[House Report 114-624]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
}
2d Session { 114-624
_______________________________________________________________________
FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2017
----------
R E P O R T
of the
COMMITTEE ON APPROPRIATIONS
together with
DISSENTING VIEWS
[TO ACCOMPANY H.R. 5485]
June 15, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2017
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-624
_______________________________________________________________________
FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2017
__________
R E P O R T
of the
COMMITTEE ON APPROPRIATIONS
together with
DISSENTING VIEWS
[TO ACCOMPANY H.R. 5485]
June 15, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_________
U.S. GOVERNMENT PUBLISHING OFFICE
20-395 WASHINGTON : 2016
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-624
======================================================================
FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2017
_______
June 15, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Crenshaw, from the Committee on Appropriations,
submitted the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 5485]
The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for financial services and general government
for the fiscal year ending September 30, 2017.
INDEX TO BILL AND REPORT
Page Number
Bill Report
Title I--Department of the Treasury........................ 2
7
Title II--Executive Office of the President and Funds
Appropriated to the President.......................... 30
28
Title III--The Judiciary................................... 44
38
Title IV--District of Columbia............................. 56
43
Title V--Independent Agencies.............................. 65
48
Administrative Conference of the United States............. 65
48
Bureau of Consumer Financial Protection.................... 65
48
Consumer Product Safety Commission......................... 85
53
Election Assistance Commission............................. 87
55
Federal Communications Commission.......................... 87
56
Federal Deposit Insurance Corporation...................... 88
60
Federal Election Commission................................ 89
61
Federal Labor Relations Authority.......................... 89
61
Federal Trade Commission................................... 90
62
General Services Administration............................ 91
63
Merit Systems Protection Board............................. 105
73
National Archives and Records Administration............... 105
73
National Credit Union Administration....................... 107
73
Office of Government Ethics................................ 107
75
Office of Personnel Management............................. 107
76
Office of Special Counsel.................................. 112
79
Postal Regulatory Commission............................... 113
79
Privacy and Civil Liberties Oversight Board................ 113
80
Securities and Exchange Commission......................... 114
80
Selective Service System................................... 115
83
Small Business Administration.............................. 116
83
United States Postal Service............................... 122
88
United States Tax Court.................................... 123
90
Title VI--General Provisions--This Act..................... 123
90
Title VII--General Provisions--Government-wide:
Departments, Agencies, and Corporations................ 148
94
Title VIII--General Provisions--District of Columbia....... 184
97
Title IX--Scholarships for Opportunity and Results Act..... 195
98
Title X--SEC Small Business Advocate Act................... 221
98
Title XI--Financial Institution Bankruptcy Act............. 235
98
Title XII--Additional General Provision--Spending Reduction
Account................................................ 265
98
House of Representatives Report Requirements...............
98
Dissenting Views...........................................
376
Highlights of the Bill
The Financial Services and General Government Subcommittee
has jurisdiction over a diverse group of agencies responsible
for regulating the financial and telecommunications industries;
collecting taxes and providing taxpayer assistance; supporting
the operations of the White House, the Federal Judiciary, and
the District of Columbia; managing Federal buildings; and
overseeing the Federal workforce. The activities of these
agencies impact nearly every American and are integral to the
operations of our government.
However, with the gross Federal debt growing in excess of
$19 trillion, the Subcommittee is committed to reducing the
cost and size of government. The bill provides a total of
$21,735,000,000 in discretionary budget authority for fiscal
year 2017 which is $1,500,000,000, or 6.5 percent, below the
fiscal year 2016 discretionary allocation. The bill is
$2,692,335,000, or 11 percent, below the Administration's
request.
TOTAL BUDGET AUTHORITY
($ in millions)
------------------------------------------------------------------------
FY 2016 FY 2017 FY 2017
Enacted Request Recommendation
------------------------------------------------------------------------
Discretionary................. 23,235 24,427 21,735
Mandatory..................... 21,512 21,937 21,937
------------------------------------------------------------------------
Internal Revenue Service
The Internal Revenue Service (IRS) revels in paying out
over $400 billion in refunds annually, but the respect and
affection of the American people is not for sale. The IRS
betrayed the trust of Americans when it became known that the
IRS inappropriately singled out certain tax-exempt groups for
extra scrutiny based on their political beliefs. The magnitude
of this betrayal cannot be overstated, but it is just one
incident--albeit a mammoth one--of the seemingly never-ending
torrent of IRS mismanagement.
