procedures and operations relating to the
hsrobinson on DSK69SOYB1PROD with BILLS

24 provision of, or maintenance of accounts for, con-

25 sumer financial products or services.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00791 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 792
1 (b) AGENCY AUTHORITY TO PRESCRIBE STAND-
2 ARDS.—

3 (1) IN GENERAL.—The Director may prescribe

4 regulations establishing minimum standards under
5 this section for any class of covered persons other
6 than covered persons which are subject to the juris-
7 diction of a Federal banking agency or a State bank
8 supervisor , or for any service provider.
9 (2) REGISTRATION AND LICENSING STAND-

10 ARDS.—In addition to prescribing standards for the

11 purposes described in subsection (a), the Director
12 may prescribe registration or licensing standards ap-
13 plicable to covered persons for the purposes of im-
14 posing fees or assessments in accordance with this
15 title.
16 (3) ENFORCEMENT OF STANDARDS.—The Di-
17 rector may enforce under subtitle E compliance with
18 standards adopted by the Director or a State pursu-
19 ant to this section for covered persons or service
20 providers operating in that State.
21 (c) CONSULTATION.—In prescribing minimum stand-
22 ards under this section, the Director shall consult with the
23 Federal banking agencies, State bank supervisors, the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Federal Trade Commission, or other Federal agencies, as

25 appropriate, regarding the consistency of a proposed regu-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00792 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 793
1 lation with prudential, consumer protection, civil rights,
2 market, or systemic objectives administered by such agen-
3 cies or supervisors.
4 SEC. 4306. DUTIES.

5 (a) IN GENERAL.—
6 (1) REGULATIONS ENSURING FAIR DEALING

7 WITH CONSUMERS.—The Director shall prescribe

8 regulations imposing duties on a covered person, or
9 an employee of a covered person, or an agent or
10 independent contractor for a covered person, who
11 deals or communicates directly with consumers in
12 the provision of a consumer financial product or
13 service, as the Director deems appropriate or nec-
14 essary to ensure fair dealing with consumers.
15 (2) CONSIDERATIONS FOR DUTIES.—In pre-
16 scribing such regulations, the Director shall consider
17 whether—
18 (A) the covered person, employee, agent, or
19 independent contractor represents implicitly or
20 explicitly that the person, employee, agent, or
21 contractor is acting in the interest of the con-
22 sumer with respect to any aspect of the trans-
23 action;
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) the covered person, employee, agent,

25 or independent contractor provides the con-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00793 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 794
1 sumer with advice with respect to any aspect of
2 the transaction;
3 (C) the consumer’s reliance on or use of
4 any advice from the covered person, employee,
5 agent, or independent contractor would be rea-
6 sonable and justifiable under the circumstances;
7 (D) the benefits to consumers of imposing
8 a particular duty would outweigh the costs; and
9 (E) any other factors as the Director con-
10 siders appropriate.
11 (3) DUTIES RELATING TO COMPENSATION

12 PRACTICES.—

13 (A) IN GENERAL.—The Director may pre-

14 scribe regulations establishing duties regarding
15 compensation practices applicable to a covered
16 person, employee, agent, or independent con-
17 tractor who deals or communicates directly with
18 a consumer in the provision of a consumer fi-
19 nancial product or service for the purpose of
20 promoting fair dealing with consumers.
21 (B) NO COMPENSATION CAPS.—The Direc-
22 tor may not prescribe a limit on the total dollar
23 amount of compensation paid to any person.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (C) DISPARITY TREATMENT PROHIB-

25 ITED.—The Director may not prescribe regula-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00794 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 795
1 tions that directly or indirectly disparately
2 treat, or are interpreted to disparately treat, or
3 disparately impact any entity that employs cov-
4 ered persons.
5 (4) REQUIREMENT TO INCLUDE DISCLAIMER ON

6 PUBLIC STATEMENTS.—The Director shall ensure

7 that the Agency’s website, and any statement made
8 by the Director or the Agency to the public, includes
9 a disclaimer stating that the Agency does not en-
10 dorse any particular financial product or service and
11 consumers are expected to exercise due diligence in
12 deciding what financial products and services are ap-
13 propriate for them.
14 (b) ADMINISTRATIVE PROCEEDINGS.—
15 (1) IN GENERAL.—Any regulation prescribed by
16 the Director under this section shall be enforceable
17 only by the Agency through an adjudication pro-
18 ceeding under subtitle E or by a State regulator
19 through an appropriate administrative proceeding as
20 permitted under State law.
21 (2) EXCLUSIVITY OF REMEDY.—No action may
22 be commenced in any court to enforce any require-
23 ment of a regulation prescribed under this section,
hsrobinson on DSK69SOYB1PROD with BILLS

24 and no court may exercise supplemental jurisdiction

25 over a claim asserted under a regulation prescribed

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00795 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 796
1 under this section based on allegations or evidence
2 of conduct that otherwise may be subject to such
3 regulation.
4 (3) RULE OF CONSTRUCTION.—The Agency,
5 the Attorney General, and any State attorney gen-
6 eral or State regulator shall not be precluded from
7 enforcing any other Federal or State law against a
8 person with respect to conduct that may be subject
9 to a regulation prescribed by the Director under this
10 section.
11 (c) EXCLUSIONS.—This section shall not be con-
12 strued as authorizing the Director to prescribe regulations
13 applicable to—
14 (1) an attorney licensed to practice law and in
15 compliance with the applicable rules and standards
16 of professional conduct, but only to the extent that
17 the consumer financial product or service provided is
18 within the attorney-client relationship with the con-
19 sumer; or
20 (2) any trustee, custodian, or other person that
21 holds a fiduciary duty in connection with a trust, in-
22 cluding a fiduciary duty to a grantor or beneficiary
23 of a trust, that is subject to and in compliance with
hsrobinson on DSK69SOYB1PROD with BILLS

24 the applicable law relating to such trust.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00796 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 797
1 SEC. 4307. CONSUMER RIGHTS TO ACCESS INFORMATION.

2 (a) IN GENERAL.—Subject to regulations prescribed

3 by the Director, a covered person shall make available to
4 a consumer, in an electronic form usable by the consumer,
5 information in the control or possession of the covered per-
6 son concerning the consumer financial product or service
7 that the consumer obtained from such covered person in-
8 cluding information relating to any transaction, series of
9 transactions, or to the account including costs, charges
10 and usage data.
11 (b) EXCEPTIONS.—A covered person shall not be re-
12 quired by this section to make available to the consumer—
13 (1) any confidential commercial information, in-
14 cluding an algorithm used to derive credit scores or
15 other risk scores or predictors;
16 (2) any information collected by the covered
17 person for the purpose of preventing fraud or money
18 laundering, or detecting, or making any report re-
19 garding other unlawful or potentially unlawful con-
20 duct;
21 (3) any information required to be kept con-
22 fidential by any other law (including section 6103 of
23 the Internal Revenue Code of 1986); or
hsrobinson on DSK69SOYB1PROD with BILLS

24 (4) any information that the covered person

25 cannot retrieve in the ordinary course of its business
26 with respect to that information.
•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00797 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 798
1 (c) NO DUTY TO MAINTAIN RECORDS.—No provision
2 of this section shall be construed as imposing any duty
3 on a covered person to maintain or keep any information
4 about a consumer.
5 (d) STANDARDIZED FORMATS FOR DATA.—The Di-
6 rector, by regulation, shall prescribe standards applicable
7 to covered persons to promote the development and use
8 of standardized formats for information, including
9 through the use of machine readable files, to be made
10 available to consumers under this section.
11 (e) CONSULTATION.—The Director shall, when pre-
12 scribing any regulation under this section, consult with the
13 Federal banking agencies, State bank supervisors, the
14 Federal Trade Commission, and the Commissioner of In-
15 ternal Revenue to ensure that the regulations—
16 (1) impose substantively similar requirements
17 on covered persons;
18 (2) take into account conditions under which
19 covered persons do business both in the United
20 States and in other countries; and
21 (3) do not require or promote the use of any
22 particular technology in order to develop systems for
23 compliance.
hsrobinson on DSK69SOYB1PROD with BILLS

24 SEC. 4308. PROHIBITED ACTS.

25 It shall be unlawful for any person—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00798 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 799
1 (1) to advertise, market, offer, sell, enforce, or
2 attempt to enforce, any term, agreement, change in
3 terms, fee, or charge in connection with a consumer
4 financial product or service that is not in conformity
5 with this title or applicable regulation prescribed or
6 order issued by the Director or to engage in any un-
7 fair, deceptive, or abusive act or practice, except that
8 no person shall be held to have violated this sub-
9 section solely by virtue of providing or selling time
10 or space to a person placing an advertisement;
11 (2) to fail or refuse to pay any fee or assess-
12 ment imposed by the Agency under this title, to fail
13 or refuse to permit access to or copying of records,
14 to fail or refuse to establish or maintain records, or
15 to fail or refuse to make reports or provide informa-
16 tion to the Agency, as required by this title, an enu-
17 merated consumer law, or pursuant to the authori-
18 ties transferred by subtitles F and H, or any regula-
19 tion prescribed or order issued by the Director this
20 title or pursuant to any such authority; or
21 (3) to knowingly or recklessly provide substan-
22 tial assistance to another person in violation of the
23 provisions of section 4301, or any regulation pre-
hsrobinson on DSK69SOYB1PROD with BILLS

24 scribed or order issued under such section, and any

25 such person shall be deemed to be in violation of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00799 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 800
1 that section to the same extent as the person to
2 whom such assistance is provided.
3 SEC. 4309. TREATMENT OF REMITTANCE TRANSFERS.

4 (a) DISCLOSURES REQUIRED FOR REMITTANCE

5 TRANSFERS.—
6 (1) IN GENERAL.—Each remittance transfer
7 provider shall make disclosures to consumers, as
8 specified by this section and by regulation prescribed
9 by the Director.
10 (2) SPECIFIC DISCLOSURES.—In addition to
11 any other disclosures applicable under this title, a
12 remittance transfer provider shall—
13 (A) disclose clearly and conspicuously, in
14 writing and in a form that the consumer may
15 keep, to each consumer who requests informa-
16 tion regarding the fees or exchange rate for a
17 remittance transfer, prior to the consumer mak-
18 ing any payment in connection with the trans-
19 fer—
20 (i) the total amount in United States
21 dollars that will be required to be paid by
22 the consumer in connection with the remit-
23 tance transfer;
hsrobinson on DSK69SOYB1PROD with BILLS

24 (ii) the amount of currency that the

25 designated recipient of the remittance

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00800 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 801
1 transfer will receive, using the values of
2 the currency into which the funds will be
3 exchanged;
4 (iii) the fee charged by the remittance
5 transfer provider for the remittance trans-
6 fer;
7 (iv) any exchange rate to be used by
8 the remittance transfer provider for the re-
9 mittance transfer, unless the exchange rate
10 is not fixed on send;
11 (v) the amount of time for which the
12 information specified in this subparagraph
13 (A) will be in effect;
14 (vi) the expected time interval within
15 which the funds being transferred will be
16 made available to the recipient; and
17 (vii) the location where the funds
18 being transferred will be made available to
19 the recipient if the funds are to be made
20 available only at one location, or if the re-
21 mittance transfer provider permits the re-
22 cipient to choose from multiple locations
23 where the funds being transferred will be
hsrobinson on DSK69SOYB1PROD with BILLS

24 made available to the recipient, the remit-

25 tance transfer provider shall make avail-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00801 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 802
1 able to the consumer or the recipient a re-
2 source that lists such locations;
3 (B) at the time at which the consumer
4 makes payment in connection with the remit-
5 tance transfer, a receipt in writing disclosing
6 clearly and conspicuously—
7 (i) the information described in sub-
8 paragraph (A);
9 (ii) the expected time interval within
10 which the funds being transferred will be
11 made available to the recipient, which shall
12 be not more than ten days after the date
13 the consumer makes payment in connec-
14 tion with the remittance transfer unless
15 otherwise prohibited by applicable State or
16 Federal law or the law of another country,
17 or as may be specified by the consumer so
18 long as the consumer has the choice to
19 order that the funds be made available to
20 the recipient not more than ten days after
21 the consumer makes payment in connec-
22 tion with the remittance transfer;
23 (iii) the location where the funds
hsrobinson on DSK69SOYB1PROD with BILLS

24 being transferred will be made available to

25 the recipient if the funds are to be made

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00802 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 803
1 available only at one location, or if the re-
2 mittance transfer provider permits the re-
3 cipient to choose from multiple locations
4 where the funds being transferred will be
5 made available to the recipient, the remit-
6 tance transfer provider shall make avail-
7 able to the consumer or the recipient a re-
8 source that lists such locations;
9 (iv) the name and telephone number
10 or address of the designated recipient, if
11 provided to the remittance transfer pro-
12 vider by the consumer;
13 (v) information about the rights of the
14 consumer under this section to cancel the
15 remittance transfer, to resolve errors and
16 to receive refunds;
17 (vi) appropriate contact information
18 for the remittance transfer provider;
19 (vii) a transaction reference number
20 unique to that remittance transfer; and
21 (viii) information as to when the ex-
22 change rate will be calculated (for example,
23 when the funds are received by the recipi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ent), if the customer has been notified that

25 the exchange rate is not fixed on send;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00803 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 804
1 (C) at the time at which the consumer ini-
2 tiates the remittance transfer, offer to provide
3 in writing, prior to making any payment in con-
4 nection with the transfer, the information listed
5 in subparagraph (A); and
6 (D) in the case of an exchange rate not
7 fixed on send, the remittance provider shall also
8 disclose, at the time at which the consumer ini-
9 tiates the remittance transfer, the range, using
10 the high and low rates, for the prior 30 day pe-
11 riod, that the consumer would have received if
12 a representative amount had been exchanged by
13 the remittance transfer provider, as well as a
14 clear and conspicuous notice that the actual ex-
15 change rate may vary.
16 If the actual rate used for the transfer is known to
17 the remittance provider, either because such rate
18 was set by the remittance provider itself or because
19 the remittance provider receives confirmation of the
20 actual exchange rate used, the remittance provider
21 shall make available to consumers written or elec-
22 tronic confirmation of the actual exchange rate used
23 and the amount of currency that the recipient or the
hsrobinson on DSK69SOYB1PROD with BILLS

24 remittance transfer received, using the values of the

25 currency into which the funds were exchanged. The

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00804 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 805
1 Director shall within 2 years after the date of the
2 enactment of the Consumer Financial Protection
3 Agency Act of 2009 prescribe consumer disclosures
4 for transfers with rates not fixed on send that are
5 functionally equivalent to those applicable to remit-
6 tances where the exchange rate is specified by the
7 remittance transfer provider at the time the con-
8 sumer initiates the remittance transfer. To the
9 greatest extent possible, the Director shall ensure
10 that functional equivalence will enable remittance
11 transfer providers to comply with all requirements in
12 this title and provide consumers with information
13 sufficient to compare services providers, to time
14 their use of the product, to discover errors in trans-
15 mission and to seek remedies.
16 (3) EXEMPTION.—Notwithstanding require-
17 ments under paragraph (2)(A)(ii), (2)(A)(iv), or
18 (2)(B)(i), no such disclosure is required—
19 (A) because of the requirements of another
20 law, including the law of another country;
21 (B) because the transfer is being routed
22 through the Directo a México offered by the
23 Federal reserve banks; or
hsrobinson on DSK69SOYB1PROD with BILLS

24 (C) because of any other circumstance

25 deemed permissible by regulation of the Direc-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00805 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 806
1 tor; If the actual rate used for the transfer is
2 known to the remittance provider, the remit-
3 tance provider shall make available to con-
4 sumers written or electronic confirmation of the
5 actual exchange rate used and the amount of
6 currency that the recipient of the remittance
7 transfer received, using the values of the cur-
8 rency into which the funds were exchanged.
9 (4) PROVISION OF TOLL-FREE NUMBER AND

10 WEB ACCESS.—

11 (A) In addition to providing the disclosures

12 required by this section to a consumer at a re-
13 mittance transfer provider location, a remit-
14 tance transfer provider shall provide a toll-free
15 telephone number or local number, and an
16 Internet website that a consumer can access for
17 which access no remittance transfer provider
18 may assess a charge, to obtain the information
19 required by paragraph (2)(A) for remittance
20 transfers offered by that remittance transfer
21 provider or information about the status of a
22 remittance transfer for which a consumer has
23 made payment.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) A remittance transfer provider that on

25 an aggregate basis originates 30,000 or fewer

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00806 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 807
1 transfers on a calendar year basis (or such
2 other amount as may be prescribed by the Di-
3 rector) is not required to offer the web access
4 prescribed in subparagraph (A), but is required
5 to provide a toll-free telephone number or local
6 number as prescribed in subparagraph (A).
7 (5) ALTERNATIVE METHODS OF DISCLOSURE.—

8 Subject to subsection (e)(2), a remittance transfer

9 provider may—
10 (A) if the transaction is conducted entirely
11 by telephone (which shall include, but not be
12 limited to, a mobile telephone) satisfy the re-
13 quirements of paragraph (2)(A) orally or, at the
14 option of the consumer, electronically through a
15 message sent to the consumer through any elec-
16 tronic means (including, but not limited to, an
17 electronic mail address or a mobile telephone)
18 as designated by the consumer;
19 (B) satisfy the requirements of paragraph
20 (2)(A) electronically if the transfer is initiated
21 by the consumer electronically through the re-
22 mittance transfer provider’s website or through
23 any other electronic means; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 (C) satisfy the requirements of paragraph

25 (2)(B) by mailing (or transmitting electronically

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00807 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 808
1 if the transfer is initiated electronically by the
2 consumer through the remittance transfer pro-
3 vider’s website or the consumer otherwise con-
4 sents in accordance with the provisions of sec-
5 tion 101 of the Electronic Signatures in Global
6 and National Commerce Act) the information
7 required under such paragraph to the consumer
8 not later than one business day after the date
9 on which the transaction is conducted, if the
10 transaction is conducted entirely by telephone
11 (or electronically) and the consumer requests a
12 written receipt.
13 (b) WRITTEN FOREIGN LANGUAGE DISCLOSURES.—
14 (1) IN GENERAL.—The disclosures required
15 under subsections (a)(2)(A) and (a)(2)(B)(i) shall be
16 made in English and—
17 (A) at each remittance transfer provider
18 location, shall be made in the same languages
19 principally used by the remittance transfer pro-
20 vider, or any of its agents, to advertise, solicit,
21 or market its remittance transfers business, ei-
22 ther orally or in writing, at that location, if
23 other than English, provided that such lan-
hsrobinson on DSK69SOYB1PROD with BILLS

24 guages are those for which the Director has

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00808 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 809
1 issued model disclosures as provided in sub-
2 section (g); or
3 (B) on a remittance transfer provider’s
4 website, shall at a minimum be made in any
5 other language for which the Director has
6 issued model disclosures as provided in sub-
7 section (g) if the remittance transfer provider,
8 or any of its agents, advertises, solicits, or mar-
9 kets its remittance transfers business in such
10 language.
11 (2) DISPUTES CONCERNING TERMS.—If a dis-
12 closure is required by this section to be in English
13 and another language, the English version of the
14 disclosure shall govern any dispute concerning the
15 terms of the receipt. However, any discrepancies be-
16 tween the English version and any other version due
17 to the translation of the receipt from English to an-
18 other language including errors or ambiguities shall
19 be construed against the remittance transfer pro-
20 vider or its agent and the remittance transfer pro-
21 vider or its agent shall be liable for any damages
22 caused by these discrepancies.
23 (c) REMITTANCE TRANSFER CANCELLATIONS, RE-
hsrobinson on DSK69SOYB1PROD with BILLS

24 FUNDS, AND ERRORS.—

25 (1) CANCELLATIONS.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00809 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 810
1 (A) After receiving the receipt required
2 under subsection (a)(2)(B), a consumer may
3 cancel the currency transaction—
4 (i) before leaving the premises of the
5 remittance transfer provider where the
6 consumer received the receipt, and
7 (ii) not later than 30 minutes after
8 the time the consumer initiated the remit-
9 tance transfer with the remittance transfer
10 provider.
11 (B) If a consumer cancels the transaction,
12 the remittance transfer provider shall imme-
13 diately refund to the consumer the fees paid
14 and the currency to be transferred, and issue a
15 receipt indicating that the transaction has been
16 cancelled.
17 (C) A consumer may not cancel a remit-
18 tance transfer after the remittance transfer pro-
19 vider has sent the funds to the recipient.
20 (D) A remittance transfer provider shall
21 not be required to provide a refund if providing
22 a refund would violate State or Federal law.
23 (2) REFUNDS.—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (A) If a remittance transfer provider re-

25 ceives written notice from the consumer within

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00810 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 811
1 ten days of the promised date of delivery of a
2 remittance transfer that no amount of the
3 funds to be remitted was made available to the
4 designated recipient in the foreign country, the
5 remittance transfer provider shall—
6 (i) refund to the consumer the total
7 amount in U.S. dollars that was paid by
8 the consumer in connection with such re-
9 mittance transfer;
10 (ii) promptly transmit the remittance
11 transfer in accordance with the terms in
12 the written receipt provided to the con-
13 sumer pursuant to subsection (a)(2)(B);
14 (iii) provide such other remedy, as de-
15 termined appropriate by rule of the Direc-
16 tor for the protection of consumers; or
17 (iv) demonstrate to the consumer that
18 the proceeds of the remittance transfer
19 were made available to the recipient of the
20 remittance provider.
21 (B) A remittance transfer provider shall
22 not be required to provide a refund if providing
23 a refund would violate State or Federal law.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) ERROR RESOLUTION.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00811 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 812
1 (A) IN GENERAL.—If a remittance transfer
2 provider receives written notice from the con-
3 sumer within 60 days of the promised date of
4 delivery that an error occurred with respect to
5 a remittance transfer, including that the full
6 amount of the funds to be remitted was not
7 made available to the designated recipient in
8 the foreign country, the remittance transfer
9 provider shall resolve the error pursuant to this
10 paragraph.
11 (B) REMEDIES.—Not later than 120 days
12 after the date of receipt of a notice from the
13 consumer pursuant to subparagraph (A), the
14 remittance transfer provider shall—
15 (i) as applicable to the error and as
16 designated by the consumer—
17 (I) refund to the consumer the
18 total amount in U.S. dollars that was
19 paid by the consumer in connection
20 with the remittance transfer that was
21 not properly transmitted;
22 (II) make available to the des-
23 ignated recipient, without additional
hsrobinson on DSK69SOYB1PROD with BILLS

24 cost to the designated recipient or to

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00812 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 813
1 the consumer, the amount appropriate
2 to resolve the error;
3 (III) provide such other remedy,
4 as determined appropriate by regula-
5 tion of the Director for the protection
6 of consumers; or
7 (ii) demonstrate to the consumer that
8 there was no error.
9 (4) REGULATIONS.—The Director, in order to
10 protect consumers, shall establish, by regulation,
11 clear and appropriate standards for remittance
12 transfer providers with respect to error resolution,
13 cancellation and refunds.
14 (d) ENFORCEMENT AUTHORITY.—The Director shall
15 have the sole authority to enforce the provisions of this
16 section, and any regulations established pursuant to this
17 section.
18 (e) APPLICABILITY OF OTHER PROVISIONS OF

19 LAW.—
20 (1) APPLICABILITY OF TITLE 18 AND TITLE 31

21 PROVISIONS.—A remittance transfer provider that is

22 a money transmitting business as defined in section
23 5330 of title 31, United States Code, may provide
hsrobinson on DSK69SOYB1PROD with BILLS

24 remittance transfers only if such provider is in com-

25 pliance with the requirements of section 5330 of title

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00813 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 814
1 31, United States Code, and section 1960 of title
2 18, United States Code, as applicable.
3 (2) RULE OF CONSTRUCTION.—Nothing in this
4 section shall be construed—
5 (A) to affect the application to any trans-
6 action, to any remittance provider, or to any
7 other person of any of the provisions of sub-
8 chapter II of chapter 53 of title 31, United
9 States Code, section 21 of the Federal Deposit
10 Insurance Act, or chapter 2 of title I of Public
11 Law 91–508, or any regulations promulgated
12 thereunder; or
13 (B) to cause any fund transfer that would
14 not otherwise be treated as such under para-
15 graph (2) to be treated as an electronic fund
16 transfer, or as otherwise subject to this title, for
17 the purposes of any of the provisions referred to
18 in subparagraph (A) or any regulation pre-
19 scribed under such subparagraph.
20 (f) DEFINITIONS.—For purposes of this section, the
21 following definitions shall apply:
22 (1) DEPOSITORY INSTITUTION.—the term ‘‘de-
23 pository institution’’ has the same meaning as in
hsrobinson on DSK69SOYB1PROD with BILLS

24 section 3 of the Federal Deposit Insurance Act and

25 includes a credit union.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00814 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 815
1 (2) NOT FIXED ON SEND.—The term ‘‘not fixed
2 on send’’ when referring to an exchange rate used
3 in a remittance transfer means an exchange rate
4 that is not set by the remittance transfer provider
5 at the time the consumer initiates the remittance
6 transfer.
7 (3) REMITTANCE TRANSFER.—The term ‘‘re-
8 mittance transfer’’ means the electronic (as defined
9 in section 106(2) of the Electronic Signatures in
10 Global and National Commerce Act) transfer of
11 funds at the request of a consumer located in any
12 State to a person in another country that is initiated
13 by a remittance transfer provider, whether or not
14 the consumer is an account holder of the remittance
15 transfer provider or whether or not the remittance
16 transfer is also an electronic fund transfer, as de-
17 fined in section 903 of the Electronic Fund Transfer
18 Act.
19 (4) REMITTANCE TRANSFER PROVIDER.—The

20 term ‘‘remittance transfer provider’’ means any per-

21 son or depository institution, or agent thereof, that
22 originates remittance transfers on behalf of con-
23 sumers in the normal course of its business, whether
hsrobinson on DSK69SOYB1PROD with BILLS

24 or not the consumer is an account holder of that

25 person or depository institution.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00815 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 816
1 (g) MODEL DISCLOSURES.—
2 (1) PUBLICATION.—Notwithstanding any provi-
3 sions of this title, the Director shall establish and
4 publish model disclosure forms to facilitate compli-
5 ance with the disclosure requirements of this section
6 and to aid the consumer in understanding the trans-
7 action to which the subject disclosure form relates.
8 (2) LANGUAGES TO BE USED IN MODEL DIS-

9 CLOSURES.—The Director shall make these disclo-

10 sures available within 1 year of the effective date of
11 this title—
12 (A) in English, and
13 (B) the ten most frequently spoken lan-
14 guages in the United States, other than
15 English, used by consumers initiating remit-
16 tance transfers, as may be determined by the
17 Director.
18 (3) USE OF AUTOMATED EQUIPMENT.—In es-
19 tablishing model forms under this subsection, the
20 Director shall consider the use by lessors of data
21 processing or similar automated equipment.
22 (4) USE OPTIONAL.—A remittance transfer pro-
23 vider may utilize a model disclosure form established
hsrobinson on DSK69SOYB1PROD with BILLS

24 by the Director under this subsection for purposes

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00816 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 817
1 of compliance with this section, at the discretion of
2 the remittance transfer provider.
3 (5) EFFECT OF USE.—Any remittance transfer
4 provider that properly uses the material aspects of
5 any model disclosure form established by the Direc-
6 tor under this subsection shall be deemed to be in
7 compliance with the disclosure requirements to
8 which the form relates.
9 (h) REGULATION AND EXEMPTION AUTHORITY.—
10 Notwithstanding any other provisions of this title, the Di-
11 rector, in the sole discretion of the Director, in consulta-
12 tion with relevant Federal and State government agencies
13 may by regulation exempt from one or more requirements
14 of this section, any category of remittance transfer pro-
15 vider if the Director determines that under applicable Fed-
16 eral or State law that such category of remittance transfer
17 provider is subject to requirements substantially similar
18 to those imposed under this section or that such law gives
19 greater protection and benefit to the consumer, and that
20 there is adequate provision for enforcement.
21 (i) APPLICABILITY OF STATE LAW.—
22 (1) This section does not annul, alter, affect, or
23 exempt any person subject to the provisions of this
hsrobinson on DSK69SOYB1PROD with BILLS

24 section from complying with other applicable Federal

25 law and the laws of any State relating to remittance

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00817 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 818
1 transfers and remittance transfer providers, except
2 to the extent that those laws are inconsistent with
3 the provisions of this section, and then only to the
4 extent of the inconsistency.
5 (2) Notwithstanding any other provisions of
6 this title, the Director may determine whether such
7 inconsistencies exist. A State law is not inconsistent
8 with this section if the protection such law affords
9 any consumer is greater than the protection afforded
10 by this section. If the Director determines that a
11 State requirement is inconsistent, remittance trans-
12 fer providers shall incur no liability under the law of
13 that State for a good faith failure to comply with
14 that law, notwithstanding that such determination is
15 subsequently amended, rescinded, or determined by
16 judicial or other authority to be invalid for any rea-
17 son. This section does not extend the applicability of
18 any such law to any class of persons or transactions
19 to which it would not otherwise apply.
20 (3) This section does not annul, alter, or affect
21 the laws of any State relating to the licensing or
22 registration, supervision or examination of remit-
23 tance transfer providers.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (4) Nothing in this section shall be construed as

25 limiting the authority of a State attorney general or

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00818 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 819
1 State regulator to bring an action or other regu-
2 latory proceeding arising solely under the law of that
3 State.
4 (j) FEDERAL CREDIT UNION ACT AMENDMENT.—
5 Paragraph (12)(A) of section 107 of the Federal Credit
6 Union Act (12 U.S.C. 1757(12)(A)) is amended by insert-
7 ing ‘‘and remittance transfers, as defined in section 4309
8 of the Consumer Financial Protection Agency Act of
9 2009’’ after ‘‘and domestic electronic fund transfers’’.
10 (k) AUTOMATED CLEARINGHOUSE SYSTEM.—
11 (1) EXPANSION OF SYSTEM.—The Board of
12 Governors of the Federal Reserve System shall work
13 with the Federal reserve banks to expand the use of
14 the automated clearinghouse system for remittance
15 transfers to foreign countries, with a focus on coun-
16 tries that receive significant remittance transfers
17 from the United States, based on—
18 (A) the volume and dollar amount of re-
19 mittance transfers to those countries;
20 (B) the significance of the volume of such
21 transfers, relative to the external financial flows
22 of the receiving country; and
23 (C) the feasibility of such an expansion.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) REPORT TO THE CONGRESS.—Before the

25 end of the 180-day period beginning on the date of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00819 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 820
1 the enactment of this title, and on April 30 bienni-
2 ally thereafter, the Board of Governors of the Fed-
3 eral Reserve System shall submit a report to the Di-
4 rector, the Committee on Banking, Housing, and
5 Urban Affairs of the Senate, and the Committee on
6 Financial Services of the House of Representatives
7 on the status of the automated clearinghouse system
8 and its progress in complying with the requirements
9 of this section.
10 (l) REGULATORY GUIDANCE ON REMITTANCE
11 TRANSFERS.—
12 (1) PROVISION OF GUIDELINES TO INSTITU-

13 TIONS.—The Director shall provide guidelines to all

14 remittance transfer providers regarding—
15 (A) the offering of low-cost remittance
16 transfers;
17 (B) the availability of agency services to
18 remittance transfer providers;
19 (C) compliance with the provisions of this
20 title; and
21 (D) specific options that allow remittance
22 transfer providers to take advantage of auto-
23 mated clearing systems, including the FedACH
hsrobinson on DSK69SOYB1PROD with BILLS

24 International Services offered by the Board of

25 Governors of the Federal Reserve System and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00820 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 821
1 the Federal reserve banks, to transmit remit-
2 tances at low cost.
3 (2) CONTENT OF GUIDELINES.—Guidelines pro-
4 vided to remittance transfer providers under this
5 section shall include—
6 (A) information as to the methods of pro-
7 viding remittance transfer services;
8 (B) the potential economic opportunities in
9 providing low-cost remittance transfers; and
10 (C) the potential value to depository insti-
11 tutions of broadening their financial bases to
12 include persons that use remittance transfers.
13 (3) ASSISTANCE TO FINANCIAL LITERACY COM-

14 MISSION.—The Secretary of the Treasury and each

15 agency referred to in subsection (a) shall, as part of
16 their duties as members of the Financial Literacy
17 and Education Commission, assist that Commission
18 in improving the financial literacy and education of
19 consumers who send remittances.
20 (m) REPORT ON FEASIBILITY OF AND IMPEDIMENTS

21 TO USE OF REMITTANCE HISTORY IN CALCULATION OF

22 CREDIT SCORE.—Before the end of the 365-day period

23 beginning on the date of the enactment of this title, the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Director shall submit a report to the President, the Com-

25 mittee on Banking, Housing, and Urban Affairs of the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00821 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 822
1 Senate, and the Committee on Financial Services of the
2 House of Representatives regarding—
3 (1) the manner in which a consumer’s remit-
4 tance history could be used to enhance a consumer’s
5 credit score;
6 (2) the current legal and business model bar-
7 riers and impediments that impede the use of a con-
8 sumer’s remittance history to enhance the con-
9 sumer’s credit score; and
10 (3) recommendations on the manner in which
11 maximum transparency and disclosure to consumers
12 of exchange rates for remittance transfers subject to
13 this title may be accomplished, whether or not such
14 exchange rates are known at the time of origination
15 or payment by the consumer for the remittance
16 transfer, including disclosure to the sender of the ac-
17 tual exchange rate used and the amount of currency
18 that the recipient of the remittance transfer re-
19 ceived, using the values of the currency into which
20 the funds were exchanged, as contained in section s
21 919(a)(2)(D) and 919(a)(3) of the Electronic Fund
22 Transfer Act (as amended by subsection (a)).
23 (n) EFFECTIVE DATE.—This section shall apply with
hsrobinson on DSK69SOYB1PROD with BILLS

24 respect to remittance transfers made after the end of the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00822 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 823
1 180-day period beginning on the date of the enactment
2 of this title.
3 SEC. 4310. EFFECTIVE DATE.

4 This subtitle shall take effect on the designated

5 transfer date.
6 SEC. 4311. NO AUTHORITY TO REQUIRE THE OFFERING OF

7 FINANCIAL PRODUCTS OR SERVICES.

8 The Director may not prescribe any regulation, issue

9 any order or guidance, or take any other action, including
10 any enforcement action, the effect of which would be to
11 require a covered person to offer to any consumer a spe-
12 cific financial product or service.
13 SEC. 4312. APPRAISAL INDEPENDENCE REQUIREMENTS.

14 (a) PROMULGATION OF NEW REQUIREMENTS.—The

15 Director shall lead a Negotiated Rulemaking Committee
16 under the Federal Advisory Committee Act and the Nego-
17 tiated Rulemaking Act to promulgate appraisal independ-
18 ence requirements for residential loan purposes, and such
19 Committee shall promulgate such requirements not later
20 than the end of the 60-day period beginning on the date
21 of the enactment of this title.
22 (b) CERTAIN REGULATION REQUIREMENTS.—Regu-
23 lations promulgated by the Negotiated Rulemaking Com-
hsrobinson on DSK69SOYB1PROD with BILLS

24 mittee under this section—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00823 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 824
1 (1) shall not prohibit lenders, the Federal Na-
2 tional Mortgage Association, or the Federal Home
3 Loan Mortgage Corporation from accepting any ap-
4 praisal report completed by an appraiser selected,
5 retained, or compensated in any manner by a mort-
6 gage loan originator—
7 (A) licensed or registered in accordance
8 with section 1501 et seq. of the SAFE Mort-
9 gage Licensing Act of 2008; and
10 (B) subject to State or Federal laws that
11 make it unlawful for a mortgage loan originator
12 to make any payment, threat, or promise, di-
13 rectly or indirectly, to any appraiser of a prop-
14 erty, for the purposes of influencing the inde-
15 pendent judgment of the appraiser with respect
16 to the value of the property, except that nothing
17 in this section shall prohibit a person with an
18 interest in a real estate transaction from asking
19 an appraiser to—
20 (i) consider additional, appropriate
21 property information;
22 (ii) provide further detail, substan-
23 tiation, or explanation for the appraiser’s
hsrobinson on DSK69SOYB1PROD with BILLS

24 value conclusion; or

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00824 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 825
1 (iii) correct errors in the appraisal re-
2 port; and
3 (2) shall include a requirement that lenders and
4 their agents compensate appraisers at a rate that is
5 customary and reasonable for appraisal services per-
6 formed in the market area of the property being ap-
7 praised.
8 (c) SUNSET.—Effective on the date the appraisal
9 independence requirements are promulgated pursuant to
10 subsection (a), the Home Valuation Code of Conduct an-
11 nounced by the Federal Housing Finance Agency on De-
12 cember 23, 2008, shall have no force or effect.
13 Subtitle D—Preservation of State
14 Law
15 SEC. 4401. RELATION TO STATE LAW.

16 (a) IN GENERAL.—
17 (1) RULE OF CONSTRUCTION.—This title shall
18 not be construed as annulling, altering, or affecting,
19 or exempting any person subject to the provisions of
20 this title from complying with, the laws, regulations,
21 orders, or interpretations, in effect in any State, ex-
22 cept to the extent that such statute, regulation,
23 order, or interpretation is inconsistent with the pro-
hsrobinson on DSK69SOYB1PROD with BILLS

24 visions of this title and then only to the extent of the

25 inconsistency.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00825 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 826
1 (2) GREATER PROTECTION UNDER STATE

2 LAW.—For the purposes of this subsection, a stat-

3 ute, regulation, order, or interpretation in effect in
4 any State is not inconsistent with the provisions of
5 this title if the protection such statute, regulation,
6 order, or interpretation affords consumers is greater
7 than the protection provided under this title. A de-
8 termination regarding whether a statute, regulation,
9 order, or interpretation in effect in any State is in-
10 consistent with the provisions of this title may be
11 made by the Agency on its own motion or in re-
12 sponse to a nonfrivolous petition initiated by any in-
13 terested person.
14 (b) RELATION TO OTHER PROVISIONS OF ENUMER-
15 ATED CONSUMER LAWS THAT RELATE TO STATE LAW.—
16 No provision of this title, except as provided in section
17 4803, shall be construed as modifying, limiting, or super-
18 seding the operation of any provision of an enumerated
19 consumer law that relates to the application of a law in
20 effect in any State with respect to such Federal law.
21 SEC. 4402. PRESERVATION OF ENFORCEMENT POWERS OF

22 STATES.

23 (a) IN GENERAL.—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (1) ACTION BY STATE.—Any State attorney

25 general may bring a civil action in the name of such

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00826 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 827
1 State, as parens patriae on behalf of natural persons
2 residing in such State, in any district court of the
3 United States or State court having jurisdiction of
4 the defendant, to secure monetary or equitable relief
5 for violation of any provisions of this title or regula-
6 tions issued thereunder.
7 (2) RULE OF CONSTRUCTION.—No provision of
8 this title shall be construed as modifying, limiting,
9 or superseding the operation of any provision of an
10 enumerated consumer law that relates to the author-
11 ity of a State attorney general or State regulator to
12 enforce such Federal law.
13 (b) CONSULTATION REQUIRED.—
14 (1) NOTICE.—
15 (A) IN GENERAL.—Before initiating any
16 action in a court or other administrative or reg-
17 ulatory proceeding against any covered person
18 to enforce any provision of this title, including
19 any regulation prescribed by the Director under
20 this title, a State attorney general or State reg-
21 ulator shall timely provide a copy of the com-
22 plete complaint to be filed and written notice
23 describing such action or proceeding to the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Agency, or the Agency’s designee.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00827 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 828
1 (B) EMERGENCY ACTION.—If prior notice
2 is not practicable, the State attorney general or
3 State regulator shall provide a copy of the com-
4 plete complaint and the notice to the Agency
5 immediately upon instituting the action or pro-
6 ceeding.
7 (C) CONTENTS OF NOTICE.—The notifica-
8 tion required under this section shall, at a min-
9 imum, describe—
10 (i) the identity of the parties;
11 (ii) the alleged facts underlying the
12 proceeding; and
13 (iii) whether there may be a need to
14 coordinate the prosecution of the pro-
15 ceeding so as not to interfere with any ac-
16 tion, including any rulemaking, undertaken
17 by the Director or Agency or another Fed-
18 eral agency.
19 (2) AGENCY RESPONSE.—In any action de-
20 scribed in paragraph (1), the Agency may—
21 (A) intervene in the action as a party;
22 (B) upon intervening—
23 (i) remove the action to the appro-
hsrobinson on DSK69SOYB1PROD with BILLS

24 priate United States district court, if the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00828 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 829
1 action was not originally brought there;
2 and
3 (ii) be heard on all matters arising in
4 the action; and
5 (C) appeal any order or judgment to the
6 same extent as any other party in the pro-
7 ceeding may.
8 (c) REGULATIONS.—The Director shall prescribe reg-
9 ulations to implement the requirements of this section
10 and, from time to time, provide guidance in order to fur-
11 ther coordinate actions with the State attorneys general
12 and other regulators.
13 (d) PRESERVATION OF STATE AUTHORITY.—
14 (1) STATE CLAIMS.—No provision of this sec-
15 tion shall be construed as limiting the authority of
16 a State attorney general or State regulator to bring
17 an action or other regulatory proceeding arising sole-
18 ly under the law of that State.
19 (2) STATE SECURITIES REGULATORS.—No pro-
20 vision of this title shall be construed as altering, lim-
21 iting, or affecting the authority of a State securities
22 commission (or any agency or office performing like
23 functions) under State law to adopt rules, initiate
hsrobinson on DSK69SOYB1PROD with BILLS

24 enforcement proceedings, or take any other action

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00829 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 830
1 with respect to a person regulated by such commis-
2 sion or authority.
3 (3) STATE INSURANCE REGULATORS.—No pro-
4 vision of this title shall be construed as altering, lim-
5 iting, or affecting the authority of a State insurance
6 commission or State insurance regulator under State
7 law to adopt rules, initiate enforcement proceedings,
8 or take any other action with respect to a person
9 regulated by such commission or regulator.
10 SEC. 4403. PRESERVATION OF EXISTING CONTRACTS.

11 This title, and regulations, orders, guidance, and in-

12 terpretations prescribed, issued, and established by the
13 Agency, shall not be construed to alter or affect the appli-
14 cability of any regulation, order, guidance, or interpreta-
15 tion prescribed, issued, and established by the Comptroller
16 of the Currency or the Director of the Office of Thrift
17 Supervision regarding the applicability of State law under
18 Federal banking law to any contract entered into on or
19 before the date of the enactment of this title, by national
20 banks, Federal savings associations, or subsidiaries there-
21 of that are regulated and supervised by the Comptroller
22 of the Currency or the Director of the Office of Thrift
23 Supervision, respectively.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00830 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 831
1 SEC. 4404. STATE LAW PREEMPTION STANDARDS FOR NA-

2 TIONAL BANKS AND SUBSIDIARIES CLARI-

3 FIED.

4 (a) IN GENERAL.—Chapter one of title LXII of the

5 Revised Statutes of the United States (12 U.S.C. 21 et
6 1 seq.) is amended by inserting after section 5136B the
7 following new section:
8 ‘‘SEC. 5136C. STATE LAW PREEMPTION STANDARDS FOR NA-

9 TIONAL BANKS AND SUBSIDIARIES CLARI-

10 FIED.

11 ‘‘(a) DEFINITIONS.—For purposes of this section, the

12 following definitions shall apply:
13 ‘‘(1) NATIONAL BANK.—The term ‘national
14 bank’ includes—
15 ‘‘(A) any bank organized under the laws of
16 the United States; and
17 ‘‘(B) any Federal branch established in ac-
18 cordance with the International Banking Act of
19 1978.
20 ‘‘(2) STATE CONSUMER FINANCIAL LAWS.—The

21 term ‘State consumer financial law’ means a State

22 law that does not directly or indirectly discriminate
23 against national banks and that regulates the man-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ner, content, or terms and conditions of any finan-

25 cial transaction (as may be authorized for national

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00831 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 832
1 banks to engage in), or any account related thereto,
2 with respect to a consumer.
3 ‘‘(3) OTHER DEFINITIONS.—The terms ‘affil-
4 iate’, ‘subsidiary’, ‘includes’, and ‘including’ have the
5 same meaning as in section 3 of the Federal Deposit
6 Insurance Act.
7 ‘‘(b) PREEMPTION STANDARD.—
8 ‘‘(1) IN GENERAL.—National banks shall gen-
9 erally comply with State laws. State laws are pre-
10 empted only if—
11 ‘‘(A) application of a state law would have
12 a discriminatory effect on national banks in
13 comparison with the effect of the law on a bank
14 chartered by that State;
15 ‘‘(B) the Comptroller of the Currency de-
16 termines by regulation or order on a case-by-
17 case basis that a State law prevents or signifi-
18 cantly interferes with the ability of an insured
19 depository institution chartered as national
20 bank to engage in the business of banking; or
21 ‘‘(C) the State law is preempted by Fed-
22 eral law other than this Act.
23 ‘‘(2) SAVINGS CLAUSE.—This Act does not pre-
hsrobinson on DSK69SOYB1PROD with BILLS

24 empt or alter the applicability of any State law to

25 any national bank subsidiary, affiliate, or other enti-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00832 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 833
1 ty that is not an insured depository institution char-
2 tered as a national bank.
3 ‘‘(3) RULE OF CONSTRUCTION.—This Act does
4 not occupy the field in any area of State law and a
5 court shall review any claim that a State law is pre-
6 empted by this Act as a matter of law and without
7 deference to any agency claim that a State law is
8 preempted under this Act.
9 ‘‘(4) REVIEW OF PREEMPTION DECISIONS.—A

10 court shall review any claim that a State law is pre-

11 empted by this Act as a matter of law and without
12 deference to any agency claim that a state law is
13 preempted under this Act. Nothing in this sub-
14 section shall affect the deference that a court affords
15 to the Comptroller of the Currency regarding the
16 meaning or interpretation of the National Bank Act
17 or other Federal laws.
18 ‘‘(c) SUBSTANTIAL EVIDENCE.—No regulation of the
19 Comptroller of the Currency prescribed under subsection
20 (b)(1)(B), shall be interpreted or applied so as to invali-
21 date, or otherwise declare inapplicable to a national bank,
22 the provision of the State consumer financial law unless
23 substantial evidence, made on the record of the pro-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ceeding, supports the specific finding that the provision

25 prevents or significantly interferes with the national

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00833 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 834
1 bank’s exercise of a power explicitly granted by the Con-
2 gress.
3 ‘‘(d) OTHER FEDERAL LAWS.—Notwithstanding any
4 other provision of law, the Comptroller of the Currency
5 may not prescribe regulation pursuant to subsection
6 (b)(1)(B) until the Comptroller of the Currency, after con-
7 sultation with the Consumer Financial Protection Agency,
8 makes a finding, in writing, that a Federal law provides
9 a substantive standard, applicable to a national bank,
10 which regulates the particular conduct, activity, or author-
11 ity that is subject to such provision of the State consumer
12 financial law.
13 ‘‘(e) PERIODIC REVIEW OF PREEMPTION DETER-
14 MINATIONS.—The Comptroller of the Currency shall peri-
15 odically conduct a review, through notice and public com-
16 ment, of each determination that a provision of Federal
17 law preempts a State consumer financial law. The agency
18 shall conduct such review within the 5-year period after
19 prescribing or otherwise issuing such determination, and
20 at least once during each 5-year period thereafter. After
21 conducting the review of, and inspecting the comments
22 made on, the determination, the agency shall timely pro-
23 pose to continue, amend or rescind it, as may be appro-
hsrobinson on DSK69SOYB1PROD with BILLS

24 priate, in accordance with the procedures set forth in sub-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00834 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 835
1 sections (a) and (b) of section 5244 (12 U.S.C. 43(a)–
2 (b)).
3 ‘‘(f) APPLICATION OF STATE CONSUMER FINANCIAL
4 LAW TO SUBSIDIARIES AND AFFILIATES.—Notwith-
5 standing any provision of this title, a State consumer fi-
6 nancial law shall apply to a subsidiary or affiliate of a
7 national bank to the same extent that the State consumer
8 financial law applies to any person, corporation, or other
9 entity subject to such State law.’’.
10 (b) CLERICAL AMENDMENT.—The table of sections
11 for chapter one of title LXII of the Revised Statutes of
12 the United States is amended by inserting after the item
13 relating to section 5136B the following new item:
‘‘5136C. State law preemption standards for national banks and subsidiaries
clarified.’’.

14 SEC. 4405. VISITORIAL STANDARDS.

15 Section 5136C of the Revised Statutes of the United

16 States (as added by section 4404) is amended by adding
17 at the end the following new subsections:
18 ‘‘(g) VISITORIAL POWERS.—
19 ‘‘(1) RULE OF CONSTRUCTION.—No provision
20 of this title which relates to visitorial powers or oth-
21 erwise limits or restricts the supervisory, examina-
22 tion, or regulatory authority to which any national
hsrobinson on DSK69SOYB1PROD with BILLS

23 bank is subject shall be construed as limiting or re-

24 stricting the authority of any attorney general (or

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00835 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 836
1 other chief law enforcement officer) of any State to
2 bring any action in any court of appropriate jurisdic-
3 tion—
4 ‘‘(A) to require a national bank to produce
5 records relative to the investigation of violations
6 of State consumer law, or Federal consumer
7 laws;
8 ‘‘(B) to enforce any applicable Federal or
9 State law, as authorized by such law; or
10 ‘‘(C) on behalf of residents of such State,
11 to enforce any applicable provision of any Fed-
12 eral or State law against a national bank, as
13 authorized by such law, or to seek relief and re-
14 cover damages for such residents from any vio-
15 lation of any such law by any national bank.
16 ‘‘(2) CONSULTATION.—The attorney general (or
17 other chief law enforcement officer) of any State
18 shall consult with the head of the agency responsible
19 for chartering and regulating national banks before
20 acting under paragraph (1).
21 ‘‘(h) ENFORCEMENT ACTIONS.—The ability of the
22 head of the agency responsible for chartering and regu-
23 lating national banks to bring an enforcement action
hsrobinson on DSK69SOYB1PROD with BILLS

24 under this title or section 5 of the Federal Trade Commis-

25 sion Act shall not be construed as precluding private par-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00836 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 837
1 ties from enforcing rights granted under Federal or State
2 law in the courts.’’.
3 SEC. 4406. CLARIFICATION OF LAW APPLICABLE TO NON-

4 DEPOSITORY INSTITUTION SUBSIDIARIES.

5 Section 5136C of the Revised Statutes of the United

6 States is amended by inserting after subsection (h) (as
7 added by section 4405) the following new subsection:
8 ‘‘(i) CLARIFICATION OF LAW APPLICABLE TO NON-
9 DEPOSITORY INSTITUTION SUBSIDIARIES AND AFFILI-
10 ATES OF NATIONAL BANKS.—
11 ‘‘(1) DEFINITIONS.—For purposes of this sec-
12 tion, the following definitions shall apply:
13 ‘‘(A) DEPOSITORY INSTITUTION, SUB-

14 SIDIARY, AFFILIATE.—The terms ‘depository in-

15 stitution’, ‘subsidiary’, and ‘affiliate’ have the
16 same meanings as in section 3 of the Federal
17 Deposit Insurance Act.
18 ‘‘(B) NONDEPOSITORY INSTITUTION.—The

19 term ‘nondepository institution’ means any enti-

20 ty that is not a depository institution.
21 ‘‘(2) IN GENERAL.—No provision of this title
22 shall be construed as annulling, altering, or affecting
23 the applicability of State law to any nondepository
hsrobinson on DSK69SOYB1PROD with BILLS

24 institution, subsidiary, other affiliate, or agent of a

25 national bank.’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00837 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 838
1 SEC. 4407. STATE LAW PREEMPTION STANDARDS FOR FED-

2 ERAL SAVINGS ASSOCIATIONS AND SUBSIDI-

3 ARIES CLARIFIED.

4 (a) IN GENERAL.—The Home Owners’ Loan Act (12

5 U.S.C. 1461 et seq.) is amended by inserting after section
6 5 the following new section:
7 ‘‘SEC. 6. STATE LAW PREEMPTION STANDARDS FOR FED-

8 ERAL SAVINGS ASSOCIATIONS CLARIFIED.

9 ‘‘(a) STATE CONSUMER FINANCIAL LAW DE-

10 FINED.—For purposes of this section, the term ‘State con-
11 sumer financial law’ means a State law that does not di-
12 rectly or indirectly discriminate against Federal savings
13 associations and that regulates the manner, content, or
14 terms and conditions of any financial transaction (as may
15 be authorized for Federal savings associations to engage
16 in), or any account related thereto, with respect to a con-
17 sumer.
18 ‘‘(b) PREEMPTION STANDARD.—
19 ‘‘(1) IN GENERAL.—Federal savings associa-
20 tions shall generally comply with State laws. State
21 laws are preempted only if—
22 ‘‘(A) application of a state law would have
23 a discriminatory effect on Federal savings asso-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ciations in comparison with the effect of the law

25 on a bank chartered by that State;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00838 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 839
1 ‘‘(B) the Director of the Office of Thrift
2 Supervision determines by regulation or order
3 on a case-by-case basis that a State law pre-
4 vents or significantly interferes with the ability
5 of an insured depository institution chartered as
6 a Federal savings associations to engage in the
7 business of banking; or
8 ‘‘(C) the State law is preempted by Fed-
9 eral law other than this Act.
10 ‘‘(2) SAVINGS CLAUSE.—This Act does not pre-
11 empt or alter the applicability of any State law to
12 any Federal savings associations subsidiary, affiliate,
13 or other entity that is not an insured depository in-
14 stitution chartered as a national bank.
15 ‘‘(3) RULE OF CONSTRUCTION.—This Act does
16 not occupy the field in any area of State law and a
17 court shall review any claim that a State law is pre-
18 empted by this Act as a matter of law and without
19 deference to any agency claim that a State law is
20 preempted under this Act.
21 ‘‘(4) REVIEW OF PREEMPTION DECISIONS.—A

22 court shall review any claim that a State law is pre-

23 empted by this Act as a matter of law and without
hsrobinson on DSK69SOYB1PROD with BILLS

24 deference to any agency claim that a state law is

25 preempted under this Act. Nothing in this sub-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00839 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 840
1 section shall affect the deference that a court affords
2 to the Director of the Office of Thrift Supervision
3 regarding the meaning or interpretation of the Na-
4 tional Bank Act or other Federal laws.
5 ‘‘(c) OTHER FEDERAL LAW.—Notwithstanding any
6 other provision of law, the Director of the Office of Thrift
7 Supervision may not prescribe any regulation pursuant to
8 subsection (b)(1)(B) until such Director, after consulta-
9 tion with the Consumer Financial Protection Agency,
10 makes a finding, in writing, that a Federal law provides
11 a substantive standard, applicable to a Federal savings as-
12 sociation, which regulates the particular conduct, activity,
13 or authority that is subject to such provision of the State
14 consumer financial law.
15 ‘‘(d) SUBSTANTIAL EVIDENCE.—No regulation pre-
16 scribed by the Director of the Office of Thrift Supervision
17 issued under subsection (b)(1)(B) shall be interpreted or
18 applied so as to invalidate, or otherwise declare inappli-
19 cable to a Federal savings association, the provision of the
20 State consumer financial law unless substantial evidence,
21 made on the record of the proceeding, supports the specific
22 finding that the provision prevents or significantly inter-
23 feres with the Federal savings association’s exercise of a
hsrobinson on DSK69SOYB1PROD with BILLS

24 power explicitly granted by the Congress.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00840 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 841
1 ‘‘(e) PERIODIC REVIEW OF PREEMPTION DETER-
2 MINATIONS.—The Director of the Office of Thrift Super-
3 vision shall periodically conduct a review, through notice
4 and public comment, of each determination that a provi-
5 sion of Federal law preempts a State consumer financial
6 law. The agency shall conduct such review within the 5-
7 year period after prescribing or otherwise issuing such de-
8 termination, and at least once during each 5-year period
9 thereafter. After conducting the review of, and inspecting
10 the comments made on, the determination, the agency
11 shall timely propose to continue, amend or rescind it, as
12 may be appropriate, in accordance with the procedures set
13 forth in subsections (a) and (b) of section 5244 of the
14 Revised Statutes of the United States (12 U.S.C. 43(a)-
15 (b)).
16 ‘‘(f) APPLICATION OF STATE CONSUMER FINANCIAL
17 LAW TO SUBSIDIARIES AND AFFILIATES.—Notwith-
18 standing any provision of this Act, a State consumer fi-
19 nancial law shall apply to a subsidiary or affiliate of a
20 Federal savings association to the same extent that the
21 State consumer financial law applies to any person, cor-
22 poration, or other entity subject to such State law and
23 consistent with Federal law.’’.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (b) CLERICAL AMENDMENT.—The table of sections

25 for the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.)

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00841 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 842
1 is amended by striking the item relating to section 6 and
2 inserting the following new item:
‘‘Sec. 6. State law preemption standards for Federal savings associations clari-
fied.’’.

3 SEC. 4408. VISITORIAL STANDARDS.

4 Section 6 of the Home Owners’ Loan Act (as added

5 by section 4407 of this title) is amended by adding at the
6 end the following new subsections:
7 ‘‘(g) VISITORIAL POWERS.—
8 ‘‘(1) IN GENERAL.—No provision of this Act
9 shall be construed as limiting or restricting the au-
10 thority of any attorney general (or other chief law
11 enforcement officer) of any State to bring any action
12 in any court of appropriate jurisdiction—
13 ‘‘(A) to require a Federal savings associa-
14 tion to produce records relative to the investiga-
15 tion of violations of State consumer law, or
16 Federal consumer laws;
17 ‘‘(B) to enforce any applicable Federal or
18 State law, as authorized by such law; or
19 ‘‘(C) on behalf of residents of such State,
20 to enforce any applicable provision of any Fed-
21 eral or State law against a Federal savings as-
22 sociation, as authorized by such law, or to seek
hsrobinson on DSK69SOYB1PROD with BILLS

23 relief and recover damages for such residents

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00842 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 843
1 from any violation of any such law by any Fed-
2 eral savings association.
3 ‘‘(2) CONSULTATION.—The attorney general (or
4 other chief law enforcement officer) of any State
5 shall consult with the Director or any successor
6 agency before acting under paragraph (1).
7 ‘‘(h) ENFORCEMENT ACTIONS.—The ability of the
8 Director or any successor officer or agency to bring an
9 enforcement action under this Act or section 5 of the Fed-
10 eral Trade Commission Act shall not be construed as pre-
11 cluding private parties from enforcing rights granted
12 under Federal or State law in the courts.’’.
13 SEC. 4409. CLARIFICATION OF LAW APPLICABLE TO NON-

14 DEPOSITORY INSTITUTION SUBSIDIARIES.

15 Section 6 of the Home Owners’ Loan Act is amended

16 by adding after subsection (h) (as added by section 4408)
17 the following new subsection:
18 ‘‘(i) CLARIFICATION OF LAW APPLICABLE TO NON-
19 DEPOSITORY INSTITUTION SUBSIDIARIES AND AFFILI-
20 ATES OF FEDERAL SAVINGS ASSOCIATIONS.—
21 ‘‘(1) DEFINITIONS.—For purposes of this sec-
22 tion, the following definitions shall apply:
23 ‘‘(A) DEPOSITORY INSTITUTION, SUB-
hsrobinson on DSK69SOYB1PROD with BILLS

24 SIDIARY, AFFILIATE.—The terms ‘depository in-

25 stitution’, ‘subsidiary’, and ‘affiliate’ have the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00843 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 844
1 same meanings as in section 3 of the Federal
2 Deposit Insurance Act.
3 ‘‘(B) NONDEPOSITORY INSTITUTION.—The

4 term ‘nondepository institution’ means any enti-

5 ty that is not a depository institution.
6 ‘‘(2) IN GENERAL.—No provision of this title
7 shall be construed as preempting the applicability of
8 State law to any nondepository institution, sub-
9 sidiary, other affiliate, or agent of a Federal savings
10 association.’’.
11 SEC. 4410. EFFECTIVE DATE.

12 This subtitle shall take effect on the designated

13 transfer date.
14 Subtitle E—Enforcement Powers
15 SEC. 4501. DEFINITIONS.

16 For purposes of this subtitle, the following definitions

17 shall apply:
18 (1) CIVIL INVESTIGATIVE DEMAND AND DE-

19 MAND.—The terms ‘‘civil investigative demand’’ and

20 ‘‘demand’’ mean any demand issued by the Agency.
21 (2) AGENCY INVESTIGATION.—The term
22 ‘‘Agency investigation’’ means any inquiry conducted
23 by an Agency investigator for the purpose of
hsrobinson on DSK69SOYB1PROD with BILLS

24 ascertaining whether any person is or has been en-

25 gaged in any conduct that violates this title, any

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00844 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 845
1 enumerated consumer law, or any regulation pre-
2 scribed or order issued by the Director under this
3 title or under the authorities transferred under sub-
4 titles F and H.
5 (3) AGENCY INVESTIGATOR.—The term ‘‘Agen-
6 cy investigator’’ means any attorney or investigator
7 employed by the Agency who is charged with the
8 duty of enforcing or carrying into effect any provi-
9 sions of this title, any enumerated consumer law, the
10 authorities transferred under subtitles F and H, or
11 any regulation prescribed or order issued under this
12 title or pursuant to any such authority by the Direc-
13 tor.
14 (4) CUSTODIAN.—The term ‘‘custodian’’ means
15 the custodian or any deputy custodian designated by
16 the Agency.
17 (5) DOCUMENTARY MATERIAL.—The term
18 ‘‘documentary material’’ includes the original or any
19 copy of any book, document, record, report, memo-
20 randum, paper, communication, tabulation, chart,
21 log, electronic file, or other data or data compila-
22 tions stored in any medium.
23 (6) VIOLATION.—The term ‘‘violation’’ means
hsrobinson on DSK69SOYB1PROD with BILLS

24 any act or omission that, if proved, would constitute

25 a violation of any provision of this title, any enumer-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00845 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 846
1 ated consumer law, any law for which authorities
2 were transferred under subtitles F and H, or of any
3 regulation prescribed or order issued by the Director
4 under this title or pursuant to any such authority.
5 SEC. 4502. INVESTIGATIONS AND ADMINISTRATIVE DIS-

6 COVERY.

7 (a) JOINT INVESTIGATIONS.—

8 (1) IN GENERAL.—The Agency or, where ap-
9 propriate, an Agency representative may engage in
10 joint investigations and requests for information.
11 (2) FAIR LENDING.—The authority under para-
12 graph (1) includes matters relating to fair lending,
13 and where appropriate, joint investigations and re-
14 quests for information with the Secretary of Hous-
15 ing and Urban Development, the Attorney General,
16 or both.’’
17 (b) SUBPOENAS.—
18 (1) IN GENERAL.—The Agency or an Agency
19 investigator may issue subpoenas for the attendance
20 and testimony of witnesses and the production of
21 relevant papers, books, documents, or other material
22 in connection with hearings under this title.
23 (2) FAILURE TO OBEY.—In case of contumacy
hsrobinson on DSK69SOYB1PROD with BILLS

24 or refusal to obey a subpoena issued pursuant to

25 this paragraph and served upon any person, the dis-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00846 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 847
1 trict court of the United States for any district in
2 which such person is found, resides, or transacts
3 business, upon application by the Agency or an
4 Agency investigator and after notice to such person,
5 shall have jurisdiction to issue an order requiring
6 such person to appear and give testimony or to ap-
7 pear and produce documents or other material, or
8 both.
9 (3) CONTEMPT.—Any failure to obey an order
10 of the court under this subsection may be punished
11 by the court as a contempt thereof.
12 (c) DEMANDS.—
13 (1) IN GENERAL.—Whenever the Agency has
14 reason to believe that any person may be in posses-
15 sion, custody, or control of any documentary mate-
16 rial or tangible things, or may have any information,
17 relevant to a violation, the Agency may, before the
18 institution of any proceedings under this title or
19 under any enumerated consumer law or pursuant to
20 the authorities transferred under subtitles F and H,
21 issue in writing, and cause to be served upon such
22 person, a civil investigative demand requiring such
23 person to—
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00847 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 848
1 (A) produce such documentary material for
2 inspection and copying or reproduction in the
3 form or medium requested by the Agency;
4 (B) submit such tangible things;
5 (C) file written reports or answers to ques-
6 tions;
7 (D) give oral testimony concerning docu-
8 mentary material or other information; or
9 (E) furnish any combination of such mate-
10 rial, answers, or testimony.
11 (2) REQUIREMENTS.—Each civil investigative
12 demand shall state the nature of the conduct consti-
13 tuting the alleged violation which is under investiga-
14 tion and the provision of law applicable to such vio-
15 lation.
16 (3) PRODUCTION OF DOCUMENTS.—Each civil
17 investigative demand for the production of documen-
18 tary material shall—
19 (A) describe each class of documentary
20 material to be produced under the demand with
21 such definiteness and certainty as to permit
22 such material to be fairly identified;
23 (B) prescribe a return date or dates which
hsrobinson on DSK69SOYB1PROD with BILLS

24 will provide a reasonable period of time within

25 which the material so demanded may be assem-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00848 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 849
1 bled and made available for inspection and
2 copying or reproduction; and
3 (C) identify the custodian to whom such
4 material shall be made available.
5 (4) PRODUCTION OF THINGS.—Each civil inves-
6 tigative demand for the submission of tangible
7 things shall—
8 (A) describe each class of tangible things
9 to be submitted under the demand with such
10 definiteness and certainty as to permit such
11 things to be fairly identified;
12 (B) prescribe a return date or dates which
13 will provide a reasonable period of time within
14 which the things so demanded may be assem-
15 bled and submitted; and
16 (C) identify the custodian to whom such
17 things shall be submitted.
18 (5) DEMAND FOR WRITTEN REPORTS OR AN-

19 SWERS.—Each civil investigative demand for written

20 reports or answers to questions shall—
21 (A) propound with definiteness and cer-
22 tainty the reports to be produced or the ques-
23 tions to be answered;
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00849 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 850
1 (B) prescribe a date or dates at which time
2 written reports or answers to questions shall be
3 submitted; and
4 (C) identify the custodian to whom such
5 reports or answers shall be submitted.
6 (6) ORAL TESTIMONY.—Each civil investigative
7 demand for the giving of oral testimony shall—
8 (A) prescribe a date, time, and place at
9 which oral testimony shall be commenced; and
10 (B) identify a Agency investigator who
11 shall conduct the investigation and the custo-
12 dian to whom the transcript of such investiga-
13 tion shall be submitted.
14 (7) SERVICE.—
15 (A) Any civil investigative demand may be
16 served by any Agency investigator at any place
17 within the territorial jurisdiction of any court of
18 the United States.
19 (B) Any such demand or any enforcement
20 petition filed under this section may be served
21 upon any person who is not found within the
22 territorial jurisdiction of any court of the
23 United States, in such manner as the Federal
hsrobinson on DSK69SOYB1PROD with BILLS