To address the inappropriate scrutiny, the bill includes
language to:
Prohibit funds for finalizing any regulation
related to the standards used to determine the tax-exempt
status of a 501(c)(4) organization;
Prohibit funds for targeting groups for regulatory
scrutiny based on their ideological beliefs;
Prohibit funds for targeting citizens for
exercising their First Amendment rights;
Prohibit the White House from ordering the IRS to
determine the tax-exempt status of an organization;
Require compliance with the Federal Records Act,
which prohibits the destruction of official records;
Require IRS employees to be trained in the
impartial application of tax law; and
Provide the Treasury Inspector General for Tax
Administration (TIGTA) with $170 million to enhance its audit
and investigative oversight of the IRS.
The Committee is troubled by the IRS's willingness to
neglect taxpayers in need of assistance and by a recent
revelation of cybersecurity weaknesses. The IRS blames budget
cuts without acknowledging the degree of discretion it has to
spend funds relatively unencumbered. The Government
Accountability Office, however, has observed, ``Although
resources are constrained, IRS has flexibility in how it
allocates resources to ensure that limited resources are
utilized as effectively as possible . . . [magnifying] the
importance of strategically managing operations to make tough
choices about which services to continue providing and which
services to cut.'' The Committee strongly advises the IRS to
make improving the quality and security of customer service a
high priority and includes an additional $290,000,000 for this
purpose.
The Committee continues to be concerned with the IRS' role
in implementation of the Affordable Care Act and, in
particular, the individual mandate. At a time when the IRS has
demonstrated little ability to either self-police or self-
correct, the IRS has even more authority over Americans' health
coverage. The Committee finds this expansion of IRS authority
to be unacceptable and, therefore, prohibits funding to
implement the individual mandate and prohibits transfers from
the Department of Health and Human Services to fund the IRS'
implementation of the Affordable Care Act.
Small Business and Job Creation
The bill makes programs that support small businesses and
assist in private sector job creation a priority by providing
$157,064,000 for the Small Business Administration's business
loan program to support $28,500,000,000 in 7(a) lending and
$7,500,000,000 in 504 lending. The bill also provides
$125,000,000 for Small Business Development Centers,
$19,000,000 for Women's Business Centers, $31,000,000 for
Microloan Technical Assistance, and $250,000,000 for the
Treasury's Community Development Financial Institutions Fund
program. In support of small breweries and distilleries, the
bill provides $111,439,000 for the Alcohol and Tobacco Tax and
Trade Bureau, including additional funds for label and formula
processing and enforcement activities. The bill also requires
certain regulatory agencies to report to the Committee on their
efforts to eliminate duplicative, outdated and burdensome
regulations.
Law Enforcement and Counterterrorism
The bill provides $6,955,503,000 in discretionary funds for
the operations of the Federal Judiciary to fulfill their
statutory requirements to process criminal, civil, bankruptcy
and appellate cases; to supervise defendants and offenders
living in our communities; and provide defendant representation
to those that cannot afford it.
The bill continues to make combating illegal drugs a
priority by providing $253,000,000 for High Intensity Drug
Trafficking Areas, which is $56,590,000 above the
Administration's request, and $97,000,000 for the Drug-Free
Communities program, which is $8,470,000 above the
Administration's request.
For the District of Columbia, the bill provides
$274,541,000 for the operations of the District of Columbia
Courts and $246,386,000 for the supervision of offenders and
defendants, which are $140,000 and $1,622,000, respectively,
less than the request.
For Treasury's financial intelligence activities, the bill
provides $120,000,000 for the Office of Terrorism and Financial
Intelligence to enhance their capabilities to combat drug
lords, terrorists, weapons of mass destruction proliferators,
rogue nations and other threats. This is $3,000,000 above the
enacted level and the Administration's request. In addition,
the bill provides $116,000,000 for the Financial Crimes
Enforcement Network to support the financial intelligence
requirements of law enforcement and intelligence agencies.
Program Reductions and Terminations
In order to pay for the small business and law enforcement
priorities described above while reducing overall spending, the
Committee has reduced the operating expenses for many agencies
below the fiscal year 2016 level including: the Bureau of
Fiscal Service; the Internal Revenue Service; National Security
Council and Homeland Security Council; the Office of Management
and Budget (OMB); the Office of National Drug Control Policy--
Salaries and Expenses; OMB--Information and Technology
Oversight and Reform; the Court of Appeals for the Federal
Circuit; Fees for Jurors; Federal payments for Resident Tuition
Support; the Consumer Product Safety Commission; Election
Assistance Commission; the Federal Communications Commission;
the General Services Administration; the Privacy and Civil
Liberties Oversight Board; Securities and Exchange Commission;
the Small Business Administration--Disaster Loan
Administration; and the Postal Service.