24 Rules of Civil Procedure prescribe for service in

25 a foreign nation.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00850 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 851
1 (C) To the extent that the courts of the
2 United States have authority to assert jurisdic-
3 tion over such person consistent with due proc-
4 ess, the United States District Court for the
5 District of Columbia shall have the same juris-
6 diction to take any action respecting compliance
7 with this section by such person that such dis-
8 trict court would have if such person were per-
9 sonally within the jurisdiction of such district
10 court.
11 (8) METHOD OF SERVICE.—Service of any civil
12 investigative demand or any enforcement petition
13 filed under this section may be made upon a person,
14 including any legal entity, by—
15 (A) delivering a duly executed copy of such
16 demand or petition to the individual or to any
17 partner, executive officer, managing agent, or
18 general agent of such person, or to any agent
19 of such person authorized by appointment or by
20 law to receive service of process on behalf of
21 such person;
22 (B) delivering a duly executed copy of such
23 demand or petition to the principal office or
hsrobinson on DSK69SOYB1PROD with BILLS

24 place of business of the person to be served; or

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00851 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 852
1 (C) depositing a duly executed copy in the
2 United States mails, by registered or certified
3 mail, return receipt requested, duly addressed
4 to such person at its principal office or place of
5 business.
6 (9) PROOF OF SERVICE.—

7 (A) A verified return by the individual

8 serving any civil investigative demand or any
9 enforcement petition filed under this section
10 setting forth the manner of such service shall
11 be proof of such service.
12 (B) In the case of service by registered or
13 certified mail, such return shall be accompanied
14 by the return post office receipt of delivery of
15 such demand or enforcement petition.
16 (10) PRODUCTION OF DOCUMENTARY MATE-

17 RIAL.—The production of documentary material in

18 response to a civil investigative demand shall be
19 made under a sworn certificate, in such form as the
20 demand designates, by the person, if a natural per-
21 son, to whom the demand is directed or, if not a
22 natural person, by any person having knowledge of
23 the facts and circumstances relating to such produc-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tion, to the effect that all of the documentary mate-

25 rial required by the demand and in the possession,

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00852 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 853
1 custody, or control of the person to whom the de-
2 mand is directed has been produced and made avail-
3 able to the custodian.
4 (11) SUBMISSION OF TANGIBLE THINGS.—The

5 submission of tangible things in response to a civil

6 investigative demand shall be made under a sworn
7 certificate, in such form as the demand designates,
8 by the person to whom the demand is directed or,
9 if not a natural person, by any person having knowl-
10 edge of the facts and circumstances relating to such
11 production, to the effect that all of the tangible
12 things required by the demand and in the posses-
13 sion, custody, or control of the person to whom the
14 demand is directed have been submitted to the cus-
15 todian.
16 (12) SEPARATE ANSWERS.—Each reporting re-
17 quirement or question in a civil investigative demand
18 shall be answered separately and fully in writing
19 under oath, unless it is objected to, in which event
20 the reasons for the objection shall be stated in lieu
21 of an answer, and it shall be submitted under a
22 sworn certificate, in such form as the demand des-
23 ignates, by the person, if a natural person, to whom
hsrobinson on DSK69SOYB1PROD with BILLS

24 the demand is directed or, if not a natural person,

25 by any person responsible for answering each report-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00853 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 854
1 ing requirement or question, to the effect that all in-
2 formation required by the demand and in the posses-
3 sion, custody, control, or knowledge of the person to
4 whom the demand is directed has been submitted.
5 (13) TESTIMONY.—
6 (A) PROCEDURE.—
7 (i) OATH AND RECORDATION.—Any

8 Agency investigator before whom oral testi-

9 mony is to be taken shall put the witness
10 on oath or affirmation and shall person-
11 ally, or by any individual acting under the
12 direction of and in the presence of the in-
13 vestigator, record the testimony of the wit-
14 ness.
15 (ii) TRANSCRIPTIONS.—The testimony
16 shall be taken stenographically and tran-
17 scribed.
18 (iii) COPY TO CUSTODIAN.—After the
19 testimony is fully transcribed, the Agency
20 investigator before whom the testimony is
21 taken shall promptly transmit a copy of
22 the transcript of the testimony to the cus-
23 todian.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) PARTIES PRESENT.—Any Agency in-

25 vestigator before whom oral testimony is to be

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00854 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 855
1 taken shall exclude from the place where the
2 testimony is to be taken all other persons ex-
3 cept the person giving the testimony, the attor-
4 ney for such person, the officer before whom
5 the testimony is to be taken, an investigator or
6 representative of an agency with which the
7 Agency is engaged in a joint investigation, and
8 any stenographer taking such testimony.
9 (C) LOCATION.—The oral testimony of any
10 person taken pursuant to a civil investigative
11 demand shall be taken in the judicial district of
12 the United States in which such person resides,
13 is found, or transacts business, or in such other
14 place as may be agreed upon by the Agency in-
15 vestigator before whom the oral testimony of
16 such person is to be taken and such person.
17 (D) ATTORNEY REPRESENTATION.—

18 (i) IN GENERAL.—Any person com-

19 pelled to appear under a civil investigative
20 demand for oral testimony pursuant to this
21 section may be accompanied, represented,
22 and advised by an attorney.
23 (ii) CONFIDENTIAL ADVICE.—The at-
hsrobinson on DSK69SOYB1PROD with BILLS

24 torney may advise the person summoned,

25 in confidence, either upon the request of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00855 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 856
1 such person or upon the initiative of the
2 attorney, with respect to any question
3 asked of such person.
4 (iii) OBJECTIONS.—The person sum-
5 moned or the attorney may object on the
6 record to any question, in whole or in part,
7 and shall briefly state for the record the
8 reason for the objection.
9 (iv) REFUSAL TO ANSWER.—An objec-
10 tion may properly be made, received, and
11 entered upon the record when it is claimed
12 that the person summoned is entitled to
13 refuse to answer the question on grounds
14 of any constitutional or other legal right or
15 privilege, including the privilege against
16 self-incrimination, but such person shall
17 not otherwise object to or refuse to answer
18 any question, and shall not otherwise inter-
19 rupt the oral examination, directly or
20 through such person’s attorney.
21 (v) PETITION FOR ORDER.—If such
22 person refuses to answer any question, the
23 Agency may petition the district court of
hsrobinson on DSK69SOYB1PROD with BILLS

24 the United States pursuant to this section

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00856 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 857
1 for an order compelling such person to an-
2 swer such question.
3 (vi) BASIS FOR COMPELLING TESTI-

4 MONY.—If such person refuses to answer

5 any question on grounds of the privilege
6 against self-incrimination, the testimony of
7 such person may be compelled in accord-
8 ance with the provisions of section 6004 of
9 title 18, United States Code.
10 (E) TRANSCRIPTS.—
11 (i) RIGHT TO EXAMINE.—After the
12 testimony of any witness is fully tran-
13 scribed, the Agency investigator shall af-
14 ford the witness (who may be accompanied
15 by an attorney) a reasonable opportunity
16 to examine the transcript.
17 (ii) READING THE TRANSCRIPT.—The

18 transcript shall be read to or by the wit-

19 ness, unless such examination and reading
20 are waived by the witness.
21 (iii) REQUEST FOR CHANGES.—Any

22 changes in form or substance which the

23 witness desires to make shall be entered
hsrobinson on DSK69SOYB1PROD with BILLS

24 and identified upon the transcript by the

25 Agency investigator with a statement of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00857 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 858
1 the reasons given by the witness for mak-
2 ing such changes.
3 (iv) SIGNATURE.—The transcript
4 shall be signed by the witness, unless the
5 witness in writing waives the signing, is ill,
6 cannot be found, or refuses to sign.
7 (v) AGENCY ACTION IN LIEU OF SIG-

8 NATURE.—If the transcript is not signed

9 by the witness during the 30-day period
10 following the date upon which the witness
11 is first afforded a reasonable opportunity
12 to examine it, the Agency investigator shall
13 sign the transcript and state on the record
14 the fact of the waiver, illness, absence of
15 the witness, or the refusal to sign, together
16 with any reasons given for the failure to
17 sign.
18 (F) CERTIFICATION BY INVESTIGATOR.—

19 The Agency investigator shall certify on the

20 transcript that the witness was duly sworn by
21 the investigator and that the transcript is a
22 true record of the testimony given by the wit-
23 ness, and the Agency investigator shall prompt-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ly deliver the transcript or send it by registered

25 or certified mail to the custodian.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00858 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 859
1 (G) COPY OF TRANSCRIPT.—The Agency
2 investigator shall furnish a copy of the tran-
3 script (upon payment of reasonable charges for
4 the transcript) to the witness only, except that
5 the Agency may for good cause limit such wit-
6 ness to inspection of the official transcript of
7 the testimony of such witness.
8 (H) WITNESS FEES.—Any witness appear-
9 ing for the taking of oral testimony pursuant to
10 a civil investigative demand shall be entitled to
11 the same fees and mileage which are paid to
12 witnesses in the district courts of the United
13 States.
14 (d) CONFIDENTIAL TREATMENT OF DEMAND MATE-
15 RIAL.—

16 (1) IN GENERAL.—Materials received as a re-

17 sult of a civil investigative demand shall be subject
18 to requirements and procedures regarding confiden-
19 tiality, in accordance with regulations established by
20 the Director.
21 (2) DISCLOSURE TO CONGRESS.—No regulation
22 established by the Director regarding the confiden-
23 tiality of materials submitted to, or otherwise ob-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tained by, the Agency shall be intended to prevent

25 disclosure to either House of the Congress or to an

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00859 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 860
1 appropriate committee of the Congress, except that
2 the Director may prescribe regulations allowing prior
3 notice to any party that owns or otherwise provided
4 the material to the Agency and has designated such
5 material as confidential.
6 (e) PETITION FOR ENFORCEMENT.—
7 (1) IN GENERAL.—Whenever any person fails
8 to comply with any civil investigative demand duly
9 served upon such person under this section, or when-
10 ever satisfactory copying or reproduction of material
11 requested pursuant to the demand cannot be accom-
12 plished and such person refuses to surrender such
13 material, the Agency, through such officers or attor-
14 neys as the Director may designate, may file, in the
15 district court of the United States for any judicial
16 district in which such person resides, is found, or
17 transacts business, and serve upon such person, a
18 petition for an order of such court for the enforce-
19 ment of this section.
20 (2) SERVICE OF PROCESS.—All process of any
21 court to which application may be made as provided
22 in this subsection may be served in any judicial dis-
23 trict.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (f) PETITION FOR ORDER MODIFYING OR SETTING

25 ASIDE DEMAND.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00860 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 861
1 (1) IN GENERAL.—Not later than 20 days after
2 the service of any civil investigative demand upon
3 any person under subsection (b), or at any time be-
4 fore the return date specified in the demand, which-
5 ever period is shorter, or within such period exceed-
6 ing 20 days after service or in excess of such return
7 date as may be prescribed in writing, subsequent to
8 service, by any Agency investigator named in the de-
9 mand, such person may file with the Agency a peti-
10 tion for an order by the Agency modifying or setting
11 aside the demand.
12 (2) COMPLIANCE DURING PENDENCY.—The

13 time permitted for compliance with the demand in

14 whole or in part, as deemed proper and ordered by
15 the Agency, shall not run during the pendency of
16 such petition at the Agency, except that such person
17 shall comply with any portions of the demand not
18 sought to be modified or set aside.
19 (3) SPECIFIC GROUNDS.—Such petition shall
20 specify each ground upon which the petitioner relies
21 in seeking such relief, and may be based upon any
22 failure of the demand to comply with the provisions
23 of this section, or upon any constitutional or other
hsrobinson on DSK69SOYB1PROD with BILLS

24 legal right or privilege of such person.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00861 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 862
1 (g) CUSTODIAL CONTROL.—At any time during
2 which any custodian is in custody or control of any docu-
3 mentary material, tangible things, reports, answers to
4 questions, or transcripts of oral testimony given by any
5 person in compliance with any civil investigative demand,
6 such person may file, in the district court of the United
7 States for the judicial district within which the office of
8 such custodian is situated, and serve upon such custodian,
9 a petition for an order of such court requiring the per-
10 formance by such custodian of any duty imposed upon
11 such custodian by this section or regulation prescribed by
12 the Director.
13 (h) JURISDICTION OF COURT.—
14 (1) IN GENERAL.—Whenever any petition is
15 filed in any district court of the United States under
16 this section, such court shall have jurisdiction to
17 hear and determine the matter so presented, and to
18 enter such order or orders as may be required to
19 carry into effect the provisions of this section.
20 (2) APPEAL.—Any final order so entered shall
21 be subject to appeal pursuant to section 1291 of title
22 28, United States Code.
23 SEC. 4503. HEARINGS AND ADJUDICATION PROCEEDINGS.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (a) IN GENERAL.—The Agency may conduct hear-

25 ings and adjudication proceedings with respect to any per-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00862 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 863
1 son in the manner prescribed by chapter 5 of title 5,
2 United States Code in order to ensure or enforce compli-
3 ance with—
4 (1) the provisions of this title, including any
5 regulations prescribed by the Director under this
6 title; and
7 (2) any other Federal law that the Agency is
8 authorized to enforce, including an enumerated con-
9 sumer law, and any regulations or order prescribed
10 thereunder, unless such Federal law specifically lim-
11 its the Agency from conducting a hearing or adju-
12 dication proceeding and only to the extent of such
13 limitation.
14 (b) SPECIAL RULES FOR CEASE-AND-DESIST PRO-
15 CEEDINGS.—

16 (1) ISSUANCE.—
17 (A) NOTICE OF CHARGES.—If, in the opin-
18 ion of the Agency, any covered person or service
19 provider is engaging or has engaged in an activ-
20 ity that violates a law, regulation, or any condi-
21 tion imposed in writing on the person by the
22 Agency, the Agency may issue and serve upon
23 the person a notice of charges with respect to
hsrobinson on DSK69SOYB1PROD with BILLS

24 such violation.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00863 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 864
1 (B) CONTENTS OF NOTICE.—The notice
2 shall contain a statement of the facts consti-
3 tuting any alleged violation and shall fix a time
4 and place at which a hearing will be held to de-
5 termine whether an order to cease-and-desist
6 there from should issue against the person.
7 (C) TIME OF HEARING.—A hearing under
8 this subsection shall be fixed for a date not ear-
9 lier than 30 days nor later than 60 days after
10 service of such notice unless an earlier or a
11 later date is set by the Agency at the request
12 of any party so served.
13 (D) NONAPPEARANCE DEEMED TO BE

14 CONSENT TO ORDER.—Unless the party or par-

15 ties so served shall appear at the hearing per-
16 sonally or by a duly authorized representative,
17 they shall be deemed to have consented to the
18 issuance of the cease-and-desist order.
19 (E) ISSUANCE OF ORDER.—In the event of
20 such consent, or if upon the record made at any
21 such hearing, the Agency shall find that any
22 violation specified in the notice of charges has
23 been established, the Agency may issue and
hsrobinson on DSK69SOYB1PROD with BILLS

24 serve upon the person an order to cease-and-de-

25 sist from any such violation or practice.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00864 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 865
1 (F) INCLUDES REQUIREMENT FOR COR-

2 RECTIVE ACTION.—Such order may, by provi-

3 sions which may be mandatory or otherwise, re-
4 quire the person to cease-and-desist from the
5 same, and, further, to take affirmative action to
6 correct the conditions resulting from any such
7 violation.
8 (2) EFFECTIVENESS OF ORDER.—A cease-and-
9 desist order shall take effect at the end of the 30-
10 day period beginning on the date of the service of
11 such order upon the covered person or service pro-
12 vider concerned (except in the case of a cease-and-
13 desist order issued upon consent, which shall take
14 effect at the time specified therein), and shall re-
15 main effective and enforceable as provided therein,
16 except to such extent as it is stayed, modified, termi-
17 nated, or set aside by action of the Agency or a re-
18 viewing court.
19 (3) DECISION AND APPEAL.—

20 (A) PLACE OF AND PROCEDURES FOR

21 HEARING.—Any hearing provided for in this

22 subsection shall be held in the Federal judicial
23 district or in the territory in which the resi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 dence or home office of the person is located

25 unless the person consents to another place,

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00865 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 866
1 and shall be conducted in accordance with the
2 provisions of chapter 5 of title 5 of the United
3 States Code.
4 (B) TIME LIMIT FOR DECISION.—After

5 such hearing, and within 90 days after the

6 Agency has notified the parties that the case
7 has been submitted to it for final decision, the
8 Agency shall—
9 (i) render its decision (which shall in-
10 clude findings of fact upon which its deci-
11 sion is predicated) and shall issue; and
12 (ii) serve upon each party to the pro-
13 ceeding an order or orders consistent with
14 the provisions of this section. Judicial re-
15 view of any such order shall be exclusively
16 as provided in this subsection.
17 (C) MODIFICATION OF ORDER GEN-

18 ERALLY.—Unless a petition for review is timely

19 filed in a court of appeals of the United States,
20 as hereinafter provided in paragraph (4), and
21 thereafter until the record in the proceeding has
22 been filed as so provided, the Agency may at
23 any time, upon such notice and in such manner
hsrobinson on DSK69SOYB1PROD with BILLS

24 as it shall deem proper, modify, terminate, or

25 set aside any such order.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00866 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 867
1 (D) MODIFICATION OF ORDER AFTER FIL-

2 ING RECORD ON APPEAL.—Upon such filing of

3 the record, the Agency may modify, terminate,
4 or set aside any such order with permission of
5 the court.
6 (4) APPEAL TO COURT OF APPEALS.—

7 (A) IN GENERAL.—Any party to any pro-

8 ceeding under this subsection may obtain a re-
9 view of any order served pursuant to this sub-
10 section (other than an order issued with the
11 consent of the person concerned) by the filing
12 in the court of appeals of the United States for
13 the circuit in which the principal office of the
14 covered person is located, or in the United
15 States Court of Appeals for the District of Co-
16 lumbia Circuit, within 30 days after the date of
17 service of such order, a written petition praying
18 that the order of the Agency be modified, termi-
19 nated, or set aside.
20 (B) TRANSMITTAL OF COPY TO THE AGEN-

21 CY.—A copy of such petition shall be forthwith

22 transmitted by the clerk of the court to the
23 Agency, and thereupon the Agency shall file in
hsrobinson on DSK69SOYB1PROD with BILLS

24 the court the record in the proceeding, as pro-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00867 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 868
1 vided in section 2112 of title 28 of the United
2 States Code.
3 (C) JURISDICTION OF COURT.—Upon the
4 filing of a petition under subparagraph (A),
5 such court shall have jurisdiction, which upon
6 the filing of the record shall except as provided
7 in the last sentence of paragraph (3) be exclu-
8 sive, to affirm, modify, terminate, or set aside,
9 in whole or in part, the order of the Agency.
10 (D) SCOPE OF REVIEW.—Review of such
11 proceedings shall be had as provided in chapter
12 7 of title 5 of the United States Code.
13 (E) FINALITY.—The judgment and decree
14 of the court shall be final, except that the same
15 shall be subject to review by the Supreme Court
16 upon certiorari, as provided in section 1254 of
17 title 28 of the United States Code.
18 (5) NO STAY.—The commencement of pro-
19 ceedings for judicial review under paragraph (4)
20 shall not, unless specifically ordered by the court,
21 operate as a stay of any order issued by the Agency.
22 (c) SPECIAL RULES FOR TEMPORARY CEASE-AND-
23 DESIST PROCEEDINGS.—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (1) ISSUANCE.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00868 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 869
1 (A) IN GENERAL.—Whenever the Agency
2 determines that the violation specified in the
3 notice of charges served upon a person, includ-
4 ing a service provider, pursuant to subsection
5 (b), or the continuation of such violation, is
6 likely to cause the person to be insolvent or oth-
7 erwise prejudice the interests of consumers be-
8 fore the completion of the proceedings con-
9 ducted pursuant to subsection (b), the Agency
10 may issue a temporary order requiring the per-
11 son to cease-and-desist from any such violation
12 or practice and to take affirmative action to
13 prevent or remedy such insolvency or other con-
14 dition pending completion of such proceedings.
15 (B) OTHER REQUIREMENTS.—Any tem-
16 porary order issued under this paragraph may
17 include any requirement authorized under this
18 subtitle.
19 (C) EFFECT DATE OF ORDER.—Any tem-
20 porary order issued under this paragraph shall
21 take effect upon service upon the person and,
22 unless set aside, limited, or suspended by a
23 court in proceedings authorized by paragraph
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) of this subsection, shall remain effective and

25 enforceable pending the completion of the ad-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00869 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 870
1 ministrative proceedings pursuant to such no-
2 tice and until such time as the Agency shall dis-
3 miss the charges specified in such notice, or if
4 a cease-and-desist order is issued against the
5 person, until the effective date of such order.
6 (2) APPEAL.—Within 10 days after the person
7 concerned has been served with a temporary cease-
8 and-desist order, the person may apply to the United
9 States district court for the judicial district in which
10 the home office of the person is located, or the
11 United States District Court for the District of Co-
12 lumbia, for an injunction setting aside, limiting, or
13 suspending the enforcement, operation, or effective-
14 ness of such order pending the completion of the ad-
15 ministrative proceedings pursuant to the notice of
16 charges served upon the person under subsection
17 (b), and such court shall have jurisdiction to issue
18 such injunction.
19 (3) INCOMPLETE OR INACCURATE RECORDS.—

20 (A) TEMPORARY ORDER.—If a notice of

21 charges served under subsection (b) specifies,
22 on the basis of particular facts and cir-
23 cumstances, that a person’s books and records
hsrobinson on DSK69SOYB1PROD with BILLS

24 are so incomplete or inaccurate that the Agency

25 is unable to determine the financial condition of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00870 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 871
1 that person or the details or purpose of any
2 transaction or transactions that may have a
3 material effect on the financial condition of that
4 person, the Agency may issue a temporary
5 order requiring—
6 (i) the cessation of any activity or
7 practice which gave rise, whether in whole
8 or in part, to the incomplete or inaccurate
9 state of the books or records; or
10 (ii) affirmative action to restore such
11 books or records to a complete and accu-
12 rate state, until the completion of the pro-
13 ceedings under subsection (b)(1).
14 (B) EFFECTIVE PERIOD.—Any temporary
15 order issued under subparagraph (A)—
16 (i) shall take effect upon service; and
17 (ii) unless set aside, limited, or sus-
18 pended by a court in proceedings under
19 paragraph (2), shall remain in effect and
20 enforceable until the earlier of—
21 (I) the completion of the pro-
22 ceeding initiated under subsection (b)
23 in connection with the notice of
hsrobinson on DSK69SOYB1PROD with BILLS

24 charges; or

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00871 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 872
1 (II) the date the Agency deter-
2 mines, by examination or otherwise,
3 that the person’s books and records
4 are accurate and reflect the financial
5 condition of the person.
6 (d) SPECIAL RULES FOR ENFORCEMENT OF OR-
7 DERS.—

8 (1) IN GENERAL.—The Agency may in its dis-

9 cretion apply to the United States district court
10 within the jurisdiction of which the principal office
11 of the person is located, for the enforcement of any
12 effective and outstanding notice or order issued
13 under this section, and such court shall have juris-
14 diction and power to order and require compliance
15 herewith.
16 (2) EXCEPTION.—Except as otherwise provided
17 in this subsection, no court shall have jurisdiction to
18 affect by injunction or otherwise the issuance or en-
19 forcement of any notice or order or to review, mod-
20 ify, suspend, terminate, or set aside any such notice
21 or order.
22 (e) REGULATIONS.—The Director shall prescribe reg-
23 ulations establishing such procedures as may be necessary
hsrobinson on DSK69SOYB1PROD with BILLS

24 to carry out this section.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00872 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 873
1 SEC. 4504. LITIGATION AUTHORITY.

2 (a) IN GENERAL.—If any person violates a provision

3 of this title, any enumerated consumer law, any law for
4 which authorities were transferred under subtitles F and
5 H, or any regulation prescribed or order issued by the Di-
6 rector under this title or pursuant to any such authority,
7 the Agency may commence a civil action against such per-
8 son to impose a civil penalty and to seek all appropriate
9 legal and equitable relief including a permanent or tem-
10 porary injunction as permitted by law.
11 (b) REPRESENTATION.—The Agency may act in its
12 own name and through its own attorneys in enforcing any
13 provision of this title, regulations under this title, or any
14 other law or regulation, or in any action, suit, or pro-
15 ceeding to which the Agency is a party.
16 (c) COMPROMISE OF ACTIONS.—The Agency may
17 compromise or settle any action if such compromise is ap-
18 proved by the court.
19 (d) NOTICE TO THE ATTORNEY GENERAL.—When
20 commencing a civil action under this title, any enumerated
21 consumer law, any law for which authorities were trans-
22 ferred under subtitles F and H, or any regulation there-
23 under, the Agency shall notify the Attorney General.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (e) APPEARANCE BEFORE THE SUPREME COURT.—

25 The Agency may represent itself in its own name before
26 the Supreme Court of the United States, if—
•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00873 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 874
1 (1) the Agency makes a written request to the
2 Attorney General within the 10-day period which be-
3 gins on the date of entry of the judgment which
4 would permit any party to file a petition for writ of
5 certiorari; and
6 (2) the Attorney General concurs with such re-
7 quest or fails to take action within 60 days of the
8 Agency’s request.
9 (f) FORUM.—Any civil action brought under this title
10 may be brought in a United States district court or in
11 any court of competent jurisdiction of a state in a district
12 in which the defendant is located or resides or is doing
13 business, and such court shall have jurisdiction to enjoin
14 such person and to require compliance with this title, any
15 enumerated consumer law, any law for which authorities
16 were transferred under subtitles F and H, or any regula-
17 tion prescribed or order issued by the Director under this
18 title or pursuant to any such authority.
19 (g) TIME FOR BRINGING ACTION.—
20 (1) IN GENERAL.—Except as otherwise per-
21 mitted by law or equity, no action may be brought
22 under this title more than 3 years after the date of
23 the discovery of the violation to which an action re-
hsrobinson on DSK69SOYB1PROD with BILLS

24 lates.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00874 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 875
1 (2) LIMITATIONS UNDER OTHER FEDERAL

2 LAWS.—

3 (A) For purposes of this section, an action

4 arising under this title shall not include claims
5 arising solely under enumerated consumer laws.
6 (B) In any action arising solely under an
7 enumerated consumer law, the Agency may
8 commence, defend, or intervene in the action in
9 accordance with the requirements of that law,
10 as applicable.
11 (C) In any action arising solely under the
12 laws for which authorities were transferred by
13 subtitles F and H, the Agency may commence,
14 defend, or intervene in the action in accordance
15 with the requirements of that law, as applicable.
16 SEC. 4505. RELIEF AVAILABLE.

17 (a) ADMINISTRATIVE PROCEEDINGS OR COURT AC-

18 TIONS.—

19 (1) JURISDICTION.—The court (or Agency, as

20 the case may be) in an action or adjudication pro-
21 ceeding brought under this title, any enumerated
22 consumer law, or any law for which authorities were
23 transferred by subtitles F and H, shall have jurisdic-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tion to grant any appropriate legal or equitable relief

25 with respect to a violation of this title, any enumer-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00875 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 876
1 ated consumer law, and any law for which authori-
2 ties were transferred by subtitles F and H, including
3 a violation of a regulation prescribed or order issued
4 under this title, any enumerated consumer law and
5 any law for which authorities were transferred by
6 subtitles F and H.
7 (2) RELIEF.—Such relief may include—
8 (A) rescission or reformation of contracts;
9 (B) refund of moneys or return of real
10 property;
11 (C) restitution;
12 (D) disgorgement or compensation for un-
13 just enrichment;
14 (E) payment of damages;
15 (F) public notification regarding the viola-
16 tion, including the costs of notification;
17 (G) limits on the activities or functions of
18 the person; and
19 (H) civil money penalties under subsection
20 (c).
21 (3) NO EXEMPLARY OR PUNITIVE DAMAGES.—

22 Nothing in this subsection shall be construed as au-

23 thorizing the imposition of exemplary or punitive
hsrobinson on DSK69SOYB1PROD with BILLS

24 damages.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00876 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 877
1 (b) RECOVERY OF COSTS.—In any action brought by
2 the Agency, a State attorney general, or a State bank su-
3 pervisor to enforce any provision of this title, any enumer-
4 ated consumer law, any law for which authorities were
5 transferred by subtitles F and H, or any regulation pre-
6 scribed or order issued by the Director under this title
7 or pursuant to any such authority, the Agency, State at-
8 torney general, or State bank supervisor may recover the
9 costs incurred by such Agency, attorney general, or super-
10 visor in connection with prosecuting such action if the
11 Agency, State attorney general, or State bank supervisors
12 (as the case may be) is the prevailing party in the action.
13 (c) CIVIL MONEY PENALTY IN COURT AND ADMINIS-
14 TRATIVE ACTIONS.—
15 (1) Any person that violates, through any act or
16 omission, any provision of this title, any enumerated
17 consumer law, or any regulation prescribed or order
18 issued by the Director under this title shall forfeit
19 and pay a civil penalty pursuant to this subsection
20 determined as follows:
21 (A) FIRST TIER.—For any violation of any
22 law, regulation, final order or condition imposed
23 in writing by the Agency, or for any failure to
hsrobinson on DSK69SOYB1PROD with BILLS

24 pay any fee or assessment imposed by the

25 Agency (including any fee or assessment for

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00877 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 878
1 which a related person may be liable), a civil
2 penalty shall not exceed $5,000 for each day
3 during which such violation continues.
4 (B) SECOND TIER.—Notwithstanding

5 paragraph (A), for any violation of a regulation

6 prescribed under section 4306 or for any person
7 that recklessly engages in a violation of this
8 title, any enumerated consumer law, or any reg-
9 ulation prescribed or order issued by the Direc-
10 tor under this title, relating to the provision of
11 an alternative consumer financial product or
12 service, a civil penalty shall not exceed $25,000
13 for each day during which such violation con-
14 tinues.
15 (C) THIRD TIER.—Notwithstanding sub-
16 paragraphs (A) and (B), for any person that
17 knowingly violates this title, any enumerated
18 consumer law, or any regulation prescribed or
19 order issued by the Director under this title, a
20 civil penalty shall not exceed $1,000,000 for
21 each day during which such violation continues.
22 (2) MITIGATING FACTORS.—In determining the
23 amount of any penalty assessed under paragraph
hsrobinson on DSK69SOYB1PROD with BILLS

24 (1), the Agency or the court shall take into account

25 the appropriateness of the penalty with respect to—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00878 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 879
1 (A) the size of financial resources and good
2 faith of the person charged;
3 (B) the gravity of the violation or failure
4 to pay;
5 (C) the severity of the risks to or losses of
6 the consumer, which may take into account the
7 number of products or services sold or provided;
8 (D) the history of previous violations; and
9 (E) such other matters as justice may re-
10 quire.
11 (3) AUTHORITY TO MODIFY OR REMIT PEN-

12 ALTY.—The Agency may compromise, modify, or

13 remit any penalty which may be assessed or had al-
14 ready been assessed under paragraph (1). The
15 amount of such penalty, when finally determined,
16 shall be exclusive of any sums owed by the person
17 to the United States in connection with the costs of
18 the proceeding, and may be deducted from any sums
19 owing by the United States to the person charged.
20 (4) NOTICE AND HEARING.—No civil penalty
21 may be assessed with respect to a violation of this
22 title, any enumerated consumer law, or any regula-
23 tion prescribed or order issued by the Director, un-
hsrobinson on DSK69SOYB1PROD with BILLS

24 less—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00879 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 880
1 (A) the Agency gives notice and an oppor-
2 tunity for a hearing to the person accused of
3 the violation; or
4 (B) the appropriate court has ordered such
5 assessment and entered judgment in favor of
6 the Agency.
7 SEC. 4506. REFERRALS FOR CRIMINAL PROCEEDINGS.

8 Whenever the Agency obtains evidence that any per-

9 son, either domestic or foreign, has engaged in conduct
10 that may constitute a violation of Federal criminal law,
11 the Agency may transmit such evidence to the Attorney
12 General, who may institute criminal proceedings under ap-
13 propriate law. No provision of this section shall be con-
14 strued as affecting any other authority of the Agency to
15 disclose information.
16 SEC. 4507. EMPLOYEE PROTECTION.