In addition, the bill eliminates funding for several
programs including: Department of the Treasury--Department-Wide
Systems and Capital Investments; Executive Office of the
President-Unanticipated Needs; Federal payment for the District
of Columbia Water and Sewer Authority; the Harry S Truman
Scholarship Foundation; the Morris K. Udall and Stewart L.
Udall Foundation; and the Public Company and Accounting
Oversight Board's scholarship program.
OVERSIGHT AND ACCOUNTABILITY
In furtherance of the Committee's oversight
responsibilities and commitment to accountability, the
Committee has included the following language:
Makes the Office of Financial Research (OFR) and
the Consumer Financial Protection Bureau (CFPB) subject to the
appropriations process starting in fiscal year 2018.
Requires the CFPB to notify Congress when it
requests a transfer of funds from the Board of Governors of the
Federal Reserve System in fiscal year 2017.
Changes the leadership structure of the CPFB from
a single director to a five-member commission.
Prohibits the CFPB from outlawing pre-dispute
arbitration.
Prohibits the Financial Stability Oversight
Council from designating nonbanks as systemically important
financial institutions until it identifies the risks to
financial stability presented by the nonbank and allows the
nonbank to present a plan to modify its business, structure, or
operation to mitigate the identified risk prior to final
designation.
Requires additional reporting on mandatory
expenses from OFR, CFPB, the Office of Financial Stability and
the Judgment Fund.
Makes the General Services Administration provide
extensive reports on spending and activities.
Freezes pay for the Vice President and senior
Executive Branch political appointees.
Checks the expansion of Executive Branch
authorities by: prohibiting funds for signing statements that
abrogate existing law; prohibiting funds for Executive Orders
that contravene existing law; requiring budgetary impact
statements for new or revoked Executive Orders and Presidential
Memorandums; prohibits funding for so-called ``czars''; and
prohibiting changes in agency spending without the enactment of
an appropriations bill.
Rescinds unobligated balances from the Securities
and Exchange Commission's (SEC) mandatory reserve fund, making
the SEC live within the appropriation provided.
Prohibits the SEC from requiring firms to disclose
their political contributions.
Prohibits funds to be used in contravention of the
Federal Records Act.
Requires agencies to conduct investigations in
compliance with the Fourth Amendment.
Prohibits funds to implement Executive Order No.
13690 (entitled ``Establishing a Federal Flood Risk Management
Standard and a Process for Further Soliciting and Considering
Stakeholder Input'') until certain conditions are met.
Requires the Office of Management and Budget to
report on the costs of Dodd-Frank.
Prohibits the Federal Communications Commission
(FCC) from implementing, administering, or enforcing any rule
unless the FCC published the text of the rule at least 21 days
before a vote on the rule.
Prohibits the FCC from regulating rates for either
broadband or wireless internet providers.
Prohibits the FCC from implementing the net
neutrality order until certain court challenges are decided.
Prohibits the FCC from going forward with a
proposed rule on set-top boxes until a peer-reviewed study is
done by an academic institution and the FCC addresses concerns
expressed by stakeholders.
The Committee expects agencies to respond to Congressional
requests for information in the form and manner requested and
in a timely fashion. The process for handling Congressional
requests, on occasion, necessitates a negotiation of mutual
accommodation, but without resulting in delay or denial.
OPERATING PLAN AND REPROGRAMMING PROCEDURES
The Committee will continue to evaluate reprogrammings
proposed by agencies. Although reprogrammings may not change
either the total amount available in an account or the purposes
for which the appropriation is legally available, they
represent a significant departure from budget plans presented
to the Committee in an agency's budget justification and
supporting documents, which are the basis of this
appropriations Act. The Committee expects agencies'
reprogramming requests to explain thoroughly the reasons for
the reprogramming and to include an assessment of whether the
reprogramming will affect budget requirements for the
subsequent fiscal year.
Section 608 of this Act requires agencies or entities
funded by the Act to notify the Committee and obtain prior
approval from the Committee for any reprogramming of funds
that: (1) creates a new program; (2) eliminates a program,
project, or activity; (3) increases funds or personnel for any
program, project, or activity for which funds have been denied
or restricted by the Congress; (4) proposes to use funds
directed for a specific activity by either the House or Senate
Committees on Appropriations for a different purpose; (5)
augments existing programs, projects, or activities in excess
of $5,000,000 or 10 percent, whichever is less; (6) reduces
existing programs, projects, or activities by $5,000,000 or 10
percent, whichever is less; or (7) creates or reorganizes
offices, programs, or activities.