17 (a) IN GENERAL.—No covered person or service pro-

18 vider shall terminate or in any other way discriminate
19 against, or cause to be terminated or discriminated
20 against, any covered employee or any authorized rep-
21 resentative of covered employees by reason of the fact that
22 such employee or representative, whether at the employ-
23 ee’s initiative or in the ordinary course of the employee’s
hsrobinson on DSK69SOYB1PROD with BILLS

24 duties (or any person acting pursuant to a request of the

25 employee)—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00880 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 881
1 (1) has provided information to the Agency or
2 to any other State, local, or Federal Government au-
3 thority or law enforcement official information relat-
4 ing to any violation of, or any act or omission the
5 employee reasonably believes to be a violation of any
6 provision of this title or any other law that is subject
7 to the jurisdiction of the Agency, or any regulation,
8 order, standard, or prohibition prescribed by the Di-
9 rector;
10 (2) has testified or is about to testify in any
11 proceeding resulting from the administration or en-
12 forcement of any provision of this title or any other
13 law that is subject to the jurisdiction of the Agency,
14 or any regulation, order, standard, or prohibition
15 prescribed by the Director;
16 (3) has filed or instituted, or has caused to be
17 filed or instituted, any proceeding under any enu-
18 merated consumer law or any law for which authori-
19 ties were transferred by subtitles F and H; or
20 (4) has objected to, or refused to participate in,
21 any activity, policy, practice, or assigned task that
22 the employee (or other such person) reasonably be-
23 lieved to be in violation of any law, regulation, order,
hsrobinson on DSK69SOYB1PROD with BILLS

24 standard, or prohibition, subject to the jurisdiction

25 of, or enforceable by, the Agency.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00881 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 882
1 (b) COVERED EMPLOYEE DEFINED.—For the pur-
2 poses of this section, the term ‘‘covered employee’’ means
3 any individual performing tasks related to the provision
4 of a financial product or service to a consumer.
5 (c) TIMETABLES.—
6 (1) FILING COMPLAINT.—Any individual who
7 believes that such individual has been discharged or
8 otherwise discriminated against by any person in
9 violation of subsection (a) may, before the end of the
10 180-day period beginning on the date on which such
11 violation occurs, file (or have any person file on be-
12 half of such individual) a complaint with the Sec-
13 retary of Labor (hereafter in this subsection referred
14 to as the ‘‘Secretary’’, notwithstanding section
15 4002(34)) alleging such discharge or discrimination
16 and identifying the person responsible for such act.
17 (2) SECRETARY’S ACTION ON RECEIPT OF COM-

18 PLAINT.—Upon receipt of a complaint by any indi-

19 vidual under paragraph (1), the Secretary shall no-
20 tify, in writing, the person named in the complaint
21 who is alleged to have committed the violation of—
22 (A) the filing of the complaint;
23 (B) the allegations contained in the com-
hsrobinson on DSK69SOYB1PROD with BILLS

24 plaint;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00882 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 883
1 (C) the substance of the evidence sup-
2 porting the complaint; and
3 (D) the opportunities that will be afforded
4 to such person under paragraph (3).
5 (3) INVESTIGATION, HEARING, AND ORDERS.—

6 (A) FINDINGS.—Not later than 60 days

7 after the date of receipt of a complaint filed
8 under paragraph (1) and after affording the in-
9 dividual filing the complaint and the person
10 named in the complaint who is alleged to have
11 committed the violation an opportunity to sub-
12 mit to the Secretary a written response to the
13 complaint and an opportunity to meet with a
14 representative of the Secretary to present state-
15 ments from witnesses, the Secretary shall ini-
16 tiate an investigation and determine whether
17 there is reasonable cause to believe that the
18 complaint has merit and notify, in writing, the
19 complainant and the person alleged to have
20 committed a violation of subsection (a) of the
21 Secretary’s findings.
22 (B) PRELIMINARY ORDER.—If the Sec-
23 retary concludes that there is reasonable cause
hsrobinson on DSK69SOYB1PROD with BILLS

24 to believe that a violation of subsection (a) has

25 occurred, the Secretary shall accompany the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00883 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 884
1 Secretary’s findings with a preliminary order
2 providing the relief prescribed by paragraph
3 (3)(B).
4 (C) OBJECTIONS TO FINDINGS OR PRE-

5 LIMINARY ORDER.—Not later than 30 days

6 after the date of notification of findings under
7 subparagraph (A), the person alleged to have
8 committed the violation or the complainant may
9 file objections to the findings or preliminary
10 order, or both, and request a hearing on the
11 record.
12 (D) OBJECTIONS DO NOT CONSTITUTE A

13 STAY.—The filing of objections under subpara-

14 graph (C) shall not operate to stay any rein-
15 statement remedy contained in the preliminary
16 order.
17 (E) EXPEDITIOUS HEARING.—Any hearing
18 requested under subparagraph (C) shall be con-
19 ducted expeditiously.
20 (F) FINALITY OF ORDER.—If a hearing is
21 not requested under subparagraph (C) with re-
22 spect to any findings of the Secretary under
23 subparagraph (A) within the 30-day period de-
hsrobinson on DSK69SOYB1PROD with BILLS

24 scribed in subparagraph (C), the preliminary

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00884 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 885
1 order shall be deemed a final order that is not
2 subject to judicial review.
3 (4) STANDARDS FOR DETERMINATION.—

4 (A) PRIMA FACIE EVIDENCE OF CONTRIBU-

5 TION.—The Secretary shall dismiss a complaint

6 filed under paragraph (1) and shall not conduct
7 an investigation otherwise required under para-
8 graph (3)(A) unless the individual filing the
9 complaint makes a prima facie showing that
10 any behavior described in paragraph (1), (2),
11 (3), or (4) of subsection (a) was a contributing
12 factor in the unfavorable personnel action al-
13 leged in the complaint.
14 (B) PROHIBITION ON INVESTIGATION IN

15 CASE OF CLEAR AND CONVINCING EVIDENCE OF

16 INDEPENDENT BASIS.—Notwithstanding a find-

17 ing by the Secretary that the complainant has
18 made the showing required under subparagraph
19 (A), no investigation otherwise required under
20 paragraph (3) shall be conducted if the em-
21 ployer demonstrates, by clear and convincing
22 evidence, that the employer would have taken
23 the same unfavorable personnel action in the
hsrobinson on DSK69SOYB1PROD with BILLS

24 absence of that behavior.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00885 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 886
1 (C) CONTRIBUTING FACTOR REQUIRE-

2 MENT.—The Secretary may determine that a

3 violation of subsection (a) has occurred only if
4 the complainant demonstrates that any behavior
5 described in paragraph (1), (2), (3), or (4) of
6 subsection (a) was a contributing factor in the
7 unfavorable personnel action alleged in the com-
8 plaint.
9 (D) PROHIBITION ON FINAL ORDER IN

10 CASE OF CLEAR AND CONVINCING EVIDENCE OF

11 INDEPENDENT BASIS.—Relief may not be or-

12 dered under paragraph (3) if the employer dem-
13 onstrates by clear and convincing evidence that
14 the employer would have taken the same unfa-
15 vorable personnel action in the absence of that
16 behavior.
17 (5) FINAL ORDER.—

18 (A) IN GENERAL.—Not later than 120

19 days after the date of conclusion of any hearing
20 under paragraph (3), the Secretary shall issue
21 a final order providing the relief prescribed by
22 this subsection or denying the complaint.
23 (B) SETTLEMENT AGREEMENT.—At any
hsrobinson on DSK69SOYB1PROD with BILLS

24 time before issuance of a final order, a pro-

25 ceeding under this subsection may be termi-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00886 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 887
1 nated on the basis of a settlement agreement
2 entered into by the Secretary, the complainant,
3 and the person alleged to have committed the
4 violation.
5 (C) CONTENTS OF ORDER.—If, in response
6 to a complaint filed under paragraph (1), the
7 Secretary determines that a violation of sub-
8 section (a) has occurred, the Secretary shall
9 order the person who committed such viola-
10 tion—
11 (i) to take affirmative action to abate
12 the violation;
13 (ii) to reinstate the complainant to
14 such individual’s former position together
15 with compensation (including back pay)
16 and restore the terms, conditions, and
17 privileges associated with such individual’s
18 employment; and
19 (iii) to provide compensatory damages
20 to the complainant.
21 (D) COSTS AND ATTORNEYS FEES.—If an
22 order is issued under this paragraph, the Sec-
23 retary, at the request of the complainant, shall
hsrobinson on DSK69SOYB1PROD with BILLS

24 assess against the person against whom the

25 order is issued a sum equal to the aggregate

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00887 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 888
1 amount of all costs and expenses (including at-
2 torneys’ and expert witness fees) reasonably in-
3 curred, as determined by the Secretary, by the
4 complainant for, or in connection with, the
5 bringing of the complaint upon which the order
6 was issued.
7 (E) FRIVOLOUS OR BAD FAITH COM-

8 PLAINTS.—If the Secretary finds that a com-

9 plaint under paragraph (1) is frivolous or has
10 been brought in bad faith, the Secretary may
11 award to the prevailing employer a reasonable
12 attorneys’ fee, not exceeding $1,000, to be paid
13 by the complainant.
14 (6) DE NOVO ACTION ON CLAIM.—

15 (A) ACTION AT LAW OR EQUITY.—If the

16 Secretary has not issued a final decision within
17 210 days after the filing of the complaint, or
18 within 90 days after receiving a written deter-
19 mination, the complainant who filed such com-
20 plaint may bring an action at law or equity for
21 de novo review in the appropriate district court
22 of the United States.
23 (B) JURY TRIAL.—At the request of either
hsrobinson on DSK69SOYB1PROD with BILLS

24 party to an action brought under subparagraph

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00888 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 889
1 (A), such action shall be tried by the court with
2 a jury.
3 (C) STANDARDS FOR DETERMINATION.—

4 The standards for determination established

5 under paragraph (4) shall apply in any action
6 under this paragraph.
7 (D) RELIEF.—The court shall have juris-
8 diction to grant all relief, including injunctive
9 relief and compensatory damages , that nec-
10 essary to make the complainant who sought de
11 novo review whole, including—
12 (i) reinstatement with the same se-
13 niority status that the complainant would
14 have had, but for the discharge or dis-
15 crimination;
16 (ii) the amount of back pay, with in-
17 terest; and
18 (iii) compensation for any special
19 damages sustained as a result of the dis-
20 charge or discrimination, including litiga-
21 tion costs, expert witness fees, and reason-
22 able attorney’s fees.
23 (E) NOT REVIEWABLE.—The decision of
hsrobinson on DSK69SOYB1PROD with BILLS

24 the court shall be final without further review.

25 (7) JUDICIAL REVIEW OF FINAL ORDER.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00889 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 890
1 (A) IN GENERAL.—Unless a complainant
2 brings a de novo action under paragraph (6),
3 any person adversely affected or aggrieved by a
4 final order issued under paragraph (5) may ob-
5 tain review of the order in the United States
6 Court of Appeals for the circuit in which the
7 violation, with respect to which the order was
8 issued, allegedly occurred or the circuit in which
9 the complainant resided on the date of such vio-
10 lation.
11 (B) STATUTE OF LIMITATION .—Any peti-
12 tion for review of a final order under subsection
13 shall be filed not later than 60 days after the
14 date of the issuance of the final order by the
15 Secretary.
16 (C) STANDARDS FOR REVIEW.—The stand-
17 ards for review established under chapter 7 of
18 title 5, United States Code, shall apply in any
19 review of a final order under this paragraph.
20 (D) EFFECT OF PROCEEDINGS AS STAY.—

21 The commencement of proceedings under this

22 paragraph shall not operate as a stay of the
23 final order of the Secretary under review, unless
hsrobinson on DSK69SOYB1PROD with BILLS

24 so ordered by the court.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00890 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 891
1 (E) LIMITATION ON EFFECT OF OTHER

2 PROCEEDINGS.—Except as provided in para-

3 graph (6) and this paragraph, an order of the
4 Secretary with respect to which review could
5 have been obtained under subparagraph (A)
6 shall not be subject to judicial review in any
7 criminal or other civil proceeding.
8 (8) ENFORCEMENT OF ORDERS BY SEC-

9 RETARY.—

10 (A) IN GENERAL.—Whenever any person

11 has failed to comply with an order issued under
12 paragraph (5), the Secretary may file a civil ac-
13 tion in the United States district court for the
14 district in which the violation was found to
15 occur, or in the United States district court for
16 the District of Columbia, to enforce such order.
17 (B) RELIEF.—In actions brought under
18 this paragraph, the district courts shall have ju-
19 risdiction to grant all appropriate relief includ-
20 ing injunctive relief and compensatory damages.
21 (9) ENFORCEMENT OF ORDER BY AGGRIEVED

22 PARTY .—
23 (A) IN GENERAL.—A person on whose be-
hsrobinson on DSK69SOYB1PROD with BILLS

24 half an order was issued under paragraph (5)

25 may commence a civil action against the person

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00891 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 892
1 to whom such order was issued to require com-
2 pliance with such order.
3 (B) RELIEF.—The court, in issuing any
4 final order under this paragraph, may award
5 costs of litigation (including reasonable attor-
6 neys’ and expert witness fees) to any party
7 whenever the court determines such award is
8 appropriate.
9 (d) ACTION IN NATURE OF MANDAMUS.—Any non-
10 discretionary duty imposed by this section shall be enforce-
11 able in a mandamus proceeding brought under section
12 1361 of title 28, United States Code.
13 (e) UNENFORCEABILITY OF CERTAIN AGREE-
14 MENTS.—

15 (1) NO WAIVER OF RIGHTS AND REMEDIES.—

16 Notwithstanding any law and except as provided

17 under paragraph (3), the rights and remedies pro-
18 vided for in this section may not be waived by any
19 agreement, policy, form, or condition of employment,
20 including by any predispute arbitration agreement.
21 (2) PREDISPUTE ARBITRATION AGREEMENTS.—

22 Notwithstanding any law and except as provided

23 under paragraph (3), no predispute arbitration
hsrobinson on DSK69SOYB1PROD with BILLS

24 agreement shall be valid or enforceable and to the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00892 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 893
1 extent the agreement requires arbitration of a dis-
2 pute arising under this section.
3 (3) EXCEPTION.—Notwithstanding paragraphs
4 (1) and (2), an arbitration provision in a collective
5 bargaining agreement shall be enforceable as to dis-
6 putes arising under subsection (a)(2) unless the Di-
7 rector determines by regulation that such provision
8 is inconsistent with the purposes of this title.
9 SEC. 4508. EFFECTIVE DATE.

10 This subtitle shall take effect on the designated

11 transfer date.
12 Subtitle F—Transfer of Functions
13 and Personnel; Transitional
14 Provisions
15 SEC. 4601. TRANSFER OF CERTAIN FUNCTIONS.

16 (a) IN GENERAL.—Except as provided in subsection

17 (b), consumer financial protection functions are trans-
18 ferred as follows:
19 (1) BOARD OF GOVERNORS.—

20 (A) TRANSFER OF FUNCTIONS.—All con-

21 sumer financial protection functions of the
22 Board of Governors are transferred to the Di-
23 rector.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) BOARD OF GOVERNORS’ AUTHORITY.—

25 The Director shall have all powers and duties

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00893 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 894
1 that were vested in the Board of Governors, re-
2 lating to consumer financial protection func-
3 tions, on the day before the designated transfer
4 date.
5 (2) COMPTROLLER OF THE CURRENCY.—

6 (A) TRANSFER OF FUNCTIONS.—All con-

7 sumer financial protection functions of the
8 Comptroller of the Currency are transferred to
9 the Director.
10 (B) COMPTROLLER’S AUTHORITY.—The

11 Director shall have all powers and duties that

12 were vested in the Comptroller of the Currency,
13 relating to consumer financial protection func-
14 tions, on the day before the designated transfer
15 date.
16 (3) DIRECTOR OF THE OFFICE OF THRIFT SU-

17 PERVISION.—

18 (A) TRANSFER OF FUNCTIONS.—All con-

19 sumer financial protection functions of the Di-
20 rector of the Office of Thrift Supervision are
21 transferred to the Director.
22 (B) DIRECTOR’S AUTHORITY.—The Direc-
23 tor shall have all powers and duties that were
hsrobinson on DSK69SOYB1PROD with BILLS

24 vested in the Director of the Office of Thrift

25 Supervision, relating to consumer financial pro-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00894 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 895
1 tection functions, on the day before the des-
2 ignated transfer date.
3 (4) FEDERAL DEPOSIT INSURANCE CORPORA-

4 TION.—

5 (A) TRANSFER OF FUNCTIONS.—All con-

6 sumer financial protection functions of the Fed-
7 eral Deposit Insurance Corporation are trans-
8 ferred to the Director.
9 (B) CORPORATION’S AUTHORITY.—The Di-
10 rector shall have all powers and duties that
11 were vested in the Federal Deposit Insurance
12 Corporation, relating to consumer financial pro-
13 tection functions, on the day before the des-
14 ignated transfer date.
15 (5) FEDERAL TRADE COMMISSION.—

16 (A) TRANSFER OF FUNCTIONS.—Except as

17 provided in subparagraph (C), the consumer fi-
18 nancial protection functions of the Federal
19 Trade Commission that are contained within
20 the enumerated consumer laws are transferred
21 to the Agency, except as provided in section
22 4202(e).
23 (B) COMMISSION’S AUTHORITY.—Except
hsrobinson on DSK69SOYB1PROD with BILLS

24 as provided in subparagraph (C), the Director

25 shall have all powers and duties that were vest-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00895 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 896
1 ed in the Federal Trade Commission, relating
2 to consumer financial protection functions, on
3 the day before the designated transfer date.
4 (C) CONTINUATION OF CERTAIN COMMIS-

5 SION AUTHORITIES.—Notwithstanding subpara-

6 graphs (A) and (B), the Federal Trade Com-
7 mission shall continue to enforce the following
8 provisions of law and prescribe regulations
9 under such provisions:
10 (i) The Credit Repair Organizations
11 Act.
12 (ii) Section 5 of the Federal Trade
13 Commission Act.
14 (iii) The Telemarketing and Consumer
15 Fraud and Abuse Prevention Act.
16 (6) NATIONAL CREDIT UNION ADMINISTRA-

17 TION.—

18 (A) TRANSFER OF FUNCTIONS.—All con-

19 sumer financial protection functions of the Na-
20 tional Credit Union Administration are trans-
21 ferred to the Director.
22 (B) NATIONAL CREDIT UNION ADMINIS-

23 TRATION’S AUTHORITY.—The Director shall

hsrobinson on DSK69SOYB1PROD with BILLS

24 have all powers and duties that were vested in

25 the National Credit Union Administration, re-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00896 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 897
1 lating to consumer financial protection func-
2 tions, on the day before the designated transfer
3 date.
4 (7) SECRETARY OF HOUSING AND URBAN DE-

5 VELOPMENT.—

6 (A) TRANSFER OF FUNCTIONS.—All con-

7 sumer protection functions of the Secretary of
8 Housing and Urban Development relating to
9 the Real Estate Settlement Procedures Act of
10 1974 and the Secure and Fair Enforcement for
11 Mortgage Licensing Act of 2008 are transferred
12 to the Director.
13 (B) SECRETARY OF HUD’S AUTHORITY.—

14 The Director shall have all powers and duties

15 that were vested in the Secretary of Housing
16 and Urban Development relating to the Real
17 Estate Settlement Procedures Act of 1974 and
18 the Secure and Fair Enforcement for Mortgage
19 Licensing Act of 2008, on the day before the
20 designated transfer date
21 (b) TRANSFERS OF FUNCTIONS SUBJECT TO BACK-
22 STOP ENFORCEMENT AUTHORITY REMAINING WITH
23 TRANSFEROR AGENCIES.—The transfers of functions in
hsrobinson on DSK69SOYB1PROD with BILLS

24 subsection (a) shall not affect the authority of the agencies

25 identified in subsection (a) from initiating enforcement

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00897 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 898
1 proceedings under the circumstances described in section
2 4202(e)(3).
3 (c) TERMINATION OF AUTHORITY OF TRANSFEROR
4 AGENCIES TO COLLECT FEES FOR CONSUMER FINAN-
5 CIAL PROTECTION PURPOSES.—Authorities of the agen-
6 cies identified in subsection (a) to assess and collect fees
7 to cover the cost of conducting consumer financial protec-
8 tion functions shall terminate on the day before the des-
9 ignated transfer date.
10 (d) CONSUMER FINANCIAL PROTECTION FUNCTIONS
11 DEFINED.—For purposes of this subtitle, the term ‘‘con-
12 sumer financial protection functions’’ means research,
13 rulemaking, issuance of orders or guidance, supervision,
14 examination, and enforcement activities, powers, and du-
15 ties relating to the provision of consumer financial prod-
16 ucts or services, including the authority to assess and col-
17 lect fees for those purposes, except that such term shall
18 not include any such function relating to an agency’s re-
19 sponsibilities under the Community Reinvestment Act of
20 1977.
21 (e) EFFECTIVE DATE.—Subsections (a) and (b) shall
22 take effect on the designated transfer date.
23 SEC. 4602. DESIGNATED TRANSFER DATE.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (a) IN GENERAL.—Not later than 60 days after the

25 date of the enactment of this title, the Secretary—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00898 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 899
1 (1) shall, in consultation with the Chairman of
2 the Board of Governors, the Chairperson of the Fed-
3 eral Deposit Insurance Corporation, the Chairman
4 of the Federal Trade Commission, the Chairman of
5 the National Credit Union Administration Board,
6 the Comptroller of the Currency, the Director of the
7 Office of Thrift Supervision, the Secretary of Hous-
8 ing and Urban Development, and the Director of the
9 Office of Management and Budget, designate a sin-
10 gle calendar date for the transfer of functions to the
11 Director under section 4601; and
12 (2) shall publish notice of that designation in
13 the Federal Register.
14 (b) CHANGING DESIGNATION.—The Secretary—
15 (1) may, in consultation with the Chairman of
16 the Board of Governors, the Chairperson of the Fed-
17 eral Deposit Insurance Corporation, the Chairman
18 of the Federal Trade Commission, the Chairman of
19 the National Credit Union Administration Board,
20 the Comptroller of the Currency, the Director of the
21 Office of Thrift Supervision, the Secretary of Hous-
22 ing and Urban Development, and the Director of the
23 Office of Management and Budget, change the date
hsrobinson on DSK69SOYB1PROD with BILLS

24 designated under subsection (a); and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00899 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 900
1 (2) shall publish notice of any changed designa-
2 tion in the Federal Register.
3 (c) PERMISSIBLE DATES.—
4 (1) IN GENERAL.—Except as provided in para-
5 graph (2), any date designated under this section
6 shall be not earlier than 180 days nor later than 18
7 months after the date of the enactment of this title.
8 (2) EXTENSION OF TIME.—The Secretary may
9 designate a date that is later than 18 months after
10 the date of the enactment of this title if the Sec-
11 retary transmits to appropriate committees of Con-
12 gress—
13 (A) a written determination that orderly
14 implementation of this title is not feasible on
15 the date that is 18 months after the date of the
16 enactment of this title;
17 (B) an explanation of why an extension is
18 necessary for the orderly implementation of this
19 title; and
20 (C) a description of the steps that will be
21 taken to effect an orderly and timely implemen-
22 tation of this title within the extended time pe-
23 riod.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00900 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 901
1 (3) EXTENSION LIMITED.—In no case shall any
2 date designated under this section be later than 24
3 months after the date of the enactment of this title.
4 SEC. 4603. SAVINGS PROVISIONS.

5 (a) BOARD OF GOVERNORS.—

6 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

7 TIONS NOT AFFECTED.—Section 4601(a)(1) shall

8 not affect the validity of any right, duty, or obliga-
9 tion of the United States, the Board of Governors
10 (or any Federal reserve bank), or any other person
11 that—
12 (A) arises under any provision of law relat-
13 ing to any consumer financial protection func-
14 tion of the Board of Governors transferred to
15 the Director by this title; and
16 (B) existed on the day before the des-
17 ignated transfer date.
18 (2) CONTINUATION OF SUITS.—this title shall
19 not abate any proceeding commenced by or against
20 the Board of Governors (or any Federal reserve
21 bank) before the designated transfer date with re-
22 spect to any consumer financial protection function
23 of the Board of Governors (or any Federal reserve
hsrobinson on DSK69SOYB1PROD with BILLS

24 bank) transferred to the Director by this title, ex-

25 cept that the Director shall be substituted for the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00901 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 902
1 Board of Governors (or Federal reserve bank) as a
2 party to any such proceeding as of the designated
3 transfer date.
4 (b) FEDERAL DEPOSIT INSURANCE CORPORATION.—
5 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

6 TIONS NOT AFFECTED.—Section 4601(a)(4) shall

7 not affect the validity of any right, duty, or obliga-
8 tion of the United States, the Federal Deposit In-
9 surance Corporation, the Board of Directors of that
10 Corporation, or any other person, that—
11 (A) arises under any provision of law relat-
12 ing to any consumer financial protection func-
13 tion of the Federal Deposit Insurance Corpora-
14 tion transferred to the Director by this title;
15 and
16 (B) existed on the day before the des-
17 ignated transfer date.
18 (2) CONTINUATION OF SUITS.—this title shall
19 not abate any proceeding commenced by or against
20 the Federal Deposit Insurance Corporation (or the
21 Board of Directors of that Corporation) before the
22 designated transfer date with respect to any con-
23 sumer financial protection function of the Federal
hsrobinson on DSK69SOYB1PROD with BILLS

24 Deposit Insurance Corporation transferred to the

25 Director by this title, except that the Director shall

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00902 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 903
1 be substituted for the Federal Deposit Insurance
2 Corporation (or Board of Directors) as a party to
3 any such proceeding as of the designated transfer
4 date.
5 (c) FEDERAL TRADE COMMISSION.—
6 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

7 TIONS NOT AFFECTED.—Section 4601(a)(5) shall

8 not affect the validity of any right, duty, or obliga-
9 tion of the United States, the Federal Trade Com-
10 mission, or any other person, that—
11 (A) arises under any provision of law relat-
12 ing to any consumer financial protection func-
13 tion of the Federal Trade Commission trans-
14 ferred to the Director by this title; and
15 (B) existed on the day before the des-
16 ignated transfer date.
17 (2) CONTINUATION OF SUITS.—this title shall
18 not abate any proceeding commenced by or against
19 the Federal Trade Commission before the designated
20 transfer date with respect to any consumer financial
21 protection function of the Federal Trade Commis-
22 sion transferred to the Director by this title, except
23 that the Director shall be substituted for the Federal
hsrobinson on DSK69SOYB1PROD with BILLS

24 Trade Commission as a party to any such pro-

25 ceeding as of the designated transfer date.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00903 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 904
1 (d) NATIONAL CREDIT UNION ADMINISTRATION.—
2 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

3 TIONS NOT AFFECTED.—Section 4601(a)(6) shall

4 not affect the validity of any right, duty, or obliga-
5 tion of the United States, the National Credit Union
6 Administration, the National Credit Union Adminis-
7 tration Board, or any other person, that—
8 (A) arises under any provision of law relat-
9 ing to any consumer financial protection func-
10 tion of the National Credit Union Administra-
11 tion transferred to the Director by this title;
12 and
13 (B) existed on the day before the des-
14 ignated transfer date.
15 (2) CONTINUATION OF SUITS.—this title shall
16 not abate any proceeding commenced by or against
17 the National Credit Union Administration (or the
18 National Credit Union Administration Board) before
19 the designated transfer date with respect to any con-
20 sumer financial protection function of the National
21 Credit Union Administration transferred to the Di-
22 rector by this title, except that the Director shall be
23 substituted for the National Credit Union Adminis-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tration (or National Credit Union Administration

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00904 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 905
1 Board) as a party to any such proceeding as of the
2 designated transfer date.
3 (e) COMPTROLLER OF THE CURRENCY.—
4 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

5 TIONS NOT AFFECTED.—Section 4601(a)(2) shall

6 not affect the validity of any right, duty, or obliga-
7 tion of the United States, the Comptroller of the
8 Currency, the Office of the Comptroller of the Cur-
9 rency, or any other person, that—
10 (A) arises under any provision of law relat-
11 ing to any consumer financial protection func-
12 tion of the Comptroller of the Currency trans-
13 ferred to the Director by this title; and
14 (B) existed on the day before the des-
15 ignated transfer date.
16 (2) CONTINUATION OF SUITS.—this title shall
17 not abate any proceeding commenced by or against
18 the Comptroller of the Currency (or the Office of the
19 Comptroller of the Currency) with respect to any
20 consumer financial protection function of the Comp-
21 troller of the Currency transferred to the Director
22 by this title before the designated transfer date, ex-
23 cept that the Director shall be substituted for the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Comptroller of the Currency (or the Office of the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00905 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 906
1 Comptroller of the Currency) as a party to any such
2 proceeding as of the designated transfer date.
3 (f) DIRECTOR OF THE OFFICE OF THRIFT SUPER-
4 VISION.—

5 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

6 TIONS NOT AFFECTED.—Section 4601(a)(3) shall

7 not affect the validity of any right, duty, or obliga-
8 tion of the United States, the Director of the Office
9 of Thrift Supervision, the Office of Thrift Super-
10 vision, or any other person, that—
11 (A) arises under any provision of law relat-
12 ing to any consumer financial protection func-
13 tion of the Director of the Office of Thrift Su-
14 pervision transferred to the Director by this
15 title; and
16 (B) that existed on the day before the des-
17 ignated transfer date.
18 (2) CONTINUATION OF SUITS.—this title shall
19 not abate any proceeding commenced by or against
20 the Director of the Office of Thrift Supervision (or
21 the Office of Thrift Supervision) with respect to any
22 consumer financial protection function of the Direc-
23 tor of the Office of Thrift Supervision transferred to
hsrobinson on DSK69SOYB1PROD with BILLS

24 the Director by this title before the designated

25 transfer date, except that the Director shall be sub-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00906 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 907
1 stituted for the Director (or the Office of Thrift Su-
2 pervision) as a party to any such proceeding as of
3 the designated transfer date.
4 (g) SECRETARY OF HOUSING AND URBAN DEVELOP-
5 MENT.—

6 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA-

7 TIONS NOT AFFECTED.—Section 4601(a)(7) shall

8 not affect the validity of any right, duty, or obliga-
9 tion of the United States, the Secretary of Housing
10 and Urban Development, the Department of Hous-
11 ing and Urban Development, or any other person,
12 that—
13 (A) arises under any provision of law relat-
14 ing to any function of the Secretary of Housing
15 and Urban Development under the Real Estate
16 Settlement Procedures Act of 1974 and the Se-
17 cure and Fair Enforcement for Mortgage Li-
18 censing Act of 2008 transferred to the Director
19 by this title; and
20 (B) that existed on the day before the des-
21 ignated transfer date.
22 (2) CONTINUATION OF SUITS.—this title shall
23 not abate any proceeding commenced by or against
hsrobinson on DSK69SOYB1PROD with BILLS

24 the Secretary of Housing and Urban Development

25 (or the Department of Housing and Urban Develop-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00907 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 908
1 ment) with respect to any consumer financial protec-
2 tion function of the Secretary of Housing and Urban
3 Development transferred to the Director by this title
4 before the designated transfer date, except that the
5 Director shall be substituted for the Secretary of
6 Housing and Urban Development (or such Depart-
7 ment) as a party to any such proceeding as of the
8 designated transfer date.
9 (h) CONTINUATION OF EXISTING ORDERS, REGULA-
10 TIONS, DETERMINATIONS, AGREEMENTS, AND RESOLU-
11 TIONS.—All orders, resolutions, determinations, agree-
12 ments, and regulations that have been issued, made, pre-
13 scribed, or allowed to become effective by the Board of
14 Governors (or any Federal reserve bank), the Federal De-
15 posit Insurance Corporation, the Federal Trade Commis-
16 sion, the National Credit Union Administration, the
17 Comptroller of the Currency, the Director of the Office
18 of Thrift Supervision, the Secretary of Housing and
19 Urban Development, or by a court of competent jurisdic-
20 tion, in the performance of consumer financial protection
21 functions that are transferred by this title and that are
22 in effect on the day before the designated transfer date,
23 shall continue in effect according to the terms of those
hsrobinson on DSK69SOYB1PROD with BILLS

24 orders, resolutions, determinations, agreements, and regu-

25 lations, and shall be enforceable by or against the Director

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00908 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 909
1 until modified, terminated, set aside, or superseded in ac-
2 cordance with applicable law by the Director, by any court
3 of competent jurisdiction, or by operation of law.
4 (i) IDENTIFICATION OF REGULATIONS CONTIN-
5 UED.—Not later than the designated transfer date, the
6 Director—
7 (1) shall, after consultation with the Chairman
8 of the Board of Governors, the Chairperson of the
9 Federal Deposit Insurance Corporation, the Chair-
10 man of the Federal Trade Commission, the Chair-
11 man of the National Credit Union Administration
12 Board, the Comptroller of the Currency, the Direc-
13 tor of the Office of Thrift Supervision, and the Sec-
14 retary of Housing and Urban Development identify
15 the regulations continued under subsection (g) that
16 will be enforced by the Director; and
17 (2) shall publish a list of such regulations in
18 the Federal Register.
19 (j) STATUS OF REGULATIONS PROPOSED OR NOT
20 YET EFFECTIVE.—
21 (1) PROPOSED REGULATIONS.—Any proposed
22 regulation of the Board of Governors, the Federal
23 Deposit Insurance Corporation, the Federal Trade
hsrobinson on DSK69SOYB1PROD with BILLS

24 Commission, the National Credit Union Administra-

25 tion, the Comptroller of the Currency, the Director

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00909 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 910
1 of the Office of Thrift Supervision, or the Secretary
2 of Housing and Urban Development which that
3 agency, in performing consumer financial protection
4 functions transferred by this title, has proposed be-
5 fore the designated transfer date but has not pub-
6 lished as a final regulation before that date, shall be
7 deemed to be a proposed regulation of the Director.
8 (2) REGULATIONS NOT YET EFFECTIVE.—Any

9 interim or final regulation of Board of Governors,

10 the Federal Deposit Insurance Corporation, the Fed-
11 eral Trade Commission, the National Credit Union
12 Administration, the Comptroller of the Currency, the
13 Director of the Office of Thrift Supervision, or the
14 Secretary of Housing and Urban Development which
15 that agency, in performing consumer financial pro-
16 tection functions transferred by this title, has pub-
17 lished before the designated transfer date but which
18 has not become effective before that date, shall take
19 effect as a regulation of the Director according to its
20 terms.
21 SEC. 4604. TRANSFER OF CERTAIN PERSONNEL.