Additionally, the Committee expects to be promptly notified
of all reprogramming actions which involve less than the above-
mentioned amounts if such actions would have the effect of
significantly changing an agency's funding requirements in
future years, or if programs or projects specifically cited in
the Committee's reports are affected by the reprogramming.
Reprogrammings meeting these criteria must be approved by the
Committee regardless of the amount proposed to be reallocated.
Section 608 also requires agencies to consult with the
Committees on Appropriations prior to any significant
reorganization or restructuring of offices, programs, or
activities. This provision applies regardless of whether the
reorganization or restructuring involves a reprogramming of
funds. Agencies are encouraged to consult with the Committees
early in the process so that any questions or concerns the
Committees may have can be addressed in a timely manner.
Agencies are directed under section 608 to submit operating
plans for the Committee's review within 60 days of the bill's
enactment. Each operating plan should include: (1) a table for
each appropriation with a separate column to display the
President's budget request, adjustments made by Congress,
adjustments due to enacted rescissions, if appropriate, and the
fiscal year enacted level; (2) a delineation in the table for
each appropriation both by object class and program, project,
and activity as detailed in the budget appendix for the
respective appropriation; and (3) an identification of items of
special congressional interest.
TITLE I--DEPARTMENT OF THE TREASURY
Departmental Offices
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $222,500,000
Budget request, fiscal year 2017*..................... 334,376,000
Recommended in the bill............................... 250,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +27,500,000
Budget request, fiscal year 2017.................... -84,376,000
*Funding for the Office of Terrorism and Financial Intelligence was
requested within the Departmental Office heading. Funding for the
Department-wide Systems and Capital Investments Program and a new
Cybersecurity Enhancement Account was requested as a separate heading.
The Departmental Offices' function in the Department of the
Treasury is to support the Secretary of the Treasury in his
capacity as the chief operating executive of the Department and
in his role in determining the tax, economic, and financial
management policies of the Federal Government. The Secretary's
responsibilities funded by the Salaries and Expenses
appropriation include: recommending and implementing domestic
and international economic and tax policy; providing
recommendations regarding fiscal policy; governing the fiscal
operations of the government; managing the public debt;
managing development of financial policy; representing the U.S.
on international monetary, trade and investment issues;
overseeing Treasury Department overseas operations; directing
the administrative operations of the Treasury Department; and
providing executive oversight of the bureaus within the
Treasury Department.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $250,000,000
for Departmental Offices, Salaries and Expenses. The
recommendation fully funds the Department's contributions to
international governmental associations, and administrative
expenses for implementing Resources and Ecosystems
Sustainability, Tourism Opportunities, and Revived Economy of
the Gulf Coast Act (RESTORE Act). The Committee provides
sufficient funds to support the Department's cyber security
initiatives.
Wildlife Trafficking and Ivory Poaching.--The Department is
directed to pursue and enforce money laundering and other
related laws as related to wildlife trafficking and the illegal
ivory trade, particularly in Africa, and to report to the
Committees on Appropriations of the House and Senate
semiannually during fiscal year 2017 on enforcement actions and
other steps taken to carry out the Implementation Plan of the
National Strategy on Wildlife Trafficking during such fiscal
year.
The Committee is encouraged by the variety of programs that
apply innovative, science and data-based analytical tools to
combat wildlife trade and trafficking and encourages enhanced
monitoring and evaluation mechanisms and sharing of interagency
findings and best practices to comprehensively target the
financial underpinnings of wildlife trafficking. The Committee
directs Treasury to work with the Department of State, the
United States Agency for International Development, and the
United States Fish and Wildlife Service to integrate
information and share existing data and analytic capabilities
to support a common operating platform that will inform
strategies to combat money laundering and illicit trafficking
and trade.
Financial Transactions.--The Committee encourages the
Department of the Treasury to work with Federal bank
regulators, financial institutions, and money service
businesses to ensure that legitimate financial transactions
move freely and globally. The Committee is frustrated that the
Department has failed to report on its efforts to ensure the
appropriate flow of legitimate financial transactions and
directs the Department to submit a report to the Committees on
Appropriations of the House and Senate on this matter not later
than 90 days after enactment of this Act.
Puerto Rico.--Within 90 days of the date of enactment of
this Act, the Department is directed to provide a report to the
Committees on Appropriations of the House and Senate describing
how the Department has used its authority to provide technical
assistance to Puerto Rico in fiscal year 2016 and how it plans
to use it in fiscal year 2017.