22 (a) IN GENERAL.—
23 (1) CERTAIN FEDERAL RESERVE SYSTEM EM-
hsrobinson on DSK69SOYB1PROD with BILLS

24 PLOYEES TRANSFERRED.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00910 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 911
1 (A) IDENTIFYING EMPLOYEES FOR TRANS-

2 FER.—The Director and the Board of Gov-

3 ernors shall—
4 (i) jointly determine the number of
5 employees of the Board necessary to per-
6 form or support the consumer financial
7 protection functions of the Board of Gov-
8 ernors that are transferred to the Director
9 by this title; and
10 (ii) consistent with the number deter-
11 mined under clause (i), jointly identify em-
12 ployees of the Board of Governors for
13 transfer to the Agency in a manner that
14 the Director and the Board of Governors,
15 in their sole discretion, deem equitable.
16 (B) IDENTIFIED EMPLOYEES TRANS-

17 FERRED.—All employees of the Board of Gov-

18 ernors identified under subparagraph (A)(ii)
19 shall be transferred to the Agency for employ-
20 ment.
21 (C) FEDERAL RESERVE BANK EMPLOY-

22 EES.—Employees of any Federal reserve bank

23 who, on the day before the designated transfer
hsrobinson on DSK69SOYB1PROD with BILLS

24 date, are performing consumer financial protec-

25 tion functions on behalf of the Board of Gov-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00911 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 912
1 ernors shall be treated as employees of the
2 Board of Governors for purposes of subpara-
3 graphs (A) and (B).
4 (2) CERTAIN FDIC EMPLOYEES TRANS-

5 FERRED.—

6 (A) IDENTIFYING EMPLOYEES FOR TRANS-

7 FER.—The Director and the Board of Directors

8 of the Federal Deposit Insurance Corporation
9 shall—
10 (i) jointly determine the number of
11 employees of that Corporation necessary to
12 perform or support the consumer financial
13 protection functions of the Corporation
14 that are transferred to the Director by this
15 title; and
16 (ii) consistent with the number deter-
17 mined under clause (i), jointly identify em-
18 ployees of the Corporation for transfer to
19 the Agency in a manner that the Director
20 and the Board of Directors of the Corpora-
21 tion, in their discretion, deem equitable.
22 (B) IDENTIFIED EMPLOYEES TRANS-

23 FERRED.—All employees of the Corporation

hsrobinson on DSK69SOYB1PROD with BILLS

24 identified under subparagraph (A)(ii) shall be

25 transferred to the Agency for employment.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00912 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 913
1 (3) CERTAIN NCUA EMPLOYEES TRANS-

2 FERRED.—

3 (A) IDENTIFYING EMPLOYEES FOR TRANS-

4 FER.—The Director and the National Credit

5 Union Administration Board shall—
6 (i) jointly determine the number of
7 employees of the National Credit Union
8 Administration necessary to perform or
9 support the consumer financial protection
10 functions of the National Credit Union Ad-
11 ministration that are transferred to the Di-
12 rector by this title; and
13 (ii) consistent with the number deter-
14 mined under clause (i), jointly identify em-
15 ployees of the National Credit Union Ad-
16 ministration for transfer to the Agency in
17 a manner that the Director and the Na-
18 tional Credit Union Administration Board,
19 in their discretion, deem equitable.
20 (B) IDENTIFIED EMPLOYEES TRANS-

21 FERRED.—All employees of the National Credit

22 Union Administration identified under subpara-
23 graph (A)(ii) shall be transferred to the Agency
hsrobinson on DSK69SOYB1PROD with BILLS

24 for employment.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00913 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 914
1 (4) CERTAIN HUD EMPLOYEES TRANS-

2 FERRED.—

3 (A) IDENTIFYING EMPLOYEES FOR TRANS-

4 FER.—The Director and the Secretary of Hous-

5 ing and Urban Development shall—
6 (i) jointly determine the number of
7 employees of the Department of Housing
8 and Urban Development necessary to per-
9 form or support the consumer financial
10 protection functions of the Secretary of
11 Housing and Urban Development that are
12 transferred to the Director by this title;
13 and
14 (ii) consistent with the number deter-
15 mined under clause (i), jointly identify em-
16 ployees of the Department of Housing and
17 Urban Development for transfer to the
18 Agency in a manner that the Director and
19 the Secretary of Housing and Urban De-
20 velopment, in their discretion, deem equi-
21 table.
22 (B) IDENTIFIED EMPLOYEES TRANS-

23 FERRED.—All employees of the Department of

hsrobinson on DSK69SOYB1PROD with BILLS

24 Housing and Urban Development identified

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00914 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 915
1 under subparagraph (A)(ii) shall be transferred
2 to the Agency for employment.
3 (5) APPOINTMENT AUTHORITY FOR EXCEPTED

4 SERVICE AND SENIOR EXECUTIVE SERVICE TRANS-

5 FERRED.—

6 (A) IN GENERAL.—In the case of employ-

7 ees occupying positions in the excepted service
8 or the Senior Executive Service, any appoint-
9 ment authority established pursuant to law or
10 regulations of the Director of the Office of Per-
11 sonnel Management for filling such positions
12 shall be transferred, subject to subparagraph
13 (B).
14 (B) DECLINING TRANSFERS ALLOWED.—

15 An agency or entity may decline to make a

16 transfer of authority under subparagraph (A)
17 (and the employees appointed pursuant to such
18 subparagraph) to the extent that such authority
19 relates to positions excepted from the competi-
20 tive service because of their confidential, policy-
21 making, policy-determining, or policy-advocating
22 character, and non-career positions in the Sen-
23 ior Executive Service (within the meaning of
hsrobinson on DSK69SOYB1PROD with BILLS

24 section 3132(a)(7) of title 5, United States

25 Code).

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00915 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 916
1 (b) TIMING OF TRANSFERS AND POSITION ASSIGN-
2 MENTS.—Each employee to be transferred under this sec-
3 tion shall—
4 (1) be transferred not later than 90 days after
5 the designated transfer date; and
6 (2) receive notice of such employee’s position
7 assignment not later than 120 days after the effec-
8 tive date of the employee’s transfer.
9 (c) TRANSFER OF FUNCTION.—
10 (1) IN GENERAL.—Notwithstanding any other
11 provision of law, the transfer of employees shall be
12 deemed a transfer of functions for the purpose of
13 section 3503 of title 5, United States Code.
14 (2) PRIORITY OF THIS TITLE.—If any provi-
15 sions of this title conflict with any protection pro-
16 vided to transferred employees under section 3503 of
17 title 5, United States Code, the provisions of this
18 title shall control.
19 (d) EQUAL STATUS AND TENURE POSITIONS.—
20 (1) EMPLOYEES TRANSFERRED FROM FDIC,

21 FTC, HUD, NCUA, OCC, AND OTS.—Each employee

22 transferred from the Federal Deposit Insurance Cor-
23 poration, the Federal Trade Commission, the De-
hsrobinson on DSK69SOYB1PROD with BILLS

24 partment of Housing and Urban Development, the

25 National Credit Union Administration, the Office of

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00916 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 917
1 the Comptroller of the Currency, or the Office of
2 Thrift Supervision shall be placed in a position at
3 the Agency with the same status and tenure as he
4 or she held on the day before the designated transfer
5 date.
6 (2) EMPLOYEES TRANSFERRED FROM THE

7 FEDERAL RESERVE SYSTEM.—

8 (A) COMPARABILITY.—Each employee

9 transferred from the Board of Governors or
10 from a Federal reserve bank shall be placed in
11 a position with the same status and tenure as
12 that of employees transferring to the Agency
13 from the Office of the Comptroller of the Cur-
14 rency who perform similar functions and have
15 similar periods of service.
16 (B) SERVICE PERIODS CREDITED.—For

17 purposes of this paragraph, periods of service

18 with the Board of Governors or a Federal re-
19 serve bank shall be credited as periods of serv-
20 ice with a Federal agency.
21 (e) ADDITIONAL CERTIFICATION REQUIREMENTS
22 LIMITED.—Examiners transferred to the Agency shall not
23 be subject to any additional certification requirements be-
hsrobinson on DSK69SOYB1PROD with BILLS

24 fore being placed in a comparable examiner’s position at

25 the Agency examining the same types of institutions as

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00917 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 918
1 the transferred examiners examined before such examiners
2 were transferred.
3 (f) PERSONNEL ACTIONS LIMITED.—
4 (1) 5-YEAR PROTECTION.—Except as provided
5 in paragraph (2), each transferred employee holding
6 a permanent position on the day before the des-
7 ignated transfer date shall not, during the 5-year pe-
8 riod beginning on the designated transfer date, be
9 involuntarily separated, or involuntarily reassigned
10 outside such transferred employee’s local locality pay
11 area as defined by the Director of the Office of Per-
12 sonnel Management.
13 (2) EXCEPTIONS.—Paragraph (1) shall not be
14 construed as limiting the right of the Director to—
15 (A) separate an employee for cause or for
16 unacceptable performance;
17 (B) terminate an appointment to a position
18 excepted from the competitive service because of
19 its confidential policy-making, policy-deter-
20 mining, or policy-advocating character; or
21 (C) reassign a supervisory employee out-
22 side such employee’s locality pay area as de-
23 fined by the Director of the Office of Personnel
hsrobinson on DSK69SOYB1PROD with BILLS

24 Management when the Director determines that

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00918 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 919
1 the reassignment is necessary for the efficient
2 operation of the Agency.
3 (g) PAY.—
4 (1) 1-YEAR PROTECTION.—Except as provided
5 in paragraph (2), each transferred employee shall,
6 during the 1-year period beginning on the des-
7 ignated transfer date, receive pay at a rate not less
8 than the basic rate of pay (including any geographic
9 differential) that the employee received during the 1-
10 year period immediately before the transfer.
11 (2) EXCEPTIONS.—Paragraph (1) shall not be
12 construed as limiting the right of the Agency to re-
13 duce the rate of basic pay of a transferred em-
14 ployee—
15 (A) for cause;
16 (B) for unacceptable performance; or
17 (C) with the employee’s consent.
18 (3) PROTECTION ONLY WHILE EMPLOYED.—

19 Paragraph (1) applies to a transferred employee

20 only while that employee remains employed by the
21 Agency.
22 (4) PAY INCREASES PERMITTED.—Paragraph

23 (1) shall not be construed as limiting the authority

hsrobinson on DSK69SOYB1PROD with BILLS

24 of the Agency to increase a transferred employee’s

25 pay.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00919 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 920
1 (h) REORGANIZATION.—
2 (1) BETWEEN 1ST AND 3RD YEAR.—

3 (A) IN GENERAL.—If the Agency deter-

4 mines, during the period beginning 1 year after
5 the designated transfer date and ending 3 years
6 after the designated transfer date, that a reor-
7 ganization of the staff of the Agency is re-
8 quired—
9 (i) that reorganization shall be
10 deemed a ‘‘major reorganization’’ for pur-
11 poses of affording affected employees re-
12 tirement under section 8336(d)(2) or
13 8414(b)(1)(B) of title 5, United States
14 Code;
15 (ii) before the reorganization occurs,
16 all employees in the same locality pay area
17 as defined by the Director of the Office of
18 Personnel Management shall be placed in a
19 uniform position classification system; and
20 (iii) any resulting reduction in force
21 shall be governed by the provisions of
22 chapter 35 of title 5, United States Code,
23 except that the Agency shall—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (I) establish competitive areas

25 (as that term is defined in regulations

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00920 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 921
1 issued by the Director of the Office of
2 Personnel Management) to include at
3 a minimum all employees in the same
4 locality pay area as defined by the Of-
5 fice of Personnel Management;
6 (II) establish competitive levels
7 (as that term is defined in regulations
8 issued by the Director of the Office of
9 Personnel Management) without re-
10 gard to whether the particular em-
11 ployees have been appointed to posi-
12 tions in the competitive service or the
13 excepted service; and
14 (III) afford employees appointed
15 to positions in the excepted service
16 (other than to a position excepted
17 from the competitive service because
18 of its confidential policy-making, pol-
19 icy-determining, or policy-advocating
20 character) the same assignment rights
21 to positions within the Agency as em-
22 ployees appointed to positions in the
23 competitive service.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) SERVICE CREDIT FOR REDUCTIONS IN

25 FORCE.—For purposes of this paragraph, peri-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00921 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 922
1 ods of service with a Federal home loan bank,
2 a joint office of the Federal home loan banks,
3 the Board of Governors, a Federal reserve
4 bank, the Federal Deposit Insurance Corpora-
5 tion, or the National Credit Union Administra-
6 tion shall be credited as periods of service with
7 a Federal agency.
8 (2) AFTER 3RD YEAR.—

9 (A) IN GENERAL.—If the Agency deter-

10 mines, at any time after the 3-year period be-
11 ginning on the designated transfer date, that a
12 reorganization of the staff of the Agency is re-
13 quired, any resulting reduction in force shall be
14 governed by the provisions of chapter 35 of title
15 5, United States Code, except that the Agency
16 shall establish competitive levels (as that term
17 is defined in regulations issued by the Office of
18 Personnel Management) without regard to
19 types of appointment held by particular employ-
20 ees transferred under this section.
21 (B) SERVICE CREDIT FOR REDUCTIONS IN

22 FORCE.—For purposes of this paragraph, peri-

23 ods of service with a Federal home loan bank,
hsrobinson on DSK69SOYB1PROD with BILLS

24 a joint office of the Federal home loan banks,

25 the Board of Governors, a Federal reserve

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00922 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 923
1 bank, the Federal Deposit Insurance Corpora-
2 tion, or the National Credit Union Administra-
3 tion shall be credited as periods of service with
4 a Federal agency.
5 (i) BENEFITS.—
6 (1) RETIREMENT BENEFITS FOR TRANSFERRED

7 EMPLOYEES.—

8 (A) IN GENERAL.—

9 (i) CONTINUATION OF EXISTING RE-

10 TIREMENT PLAN.—Except as provided in

11 subparagraph (B), each transferred em-
12 ployee shall remain enrolled in such em-
13 ployee’s existing retirement plan as long as
14 the employee remains employed by the
15 Agency.
16 (ii) EMPLOYER’S CONTRIBUTION.—

17 The Director shall pay any employer con-

18 tributions to the existing retirement plan
19 of each transferred employee as required
20 under that plan.
21 (B) OPTION FOR EMPLOYEES TRANS-

22 FERRED FROM FEDERAL RESERVE SYSTEM TO

23 BE SUBJECT TO FEDERAL EMPLOYEE RETIRE-

hsrobinson on DSK69SOYB1PROD with BILLS

24 MENT PROGRAM.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00923 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 924
1 (i) ELECTION.—Any transferred em-
2 ployee who was enrolled in a Federal Re-
3 serve System retirement plan on the day
4 before the date of the employee’s transfer
5 to the Agency may, during the period be-
6 ginning 6 months after the designated
7 transfer date and ending 1 year after the
8 designated transfer date, elect to be sub-
9 ject to the Federal employee retirement
10 program.
11 (ii) EFFECTIVE DATE OF COV-

12 ERAGE.—For any employee making an

13 election under clause (i), coverage by the
14 Federal employee retirement program shall
15 begin 1 year after the designated transfer
16 date.
17 (C) AGENCY PARTICIPATION IN FEDERAL

18 RESERVE SYSTEM RETIREMENT PLAN.—

19 (i) SEPARATE ACCOUNT IN FEDERAL

20 RESERVE SYSTEM RETIREMENT PLAN ES-

21 TABLISHED.—A separate account in the

22 Federal Reserve System retirement plan
23 shall be established for Agency employees
hsrobinson on DSK69SOYB1PROD with BILLS

24 who do not make the election under sub-

25 paragraph (B).

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00924 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 925
1 (ii) FUNDS ATTRIBUTABLE TO TRANS-

2 FERRED EMPLOYEES REMAINING IN FED-

3 ERAL RESERVE SYSTEM RETIREMENT

4 PLAN TRANSFERRED.—The proportionate

5 share of funds in the Federal Reserve Sys-
6 tem retirement plan, including the propor-
7 tionate share of any funding surplus in
8 that plan, attributable to a transferred em-
9 ployee who does not make the election
10 under subparagraph (B), shall be trans-
11 ferred to the account established under
12 clause (i).
13 (iii) EMPLOYER CONTRIBUTIONS DE-

14 POSITED.—The Director shall deposit into

15 the account established under clause (i)
16 the employer contributions that the Agency
17 makes on behalf of employees who do not
18 make the election under subparagraph (B).
19 (iv) ACCOUNT ADMINISTRATION.—The

20 Director shall administer the account es-

21 tablished under clause (i) as a partici-
22 pating employer in the Federal Reserve
23 System retirement plan.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (D) DEFINITIONS.—For purposes of this

25 paragraph, the following definitions shall apply:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00925 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 926
1 (i) EXISTING RETIREMENT PLAN.—

2 The term ‘‘existing retirement plan’’

3 means, with respect to any employee trans-
4 ferred under this section, the particular re-
5 tirement plan (including the Financial In-
6 stitutions Retirement Fund) and any asso-
7 ciated thrift savings plan of the agency or
8 Federal reserve bank from which the em-
9 ployee was transferred, which the employee
10 was enrolled in on the day before the des-
11 ignated transfer date.
12 (ii) FEDERAL EMPLOYEE RETIRE-

13 MENT PLAN.—The term ‘‘Federal employee

14 retirement program’’ means the retirement
15 program for Federal employees established
16 by chapters 83 and 84 of title 5, United
17 States Code.
18 (2) BENEFITS OTHER THAN RETIREMENT BEN-

19 EFITS FOR TRANSFERRED EMPLOYEES.—

20 (A) DURING 1ST YEAR.—

21 (i) EXISTING PLANS CONTINUE.—

22 Each transferred employee may, for 1 year

23 after the designated transfer date, retain
hsrobinson on DSK69SOYB1PROD with BILLS

24 membership in any other employee benefit

25 program of the agency or bank from which

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00926 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 927
1 the employee transferred, including a den-
2 tal, vision, long-term care, or life insurance
3 program, to which the employee belonged
4 on the day before the designated transfer
5 date.
6 (ii) EMPLOYER’S CONTRIBUTION.—

7 The Director shall reimburse the agency or

8 bank from which an employee was trans-
9 ferred for any cost incurred by that agency
10 or bank in continuing to extend coverage
11 in the benefit program to the employee as
12 required under that program or negotiated
13 agreements.
14 (B) DENTAL, VISION, OR LIFE INSURANCE

15 AFTER 1ST YEAR.—If, after the 1-year period

16 beginning on the designated transfer date, the
17 Director decides not to continue participation in
18 any dental, vision, or life insurance program of
19 an agency or bank from which employees trans-
20 ferred, a transferred employee who is a member
21 of such a program may, before the Director’s
22 decision takes effect, elect to enroll, without re-
23 gard to any regularly scheduled open season,
hsrobinson on DSK69SOYB1PROD with BILLS

24 in—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00927 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 928
1 (i) the enhanced dental benefits estab-
2 lished by chapter 89A of title 5, United
3 States Code;
4 (ii) the enhanced vision benefits estab-
5 lished by chapter 89B of title 5, United
6 States Code; and
7 (iii) the Federal Employees Group
8 Life Insurance Program established by
9 chapter 87 of title 5, United States Code,
10 without regard to any requirement of in-
11 surability.
12 (C) LONG-TERM CARE INSURANCE AFTER

13 1ST YEAR.—If, after the 1-year period begin-

14 ning on the designated transfer date, the Direc-
15 tor decides not to continue participation in any
16 long-term care insurance program of an agency
17 or bank from which employees transferred, a
18 transferred employee who is a member of such
19 a program may, before the Director’s decision
20 takes effect, elect to apply for coverage under
21 the Federal Long Term Care Insurance Pro-
22 gram established by chapter 90 of title 5,
23 United States Code, under the underwriting re-
hsrobinson on DSK69SOYB1PROD with BILLS

24 quirements applicable to a new active workforce

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00928 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 929
1 member (as defined in Part 875, title 5, Code
2 of Federal Regulations).
3 (D) EMPLOYEE’S CONTRIBUTION.—An in-
4 dividual enrolled in the Federal Employees
5 Health Benefits program shall pay any em-
6 ployee contribution required by the plan.
7 (E) ADDITIONAL FUNDING.—The Director
8 shall transfer to the Federal Employees Health
9 Benefits Fund established under section 8909
10 of title 5, United States Code, an amount deter-
11 mined by the Director of the Office of Per-
12 sonnel Management, after consultation with the
13 Director and the Director of the Office of Man-
14 agement and Budget, to be necessary to reim-
15 burse the Fund for the cost to the Fund of pro-
16 viding benefits under this subparagraph.
17 (F) CREDIT FOR TIME ENROLLED IN

18 OTHER PLANS.—For employees transferred

19 under this section, enrollment in a health bene-
20 fits plan administered by the Comptroller of the
21 Currency, the Director of the Office of Thrift
22 Supervision, the Federal Deposit Insurance
23 Corporation, the National Credit Union Admin-
hsrobinson on DSK69SOYB1PROD with BILLS

24 istration, the Board of Governors, the Secretary

25 of Housing and Urban Development, or a Fed-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00929 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 930
1 eral reserve bank, immediately before enroll-
2 ment in a health benefits plan under chapter 89
3 of title 5, United States Code, shall be consid-
4 ered as enrollment in a health benefits plan
5 under that chapter for purposes of section
6 8905(b)(1)(A) of title 5, United States Code.
7 (G) SPECIAL PROVISIONS TO ENSURE CON-

8 TINUATION OF LIFE INSURANCE BENEFITS.—

9 (i) IN GENERAL.—An annuitant (as

10 defined in section 8901(3) of title 5,
11 United States Code) who is enrolled in a
12 life insurance plan administered by the
13 Board of Governors of the Federal Reserve
14 System, the Federal Deposit Insurance
15 Corporation, the Federal Trade Commis-
16 sion, the Secretary of Housing and Urban
17 Development, the National Credit Union
18 Administration, the Comptroller of the
19 Currency, or the Director of the Office of
20 Thrift Supervision on the day before the
21 designated transfer date shall be eligible
22 for coverage by a life insurance plan under
23 sections 8706(b), 8714a, 8714b, and
hsrobinson on DSK69SOYB1PROD with BILLS

24 8714c of title 5, United States Code, or in

25 a life insurance plan established by the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00930 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 931
1 Agency, without regard to any regularly
2 scheduled open season and requirement of
3 insurability.
4 (ii) EMPLOYEE’S CONTRIBUTION.—An

5 individual enrolled in a life insurance plan

6 under this clause shall pay any employee
7 contribution required by the plan.
8 (iii) ADDITIONAL FUNDING.—The Di-
9 rector shall transfer to the Employees’ Life
10 Insurance Fund established under section
11 8714 of title 5, United States Code, an
12 amount determined by the Director of the
13 Office of Personnel Management, after
14 consultation with the Director and the Di-
15 rector of the Office of Management and
16 Budget, to be necessary to reimburse the
17 Fund for the cost to the Fund of providing
18 benefits under this subparagraph not oth-
19 erwise paid for by the employee under
20 clause (ii).
21 (iv) CREDIT FOR TIME ENROLLED IN

22 OTHER PLANS.—For employees transferred

23 under this section, enrollment in a life in-
hsrobinson on DSK69SOYB1PROD with BILLS

24 surance plan administered by the Board of

25 Governors, the Federal Deposit Insurance

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00931 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 932
1 Corporation, the Federal Trade Commis-
2 sion, the Secretary of Housing and Urban
3 Development, the National Credit Union
4 Administration, the Comptroller of the
5 Currency, the Director of the Office of
6 Thrift Supervision, or a Federal reserve
7 bank immediately before enrollment in a
8 life insurance plan under chapter 87 of
9 title 5, United States Code, shall be con-
10 sidered as enrollment in a life insurance
11 plan under that chapter for purposes of
12 section 8706(b)(1)(A) of title 5, United
13 States Code.
14 (j) IMPLEMENTATION OF UNIFORM PAY AND CLASSI-
15 FICATION SYSTEM.—Not later than 2 years after the des-
16 ignated transfer date, the Director shall implement a uni-
17 form pay and classification system for all transferred em-
18 ployees.
19 (k) EQUITABLE TREATMENT.—In administering the
20 provisions of this section, the Director—
21 (1) shall take no action that would unfairly dis-
22 advantage transferred employees relative to each
23 other based on their prior employment by the Board
hsrobinson on DSK69SOYB1PROD with BILLS

24 of Governors, the Federal Deposit Insurance Cor-

25 poration, the Federal Trade Commission, the Sec-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00932 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 933
1 retary of Housing and Urban Development, the Na-
2 tional Credit Union Administration, the Office of the
3 Comptroller of the Currency, the Office of Thrift
4 Supervision, a Federal reserve bank, a Federal home
5 loan bank, or a joint office of the Federal home loan
6 banks; and
7 (2) may take such action as is appropriate in
8 individual cases so that employees transferred under
9 this section receive equitable treatment, with respect
10 to those employees’ status, tenure, pay, benefits
11 (other than benefits under programs administered by
12 the Office of Personnel Management), and accrued
13 leave or vacation time, for prior periods of service
14 with any Federal agency, including the Board of
15 Governors of the Federal Reserve System, the Fed-
16 eral Deposit Insurance Corporation, the Federal
17 Trade Commission, the Department of Housing and
18 Urban Development, the National Credit Union Ad-
19 ministration, the Office of the Comptroller of the
20 Currency, the Office of Thrift Supervision, a Federal
21 reserve bank, a Federal home loan bank, or a joint
22 office of the Federal home loan banks.
23 (l) IMPLEMENTATION.—In implementing the provi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 sions of this section, the Director shall work with the Di-
25 rector of the Office of Personnel Management and other

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00933 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 934
1 entities with expertise in matters related to employment
2 to ensure a fair and orderly transition for affected employ-
3 ees.
4 SEC. 4605. INCIDENTAL TRANSFERS.

5 (a) INCIDENTAL TRANSFERS AUTHORIZED.—The Di-

6 rector of the Office of Management and Budget, in con-
7 sultation with the Secretary, shall make such additional
8 incidental transfers and dispositions of assets and liabil-
9 ities held, used, arising from, available, or to be made
10 available, in connection with the functions transferred by
11 this title, as the Director may determine necessary to ac-
12 complish the purposes of this title.
13 (b) SUNSET.—The authority provided in this section
14 shall terminate 5 years after the date of the enactment
15 of this title.
16 SEC. 4606. INTERIM AUTHORITY OF THE SECRETARY.

17 (a) IN GENERAL.—The Secretary is authorized to

18 perform the functions of the Director under this subtitle
19 until the appointment of the Director is confirmed by the
20 Senate in accordance with section 4102.
21 (b) INTERIM ADMINISTRATIVE SERVICES BY THE

22 DEPARTMENT OF THE TREASURY.—The Secretary of the

23 Treasury may provide administrative services necessary to
hsrobinson on DSK69SOYB1PROD with BILLS

24 support the Agency before the designated transfer date.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00934 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 935
1 (c) INTERIM FUNDING FOR THE DEPARTMENT OF

2 THE TREASURY.—For the purposes of carrying out the

3 authorities granted in this section, there are appropriated
4 to the Secretary of the Treasury such sums as are nec-
5 essary. Notwithstanding any other provision of law, such
6 amounts shall be subject to apportionment under section
7 1517 of title 31, United States Code, and restrictions that
8 generally apply to the use of appropriated funds in title
9 31, United States Code, and other laws.
10 Subtitle G—Regulatory
11 Improvements
12 SEC. 4701. COLLECTION OF DEPOSIT ACCOUNT DATA.

13 (a) PURPOSE.—The purpose of this section is to pro-

14 mote awareness and understanding of the access of indi-
15 viduals and communities to financial services, and to iden-
16 tify business and community development needs and op-
17 portunities.
18 (b) IN GENERAL.—
19 (1) RECORDS REQUIRED.—For each branch,
20 automated teller machine at which deposits are ac-
21 cepted, and other deposit taking service facility with
22 respect to any financial institution, the financial in-
23 stitution shall maintain records of the number and
hsrobinson on DSK69SOYB1PROD with BILLS

24 dollar amounts of deposit accounts of customers.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00935 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 936
1 (2) GEO-CODED ADDRESSES OF DEPOSITORS.—

2 The customers’ addresses maintained pursuant to

3 paragraph (1) shall be geo-coded so that data shall
4 be collected regarding the census tracts of the resi-
5 dence or business location of the customers.
6 (3) IDENTIFICATION OF DEPOSITOR TYPE.—In

7 maintaining records on any deposit account under

8 this section, the financial institution shall also
9 record whether the deposit account is for a residen-
10 tial or commercial customer.
11 (4) PUBLIC AVAILABILITY.—

12 (A) IN GENERAL.—The following informa-

13 tion shall be publicly available on an annual
14 basis—
15 (i) the address and census tracts of
16 each branch, automated teller machine at
17 which deposits are accepted, and other de-
18 posit taking service facility with respect to
19 any financial institution;
20 (ii) the type of deposit account includ-
21 ing whether the account was a checking or
22 savings account; and
23 (iii) data on the number and dollar
hsrobinson on DSK69SOYB1PROD with BILLS

24 amounts of the accounts, presented by cen-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00936 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 937
1 sus tract location of the residential and
2 commercial customers.
3 (iv) any other data deemed appro-
4 priate by the Director.
5 (B) PROTECTION OF IDENTITY.—In the
6 publicly available data, any personally identifi-
7 able data element shall be removed so as to pro-
8 tect the identities of the commercial and resi-
9 dential customers.
10 (c) AVAILABILITY OF INFORMATION.—
11 (1) SUBMISSION TO AGENCIES.—The data re-
12 quired to be compiled and maintained under this
13 section by any financial institution shall be sub-
14 mitted annually to the Agency, or to a Federal bank-
15 ing agency, in accordance with regulations pre-
16 scribed by the Director.
17 (2) AVAILABILITY OF INFORMATION.—Informa-

18 tion compiled and maintained under this section

19 shall be retained for not less than 3 years after the
20 date of preparation and shall be made available to
21 the public, upon request, in the form required under
22 regulations prescribed by the Director.
23 (d) AGENCY USE.—The Director—
hsrobinson on DSK69SOYB1PROD with BILLS

24 (1) shall assess the distribution of residential

25 and commercial accounts at such financial institu-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00937 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 938
1 tion across income and minority level of census
2 tracts; and
3 (2) may use the data for any other purpose as
4 permitted by law.
5 (e) REGULATIONS AND GUIDANCE.—
6 (1) IN GENERAL.—The Director shall prescribe
7 such regulations and issue guidance as may be nec-
8 essary to carry out, enforce, and compile data pursu-
9 ant to this section.
10 (2) DATA COMPILATION REGULATIONS.—The

11 Director shall prescribe regulations regarding the

12 provision of data compiled under this section to the
13 Federal banking agencies to carry out the purposes
14 of this section and shall issue guidance to financial
15 institutions regarding measures to facilitate compli-
16 ance with the this section and the requirements of
17 regulations prescribed under this section.
18 (f) DEFINITIONS.—For purposes of this section, the
19 following definitions shall apply:
20 (1) AGENCY.—The term ‘‘Agency’’ means the
21 Consumer Financial Protection Agency.
22 (2) CREDIT UNION.—The term ‘‘credit union’’
23 means a Federal credit union or a State-chartered
hsrobinson on DSK69SOYB1PROD with BILLS

24 credit union (as such terms are defined in section

25 101 of the Federal Credit Union Act).

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00938 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 939
1 (3) DEPOSIT ACCOUNT.—The term ‘‘deposit ac-
2 count’’ includes any checking account, savings ac-
3 count, credit union share account, and other type of
4 account as defined by the Director.
5 (4) DIRECTOR.—The term ‘‘Director’’ means
6 the Director of the Agency.
7 (5) FEDERAL BANKING AGENCY.—The term
8 ‘‘Federal banking agency’’ means the Board of Gov-
9 ernors of the Federal Reserve System, the head of
10 the agency responsible for chartering and regulating
11 national banks, the Director of the Office of Thrift
12 Supervision, the Federal Deposit Insurance Corpora-
13 tion, and the National Credit Union Administration;
14 and the term ‘‘Federal banking agencies’’ means all
15 of those agencies.
16 (6) FINANCIAL INSTITUTION.—The term ‘‘fi-
17 nancial institution’’—
18 (A) has the meaning given to the term ‘‘in-
19 sured depository institution’’ in section 3(c)(2)
20 of the Federal Deposit Insurance Act; and
21 (B) includes any credit union.
22 (g) EFFECTIVE DATE.—This section shall take effect
23 on the designated transfer date.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00939 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 940
1 SEC. 4702. SMALL BUSINESS DATA COLLECTION.

2 (a) IN GENERAL.—The Equal Credit Opportunity

3 Act (15 U.S.C. 1691 et seq.) is amended by inserting after
4 section 704A the following new section:
5 ‘‘§ 704B. Small business loan data collection
6 ‘‘(a) PURPOSE.—The purpose of this section is to fa-
7 cilitate enforcement of fair lending laws and enable com-
8 munities, governmental entities, and creditors to identify
9 business and community development needs and opportu-
10 nities of women- and minority-owned small businesses.
11 ‘‘(b) IN GENERAL.—Subject to the requirements of
12 this section, in the case of any application to a financial
13 institution for credit for a small business, the financial in-
14 stitution shall—
15 ‘‘(1) inquire whether the business is a women-
16 or minority-owned business, without regard to
17 whether such application is received in person, by
18 mail, by telephone, by electronic mail or other form
19 of electronic transmission, or by any other means
20 and whether or not such application is in response
21 to a solicitation by the financial institution; and
22 ‘‘(2) maintain a record of the responses to such
23 inquiry separate from the application and accom-
hsrobinson on DSK69SOYB1PROD with BILLS

24 panying information.
25 ‘‘(c) RIGHT TO REFUSE.—Any applicant for credit
26 may refuse to provide any information requested pursuant
•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00940 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 941
1 to subsection (b) in connection with any application for
2 credit.
3 ‘‘(d) NO ACCESS BY UNDERWRITERS.—
4 ‘‘(1) IN GENERAL.—Where feasible, no loan un-
5 derwriter or other officer or employee of a financial
6 institution, or any affiliate of a financial institution,
7 involved in making any determination concerning an
8 application for credit shall have access to any infor-
9 mation provided by the applicant pursuant to a re-
10 quest under subsection (b) in connection with such
11 application.
12 ‘‘(2) EXCEPTION.—If a financial institution de-
13 termines that loan underwriter or other officer or
14 employee of a financial institution, or any affiliate of
15 a financial institution, involved in making any deter-
16 mination concerning an application for credit should
17 have access to any information provided by the ap-
18 plicant pursuant to a request under subsection (b),
19 the financial institution will provide notice to the ap-
20 plicant of the access of the underwriter to this infor-
21 mation, along with notice that the financial institu-
22 tion may not discriminate on this basis of this infor-
23 mation.
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(e) FORM AND MANNER OF INFORMATION.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00941 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 942
1 ‘‘(1) IN GENERAL.—Each financial institution
2 shall compile and maintain, in accordance with regu-
3 lations of the Agency, a record of the information
4 provided by any loan applicant pursuant to a request
5 under subsection (b).
6 ‘‘(2) ITEMIZATION.—Information compiled and
7 maintained under paragraph (1) shall also be
8 itemized in order to clearly and conspicuously dis-
9 close the following:
10 ‘‘(A) The number of the application and
11 the date the application was received.
12 ‘‘(B) The type and purpose of the loan or
13 other credit being applied for.
14 ‘‘(C) The amount of the credit or credit
15 limit applied for and the amount of the credit
16 transaction or the credit limit approved for such
17 applicant.
18 ‘‘(D) The type of action taken with respect
19 to such application and the date of such action.
20 ‘‘(E) The census tract in which is located
21 the principal place of business of the small busi-
22 ness loan applicant.
23 ‘‘(F) The gross annual revenue of the busi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ness in the last fiscal year of the small business

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00942 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 943
1 loan applicant preceding the date of the appli-
2 cation.
3 ‘‘(G) The race, sex, and ethnicity of the
4 principal owners of the business.
5 ‘‘(H) Any additional data the Agency de-
6 termines would aid in fulfilling the purposes of
7 this section.
8 ‘‘(3) INCLUSION OF PERSONALLY IDENTIFIABLE

9 INFORMATION PROHIBITED.—In compiling and

10 maintaining any record of information under this
11 section, a financial institution may not include in
12 such record the name, specific address (other than
13 the census tract required under paragraph (1)(E)),
14 telephone number, electronic mail address, and any
15 other personally identifiable information concerning
16 any individual who is, or is connected with, the small
17 business loan applicant.
18 ‘‘(4) DISCRETION TO DELETE OR MODIFY PUB-

19 LICLY AVAILABLE DATA.—The Agency may, in the

20 discretion of the Agency, delete or modify data col-
21 lected under this section which is or will be available
22 to the public if the Agency determines that the dele-
23 tion or modification of the data would advance a
hsrobinson on DSK69SOYB1PROD with BILLS

24 compelling privacy interest.

25 ‘‘(f) AVAILABILITY OF INFORMATION.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00943 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 944
1 ‘‘(1) SUBMISSION TO AGENCY.—The data re-
2 quired to be compiled and maintained under this
3 section by any financial institution shall be sub-
4 mitted annually to the Agency.
5 ‘‘(2) AVAILABILITY OF INFORMATION.—

6 ‘‘(A) IN GENERAL.—Information compiled

7 and maintained under this section shall be re-
8 tained for not less than 3 years after the date
9 of preparation and shall be made available to
10 the public, upon request, in the form required
11 under regulations prescribed by the Agency.
12 ‘‘(B) ANNUAL DISCLOSURE TO THE PUB-

13 LIC.—In addition to the availability by request

14 under subparagraph (A) of data compiled and
15 maintained under this section, the Agency shall
16 annually provide such data to the public.
17 ‘‘(C) PROCEDURES.—The procedures for
18 disclosing data compiled and maintained under
19 this section to the public shall be determined by
20 the Agency by regulation.
21 ‘‘(3) COMPILATION OF AGGREGATE DATA.—

22 ‘‘(A) IN GENERAL.—The Agency may, in

23 the discretion of the Agency, compile for the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Agency’s own use compilations of aggregate

25 data.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00944 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 945
1 ‘‘(B) PUBLIC AVAILABILITY OF AGGRE-

2 GATE DATA.—The Agency may, in the discre-

3 tion of the Agency, make public compilations of
4 aggregate data in such manner as the Agency
5 may determine to be appropriate.
6 ‘‘(g) DEFINITIONS.—For purposes of this section, the
7 following definitions shall apply:
8 ‘‘(1) FINANCIAL INSTITUTION.—The term ‘fi-
9 nancial institution’ means any partnership, com-
10 pany, corporation, association (incorporated or unin-
11 corporated), trust, estate, cooperative organization,
12 or other entity that engages in any financial activity.
13 ‘‘(2) MINORITY-OWNED BUSINESS.—The term
14 ‘minority-owned business’ means a business—
15 ‘‘(A) more than 50 percent of the owner-
16 ship or control of which is held by 1 or more
17 minority individuals; and
18 ‘‘(B) more than 50 percent of the net prof-
19 it or loss of which accrues to 1 or more minor-
20 ity individuals.
21 ‘‘(3) WOMEN-OWNED BUSINESS.—The term
22 ‘women-owned business’ means a business—
23 ‘‘(A) more than 50 percent of the owner-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ship or control of which is held by 1 or more

25 women; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00945 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 946
1 ‘‘(B) more than 50 percent of the net prof-
2 it or loss of which accrues to 1 or more women.
3 ‘‘(4) MINORITY.—The term ‘minority’ has the
4 meaning given to such term by section 1204(c)(3) of
5 the Financial Institutions Reform, Recovery, and
6 Enforcement Act of 1989.
7 ‘‘(5) SMALL BUSINESS LOAN.—The term ‘small
8 business loan’ shall be defined by the Agency, which
9 may take into account—
10 ‘‘(A) the gross revenues of the borrower;
11 ‘‘(B) the total number of employees of the
12 borrower;
13 ‘‘(C) the industry in which the borrower
14 has its primary operations; and
15 ‘‘(D) the size of the loan.
16 ‘‘(h) AGENCY ACTION.—
17 ‘‘(1) IN GENERAL.—The Agency shall prescribe
18 such regulations and issue such guidance as may be
19 necessary to carry out, enforce, and compile data
20 pursuant to this section.
21 ‘‘(2) EXCEPTIONS.—The Agency, by regulation
22 or order, may adopt exceptions to any requirement
23 of this section and may, conditionally or uncondi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tionally, exempt any financial institution or class of

25 institutions from the requirements of this section as

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00946 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 947
1 the Agency determines to be necessary or appro-
2 priate to carry out the purposes and objectives of
3 this section.
4 ‘‘(3) GUIDANCE.—The Agency shall issue guid-
5 ance designed to facilitate compliance with the re-
6 quirements of this section, including assisting finan-
7 cial institutions in working with applicants to deter-
8 mine whether the applicants are women- or minor-
9 ity-owned for the purposes of this section.’’.
10 (b) TECHNICAL AND CONFORMING AMENDMENT.—
11 Section 701(b) of the Equal Credit Opportunity Act (15
12 U.S.C. 1691(b)) is amended—
13 (1) by striking ‘‘or’’ after the semicolon at the
14 end of paragraph (3);
15 (2) by striking the period at the end of para-
16 graph (4) and inserting ‘‘; or’’; and
17 (3) by inserting after paragraph (4), the fol-
18 lowing new paragraph:
19 ‘‘(5) to make an inquiry under section 704B in
20 accordance with the requirements of such section.’’.
21 (c) CLERICAL AMENDMENT.—The table of sections
22 for the Equal Credit Opportunity Act is amended by in-
23 serting after the item relating to section 704A the fol-
hsrobinson on DSK69SOYB1PROD with BILLS

24 lowing new item:

‘‘704B. Small business loan data collection.’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00947 Fmt 6652 Sfmt 6211 E:\BILLS\H4173.IH H4173
 948
1 (d) EFFECTIVE DATE.—This section shall take effect
2 on the designated transfer date.
3 SEC. 4703. ANNUAL FINANCIAL AUTOPSY.

4 (a) STUDY REQUIRED.—Not later than March 31 of

5 each calendar year, the Director shall—
6 (1) conduct a scientific sampling of foreclosures
7 and bankruptcies during the previous calendar year
8 in each State or territory of the United States; and
9 (2) identify any underlying causes of such
10 bankruptcies or foreclosures, including any specific
11 financial products or services that have been the
12 cause of substantial numbers of such bankruptcies
13 or foreclosures.
14 (b) REPORT.—After the completion of each study re-
15 quired under subsection (a), the Director shall submit a
16 report to the Congress containing—
17 (1) any conclusions made by the Director in
18 carrying out such study;
19 (2) any specific financial products or services
20 that the Director has identified to have caused a
21 substantial number of bankruptcies or foreclosures,
22 as well as which companies or individuals provided
23 such financial products or services; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) any recommendations the Director has for

25 legislation that would reduce the underlying causes

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00948 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 949
1 of bankruptcies and foreclosures identified in such
2 study.
3 Subtitle H—Conforming
4 Amendments
5 SEC. 4801. AMENDMENTS TO THE INSPECTOR GENERAL

6 ACT OF 1978.

7 (a) ESTABLISHMENT.—Section 8G(a)(2) of the In-

8 spector General Act of 1978 (5 U.S.C. App.) is amended
9 by inserting ‘‘the Consumer Financial Protection Agency,’’
10 before ‘‘the Consumer Product Safety Commission,’’.
11 (b) EFFECTIVE DATE.—This section shall take effect
12 on the date of the enactment of this title.
13 SEC. 4802. AMENDMENTS TO THE PRIVACY ACT OF 1974.

14 (a) APPLICABILITY.—Section 552a of title 5, United

15 States Code, is amended by adding at the end the fol-
16 lowing new subsection:
17 ‘‘(w) APPLICABILITY TO CONSUMER FINANCIAL PRO-
18 TECTION AGENCY.—Except as provided in the Consumer
19 Financial Protection Agency Act of 2009, this section
20 shall apply with respect to the Consumer Financial Protec-
21 tion Agency.’’.
22 (b) EFFECTIVE DATE.—This section shall take effect
23 on the date of the enactment of this title.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00949 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 950
1 SEC. 4803. AMENDMENTS TO THE ALTERNATIVE MORT-

2 GAGE TRANSACTION PARITY ACT OF 1982.

3 (a) SECTION 803(1).—Section 803(1) of the Alter-

4 native Mortgage Transaction Parity Act of 1982 (12
5 U.S.C. 3802(1)) is amended by striking paragraphs (B)
6 and (C).
7 (b) SECTION 804(a).—Section 804(a) of the Alter-
8 native Mortgage Transaction Parity Act of l982 (12
9 U.S.C. 3803(a)) is amended—
10 (1) in paragraphs (1), (2), and (3), by inserting
11 ‘‘on or before the designated transfer date, as deter-
12 mined in section 4602 of the Consumer Financial
13 Protection Agency Act of 2009’’ after ‘‘transactions
14 made’’ each place such term appears;
15 (2) in paragraph (2), by striking ‘‘and’’ at the
16 end;
17 (3) in paragraph (3), by striking the period at
18 the end and inserting ‘‘; and’’; and
19 (4) by adding at the end the following new
20 paragraph:
21 ‘‘(4) with respect to transactions made after the
22 designated transfer date, as determined in section
23 4602 of the Consumer Financial Protection Agency
hsrobinson on DSK69SOYB1PROD with BILLS

24 Act of 2009, only in accordance with regulations

25 governing alternative mortgage transactions as
26 issued by the Consumer Financial Protection Agency
•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00950 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 951
1 for federally chartered housing creditors, in accord-
2 ance with the rulemaking authority granted to the
3 Consumer Financial Protection Agency with regard
4 to federally chartered housing creditors under laws
5 other than this section.’’.
6 (c) SECTION 804.—Section 804 of the Alternative
7 Mortgage Transaction Parity Act of l982 (12 U.S.C.
8 3803) is amended—
9 (1) by striking subsection (c) and inserting the
10 following new subsection:
11 ‘‘(c) EFFECT OF STATE LAW.—
12 ‘‘(1) IN GENERAL.—An alternative mortgage
13 transaction may be made by a housing creditor in
14 accordance with this section, notwithstanding any
15 State Constitution, law, or regulation that prohibits
16 an alternative mortgage transaction.
17 ‘‘(2) RULE OF CONSTRUCTION.—For purposes
18 of this subsection, a State Constitution, law, or reg-
19 ulation that prohibits an alternative mortgage trans-
20 action does not include any State Constitution, law,
21 or regulation that regulates mortgage transactions
22 generally, including any restriction on prepayment
23 penalties or late charges.’’; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) by adding at the end the following new sub-

25 section:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00951 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 952
1 ‘‘(d) DUTIES OF CONSUMER FINANCIAL PROTECTION
2 AGENCY.—The Consumer Financial Protection Agency
3 shall—
4 ‘‘(1) review the regulations identified by the
5 Comptroller of the Currency, the National Credit
6 Union Administration, and the Director of the Office
7 of Thrift Supervision (as those regulations exist on
8 the designated transfer date, as determined in sec-
9 tion 4602 of the Consumer Financial Protection
10 Agency Act of 2009) as applicable under paragraphs
11 (1), (2), and (3) of subsection (a);
12 ‘‘(2) determine whether such regulations are
13 fair and not deceptive and otherwise meet the objec-
14 tives of section 4201 of the Consumer Financial
15 Protection Agency Act of 2009; and
16 ‘‘(3) prescribe regulations under subsection
17 (a)(4) after the designated transfer date, as deter-
18 mined under such Act.’’.
19 (d) EFFECTIVE DATE AND SCOPE OF APPLICA-
20 TION.—

21 (1) EFFECTIVE DATE.—This section shall take

22 effect on the designated transfer date.
23 (2) SCOPE OF APPLICATION.—The amendments
hsrobinson on DSK69SOYB1PROD with BILLS

24 made by subsection (a) shall not affect any trans-

25 action covered by the Alternative Mortgage Trans-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00952 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 953
1 action Parity Act of l982 which is entered into on
2 or before the designated transfer date.
3 SEC. 4804. AMENDMENTS TO THE CONSUMER CREDIT PRO-

4 TECTION ACT.

5 (a) TRUTH IN LENDING ACT.—

6 (1) SECTION 103.—Section 103 of the Truth in
7 Lending Act (15 U.S.C. 1602) is amended by strik-
8 ing subsection (b) and inserting the following new
9 subsection:
10 ‘‘(b) AGENCY DEFINITIONS.—
11 ‘‘(1) BOARD.—The term ‘Board’ means the
12 ‘Board of Governors of the Federal Reserve System’.
13 ‘‘(2) AGENCY.—The term ‘Agency’ means the
14 Consumer Financial Protection Agency.’’.
15 (2) UNIVERSAL AMENDMENT RELATING TO

16 BOARD OF GOVERNORS OF THE FEDERAL RESERVE

17 SYSTEM.—

18 (A) IN GENERAL.—Except as provided in

19 subparagraph (B), the Truth in Lending Act
20 (15 U.S.C. 1601 et seq.) is amended by striking
21 ‘‘Board’’ each place such term appears, includ-
22 ing in chapters 4 and 5 relating to credit billing
23 and consumer leases, and inserting ‘‘Agency’’.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) EXCEPTIONS.—The amendment de-

25 scribed in subparagraph (A) shall not apply to

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00953 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 954
1 sections 108(a) (as amended by paragraph (4))
2 and 140(d).
3 (3) SECTION 105.—Section 105(b) of the Truth
4 in Lending Act (15 U.S.C. 1604(b)) is amended by
5 striking the first sentence and inserting the fol-
6 lowing: ‘‘The Agency shall publish a single, inte-
7 grated disclosure for mortgage loan transactions, in-
8 cluding real estate settlement cost statements, which
9 include the disclosure requirements of this title, in
10 conjunction with the disclosure requirements of the
11 Real Estate Settlement Procedures Act that, taken
12 together, may apply to transactions subject to both
13 or either law. The purpose of such model disclosure
14 shall be to facilitate compliance with the disclosure
15 requirements of those titles, and to aid the borrower
16 or lessee in understanding the transaction by uti-
17 lizing readily understandable language to simplify
18 the technical nature of the disclosures.’’.
19 (4) SECTION 108.—Section 108 of the Truth in
20 Lending Act (15 U.S.C. 1607) is amended—
21 (A) by striking subsection (a) and insert-
22 ing the following new subsection:
23 ‘‘(a) ENFORCING AGENCIES.—Subject to section
hsrobinson on DSK69SOYB1PROD with BILLS

24 4202 of the Consumer Financial Protection Agency Act

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00954 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 955
1 of 2009, compliance with the requirements imposed under
2 this title shall be enforced as follows:
3 ‘‘(1) Under section 8 of the Federal Deposit In-
4 surance Act, in the case of—
5 ‘‘(A) national banks, and Federal branches
6 and Federal agencies of foreign banks, by the
7 head of the agency responsible for chartering
8 and regulating national banks;
9 ‘‘(B) member banks of the Federal Reserve
10 System (other than national banks), branches
11 and agencies of foreign banks (other than Fed-
12 eral branches, Federal agencies, and insured
13 State branches of foreign banks), commercial
14 lending companies owned or controlled by for-
15 eign banks, and organizations operating under
16 section 25 or 25(a) of the Federal Reserve Act,
17 by the Board;
18 ‘‘(C) depository institution insured by the
19 Federal Deposit Insurance Corporation (other
20 than members of the Federal Reserve System,
21 Federal savings associations, and savings and
22 loan holding companies) and insured State
23 branches of foreign banks, by the Board of Di-
hsrobinson on DSK69SOYB1PROD with BILLS

24 rectors of the Federal Deposit Insurance Cor-

25 poration; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00955 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 956
1 ‘‘(D) Federal savings associations and sav-
2 ings and loan holding companies, by the Direc-
3 tor of the Office of Thrift Supervision.
4 ‘‘(2) Under subtitle E of the Consumer Finan-
5 cial Protection Agency Act of 2009, by the Agency.
6 ‘‘(3) Under the Federal Credit Union Act, by
7 the head of the agency responsible for chartering
8 and regulating Federal credit unions.
9 ‘‘(4) Under the Federal Aviation Act of 1958,
10 by the Secretary of Transportation with respect to
11 any air carrier or foreign air carrier subject to that
12 Act.
13 ‘‘(5) Under the Packers and Stockyards Act,
14 1921 (except as provided in section 406 of that Act),
15 by the Secretary of Agriculture with respect to any
16 activities subject to that Act.
17 ‘‘(6) Under the Farm Credit Act of 1971, by
18 the Farm Credit Administration with respect to any
19 Federal land bank, Federal land bank association,
20 Federal intermediate credit bank, or production
21 credit association.’’; and
22 (B) by striking subsection (c) and insert-
23 ing the following new subsection:
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(c) OVERALL ENFORCEMENT AUTHORITY OF THE

25 FEDERAL TRADE COMMISSION.—Except to the extent

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00956 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 957
1 that enforcement of the requirements imposed under this
2 title is specifically committed to some other Government
3 agency under subsection (a) and subject to section 4202
4 of the Consumer Financial Protection Agency Act of 2009,
5 the Federal Trade Commission shall enforce such require-
6 ments. For the purpose of the exercise by the Federal
7 Trade Commission of its functions and powers under the
8 Federal Trade Commission Act, a violation of any require-
9 ment imposed under this title shall be deemed a violation
10 of a requirement imposed under that Act. All of the func-
11 tions and powers of the Federal Trade Commission under
12 the Federal Trade Commission Act are available to the
13 Commission to enforce compliance by any person with the
14 requirements under this title, irrespective of whether that
15 person is engaged in commerce or meets any other juris-
16 dictional tests in the Federal Trade Commission Act.’’.
17 (5) UNIVERSAL AMENDMENT RELATING TO THE

18 FEDERAL TRADE COMMISSION.—

19 (A) IN GENERAL.—Except as provided in

20 subparagraph (B), the Truth in Lending Act
21 (15 U.S.C. 1601 et seq.) is amended by striking
22 ‘‘Federal Trade Commission’’ each place such
23 term appears and inserting ‘‘Agency’’.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (B) EXCEPTIONS.—The amendment de-

25 scribed in subparagraph (A) shall not apply to

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00957 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 958
1 sections 108(c) (as amended by paragraph (4))
2 and 129(m) (as amended by paragraph (7)).
3 (6) SECTION 127.—Subparagraph (C) of section
4 127(b)(11) of the Truth in Lending Act (15 U.S.C.
5 1637(b)(11)) is amended to read as follows:
6 ‘‘(C) Notwithstanding subparagraphs (A)
7 and (B), in the case of a creditor with respect
8 to which compliance with this title is enforced
9 by the Agency, the following statement, in a
10 prominent location on the front of the billing
11 statement, disclosed clearly and conspicuously:
12 ‘Minimum Payment Warning: Making only the
13 required minimum payment will increase the in-
14 terest you pay and the time it takes to repay
15 your balance. For example, making only the
16 typical 5 percent minimum monthly payment on
17 a balance of $300 at an interest rate of 17 per-
18 cent would take 24 months to repay the balance
19 in full. For an estimate of the time it would
20 take to repay your balance, making only min-
21 imum monthly payments, call the Consumer Fi-
22 nancial Protection Agency at this toll-free num-
23 ber: lllllllll [the blank space to
hsrobinson on DSK69SOYB1PROD with BILLS

24 be filled in by the creditor].’ A creditor who is

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00958 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 959
1 subject to this subparagraph shall not be sub-
2 ject to subparagraph (A) or (B).’’.
3 (7) SECTION 129.—Section 129(m) of the Truth
4 in Lending Act (15 U.S.C. 1639(m)) is amended to
5 read as follows:
6 ‘‘(m) CIVIL PENALTIES IN FEDERAL TRADE COM-
7 MISSION ENFORCEMENT ACTIONS.—For purposes of en-
8 forcement by the Federal Trade Commission, any violation
9 of a regulation issued by the Agency pursuant to sub-
10 section (l)(2) of this section shall be treated as a violation
11 of a regulation promulgated under section 18 of the Fed-
12 eral Trade Commission Act (15 U.S.C. 57a) regarding un-
13 fair or deceptive acts or practices.’’.
14 (b) FAIR CREDIT REPORTING ACT.—
15 (1) SECTION 603.—Section 603 of the Fair
16 Credit Reporting Act (15 U.S.C. 1681a) is amend-
17 ed—
18 (A) by redesignating subsections (w) and
19 (x) as subsections (x) and (y), respectively; and
20 (B) by inserting after subsection (v) the
21 following new subsection:
22 ‘‘(w) AGENCY.—The term ‘Agency’ means the Con-
23 sumer Financial Protection Agency.’’.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) UNIVERSAL AMENDMENTS RELATING TO

25 THE FEDERAL TRADE COMMISSION.—Other than in

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00959 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 960
1 connection with the amendment made by paragraph
2 (7)(A), the Fair Credit Reporting Act (15 U.S.C.
3 1681a) is amended—
4 (A) by striking ‘‘Federal Trade Commis-
5 sion’’ each place such term appears and insert-
6 ing ‘‘Agency’’;
7 (B) by striking ‘‘Commission’’ each place
8 such term appears (other than in connection
9 with the term amended in subparagraph (A))
10 and inserting ‘‘Agency’’; and
11 (C) by striking ‘‘Federal banking agencies,
12 the National Credit Union Administration, and
13 the Commission shall jointly’’ each place such
14 term appears in sections 605(h)(2) and
15 623(a)(8)(A) and inserting ‘‘Agency shall’’.
16 (3) SECTION 603.—Section 603(k)(2) of the
17 Fair Credit Reporting Act (15 U.S.C. 1681a(k)(2))
18 is amended by striking ‘‘Board of Governors of the
19 Federal Reserve System’’ and inserting ‘‘Agency’’.
20 (4) SECTION 604.—Subsection 604(g) of the
21 Fair Credit Reporting Act (15 U.S.C. 1681b(g)) is
22 amended—
23 (A) by striking subparagraph (C) of para-
hsrobinson on DSK69SOYB1PROD with BILLS

24 graph (3) and inserting the following new sub-

25 paragraph:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00960 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 961
1 ‘‘(C) as otherwise determined to be nec-
2 essary and appropriate, by regulation or order
3 and subject to paragraph (6), by the Agency
4 (with respect to any covered person subject to
5 the jurisdiction of such agency under paragraph
6 (2) of section 621(b)), or the applicable State
7 insurance authority (with respect to any person
8 engaged in providing insurance or annuities).’’;
9 and
10 (B) by striking paragraph (5) and insert-
11 ing the following new paragraph:
12 ‘‘(5) REGULATIONS REQUIRED.—The Agency
13 may, after notice and opportunity for comment, pre-
14 scribe regulations that permit transactions under
15 paragraph (2) that are determined to be necessary
16 and appropriate to protect legitimate operational,
17 transactional, risk, consumer, and other needs (and
18 which shall include permitting actions necessary for
19 administrative verification purposes), consistent with
20 the intent of paragraph (2) to restrict the use of
21 medical information for inappropriate purposes.’’.
22 (5) SECTION 611.—Section 611(e)(2) of the
23 Fair Credit Reporting Act (15 U.S.C.1681i(e)(2)) is
hsrobinson on DSK69SOYB1PROD with BILLS

24 amended to read as follows:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00961 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 962
1 ‘‘(2) EXCLUSION.—Complaints received or ob-
2 tained by the Agency pursuant to its investigative
3 authority under the Consumer Financial Protection
4 Agency Act of 2009 shall not be subject to para-
5 graph (1).’’.
6 (6) SECTION 615.—Section 615(h)(6)(A) of the
7 Fair Credit Reporting Act (15 U.S.C.
8 1681m(h)(6)(A)) is amended to read as follows:
9 ‘‘(A) RULES REQUIRED.—The Agency
10 shall prescribe rules.’’.
11 (7) SECTION 621.—Section 621 of the Fair
12 Credit Reporting Act (15 U.S.C. 1681s) is amend-
13 ed—
14 (A) by striking subsection (a) and insert-
15 ing the following new subsection:
16 ‘‘(a) ENFORCEMENT BY FEDERAL TRADE COMMIS-
17 SION.—

18 ‘‘(1) IN GENERAL.—Subject to section 4202 of

19 the Consumer Financial Protection Agency Act of
20 2009, compliance with the requirements imposed
21 under this title shall be enforced under the Federal
22 Trade Commission Act by the Federal Trade Com-
23 mission with respect to consumer reporting agencies
hsrobinson on DSK69SOYB1PROD with BILLS

24 and all other persons subject thereto, except to the

25 extent that enforcement of the requirements imposed

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00962 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 963
1 under this title is specifically committed to some
2 other government agency under subsection (b) here-
3 of. For the purpose of the exercise by the Federal
4 Trade Commission of its functions and powers under
5 the Federal Trade Commission Act, a violation of
6 any requirement or prohibition imposed under this
7 title shall constitute an unfair or deceptive act or
8 practice in commerce in violation of section 5(a) of
9 the Federal Trade Commission Act and shall be sub-
10 ject to enforcement by the Federal Trade Commis-
11 sion under section 5(b) of such Act with respect to
12 any consumer reporting agency or person subject to
13 enforcement by the Federal Trade Commission pur-
14 suant to this subsection, irrespective of whether that
15 person is engaged in commerce or meets any other
16 jurisdictional tests in the Federal Trade Commission
17 Act. The Federal Trade Commission shall have such
18 procedural, investigative, and enforcement powers
19 (subject to section 4202 of the Consumer Financial
20 Protection Agency Act of 2009), including the power
21 to issue procedural rules in enforcing compliance
22 with the requirements imposed under this title and
23 to require the filing of reports, the production of
hsrobinson on DSK69SOYB1PROD with BILLS

24 documents, and the appearance of witnesses as

25 though the applicable terms and conditions of the

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00963 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 964
1 Federal Trade Commission Act were part of this
2 title. Any person violating any of the provisions of
3 this title shall be subject to the penalties and enti-
4 tled to the privileges and immunities provided in the
5 Federal Trade Commission Act as though the appli-
6 cable terms and provisions thereof were part of this
7 title.
8 ‘‘(2) CIVIL MONEY PENALTIES.—

9 ‘‘(A) IN GENERAL.—Subject to section

10 4202 of the Consumer Financial Protection
11 Agency Act of 2009, in the event of a knowing
12 violation, which constitutes a pattern or prac-
13 tice of violations of this title, the Commission
14 may commence a civil action to recover a civil
15 penalty in a district court of the United States
16 against any person that violates this title. In
17 such action, such person shall be liable for a
18 civil penalty of not more than $2,500 per viola-
19 tion.
20 ‘‘(B) FACTORS IN DETERMINING

21 AMOUNT.—In determining the amount of a civil

22 penalty under subparagraph (A), the court shall
23 take into account the degree of culpability, any
hsrobinson on DSK69SOYB1PROD with BILLS

24 history of prior such conduct, ability to pay, ef-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00964 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 965
1 fect on ability to continue to do business, and
2 such other matters as justice may require.
3 ‘‘(3) EXCEPTION.—Notwithstanding paragraph
4 (2), a court may not impose any civil penalty on a
5 person for a violation of section 623(a)(1) unless the
6 person has been enjoined from committing the viola-
7 tion, or ordered not to commit the violation, in an
8 action or proceeding brought by or on behalf of the
9 Federal Trade Commission or the Agency, as the
10 case may be, and has violated the injunction or
11 order, and the court may not impose any civil pen-
12 alty for any violation occurring before the date of
13 the violation of the injunction or order.’’;
14 (B) by striking subsection (b) and insert-
15 ing the following new subsection:
16 ‘‘(b) ENFORCEMENT BY OTHER AGENCIES.—Subject
17 to section 4202 of the Consumer Financial Protection
18 Agency Act of 2009, compliance with the requirements im-
19 posed under this title with respect to consumer reporting
20 agencies, persons who use consumer reports from such
21 agencies, persons who furnish information to such agen-
22 cies, and users of information that are subject to sub-
23 section (d) of section 615 shall be enforced as follows:
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(1) Under section 8 of the Federal Deposit In-

25 surance Act, in the case of—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00965 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 966
1 ‘‘(A) national banks, and Federal branches
2 and Federal agencies of foreign banks, by the
3 head of the agency responsible for chartering
4 and regulating national banks;
5 ‘‘(B) member banks of the Federal Reserve
6 System (other than national banks), branches
7 and agencies of foreign banks (other than Fed-
8 eral branches, Federal agencies, and insured
9 State branches of foreign banks), commercial
10 lending companies owned or controlled by for-
11 eign banks, and organizations operating under
12 section 25 or 25A of the Federal Reserve Act,
13 by the Board of Governors of the Federal Re-
14 serve System;
15 ‘‘(C) banks insured by the Federal Deposit
16 Insurance Corporation (other than members of
17 the Federal Reserve System, Federal savings
18 associations, and savings and loan holding com-
19 panies) and insured State branches of foreign
20 banks, by the Board of Directors of the Federal
21 Deposit Insurance Corporation; and
22 ‘‘(D) Federal savings associations and sav-
23 ings and loan holding companies, by the Direc-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tor of the Office of Thrift Supervision.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00966 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 967
1 ‘‘(2) Under subtitle E of the Consumer Finan-
2 cial Protection Agency Act of 2009, by the Agency
3 in the case of a covered person under that Act.
4 ‘‘(3) Under the Federal Credit Union Act, by
5 the National Credit Union Administration Board
6 with respect to any Federal credit union.
7 ‘‘(4) Under subtitle IV of title 49, United
8 States Code, by the Secretary of Transportation,
9 with respect to all carriers subject to the jurisdiction
10 of the Surface Transportation Board.
11 ‘‘(5) Under the Federal Aviation Act of 1958,
12 by the Secretary of Transportation with respect to
13 any air carrier or foreign air carrier subject to that
14 Act.
15 ‘‘(6) Under the Packers and Stockyards Act,
16 1921 (except as provided in section 406 of that Act),
17 by the Secretary of Agriculture with respect to any
18 activities subject to that Act.
19 ‘‘(7) Under the Commodity Exchange Act, with
20 respect to a person subject to the jurisdiction of the
21 Commodity Futures Trading Commission.
22 ‘‘(8) Under the Federal securities law and any
23 other laws subject to the jurisdiction of the Securi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ties and Exchange Commission, with respect to a