Data Localization.--Laws that require U.S. financial
institutions to build in-country data centers in order to
operate in foreign markets are becoming increasingly
challenging. These laws compound risks, increase the complexity
of regulatory obligations, add security challenges, and raise
the cost of operating globally. Since various Federal agencies
have been examining the effect of these laws on different
sectors of U.S. economy, the Committee assumes the Department
of the Treasury is conducting the assessment on the financial
sector and expects to be kept apprised on potential risks
posed.
Financial Stability Oversight Council and the Office of
Financial Research.--The Committee believes the Office of
Financial Research (OFR), established under P.L. 111-203, is
unnecessarily opaque in its operations. The OFR and Financial
Stability Oversight Council (FSOC) set their own budgets and
then assess private institutions to pay for their operations,
with no Congressional review of their funding. The Committee
believes there should be adequate checks on OFR and FSOC
actions, procedures, and funding. Therefore, the Committee has
included language (sections 128, 129, and 130) which requires
quarterly reporting on budget obligations, 90 day notice and
comment for OFR reports and rules, and brings OFR under the
appropriations process so that this office can be more
transparent to the American people and Congress. For fiscal
year 2017, the Administration estimates OFR and FSOC spending
will total $105,000,000 and $18,000,000, respectively. When
conducting research to support regulation of large swaths of
the economy, both OFR and FSOC should be more receptive to the
concerns, oversight, and counsel from the Legislative Branch.
International Negotiations.--The Committee believes that
there should be more transparency surrounding negotiations,
agreements, meetings, and consultations conducted by members of
FSOC with the Financial Stability Board (FSB) and other
international financial and economic organizations. Better
coordination among global financial regulators is critical due
to the far reaching impact these negotiations have on
businesses across the globe. Currently, there is a significant
lack of public information about these activities. The U.S.
must retain its ability to compete in the global marketplace
and, as such, a transparent dialog between international and
U.S. regulators that justifies the rationale for risk
management systems is critical to making certain U.S. companies
are not placed at a competitive disadvantage. The Committee
advises FSOC not to pursue failed or untested domestic policies
through international agreements.
Basel Standards.--The Committee remains concerned that the
U.S. prudential regulators have inappropriately applied several
standards developed by the Basel Committee on Bank Supervision
(Basel), including liquidity coverage ratio and the Advanced
Approaches Risk-Based Capital Framework, which are explicitly
designed for only the most internationally active, globally
systemic, and highly complex banking organizations, also known
as Globally Systemically Important Banks (G-SIBs), to less
complex organizations like regional banking organizations,
which have only limited foreign exposure and do not pose a
threat to the U.S. or global financial system. The Committee
encourages Treasury and other prudential regulators to
reexamine the impact of certain liquidity and capital standards
as they apply to U.S. regional banks and other less complex
organizations.
Cybersecurity.--The Committee recognizes the need to
protect the financial services sector and its customers from
the devastating effects of cyberattacks. While both industry
and government have taken significant steps to mitigate this
threat, there is more work to be done. The Committee encourages
the continued coordination to develop consistent and workable
cybersecurity safeguards across the financial services sector.
Consistent with this goal, the Committee directs the Office of
Critical Infrastructure Protection and Compliance Policy (OCIP)
to report to the Committees on Appropriations of the House and
Senate, the Committee on Financial Services of the House, and
the Committee on Banking, Housing, and Urban Affairs of the
Senate within 60 days of enactment of this Act on the status of
this collaboration and ways to improve cybersecurity controls
and safeguards.
SIFI Designations.--The Committee is concerned that the
FSOC is misusing its authority by designating certain nonbank
financial institutions as systemically important financial
institutions (SIFI). As such, the Committee believes that the
FSOC would benefit from early and close consultation with the
primary regulators of nonbank financial companies before
determining a SIFI designation.
The Committee strongly encourages the FSOC, in designating
SIFIs, to take into account the distinctions between different
asset management organizations, as well as the true risk to
markets and the U.S. financial system. The FSOC should focus on
activity-based designations, not size-based designations. In
addition, the Committee expects the FSOC to solicit expert
advice from and work closely with the Securities and Exchange
Commission (SEC) in areas regarding securities regulation and
management.
The Committee has included section 626 which allows nonbank
financial companies to shed any risk-prone areas of their
business, as identified by the FSOC, prior to designation.
The Committee notes the recent court decision related to
the FSOC's SIFI designation of a nonbank. In light of this
verdict, the Committee advises the FSOC to be prudent when
making SIFI designations in the future. The Committee will
continue to monitor this as the case works its way through the
judicial review process. In addition, the Committee believes
the FSOC should review and reevaluate SIFI designations
annually and at the request of nonbank financial companies if
there is a material change in their operations, activities, or
in regulatory market conditions. During this review process,
the FSOC should give companies a written analysis outlining
specific activities that would be relevant to reevaluation, and
the opportunity for the company to respond with relevant
materials.