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00967 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 968
1 person subject to the jurisdiction of the Securities
2 and Exchange Commission.
3 Any term used in paragraph (1) that is not defined in
4 this title or otherwise defined in section 3(s) of the Federal
5 Deposit Insurance Act shall have the meaning given to
6 such term in section 1(b) of the International Banking Act
7 of 1978.’’;
8 (C) by striking subsection (e) and inserting
9 the following new subsection:
10 ‘‘(e) REGULATORY AUTHORITY.—The Agency shall
11 prescribe such regulations as necessary to carry out the
12 purposes of this Act with respect to a covered person de-
13 scribed in subsection (b).’’; and
14 (D) in the heading of subsection (g) by
15 striking ‘‘FTC’’.
16 (8) SECTION 623.—Section 623 of the Fair
17 Credit Reporting Act (15 U.S.C. 1681s–2) is
18 amended—
19 (A) by amending subparagraph (a)(7)(D)
20 to read as follows:
21 ‘‘(D) MODEL DISCLOSURE.—

22 ‘‘(i) DUTY OF AGENCY TO PRE-

23 PARE.—The Agency shall prescribe a brief

hsrobinson on DSK69SOYB1PROD with BILLS

24 model disclosure a financial institution

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00968 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 969
1 may use to comply with subparagraph (A),
2 which shall not exceed 30 words.
3 ‘‘(ii) USE OF MODEL NOT RE-

4 QUIRED.—No provision of this paragraph

5 shall be construed as requiring a financial
6 institution to use any such model form pre-
7 scribed by the Agency.
8 ‘‘(iii) COMPLIANCE USING MODEL.—A

9 financial institution shall be deemed to be

10 in compliance with subparagraph (A) if the
11 financial institution uses any such model
12 form prescribed by the Agency, or the fi-
13 nancial institution uses any such model
14 form and rearranges its format.’’.
15 (B) by amending subsection (e) to read as
16 follows:
17 ‘‘(e) ACCURACY GUIDELINES AND REGULATIONS RE-
18 QUIRED.—

19 ‘‘(1) GUIDELINES.—The Agency shall, with re-

20 spect to the entities that are subject to its enforce-
21 ment authority under section 621—
22 ‘‘(A) establish and maintain guidelines for
23 use by each person that furnishes information
hsrobinson on DSK69SOYB1PROD with BILLS

24 to a consumer reporting agency regarding the

25 accuracy and integrity of the information relat-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00969 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 970
1 ing to consumers that such entities furnish to
2 consumer reporting agencies, and update such
3 guidelines as often as necessary; and
4 ‘‘(B) prescribe regulations requiring each
5 person that furnishes information to a con-
6 sumer reporting agency to establish reasonable
7 policies and procedures or implementing the
8 guidelines established pursuant to subpara-
9 graph (A).
10 ‘‘(2) CRITERIA.—In developing the guidelines
11 required by paragraph (1)(A), the Agency shall—
12 ‘‘(A) identify patterns, practices, and spe-
13 cific forms of activity that can compromise the
14 accuracy and integrity of information furnished
15 to consumer reporting agencies;
16 ‘‘(B) review the methods (including techno-
17 logical means) used to furnish information re-
18 lating to consumers to consumer reporting
19 agencies;
20 ‘‘(C) determine whether persons that fur-
21 nish information to consumer reporting agen-
22 cies maintain and enforce policies to ensure the
23 accuracy and integrity of information furnished
hsrobinson on DSK69SOYB1PROD with BILLS

24 to consumer reporting agencies; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00970 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 971
1 ‘‘(D) examine the policies and processes
2 that persons that furnish information to con-
3 sumer reporting agencies employ to conduct re-
4 investigations and correct inaccurate informa-
5 tion relating to consumers that has been fur-
6 nished to consumer reporting agencies.’’
7 (c) EQUAL CREDIT OPPORTUNITY ACT.—
8 (1) SECTION 701.—Section 701 of the Equal
9 Credit Opportunity Act (15 U.S.C. 1691) is amend-
10 ed by striking ‘‘Board’’ each place such term ap-
11 pears and inserting ‘‘Agency’’.
12 (2) SECTION 702.—Section 702(c) of the Equal
13 Credit Opportunity Act (15 U.S.C. 1691a) is
14 amended to read as follows:
15 ‘‘(c) The term ‘Agency’ means the Consumer Finan-
16 cial Protection Agency.’’.
17 (3) SECTION 703.—Section 703 of the Equal
18 Credit Opportunity Act (15 U.S.C. 1691b) is
19 amended—
20 (A) by striking subsection (b);
21 (B) in subsection (a)—
22 (i) by striking ‘‘(1)’’; and
23 (ii) by redesignating paragraphs (2),
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3), (4), and (5) as subsections (b), (c),

25 (d), and (e), respectively;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00971 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 972
1 (C) in subsection (c) (as so redesig-
2 nated)—
3 (i) by striking ‘‘paragraph (2)’’ and
4 inserting ‘‘subsection (b)’’; and
5 (ii) by striking ‘‘such paragraph’’ and
6 inserting ‘‘such subsection’’;
7 (D) in subsection (d) (as so redesig-
8 nated)—
9 (i) by striking ‘‘subsection’’ and in-
10 serting ‘‘section’ ’’
11 (ii) by striking ‘‘Act’’ and inserting
12 ‘‘title’’; and
13 (iii) by striking ‘‘this paragraph’’ and
14 inserting ‘‘this subsection’’; and
15 (E) by striking ‘‘Board’’ each place such
16 term appears in such section and inserting
17 ‘‘Agency’’.
18 (4) SECTION 704.—Section 704 of the Equal
19 Credit Opportunity Act (15 U.S.C. 1691c) is amend-
20 ed—
21 (A) in subsection (a)—
22 (i) in the matter preceding paragraph
23 (1), by striking ‘‘Compliance’’ and insert-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ing ‘‘Subject to section 4202 of the Con-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00972 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 973
1 sumer Financial Protection Agency Act of
2 2009, compliance’’;
3 (ii) in paragraph (1)(A), by striking
4 ‘‘Office of the Comptroller of the Cur-
5 rency’’ and inserting ‘‘head of the agency
6 responsible for chartering and regulating
7 national banks’’;
8 (iii) in paragraph (1)(B), by striking
9 ‘‘and’’ after the semicolon;
10 (iv) in paragraph (1)(C), by inserting
11 ‘‘and’’ after the semicolon;
12 (v) by inserting after subparagraph
13 (C) of paragraph (1) the following new
14 subparagraph:
15 ‘‘(D) savings associations and savings and
16 loan holding companies by the Director of the
17 Office of Thrift Supervision;’’; and
18 (vi) by amending paragraph (2) to
19 read as follows:
20 ‘‘(2) Subtitle E of the Consumer Financial Pro-
21 tection Agency Act of 2009, by the Agency.’’;
22 (B) by striking subsection (c) and insert-
23 ing the following new subsection:
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(c) OVERALL ENFORCEMENT AUTHORITY OF FED-

25 ERAL TRADE COMMISSION.—Except to the extent that en-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00973 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 974
1 forcement of the requirements imposed under this title is
2 specifically committed to some other Government agency
3 under subsection (a) and subject to section 4202 of the
4 Consumer Financial Protection Agency Act of 2009, the
5 Federal Trade Commission shall enforce such require-
6 ments. For the purpose of the exercise by the Federal
7 Trade Commission of its functions and powers under the
8 Federal Trade Commission Act, a violation of any require-
9 ment imposed under this title shall be deemed a violation
10 of a requirement imposed under that Act. All of the func-
11 tions and powers of the Federal Trade Commission under
12 the Federal Trade Commission Act are available to the
13 Commission to enforce compliance by any person with the
14 requirements imposed under this title, irrespective of
15 whether that person is engaged in commerce or meets any
16 other jurisdictional tests in the Federal Trade Commission
17 Act, including the power to enforce any regulation pre-
18 scribed by the Director under this title in the same man-
19 ner as if the violation had been a violation of a Federal
20 Trade Commission trade regulation rule.’’; and
21 (C) in subsection (d), by striking ‘‘Board’’
22 and inserting ‘‘Agency’’.
23 (5) SECTION 704a.—Section 704A(a)(1) of the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Equal Credit Opportunity Act (15 U.S.C. 1691c–

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00974 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 975
1 1(a)(1)) is amended in by striking ‘‘Board’’ and in-
2 serting ‘‘Agency’’.
3 (6) SECTION 705.—Section 705 of the Equal
4 Credit Opportunity Act (15 U.S.C. 1691d) is
5 amended—
6 (A) in subsection (f), by striking ‘‘Board’’
7 each place such term appears and inserting
8 ‘‘Agency’’; and
9 (B) in subsection (g), by striking ‘‘Board’’
10 and inserting ‘‘Agency’’.
11 (7) SECTION 706.—Section 706 of the Equal
12 Credit Opportunity Act (15 U.S.C. 1691e) is amend-
13 ed—
14 (A) in subsection (e)—
15 (i) by striking ‘‘Board’’ each place
16 such term appears and inserting ‘‘Agency’’;
17 and
18 (ii) by striking ‘‘Federal Reserve Sys-
19 tem’’ and inserting ‘‘Consumer Financial
20 Protection Agency’’;
21 (B) in subsection (f), by striking ‘‘two
22 years’’ each place such term appears and insert-
23 ing ‘‘5 years’’;
hsrobinson on DSK69SOYB1PROD with BILLS

24 (C) in subsection (g)—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00975 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 976
1 (i) by striking ‘‘The agencies having’’,
2 in the 1st sentence, and inserting ‘‘The
3 Agency and the agencies having’’
4 (ii) by striking ‘‘Each agency re-
5 ferred’’, in the 2nd sentence, and inserting
6 ‘‘The Agency and each agency referred’’;
7 (iii) by striking ‘‘Each such agency’’,
8 in the 3rd sentence, and inserting ‘‘The
9 Agency and each such agency’’; and
10 (iv) by striking ‘‘whenever the agen-
11 cy’’ in the 3rd sentence, and inserting
12 ‘‘whenever the Agency or an agency having
13 responsibility for administrative enforce-
14 ment under section 704’’; and
15 (D) in subsection (k)—
16 (i) by striking ‘‘Whenever an agency’’
17 and inserting ‘‘Whenever the Agency or an
18 agency’’; and
19 (ii) by striking ‘‘the agency shall no-
20 tify’’ and inserting ‘‘the Agency, or an
21 agency referred to in any such paragraph,
22 as the case may be, shall notify’’.
23 (8) SECTION 707.—Section 707 of the Equal
hsrobinson on DSK69SOYB1PROD with BILLS

24 Credit Opportunity Act (15 U.S.C. 1691f) is amend-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00976 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 977
1 ed by striking ‘‘Board’’ each place such term ap-
2 pears and inserting ‘‘Agency’’.
3 (d) FAIR DEBT COLLECTION PRACTICES ACT.—
4 (1) SECTION 803.—Section 803 of the Fair
5 Debt Collection Practices Act (15 U.S.C. 1692a) is
6 amended—
7 (A) by redesignating paragraphs (1), (2),
8 (3), (4), (5), (6), (7), and (8) as paragraphs
9 (2), (3), (4), (5), (6), (7), (8), and (9), respec-
10 tively; and
11 (B) by inserting before paragraph (2) (as
12 so redesignated) the following new paragraph:
13 ‘‘(1) The term ‘Agency’ means the Consumer
14 Financial Protection Agency.’’.
15 (2) SECTION 813.—Section 813(e) of the Fair
16 Debt Collection Practices Act (15 U.S.C. 1692k(e))
17 is amended by striking ‘‘Commission’’ and inserting
18 ‘‘Agency’’.
19 (3) SECTION 814.—Section 814 of the Fair
20 Debt Collection Practices Act (15 U.S.C. 1692l) is
21 amended—
22 (A) by striking subsection (a) and insert-
23 ing the following new subsection:
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(a) FEDERAL TRADE COMMISSION.—Subject to sec-

25 tion 4202 of the Consumer Financial Protection Agency

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00977 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 978
1 Act of 2009, compliance with this title shall be enforced
2 by the Commission, except to the extent that enforcement
3 of the requirements imposed under this title is specifically
4 committed to another agency under subsection (b). For
5 purpose of the exercise by the Commission of its functions
6 and powers under the Federal Trade Commission Act, a
7 violation of this title shall be deemed an unfair or decep-
8 tive act or practice in violation of that Act. All of the func-
9 tions and powers of the Commission under the Federal
10 Trade Commission Act are available to the Commission
11 to enforce compliance by any person with this title, irre-
12 spective of whether that person is engaged in commerce
13 or meets any other jurisdictional tests in the Federal
14 Trade Commission Act, including the power to enforce the
15 provisions of this title in the same manner as if the viola-
16 tion had been a violation of a Federal Trade Commission
17 trade regulation rule.’’;
18 (B) in subsection (b)—
19 (i) in the matter preceding paragraph
20 (1), by striking ‘‘Compliance’’ and insert-
21 ing ‘‘ENFORCEMENT BY OTHER AGEN-
22 CY.—Subject to section 4202 of the Con-
23 sumer Financial Protection Agency Act of
hsrobinson on DSK69SOYB1PROD with BILLS

24 2009, compliance’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00978 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 979
1 (ii) in paragraph (1)(A), by striking
2 ‘‘Office of the Comptroller of the Cur-
3 rency;’’ and inserting ‘‘head of the agency
4 responsible for chartering and regulating
5 national banks;’’;
6 (iii) in paragraph (1)(B), by striking
7 ‘‘and’’ after the semicolon;
8 (iv) in paragraph (1)(C), by inserting
9 ‘‘and’’ after the semicolon;
10 (v) by inserting after subparagraph
11 (C) of paragraph (1) the following new
12 subparagraph:
13 ‘‘(D) savings associations and savings and
14 loan holding companies by the Director of the
15 Office of Thrift Supervision;’’; and
16 (vi) by striking paragraph (2) and in-
17 serting the following new paragraph:
18 ‘‘(2) subtitle E of the Consumer Financial Pro-
19 tection Agency Act of 2009, by the Agency;’’; and
20 (C) by striking subsection (d) and insert-
21 ing the following new subsection:.
22 ‘‘(d) REGULATIONS.—The Agency may prescribe reg-
23 ulations with respect to the collection of debts by any debt
hsrobinson on DSK69SOYB1PROD with BILLS

24 collector.’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00979 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 980
1 (4) SECTION 815.—Section 815 (15 U.S.C.
2 1692m) is amended—
3 (A) in the section heading, by striking
4 ‘‘Commission’’ and inserting ‘‘Agency’’;
5 and
6 (B) by striking ‘‘Commission’’ each place
7 such term appears and inserting ‘‘Agency’’.
8 (5) SECTION 817.—Section 817 (15 U.S.C.
9 1692o) is amended by striking ‘‘Commission’’ each
10 place such term appears and inserting ‘‘Agency’’.
11 (e) ELECTRONIC FUND TRANSFER ACT.—
12 (1) SECTION 903.—Section 903 of the Elec-
13 tronic Fund Transfer Act (15 U.S.C. 1693a) is
14 amended—
15 (A) by striking paragraph (3) and insert-
16 ing the following new paragraph:
17 ‘‘(3) the term ‘Agency’ means the Consumer Fi-
18 nancial Protection Agency;’’; and
19 (B) in paragraph (6), by striking ‘‘Board’’
20 and inserting ‘‘Agency’’.
21 (2) SECTION 904.—Section 904 of the Elec-
22 tronic Fund Transfer Act (15 U.S.C. 1693b) is
23 amended by striking ‘‘Board’’ each place such term
hsrobinson on DSK69SOYB1PROD with BILLS

24 appears and inserting ‘‘Agency’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00980 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 981
1 (3) SECTION 905.—Section 905 of the Elec-
2 tronic Fund Transfer Act (15 U.S.C. 1693c) is
3 amended by striking ‘‘Board’’ each place such term
4 appears and inserting ‘‘Agency’’.
5 (4) SECTION 906.—Section 906(b) of the Elec-
6 tronic Fund Transfer Act (15 U.S.C. 1693d(b)) is
7 amended by striking ‘‘Board’’ and inserting ‘‘Agen-
8 cy’’.
9 (5) SECTION 907.—Section 907(b) of the Elec-
10 tronic Fund Transfer Act (15 U.S.C. 1693e(b)) is
11 amended by striking ‘‘Board’’ and inserting ‘‘Agen-
12 cy’’.
13 (6) SECTION 908.—Section 908(f)(7) of the
14 Electronic Fund Transfer Act (15 U.S.C.
15 1693f(f)(7)) is amended by striking ‘‘Board’’ and in-
16 serting ‘‘Agency’’.
17 (7) SECTION 910.—Section 910(a)(1)(E) of the
18 Electronic Fund Transfer Act (15 U.S.C.
19 1693h(a)(1)(E)) is amended by striking ‘‘Board’’
20 and inserting ‘‘Agency’’.
21 (8) SECTION 911.—Section 911(b)(3) of the
22 Electronic Fund Transfer Act (15 U.S.C.
23 1693i(b)(3) is amended by striking ‘‘Board’’ and in-
hsrobinson on DSK69SOYB1PROD with BILLS

24 serting ‘‘Agency’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00981 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 982
1 (9) SECTION 915.—Section 915(d) of the Elec-
2 tronic Fund Transfer Act (15 U.S.C. 1693m(d)) is
3 amended—
4 (A) by striking ‘‘Board’’ each place such
5 term appears and inserting ‘‘Agency’’; and
6 (B) by striking ‘‘Federal Reserve System’’
7 and inserting ‘‘Consumer Financial Protection
8 Agency’’.
9 (10) SECTION 917.—Section 917 of the Elec-
10 tronic Fund Transfer Act (15 U.S.C. 1693o) is
11 amended—
12 (A) in subsection (a)—
13 (i) by striking ‘‘Compliance’’ and in-
14 serting ‘‘Subject to section 4202 of the
15 Consumer Financial Protection Agency Act
16 of 2009, compliance’’;
17 (ii) in paragraph (1)(A), by striking
18 ‘‘Office of the Comptroller of the Cur-
19 rency’’ and inserting ‘‘head of the agency
20 responsible for chartering and regulating
21 national banks’’; and
22 (iii) by striking paragraph (2) and in-
23 serting:
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(2) subtitle E of the Consumer Financial Pro-

25 tection Agency Act of 2009, by the Agency;’’; and

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00982 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 983
1 (B) by striking subsection (c) and insert-
2 ing the following new subsection:
3 ‘‘(c) OVERALL ENFORCEMENT AUTHORITY OF THE

4 FEDERAL TRADE COMMISSION.—Except to the extent

5 that enforcement of the requirements imposed under this
6 title is specifically committed to some other Government
7 agency under subsection (a) and subject to section 4202
8 of the Consumer Financial Protection Agency Act of 2009,
9 the Federal Trade Commission shall enforce such require-
10 ments. For the purpose of the exercise by the Federal
11 Trade Commission of its functions and powers under the
12 Federal Trade Commission Act, a violation of any require-
13 ment imposed under this title shall be deemed a violation
14 of a requirement imposed under that Act. All of the func-
15 tions and powers of the Federal Trade Commission under
16 the Federal Trade Commission Act are available to the
17 Commission to enforce compliance by any person subject
18 to the jurisdiction of the Commission with the require-
19 ments imposed under this title, irrespective of whether
20 that person is engaged in commerce or meets any other
21 jurisdictional tests in the Federal Trade Commission
22 Act.’’.
23 (11) SECTION 918.—Section 918 of the Elec-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tronic Fund Transfer Act (15 U.S.C. 1693p) is

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00983 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 984
1 amended by striking ‘‘Board’’ each place such term
2 appears and inserting ‘‘Agency’’.
3 (12) SECTION 919.—Section 919 of the Elec-
4 tronic Fund Transfer Act (15 U.S.C. 1693q) is
5 amended by striking ‘‘Board’’ each place such term
6 appears and inserting ‘‘Agency’’.
7 (13) SECTION 920.—Section 920 of the Elec-
8 tronic Fund Transfer Act (15 U.S.C. 1693r) is
9 amended by striking ‘‘Board’’ each place such term
10 appears and inserting ‘‘Agency’’.
11 (f) AMENDMENTS TO HOEPA RELATING TO THE

12 TRUTH IN LENDING ACT.—Section 158 of the Home

13 Ownership and Equity Protection Act of 1994 (15 U.S.C.
14 1601 nt.) (relating to hearings on home equity lending)
15 is amended—
16 (1) in subsection (a), by striking ‘‘Board of
17 Governors of the Federal Reserve System, in con-
18 sultation with the Consumer Advisory Council of the
19 Board,’’ and inserting ‘‘Consumer Financial Protec-
20 tion Agency, in consultation with the Advisory
21 Board to the Agency’’; and
22 (2) in subsection (b), by striking ‘‘Board of
23 Governors of the Federal Reserve System’’ and in-
hsrobinson on DSK69SOYB1PROD with BILLS

24 serting ‘‘Consumer Financial Protection Agency’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00984 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 985
1 (g) AMENDMENT TO THE FAIR AND ACCURATE
2 CREDIT TRANSACTIONS ACT OF 2003 RELATING TO THE

3 FAIR CREDIT REPORTING ACT.—Section 214(b)(1) of the

4 Fair and Accurate Credit Transactions Act of 2003 (15
5 U.S.C. 1681s–3 nt.) is amended by striking ‘‘The Federal
6 banking agencies, the National Credit Union Administra-
7 tion, and the Commission, with respect to the entities that
8 are subject to their respective enforcement authority under
9 section 621 of the Fair Credit Reporting Act and’’ and
10 inserting ‘‘The Consumer Financial Protection Agency,
11 with respect to a person subject to the enforcement au-
12 thority of the Agency, the Commodity Futures Trading
13 Commission, and’’.
14 SEC. 4805. AMENDMENTS TO THE EXPEDITED FUNDS

15 AVAILABILITY ACT.

16 (a) SECTION 605.—Section 605(f)(1) of the Expe-

17 dited Funds Availability Act (12 U.S.C. 4004(f)(1)) is
18 amended by inserting ‘‘, in consultation with the Director
19 of the Consumer Financial Protection Agency,’’after
20 ‘‘Board’’.
21 (b) SECTION 609.—Section 609(a) of the Expedited
22 Funds Availability Act (12 U.S.C. 4008(a)) is amended
23 by inserting ‘‘, in consultation with the Director of the
hsrobinson on DSK69SOYB1PROD with BILLS

24 Consumer Financial Protection Agency,’’after ‘‘Board’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00985 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 986
1 SEC. 4806. AMENDMENTS TO THE FEDERAL DEPOSIT IN-

2 SURANCE ACT.

3 (a) SECTION 8.—Section 8(t) the Federal Deposit In-

4 surance Act (12 U.S.C. 1818(t)), as amended by section
5 1111(b)(2), is further amended by adding at the end the
6 following new paragraph:
7 ‘‘(7) REFERRAL TO CONSUMER FINANCIAL PRO-

8 TECTION COMMISSION.—Each appropriate Federal

9 banking agency shall make a referral to the Con-
10 sumer Financial Protection Agency when the Fed-
11 eral banking agency has a reasonable belief that a
12 violation of an enumerated consumer law, as defined
13 in section 4202(e)(2) of the Consumer Financial
14 Protection Agency Act of 2009, by any insured de-
15 pository institution or institution-affiliated party
16 within the jurisdiction of that appropriate Federal
17 banking agency.’’.
18 (b) SECTION 43.—Section 43 of the Federal Deposit
19 Insurance Act (12 U.S.C. 1831t) is amended—
20 (1) in subsection (c), by striking ‘‘Federal
21 Trade Commission’’ and inserting ‘‘Agency’’;
22 (2) in subsection (d), by striking ‘‘Federal
23 Trade Commission’’ and inserting ‘‘Agency’’;
hsrobinson on DSK69SOYB1PROD with BILLS

24 (3) in subsection (e)—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00986 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 987
1 (A) in paragraph (2)(B), by striking ‘‘Fed-
2 eral Trade Commission’’ and inserting ‘‘Agen-
3 cy’’; and
4 (B) by adding at the end the following new
5 paragraph:
6 ‘‘(5) AGENCY.—The term ‘Agency’ means the
7 Consumer Financial Protection Agency.’’.
8 (c) SECTION 43(f).—Section 43(f) of the Federal De-
9 posit Insurance Act (12 U.S.C. 1831t(f)) is amended—
10 (1) by striking paragraph (1) and inserting the
11 following new paragraph:
12 ‘‘(1) LIMITED ENFORCEMENT AUTHORITY.—

13 Compliance with the requirements of subsections (b),

14 (c) and (e), and any regulation prescribed or order
15 issued under such subsection, shall be enforced
16 under the Consumer Financial Protection Agency
17 Act of 2009 by the Agency with respect to any per-
18 son (and without regard to the provision of a con-
19 sumer financial product or service).’’; and
20 (2) in paragraph (2), by striking subparagraph
21 (C) and inserting the following new subparagraph:
22 ‘‘(C) LIMITATION ON STATE ACTION

23 WHILE FEDERAL ACTION PENDING.—If the

hsrobinson on DSK69SOYB1PROD with BILLS

24 Agency has instituted an enforcement action for

25 a violation of this section, no appropriate State

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00987 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 988
1 supervisory may, during the pendency of such
2 action, bring an action under this section
3 against any defendant named in the complaint
4 of the Agency for any violation of this section
5 that is alleged in that complaint.’’.
6 SEC. 4807. AMENDMENTS TO THE GRAMM-LEACH-BLILEY

7 ACT.

8 (a) SECTION 504.—Section 504(a)(1) of the Gramm-

9 Leach-Bliley Act (15 U.S.C. 6804(a)(1)) is amended—
10 (1) by striking ‘‘The Federal banking agencies,
11 the National Credit Union Administration, the Sec-
12 retary of the Treasury,’’ and inserting ‘‘The Con-
13 sumer Financial Protection Agency and’’; and
14 (2) by striking ‘‘, and the Federal Trade Com-
15 mission’’.
16 (b) SECTION 505.—
17 (1) Section 505(a) of the Gramm-Leach-Bliley
18 Act (15 U.S.C. 6805(a)) is amended—
19 (A) in the matter preceding paragraph (1),
20 by striking ‘‘This subtitle and the regulations
21 prescribed thereunder shall be enforced by’’ and
22 inserting ‘‘Subject to section 4202 of the Con-
23 sumer Financial Protection Agency Act of
hsrobinson on DSK69SOYB1PROD with BILLS

24 2009, this subtitle and the regulations pre-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00988 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 989
1 scribed under this title shall be enforced by the
2 Consumer Financial Protection Agency,’’; and
3 (B) by inserting after paragraph (7) the
4 following new paragraph:
5 ‘‘(8) Under the Consumer Financial Protection
6 Agency Act of 2009, by the Consumer Financial
7 Protection Agency in the case of financial institu-
8 tions and other covered persons and service pro-
9 viders subject to the jurisdiction of the Agency
10 under that Act, but not with respect to the stand-
11 ards under section 501.’’.
12 (2) Section 505(b)(1) of the Gramm-Leach-Bli-
13 ley Act (15 U.S.C. 6805(b)(1)) is amended by in-
14 serting ‘‘, other than the Consumer Financial Pro-
15 tection Agency,’’ after ‘‘described in subsection (a)’’.
16 SEC. 4808. AMENDMENTS TO THE HOME MORTGAGE DIS-

17 CLOSURE ACT OF 1975.

18 (a) SECTION 303.—Section 303 of the Home Mort-

19 gage Disclosure Act of 1975 (12 U.S.C. 2802) is amend-
20 ed—
21 (1) by redesignating paragraphs (1), (2), (3),
22 (4), (5), and (6) as paragraphs (2), (3), (4), (5),
23 (6), and (7), respectively; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) by inserting before paragraph (2) (as so re-

25 designated) the following new paragraph:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00989 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 990
1 ‘‘(1) The term ‘Agency’ means the Consumer
2 Financial Protection Agency.’’.
3 (b) UNIVERSAL AMENDMENT RELATING TO AGEN-
4 CY.—Except as provided in subsections (c), (d), (e), and
5 (f), the Home Mortgage Disclosure Act of 1975 (12
6 U.S.C. 2801–11) is amended by striking ‘‘Board’’ each
7 place such term appears and inserting ‘‘Agency’’.
8 (c) SECTION 304.—Section 304 of the Home Mort-
9 gage Disclosure Act of 1975 (12 U.S.C. 2803(h)) is
10 amended—
11 (1) in subsection (b)—
12 (A) by striking ‘‘and’’ after the semicolon
13 at the end of paragraph (3);
14 (B) by striking ‘‘and gender’’ in paragraph
15 (4), and inserting ‘‘age, and gender’’;
16 (C) by striking the period at the end of
17 paragraph (4) and inserting a semicolon; and
18 (D) by inserting after paragraph (4) the
19 following new paragraphs:
20 ‘‘(5) the number and dollar amount of mort-
21 gage loans grouped according to the following meas-
22 urements:
23 ‘‘(A) the total points and fees payable at
hsrobinson on DSK69SOYB1PROD with BILLS

24 origination in connection with the mortgage as

25 determined by the Agency, taking into account

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00990 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 991
1 section 103(aa)(4) of the Truth in Lending Act
2 (15 U.S.C. 1602(aa)(4));
3 ‘‘(B) the difference between the annual
4 percentage rate associated with the loan and a
5 benchmark rate or rates for all loans;
6 ‘‘(C) the term in months of any prepay-
7 ment penalty or other fee or charge payable on
8 repayment of some portion of principal or the
9 entire principal in advance of scheduled pay-
10 ments; and
11 ‘‘(D) such other information as the Agency
12 may require; and
13 ‘‘(6) the number and dollar amount of mort-
14 gage loans and completed applications grouped ac-
15 cording to the following measurements:
16 ‘‘(A) the value of the real property pledged
17 or proposed to be pledged as collateral;
18 ‘‘(B) the actual or proposed term in
19 months of any introductory period after which
20 the rate of interest may change;
21 ‘‘(C) the presence of contractual terms or
22 proposed contractual terms that would allow the
23 mortgagor or applicant to make payments other
hsrobinson on DSK69SOYB1PROD with BILLS

24 than fully-amortizing payments during any por-

25 tion of the loan term;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00991 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 992
1 ‘‘(D) the actual or proposed term in
2 months of the mortgage loan;
3 ‘‘(E) the channel through which applica-
4 tion was made, including retail, broker, and
5 other relevant categories;
6 ‘‘(F) as the Agency may determine to be
7 appropriate, a unique identifier that identifies
8 the loan originator as set forth in section 1503
9 of the Secure and Fair Enforcement for Mort-
10 gage Licensing Act of 2008;
11 ‘‘(G) as the Agency may determine to be
12 appropriate, a universal loan identifier;
13 ‘‘(H) as the Agency may determine to be
14 appropriate, the parcel number that cor-
15 responds to the real property pledged or pro-
16 posed to be pledged as collateral;
17 ‘‘(I) the credit score of mortgage appli-
18 cants and mortgagors in such form as the
19 Agency may prescribe, except that the Agency
20 shall modify or require modification of credit
21 score data that is or will be available to the
22 public to protect the compelling privacy interest
23 of the mortgage applicant or mortgagors; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(J) such other information as the Agency

25 may require.’’;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00992 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 993
1 (2) by striking subsection (h) and inserting the
2 following new subsection:
3 ‘‘(h) SUBMISSION TO AGENCIES.—
4 ‘‘(1) IN GENERAL.—The data required to be
5 disclosed under subsection (b) shall be submitted to
6 the Agency or to the appropriate agency for any in-
7 stitution reporting under this title, in accordance
8 with regulations prescribed by the Agency. Institu-
9 tions will not be required to report new data re-
10 quired under section 4808(c) before the first Janu-
11 ary 1 that occurs after the end of the 9-month pe-
12 riod beginning on the date that regulations pre-
13 scribed by the Agency are prescribed in final form.
14 ‘‘(2) REGULATIONS.—Notwithstanding the re-
15 quirement of section 304(a)(2)(A) for disclosure by
16 census tract, the Agency, in cooperation with other
17 appropriate regulators, including—
18 ‘‘(A) the head of the agency responsible for
19 chartering and regulating national banks for
20 national banks and Federal branches, Federal
21 agencies of foreign banks, and savings associa-
22 tions;
23 ‘‘(B) the Federal Deposit Insurance Cor-
hsrobinson on DSK69SOYB1PROD with BILLS

24 poration for depository institutions insured by

25 the Federal Deposit Insurance Corporation

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00993 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 994
1 (other than members of the Federal Reserve
2 System, Federal savings associations, and sav-
3 ings and loan holding companies) and insured
4 State branches of foreign banks;
5 ‘‘(C) the Director of the Office of Thrift
6 Supervision for Federal savings associations
7 and savings and loan holding companies;
8 ‘‘(D) the National Credit Union Adminis-
9 tration Board for credit unions; and
10 ‘‘(E) the Secretary of Housing and Urban
11 Development for other lending institutions not
12 regulated by an agency referred to in subpara-
13 graphs (A), (B), (C), or (D),
14 shall develop regulations prescribing the format for
15 such disclosures, the method for submission of the
16 data to the appropriate regulatory agency, and the
17 procedures for disclosing the information to the pub-
18 lic.
19 ‘‘(3) REQUIRED DISCLOSURES.—The regula-
20 tions prescribed under paragraph (2) shall require
21 the collection of data required to be disclosed under
22 subsection (b) with respect to loans sold by each in-
23 stitution reporting under this title, and, in addition,
hsrobinson on DSK69SOYB1PROD with BILLS

24 shall require disclosure of the class of the purchaser

25 of such loans.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00994 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 995
1 ‘‘(4) ADDITIONAL DATA OR EXPLANATIONS.—

2 Any reporting institution may submit in writing to

3 the Agency or to the appropriate agency such addi-
4 tional data or explanations as it deems relevant to
5 the decision to originate or purchase mortgage
6 loans.’’;
7 (3) in subsection (i), by striking ‘‘subsection
8 (b)(4)’’ and inserting ‘‘paragraphs (4), (5), and (6)
9 of subsection (b)’’;
10 (4) in subsection (j)—
11 (A) by striking ‘‘(as’’ where such term ap-
12 pears in paragraph (1) and inserting ‘‘(con-
13 taining loan-level and application-level informa-
14 tion relating to disclosures required under sub-
15 sections (a) and (b) and as otherwise’’;
16 (B) by striking ‘‘in the format in which
17 such information is maintained by the institu-
18 tion’’ where such term appears in paragraph
19 (2)(A), and inserting ‘‘in such formats as the
20 Agency may require’’; and
21 (C) by striking paragraph (3) and insert-
22 ing the following new paragraph:
23 ‘‘(3) CHANGE OF FORM NOT REQUIRED.—A de-
hsrobinson on DSK69SOYB1PROD with BILLS

24 pository institution meets the disclosure requirement

25 of paragraph (1) if the institution provides the infor-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00995 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 996
1 mation required under such paragraph in such for-
2 mats as the Agency may require.’’; and
3 (5) by striking paragraph (2) of subsection (m)
4 and inserting the following new paragraph:
5 ‘‘(2) FORM OF INFORMATION.—In complying
6 with paragraph (1), a depository institution shall
7 provide the person requesting the information with
8 a copy of the information requested in such formats
9 as the Agency may require.’’.
10 (d) SECTION 305.—Section 305 of the Home Mort-
11 gage Disclosure Act of 1975 (12 U.S.C. 2804) is amend-
12 ed—
13 (1) by striking subsection (b) and inserting the
14 following new subsection:
15 ‘‘(b) POWERS OF CERTAIN OTHER AGENCIES.—Com-
16 pliance with the requirements imposed under this title
17 shall be enforced under—
18 ‘‘(1) section 8 of the Federal Deposit Insurance
19 Act, in the case of—
20 ‘‘(A) national banks, and Federal branches
21 and Federal agencies of foreign banks, by the
22 head of the agency responsible for chartering
23 and regulating national banks;
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(B) member banks of the Federal Reserve

25 System (other than national banks), branches

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00996 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 997
1 and agencies of foreign banks (other than Fed-
2 eral branches, Federal agencies, and insured
3 State branches of foreign banks), commercial
4 lending companies owned or controlled by for-
5 eign banks, and organizations operating under
6 section 25 or 25(a) of the Federal Reserve Act,
7 by the Board;
8 ‘‘(C) depository institutions insured by the
9 Federal Deposit Insurance Corporation (other
10 than members of the Federal Reserve System,
11 Federal savings associations, and savings and
12 loan holding companies) and insured State
13 branches of foreign banks, by the Board of Di-
14 rectors of the Federal Deposit Insurance Cor-
15 poration; and
16 ‘‘(D) Federal savings associations, and
17 savings and loan holding companies, by the Di-
18 rector of the Office of Thrift Supervision;
19 ‘‘(2) subtitle E of the Consumer Financial Pro-
20 tection Agency Act of 2009, by the Agency;
21 ‘‘(3) the Federal Credit Union Act, by the Ad-
22 ministrator of the National Credit Union Adminis-
23 tration with respect to any credit union; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(4) other lending institutions, by the Secretary

25 of Housing and Urban Development. The terms

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00997 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 998
1 used in paragraph (1) that are not defined in this
2 title or otherwise defined in section 3(s) of the Fed-
3 eral Deposit Insurance Act (12 U.S.C. 1813(s))
4 shall have the meaning given to them in section 1(b)
5 of the International Banking Act of 1978 (12 U.S.C.
6 3101).
7 The terms used in paragraph (1) that are not defined in
8 this title or otherwise defined in section 3(s) of the Federal
9 Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the
10 meaning given to them in section 1(b) of the International
11 Banking Act of 1978.’’; and
12 (2) by inserting at the end of section 305 the
13 following new subsection:
14 ‘‘(d) OVERALL ENFORCEMENT AUTHORITY OF THE

15 CONSUMER FINANCIAL PROTECTION AGENCY.—Subject

16 to section 4202 of the Consumer Financial Protection
17 Agency Act of 2009, enforcement of the requirements im-
18 posed under this title is committed to each of the agencies
19 under subsection (b). The Agency may exercise its authori-
20 ties under the Consumer Financial Protection Agency Act
21 of 2009 to exercise principal authority to examine and en-
22 force compliance by any person with the requirements
23 under this title.’’.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00998 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 999
1 (e) SECTION 306.—Subsection 306(b) of the Home
2 Mortgage Disclosure Act of 1975 (12 U.S.C. 2805(b)) is
3 amended to read as follows:
4 ‘‘(b) The Agency may, by regulation, exempt from the
5 requirements of this title any State chartered depository
6 institution within any State or subdivision of any state if
7 the Agency determines that, under the law of such State
8 or subdivision, that institution is subject to requirements
9 substantially similar to those imposed under this title, and
10 that such law contains adequate provisions for enforce-
11 ment. Notwithstanding any other provision of this sub-
12 section, compliance with the requirements imposed under
13 this subsection shall be enforced by the head of the agency
14 responsible for chartering and regulating national banks
15 under section 8 of the Federal Deposit Insurance Act in
16 the case of national banks and savings association the de-
17 posits of which are insured by the Federal Deposit Insur-
18 ance Corporation.’’.
19 (f) SECTION 307.—Section 307 of the Home Mort-
20 gage Disclosure Act of 1975 (12 U.S.C. 2806) is amended
21 to read as follows:
22 ‘‘SEC. 307. RESEARCH AND IMPROVED METHODS.

23 ‘‘(a) ENHANCED COMPLIANCE IN ECONOMICAL MAN-

hsrobinson on DSK69SOYB1PROD with BILLS

24 NER.—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 00999 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1000
1 ‘‘(1) IN GENERAL.—The Director of the Con-
2 sumer Financial Protection Agency, with the assist-
3 ance of the Secretary, the Director of the Bureau of
4 the Census, the Board of Governors of the Federal
5 Reserve System, the Federal Deposit Insurance Cor-
6 poration, and such other persons as the Consumer
7 Financial Protection Agency deems appropriate,
8 shall develop or assist in the improvement of, meth-
9 ods of matching addresses and census tracts to fa-
10 cilitate compliance by depository institutions in as
11 economical a manner as possible with the require-
12 ments of this title.
13 ‘‘(2) AUTHORIZATION OF APPROPRIATION.—

14 There is authorized to be appropriated such sums as

15 may be necessary to carry out this subsection.
16 ‘‘(3) AUTHORITY OF AGENCY.—The Director of
17 the Consumer Financial Protection Agency is au-
18 thorized to utilize, contract with, act through, or
19 compensate any person or agency in order to carry
20 out this subsection.
21 ‘‘(b) RECOMMENDATIONS TO THE CONGRESS.—The
22 Director of the Consumer Financial Protection Agency
23 shall recommend to the Committee on Financial Services
hsrobinson on DSK69SOYB1PROD with BILLS

24 of the House of Representatives and the Committee on

25 Banking, Housing, and Urban Affairs of the Senate such

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01000 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1001
1 additional legislation as the Director of the Consumer Fi-
2 nancial Protection Agency deems appropriate to carry out
3 the purpose of this title.’’.
4 SEC. 4809. AMENDMENTS TO DIVISION D OF THE OMNIBUS

5 APPROPRIATIONS ACT, 2009.

6 (a) Section 626(a) of title VI of division D of the

7 Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 nt.)
8 (as amended by the Credit Card Accountability Responsi-
9 bility and Disclosure Act of 2009) is amended—
10 (1) by striking by paragraph (1) and inserting
11 the following new paragraph: ‘‘(1) The Director of
12 the Consumer Financial Protection Agency shall
13 have authority to prescribe regulations with respect
14 to mortgage loans in accordance with section 553 of
15 title 5, United States Code. Such rulemaking shall
16 relate to unfair or deceptive acts or practices regard-
17 ing mortgage loans, which may include unfair or de-
18 ceptive acts or practices involving loan modification
19 and foreclosure rescue services. Any violation of a
20 regulation prescribed under this subsection shall be
21 treated as a violation of a regulation prohibiting un-
22 fair, deceptive, or abusive acts or practices under the
23 Consumer Financial Protection Agency Act of
hsrobinson on DSK69SOYB1PROD with BILLS

24 2009.’’;
25 (2) by striking paragraph (2);

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01001 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1002
1 (3) by striking paragraph (3); and
2 (4) by striking paragraph (4) and inserting the
3 following new paragraph:
4 ‘‘(2) The Director of the Consumer Financial Protec-
5 tion Agency shall enforce the regulations issued under
6 paragraph (1) in the same manner, by the same means,
7 and with the same jurisdiction, powers, and duties as
8 though all applicable terms and provisions of the Con-
9 sumer Financial Protection Agency Act of 2009 were in-
10 corporated into and made part of this section.’’.
11 (b) Section 626(b) of title VI of division D of the
12 Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 nt.)
13 (as amended by the Credit Card Accountability Responsi-
14 bility and Disclosure Act of 2009) is amended by striking
15 ‘‘primary Federal regulator’’ each place it appears and in-
16 serting ‘‘Consumer Financial Protection Agency’’.
17 SEC. 4810. AMENDMENTS TO THE HOMEOWNERS PROTEC-

18 TION ACT OF 1998.

19 Section 10 of the Homeowners Protection Act of

20 1998 (12 U.S.C. 4909) is amended—
21 (1) in the matter preceding paragraph (1) of
22 subsection (a), by striking ‘‘Compliance’’ and insert-
23 ing ‘‘Subject to section 4202 of the Consumer Fi-
hsrobinson on DSK69SOYB1PROD with BILLS

24 nancial Protection Agency Act of 2009, compliance’’;

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01002 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1003
1 (2) in subsection (a)(2), by striking ‘‘and’’ after
2 the semicolon at the end;
3 (3) in subsection (a)(3), by striking the period
4 at the end and inserting ‘‘; and’’;
5 (4) by inserting after subsection (a)(3), the fol-
6 lowing new paragraph:
7 ‘‘(4) subtitle E of the Consumer Financial Pro-
8 tection Agency Act of 2009, by the Consumer Fi-
9 nancial Protection Agency.’’; and.
10 (5) in subsection (b)(2), by inserting ‘‘, subject
11 to section 4202 of the Consumer Financial Protec-
12 tion Agency Act of 2009’’ before the period at the
13 end.
14 SEC. 4811. AMENDMENTS TO THE REAL ESTATE SETTLE-

15 MENT PROCEDURES ACT OF 1974.

16 (a) SECTION 3.—Section 3 of the Real Estate Settle-

17 ment Procedures Act of 1974 (12 U.S.C. 2602) is amend-
18 ed—
19 (1) in paragraph (7), by striking ‘‘and’’ after
20 the semicolon at the end;
21 (2) in paragraph (8), by striking the period at
22 the end and inserting ‘‘; and’’; and
23 (3) by adding at the end the following new
hsrobinson on DSK69SOYB1PROD with BILLS

24 paragraph

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01003 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1004
1 ‘‘(9) the term ‘Agency’ means the Consumer Fi-
2 nancial Protection Agency.’’.
3 (b) SECTION 4.—Section 4 of the Real Estate Settle-
4 ment Procedures Act of 1974 (12 U.S.C. 2603) is amend-
5 ed—
6 (1) in subsection (a), by striking the first sen-
7 tence and inserting the following: ‘‘The Agency shall
8 publish a single, integrated disclosure for mortgage
9 loan transactions, including real estate settlement
10 cost statements, which include the disclosure re-
11 quirements of this title, in conjunction with the dis-
12 closure requirements of the Truth in Lending Act
13 (15 U.S.C. 1601 note et seq.) that, taken together,
14 may apply to transactions subject to both or either
15 law. The purpose of such model disclosure shall be
16 to facilitate compliance with the disclosure require-
17 ments of those titles, and to aid the borrower or les-
18 see in understanding the transaction by utilizing
19 readily understandable language to simplify the tech-
20 nical nature of the disclosures.’’;
21 (2) by striking ‘‘Secretary’’ each place such
22 term appears and inserting ‘‘Agency’’; and
23 (3) by striking ‘‘form’’ each place such term ap-
hsrobinson on DSK69SOYB1PROD with BILLS

24 pears and inserting ‘‘forms’’.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01004 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1005
1 (c) SECTION 5.—Section 5 of the Real Estate Settle-
2 ment Procedures Act of 1974 (12 U.S.C. 2604) is amend-
3 ed—
4 (1) by striking ‘‘Secretary’’ each place such
5 term appears, and inserting ‘‘Agency’’; and
6 (2) by striking the first sentence of subsection
7 (a), and inserting ‘‘The Agency shall prepare and
8 distribute booklets jointly complying with the re-
9 quirements of the Truth in Lending Act (15 U.S.C.
10 1601 note et seq.) and the provisions of this title,
11 in order to help persons borrowing money to finance
12 the purchase of residential real estate better to un-
13 derstand the nature and costs of real estate settle-
14 ment services.’’.
15 (d) SECTION 6.—Section 6(j)(3) of the Real Estate
16 Settlement Procedures Act of 1974 (12 U.S.C. 2605(j)(3))
17 is amended—
18 (1) by striking ‘‘Secretary’’ and inserting ‘‘Di-
19 rector of the Agency’’; and
20 (2) by striking ‘‘by regulations that shall take
21 effect not later than April 20, 1991,’’ and inserting
22 ‘‘by regulation,’’.
23 (e) SECTION 7.—Section 7 of the Real Estate Settle-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ment Procedures Act of 1974 (12 U.S.C. 2606) is amend-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01005 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1006
1 ed by striking ‘‘Secretary’’ and inserting ‘‘the Director of
2 the Agency’’.
3 (f) SECTION 8.—Section 8 of the Real Estate Settle-
4 ment Procedures Act of 1974 (12 U.S.C. 2607) is amend-
5 ed—
6 (1) in subsection (c)(5), by striking ‘‘prescribed
7 by the Secretary’’ and inserting ‘‘prescribed by the
8 Director of the Agency’’; and
9 (2) in subsection (d)(4)—
10 (A) by striking ‘‘The Secretary,’’ and in-
11 serting ‘‘The Agency, the Secretary,’’; and
12 (B) by adding at the end the following new
13 sentence: ‘‘However, to the extent that a Fed-
14 eral law authorizes the Agency and other Fed-
15 eral and State agencies to enforce or administer
16 the law, the Agency shall have primary author-
17 ity to enforce or administer that Federal law in
18 accordance with section 4202 of the Consumer
19 Financial Protection Agency Act of 2009.’’.
20 (g) SECTION 10.—Section 10(d) of the Real Estate
21 Settlement Procedures Act of 1974 (12 U.S.C. 2609(d))
22 is amended by striking ‘‘Secretary’’ and inserting ‘‘Agen-
23 cy’’.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (h) SECTION 16.—Section 16 of the Real Estate Set-

25 tlement Procedures Act of 1974 (12 U.S.C. 2614) is

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01006 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1007
1 amended by inserting ‘‘the Agency,’’ before ‘‘the Sec-
2 retary’’.
3 (i) SECTION 18.—Section 18 of the Real Estate Set-
4 tlement Procedures Act of 1974 (12 U.S.C. 2616) is
5 amended by striking ‘‘Secretary’’ each place such term ap-
6 pears and inserting ‘‘Agency’’.
7 (j) SECTION 19.—Section 19 of the Real Estate Set-
8 tlement Procedures Act of 1974 (12 U.S.C. 2617) is
9 amended—
10 (1) in the section heading, by striking ‘‘SEC-
11 RETARY’’ and inserting ‘‘AGENCY’’; and
12 (2) by striking ‘‘Secretary’’ each place such
13 term appears and inserting ‘‘Agency’’.
14 SEC. 4812. AMENDMENTS TO THE RIGHT TO FINANCIAL

15 PRIVACY ACT OF 1978.

16 (a) AMENDMENTS TO SECTION 1101.—Section 1101

17 of the Right to Financial Privacy Act of 1978 (12 U.S.C.
18 3401) is amended—
19 (1) by striking paragraph (1) and inserting the
20 following new paragraph:
21 ‘‘(1) ‘financial institution’ means any bank, sav-
22 ings association, card issuer as defined in section
23 103(n) of the Truth in Lending Act, credit union, or
hsrobinson on DSK69SOYB1PROD with BILLS

24 consumer finance institution located in any State or

25 territory of the United States, the District of Colum-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01007 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1008
1 bia, Puerto Rico, Guam, American Samoa, or the
2 Virgin Islands;’’; and
3 (2) in paragraph (7), by inserting after sub-
4 paragraph (A) the following new subparagraph:
5 ‘‘(B) the Consumer Financial Protection
6 Agency;’’.
7 (b) AMENDMENTS TO SECTION 1112.—Section
8 1112(e) of the Right to Financial Privacy Act of 1978
9 (12 U.S.C. 3412) is amended by striking ‘‘and the Com-
10 modity Futures Trading Commission is permitted’’ and in-
11 serting ‘‘the Commodity Futures Trading Commission,
12 and the Consumer Financial Protection Agency is per-
13 mitted’’.
14 (c) AMENDMENTS TO SECTION 1113.—Section 1113
15 of the Right to Financial Privacy Act of 1978 (12 U.S.C.
16 3413) is amended by adding at the end the following new
17 subsection—
18 ‘‘(r) DISCLOSURE TO THE CONSUMER FINANCIAL
19 PROTECTION AGENCY.—Nothing in this chapter shall
20 apply to the examination by or disclosure to the Consumer
21 Financial Protection Agency of financial records or infor-
22 mation in the exercise of its authority with respect to a
23 financial institution.’’.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01008 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1009
1 SEC. 4813. AMENDMENTS TO THE SECURE AND FAIR EN-

2 FORCEMENT FOR MORTGAGE LICENSING ACT

3 OF 2008.

4 (a) SECTION 1503.—Section 1503 of the Secure and

5 Fair Enforcement for Mortgage Licensing Act of 2008 (12
6 U.S.C. 5102) is amended—
7 (1) by striking paragraph (9);
8 (2) by redesignating paragraph (1) as para-
9 graph (4), and transferring paragraph (4) (as so re-
10 designated) and inserting such paragraph after
11 paragraph (3) (as added by paragraph (5));
12 (3) by redesignating paragraphs (3), (4), (5),
13 (6), (7), (8), (10), (11), and (12) as paragraphs (5),
14 (6), (7), (8), (9), (10), (11), (12), and (13), respec-
15 tively;
16 (4) by inserting before paragraph (2) the fol-
17 lowing new paragraph:
18 ‘‘(1) AGENCY.—The term ‘Agency’ means the
19 Consumer Financial Protection Agency.’’; and
20 (5) by inserting after paragraph (2) the fol-
21 lowing new paragraph:
22 ‘‘(3) DIRECTOR.—The term ‘Director’ means
23 the Director of the Agency.’’.
hsrobinson on DSK69SOYB1PROD with BILLS

24 (b) UNIVERSAL AMENDMENTS RELATING TO AGEN-

25 CY.—The Secure and Fair Enforcement for Mortgage Li-

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01009 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1010
1 censing Act of 2008 (12 U.S.C. 5101 et seq.) is amend-
2 ed—
3 (1) by striking ‘‘Federal banking agencies’’
4 each place such term appears (other than in sub-
5 section (a)(4) (as so redesignated by subsection (a),
6 relating to the definition of Federal banking agen-
7 cies) or in connection with a reference that is specifi-
8 cally amended by another provision of this section)
9 and inserting ‘‘Agency’’; and
10 (2) by striking ‘‘Secretary’’ each place such
11 term appears (other than in connection with a ref-
12 erence that is specifically amended by another provi-
13 sion of this section) and inserting ‘‘Director’’.
14 (c) SECTION 1507.—Section 1507 of the Secure and
15 Fair Enforcement for Mortgage Licensing Act of 2008 (12
16 U.S.C. 5106) is amended—
17 (1) in subsection (a)—
18 (A) by striking paragraph (1) and insert-
19 ing the following new paragraph:
20 ‘‘(1) IN GENERAL.—The Agency shall develop
21 and maintain a system for registering employees of
22 any depository institution, employees of a subsidiary
23 that is owned and controlled by a depository institu-
hsrobinson on DSK69SOYB1PROD with BILLS

24 tion and regulated by a Federal banking agency, or

25 employees of an institution regulated by the Farm

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01010 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1011
1 Credit Administration, as registered loan originators
2 with the Nationwide Mortgage Licensing System and
3 Registry. The system shall be implemented before
4 July 30, 2010.’’; and
5 (B) by striking ‘‘appropriate Federal bank-
6 ing agency and the Farm Credit Administra-
7 tion’’ in paragraph (2) and inserting ‘‘Agency’’;
8 and
9 (2) in subsection (b), by striking ‘‘Federal
10 banking agencies, through the Financial Institutions
11 Examination Council, and the Farm Credit Adminis-
12 tration’’ each place such term appears and inserting
13 ‘‘Agency’’.
14 (d) SECTION 1508.—
15 (1) IN GENERAL.—Section 1508 of the Secure
16 and Fair Enforcement for Mortgage Licensing Act
17 of 2008 (12 U.S.C. 5107) is amended by adding at
18 the end the following new subsection—
19 ‘‘(f) REGULATIONS.—
20 ‘‘(1) IN GENERAL.—The Agency may prescribe
21 regulations setting minimum net worth or surety
22 bond requirements for residential mortgage loan
23 originators and minimum requirements for recovery
hsrobinson on DSK69SOYB1PROD with BILLS

24 funds paid into by loan originators.

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01011 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1012
1 ‘‘(2) FACTORS TAKEN INTO ACCOUNT.—Such

2 regulations shall take into account the need to pro-

3 vide originators adequate incentives to originate af-
4 fordable and sustainable mortgage loans as well as
5 the need to ensure a competitive origination market
6 that maximizes consumers’ access to affordable and
7 sustainable mortgage loans.’’.
8 (2) CLERICAL AMENDMENT.—The heading for
9 section 1508 of the Secure and Fair Enforcement
10 for Mortgage Licensing Act of 2008 is amended by
11 striking ‘‘SECRETARY OF HOUSING AND URBAN

12 DEVELOPMENT’’ and inserting ‘‘CONSUMER FI-

13 NANCIAL PROTECTION AGENCY’’.

14 (e) SECTION 1510.—Section 1510 of the Secure and

15 Fair Enforcement for Mortgage Licensing Act of 2008 (12
16 U.S.C. 5109) is amended to read as follows:
17 ‘‘SEC. 1510. FEES.

18 ‘‘The Agency and the Nationwide Mortgage Licensing

19 System and Registry may charge reasonable fees to cover
20 the costs of maintaining and providing access to informa-
21 tion from the Nationwide Mortgage Licensing System and
22 Registry, to the extent that such fees are not charged to
23 consumers for access to such system and registry.’’.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01012 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1013
1 (f) SECTION 1513.—Section 1513 of the Secure and
2 Fair Enforcement for Mortgage Licensing Act of 2008 (12
3 U.S.C. 5112) is amended to read as follows:
4 ‘‘SEC. 1513. LIABILITY PROVISIONS.

5 ‘‘The Agency, any State official or agency, or any or-

6 ganization serving as the administrator of the Nationwide
7 Mortgage Licensing System and Registry or a system es-
8 tablished by the Director under section 1509, or any offi-
9 cer or employee of any such entity, shall not by subject
10 to any civil action or proceeding for monetary damages
11 by reason of the good faith action or omission of any offi-
12 cer or employee of any such entity, while acting within
13 the scope of office or employment, relating to the collec-
14 tion, furnishing, or dissemination of information con-
15 cerning persons who are loan originators or are applying
16 for licensing or registration as loan originators.’’.
17 (g) SECTION 1514.—The heading for section 1514
18 of the Secure and Fair Enforcement for Mortgage Licens-
19 ing Act of 2008 (12 U.S.C. 5113) is amended by striking
20 ‘‘UNDER HUD BACKUP LICENSING SYSTEM’’ and in-
21 serting ‘‘BY THE AGENCY’’.
22 SEC. 4814. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

23 (a) SECTION 263.—Section 263 of the Truth in Sav-

hsrobinson on DSK69SOYB1PROD with BILLS

24 ings Act (12 U.S.C. 4302) is amended in subsection (b)

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01013 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1014
1 by striking ‘‘Board’’ each place such term appears and
2 inserting ‘‘Agency’’.
3 (b) SECTION 265.—Section 265 of the Truth in Sav-
4 ings Act (12 U.S.C. 4304) is amended by striking
5 ‘‘Board’’ each place such term appears and inserting
6 ‘‘Agency’’.
7 (c) SECTION 266.—Section 266(e) of the Truth in
8 Savings Act is amended (12 U.S.C. 4305) by striking
9 ‘‘Board’’ and inserting ‘‘Agency’’.
10 (d) SECTION 269.—Section 269 of the Truth in Sav-
11 ings Act (12 U.S.C. 4308) is amended by striking
12 ‘‘Board’’ each place such term appears and inserting
13 ‘‘Agency’’.
14 (e) SECTION 270.—Section 270 of the Truth in Sav-
15 ings Act (12 U.S.C. 4309) is amended—
16 (1) in subsection (a)—
17 (A) by striking ‘‘Compliance’’ and insert-
18 ing ‘‘Subject to section 4202 of the Consumer
19 Financial Protection Agency Act of 2009, com-
20 pliance’’;
21 (B) by striking subparagraph (A) of para-
22 graph (1) and inserting the following new sub-
23 paragraph:
hsrobinson on DSK69SOYB1PROD with BILLS

24 ‘‘(A) by the head of the agency responsible

25 for chartering and regulating national banks for

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01014 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1015
1 national banks, and Federal branches and Fed-
2 eral agencies of foreign banks;’’; and
3 (C) by adding at the end, the following
4 new paragraph:
5 ‘‘(3) subtitle E of the Consumer Financial Pro-
6 tection Agency Act of 2009, by the Agency.’’; and
7 (2) in subsection (c)—
8 (A) in the subsection heading, by striking
9 ‘‘BOARD’’ and insert ‘‘AGENCY’’; and
10 (B) by striking ‘‘Board’’ and inserting
11 ‘‘Agency’’.
12 (f) SECTION 272.—Section 272 of the Truth in Sav-
13 ings Act (12 U.S.C. 4311) is amended—
14 (1) in subsection (a), by striking ‘‘Board’’ and
15 inserting ‘‘Agency’’; and
16 (2) in subsection (b), by striking ‘‘regulation
17 prescribed by the Board’’ each place such term ap-
18 pears and inserting ‘‘regulation prescribed by the
19 Agency’’.
20 (g) SECTION 273.—Section 273 of the Truth in Sav-
21 ings Act (12 U.S.C. 4312) is amended in the last sentence
22 by striking ‘‘Board’’ and inserting ‘‘Agency’’.
23 (h) SECTION 274.—Section 274 of the Truth in Sav-
hsrobinson on DSK69SOYB1PROD with BILLS

24 ings Act (12 U.S.C. 4313) is amended—

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01015 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1016
1 (1) in paragraph (2) by striking ‘‘Board’’ and
2 inserting ‘‘Agency’’; and
3 (2) by striking paragraph (4) and inserting the
4 following new paragraph:
5 ‘‘(4) AGENCY.—The term ‘Agency’ means the
6 Consumer Financial Protection Agency.’’.
7 SEC. 4815. AMENDMENTS TO THE TELEMARKETING AND

8 CONSUMER FRAUD AND ABUSE PREVENTION

9 ACT.

10 (a) SECTION 3.—Section 3 of the Telemarketing and

11 Consumer Fraud and Abuse Prevention Act (15 U.S.C.
12 6102) is amended—
13 (1) in subsection (b), by inserting after the 2nd
14 sentence ‘‘In prescribing a regulation under this Act
15 that relates to the provision of a consumer financial
16 product or service that is subject to the Consumer
17 Financial Protection Agency Act, including any enu-
18 merated consumer law thereunder, the Commission
19 shall consult with the Consumer Financial Protec-
20 tion Agency regarding the consistency of a proposed
21 regulation with standards, purposes, or objectives
22 administered by the Consumer Financial Protection
23 Agency.’’; and
hsrobinson on DSK69SOYB1PROD with BILLS

24 (2) in subsection (c), by adding at the end

25 ‘‘Any violation of any regulation prescribed under

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01016 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1017
1 subsection (a) committed by a person subject to the
2 Consumer Financial Protection Agency Act shall be
3 treated as a violation of a regulation under section
4 4301 of the Consumer Financial Protection Agency
5 Act regarding unfair, deceptive, or abusive acts or
6 practices.’’.
7 (b) AMENDMENTS TO SECTION 4.—Section 4(d) of
8 the Telemarketing and Consumer Fraud and Abuse Pre-
9 vention Act (15 U.S.C. 6103(d)) is amended—
10 (1) in the subsection heading, by inserting after
11 ‘‘COMMISSION’’ the following: ‘‘OR THE CONSUMER
12 FINANCIAL PROTECTION AGENCY’’; and
13 (2) by inserting after ‘‘Commission’’ each place
14 such term appears ‘‘or the Consumer Financial Pro-
15 tection Agency’’.
16 (c) AMENDMENTS TO SECTION 5.—Section 5(c) of
17 the Telemarketing and Consumer Fraud and Abuse Pre-
18 vention Act (15 U.S.C. 6104(c)) is amended by inserting
19 after ‘‘Commission’’ each place such term appears ‘‘or the
20 Consumer Financial Protection Agency’’.
21 (d) AMENDMENT TO SECTION 6.—Section 6 of the
22 Telemarketing and Consumer Fraud and Abuse Preven-
23 tion Act (15 U.S.C. 6105) is amended by adding at the
hsrobinson on DSK69SOYB1PROD with BILLS

24 end the following new subsection:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01017 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1018
1 ‘‘(d) ENFORCEMENT BY CONSUMER FINANCIAL PRO-
2 TECTION AGENCY.—Except as otherwise provided in sec-
3 tions 3(d), 3(e), 4, and 5, this Act shall be enforced by
4 the Consumer Financial Protection Agency under subtitle
5 E of the Consumer Financial Protection Agency Act.’’.
6 SEC. 4816. MEMBERSHIP IN FINANCIAL LITERACY AND

7 EDUCATION COMMISSION.

8 Section 513(c)(1) of the Financial Literacy and Edu-

9 cation Improvement Act (20 U.S.C. 9702(c)(1)) is amend-
10 ed—
11 (1) in subparagraph (B), by striking ‘‘and’’ at
12 the end;
13 (2) by redesignating subparagraph (C) as sub-
14 paragraph (D); and
15 (3) by inserting after subparagraph (B) the fol-
16 lowing new subparagraph:
17 ‘‘(C) the Director of the Consumer Finan-
18 cial Protection Agency; and’’.
19 SEC. 4817. EFFECTIVE DATE.

20 The amendments made by sections 4803 through

21 4815 shall take effect on the designated transfer date.
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01018 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1019

1 Subtitle I—Improvements to the

2 Federal Trade Commission Act
3 SEC. 4901. AMENDMENTS TO THE FEDERAL TRADE COM-

4 MISSION ACT.

5 (a) Section 5(m)(1)(A) of the Federal Trade Com-

6 mission Act (15 U.S.C. 45(m)(1)(A)) is amended—
7 (1) by inserting ‘‘this Act or’’ after ‘‘violates’’
8 the first place such term appears; and
9 (2) by inserting ‘‘a violation of this Act or is’’
10 before ‘‘prohibited’’.
11 (b) Section 5 of the Federal Trade Commission Act
12 (15 U.S.C. 45) is amended by adding at the end thereof
13 the following new subsection:
14 ‘‘(o) UNLAWFUL ASSISTANCE.—It is unlawful for any
15 person, knowingly or recklessly, to provide substantial as-
16 sistance to another in violating any provision of this Act
17 or of any other Act enforceable by the Commission that
18 relates to unfair or deceptive acts or practices. Any such
19 violation shall constitute an unfair or deceptive act or
20 practice described in section 5(a)(1) of this Act.’’.
21 (c) Section 18 of the Federal Trade Commission Act
22 (15 U.S.C. 57a(b)) is amended—
23 (1) by amending subsection (b) to read as fol-
hsrobinson on DSK69SOYB1PROD with BILLS

24 lows:

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01019 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173
 1020
1 ‘‘(b) PROCEDURE APPLICABLE.—When prescribing a
2 rule under subsection (a)(1)(B) of this section, the Com-
3 mission shall proceed in accordance with section 553 of
4 Title 5 (without regard to any reference in such section
5 to sections 556 and 557 of such title).’’;
6 (2)(A) in subsection (d), by striking all that
7 precedes paragraph (3);
8 (B) by striking subsections (c), (f), (i), and (j);
9 and
10 (C) by redesignating subsections (e), (g) and
11 (h) as subsections (d), (e) and (f);
12 (3) by redesignating paragraph (3) of sub-
13 section (d) as subsection (c); and
14 (4) in subsection (d) (as redesignated)—
15 (A) in paragraph (1)(B), by striking ‘‘the
16 transcript required by subsection (c)(5),’’;
17 (B) in paragraph (3), by striking ‘‘error)’’
18 all that follows and inserting ‘‘error).’’; and
19 (C) in paragraph (5), by striking subpara-
20 graph (C).
hsrobinson on DSK69SOYB1PROD with BILLS

•HR 4173 IH

VerDate Nov 24 2008 22:04 Dec 02, 2009 Jkt 089200 PO 00000 Frm 01020 Fmt 6652 Sfmt 6201 E:\BILLS\H4173.IH H4173