Insurance.--Under P.L. 111-203, the Federal Reserve Board
(Board) was given authority to oversee certain nonbank holding
companies, including a few bank and savings and loan holding
companies with insurance affiliates, as well as certain SIFIs,
which currently include three insurance companies. P.L. 111-203
also gave the Federal Insurance Office (FIO), within the
Department of the Treasury, the authority to consult with the
States on international issues and represent the U.S., as
appropriate, in the International Association of Insurance
Supervisors (IAIS).
The Committee notes that the State-based system of
insurance regulation has served our nation well for more than
150 years. Any federal regulation of insurance can take final
form only with explicit approval by Congress. It is important
to note that other international financial agreements have had
deleterious impacts on some of our nation's financial
institutions.
The Committee is concerned about the ongoing negotiations
held by the IAIS to develop standards on a variety of issues,
including capital and a definition of non-traditional, non-
insurance products, and believes the U.S. agencies party to
those negotiations must appropriately fulfill their duties to
advocate for the U.S. insurance market and State-based
regulatory regime. The Committee also notes the importance of
developing a domestic capital standard, pursuant to P.L. 111-
203 and P.L. 113-279, that is based on the existing domestic
regulatory structure. The Committee believes it essential that
a domestic standard should be set before approval of any
international standard that will or could ultimately be applied
to U.S. insurers. Finally, the Committee reminds those Federal
agencies party to IAIS or Financial Stability Board (FSB)
negotiations to not support consolidated group-wide insurance
capital standards for domestically-chartered internationally
active insurance groups that are inconsistent with current
state-based insurance standards, which are designed solely for
the protection of the policyholder.
DATA Act.--The Committee is supportive of the Department's
efforts to implement the Digital Accountability and
Transparency Act of 2014 (DATA Act) and directs the Department
to continue to emphasize a data-centric approach to federal
financial reporting and to work with the Office of Management
and Budget (OMB) to assure fully standardized automated agency
data submissions. The Department is expected to keep the
Committee informed on its DATA implementation efforts.
Cross-border Regulatory Cooperation and Harmonization.--The
Committee is concerned that both the Dodd-Frank Act and U.S.
prudential regulators are creating a fragmented international
financial system through an excessive ring-fencing regime of
U.S. subsidiaries that does not recognize, and may
disincentivize, cross-border regulatory cooperation. U.S.
regulators should take into account the extent to which a
foreign financial company is subject to home country standards,
on a consolidated basis, that are comparable to, or exceed,
those applied to financial companies in the United States. The
Committee expects U.S. regulators to demonstrate cross-border
regulatory cooperation, to include the mutual recognition of
comparable or higher standards in certain jurisdictions, and to
better coordinate with home country regulators to establish a
mutual recognition framework so as to create greater incentives
for all jurisdictions to raise their standards to U.S. levels.
Multiemployer Pension Plans.--The Committee is concerned by
possible federal budget implications of current means to
address the insolvency of multiemployer pension plans.
Hardest Hit.--The Hardest Hit Fund provides significant
resources to States that were hardest hit by the economic
crisis for 2008 and targets critical resources toward programs
that help Americans avoid foreclosure and stablize housing
markets. Using the Hardest Hit Fund to maintain vacant and
abandoned properties and to demolish commercial structures
would also be beneficial. The Committee does not recommend that
additional funding for the Hardest Hit Fund be provided through
this Act.
OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $117,000,000
Budget request, fiscal year 2017*..................... 117,000,000
Recommended in the bill............................... 120,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +3,000,000
Budget request, fiscal year 2017.................... +3,000,000
*Funding for the Office of Terrorism and Financial Intelligence was
requested within the Departmental Office heading.
Economic and trade sanctions issued and enforced by the
Office of Terrorism and Financial Intelligence's (TFI) Office
of Foreign Assets Control (OFAC) protect the financial system
from being polluted with criminal and illicit activities and
counteract national security threats from drug lords,
terrorists, weapons of mass destruction proliferators, and
rogue nations, among others. In addition to the enforcement of
sanctions, TFI also produces vital analysis with regards to
foreign intelligence and counterintelligence across all
elements of the national security community.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $120,000,000
for the Office of Terrorism and Financial Intelligence to carry
out its central role in detecting and defeating security
threats. The recommended level is $3,000,000 above the amount
requested for these activities within ``Departmental Offices,
Salaries and Expenses'' in fiscal year 2017 and $3,000,000
above the fiscal year 2016 level. The Committee expects these
additional funds to be used to strengthen the development and
enforcement of sanction programs.
Iran Sanctions Act.--The Committee directs the Department
of the Treasury to report to Congress on the status of
implementation and enforcement of non-nuclear, bilateral and
multilateral sanctions against Iran and actions taken by the
U.S. and international community to enforce such sanctions.
Iran Nuclear Deal.--The Committee notes that the Joint
Comprehensive Plan of Action (JCPOA), also known as the Iran
nuclear deal is not binding for State and local governments.
The existing framework under which States have passed
restrictions on doing business with Iran is still in place, and
States are fully within their rights to enact new restrictions,
or maintain current laws.
Sanctions Enforcement in Africa.--Protracted conflicts in
nations such as Sudan, South Sudan, the Central African
Republic, and the Democratic Republic of Congo have led to
sanctions regimes and international arms embargoes to cut off
the money flows that are fueling wars and contributing to
regional destabilization. The Committee is concerned about the
escalation of conflict and failure to abide by diplomatic
agreements in these particular African states, even after
sanctions have been imposed. The Committee supports the use of
funds to enhance regional expertise and capacity for sanctions
investigations, policy development, and enforcement of
sanctions.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $35,416,000
Budget request, fiscal year 2017...................... 37,044,000
Recommended in the bill............................... 37,044,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,628,000
Budget request, fiscal year 2017.................... - - -
The Office of Inspector General (OIG) provides agency-wide
audit and investigative functions to identify and correct
operational and administrative deficiencies that create
conditions for fraud, waste, and mismanagement. The audit
function provides contract, program, and financial statement
audit services. Contract audits provide professional advice to
agency contracting officials on accounting and financial
matters relative to negotiation, award, administration,
repricing, and settlement of contracts. Program audits review
and evaluate all facets of agency operations. Financial
statement audits assess whether financial statements fairly
present the agency's financial condition and results of
operations, the adequacy of accounting controls, and compliance
with laws and regulations. The investigative function provides
for the detection and investigation of improper and illegal
activities involving programs, personnel, and operations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $37,044,000
for the OIG. The recommendation fully funds the cost of
overseeing the Department's Resources and Ecosystems
Sustainability, Tourism Opportunities, and Revived Economy of
the Gulf Coast Act (RESTORE Act) activities.
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $167,275,000
Budget request, fiscal year 2017...................... 169,634,000
Recommended in the bill............................... 169,634,000
Bill compared with:
Appropriation, fiscal year 2016..................... +2,359,000
Budget request, fiscal year 2017.................... - - -
The Office of Treasury Inspector General for Tax
Administration (TIGTA) conducts audits, investigations, and
evaluations to assess the operations and programs of the IRS
and its related entities, the IRS Oversight Board, and the
Office of Chief Counsel. The purpose of those audits and
investigations is as follows: (1) To promote the economic,
efficient, and effective administration of the Nation's tax
laws and to detect and deter fraud and abuse in IRS programs
and operations; and (2) to recommend actions to resolve fraud
and other serious problems, abuses, and deficiencies in these
programs and operations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $169,634,000
for TIGTA. The Committee appreciates the many issues that TIGTA
has brought to its attention and provides funding above the
request to enhance TIGTA's oversight of IRS activities and use
of appropriated funds.
Cybersecurity.--Since cyberattacks continue to be a threat
to the Federal Government, the Committee is concerned with the
potential damage such an attack would have on the Internal
Revenue Service. Therefore, the Committee directs the TIGTA to
submit a report to the Committees on Appropriations of the
House and Senate not less than six months after enactment of
this Act describing the cyberattacks and attempted cyberattacks
against the agency and their consequences; the steps taken to
prevent, mitigate or otherwise respond to such attacks; the
cybersecurity policies and procedures in place, including
policies about ensuring safe use of computer and mobile devices
by individual employees; and a description of all outreach
efforts undertaken to increase awareness among employees and
contractors of cybersecurity risks as well as an update on
prior reported cyber incidents.
SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $40,671,000
Budget request, fiscal year 2017...................... 41,160,000
Recommended in the bill............................... 41,160,000
Bill compared with:
Appropriation, fiscal year 2016..................... +489,000
Budget request, fiscal year 2017.................... - - -
The Office of the Special Inspector General for the
Troubled Asset Relief Program (SIGTARP) was established in the
Emergency Economic Stabilization Act of 2008 (Public Law 110-
343). Its mission is to conduct, supervise, and coordinate
audits and investigations of the purchase, management, and sale
of assets by the Secretary of the Treasury under programs
established pursuant to the Troubled Asset Relief Program
(TARP).
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $41,160,000
for SIGTARP.
SIGTARP's operating expenses were initially funded with
mandatory appropriations in the TARP. These funds, however,
were provided in a limited amount. As such, every year the
amount of remaining mandatory funds has been decreasing over
time. In order to continue vigorous oversight of the
outstanding TARP amounts, additional discretionary
appropriations are provided.
Financial Crimes Enforcement Network
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $112,979,000
Budget request, fiscal year 2017...................... 115,003,000
Recommended in the bill............................... 116,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +3,021,000
Budget request, fiscal year 2017.................... +997,000
The Financial Crimes Enforcement Network (FinCEN) is
responsible for implementing Treasury's anti-money laundering
regulations through administration of the Bank Secrecy Act
(BSA). It also collects and analyzes information to assist in
the investigation of money laundering and other financial
crimes. FinCEN supports law enforcement investigative efforts
by Federal, State, local and international agencies, and
fosters interagency and global cooperation against domestic and
international financial crimes.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $116,000,000
for FinCEN. The recommended amount is intended to ensure
FinCEN's information is accessible to the law enforcement and
intelligence communities and to ensure FinCEN can respond to
requests for assistance from law enforcement. The data compiled
and analyzed by FinCEN is a critical tool for investigating,
among other crimes, money laundering, mortgage fraud, drug
cartels, and terrorist financing.
Human Trafficking.--The Committee appreciates FinCEN's
history of supporting law enforcement cases that combat human
trafficking, including its 2014 Guidance on Recognizing
Activity that May be Associated with Human Smuggling and Human
Trafficking to financial institutions, and emphasizes the
importance of continuing this effort as part of the bureau's
broader mission to detect and disrupt all forms of financial
crime. Wherever possible, FinCEN shall marshal its unique
expertise in analyzing financial flows for this important
effort in the course of ongoing strategic operations, such as
the Southwest Border Initiative, and provide the appropriate
assistance to law enforcement agencies in their human
trafficking investigations.
Treasury Forfeiture Fund
(RESCISSION)
Appropriation, fiscal year 2016....................... -$700,000,000
Budget request, fiscal year 2017...................... -657,000,000
Recommended in the bill............................... -753,610,000
Bill compared with:
Appropriation, fiscal year 2016..................... -53,610,000
Budget request, fiscal year 2017.................... -96,600,000
COMMITTEE RECOMMENDATION
The Committee recommends a rescission of $753,610,000 of
unobligated balances in the Treasury Forfeiture Fund. The funds
collected, disbursed and rescinded out of the Treasury
Forfeiture Fund (the Fund) are incidental to law enforcement
activities and priorities that led to the seizures and
forfeitures. Disrupting and dismantling criminal organizations
that pose the greatest threat to public safety and security is
the highest priority of any law enforcement agency. The Fund
can ensure resources are managed efficiently to cover the costs
of an effective asset seizure and forfeiture program, including
the costs of seizing, evaluating, inventorying, maintaining,
protecting, advertising, forfeiting and disposing of property,
but it must neither augment agency funding nor circumvent the
appropriations process. Reliance on the Fund to offset the day-
to-day operations, or to pay for new activities, creates an
incentive to pursue cases suspected of high valued forfeitures
rather than to target individuals or organizations that
perpetrate the worst crimes against society.
The Committee directs the Department to submit to the
Committees on Appropriations of the House and Senate a detailed
table every month reporting the interest earned, forfeiture
revenue collected, unobligated balances, recoveries, expenses
to date, and expenses estimated for the remainder of the fiscal
year.
Bureau of the Fiscal Service
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $363,850,000
Budget request, fiscal year 2017...................... 353,057,000
Recommended in the bill............................... 353,057,000
Bill compared with:
Appropriation, fiscal year 2016..................... -10,793,000
Budget request, fiscal year 2017.................... - - -
The mission of the Bureau of the Fiscal Service is to
promote the financial integrity and operational efficiency of
the U.S. Government through accounting, borrowing, collections,
payments, and shared services. The Fiscal Service is the
Federal Government's central financial agent. The Fiscal
Service also develops and implements reliable and efficient
financial methods and systems to operate the government's cash
management, credit management, and debt collection programs in
order to maintain government accounts and report on the status
of the government's finances. In addition, the Fiscal Service
is the primary agency for collecting Federal non-tax debt owed
to the government, and is responsible for the conduct of all
public debt operations and the promotion of the sale of U.S.
securities.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $353,057,000
for the Fiscal Service. Of the funds provided, $4,210,000 is
available until September 30, 2019, for information systems
modernization.
The Committee is pleased that the Fiscal Service continues
to realize cost-savings from the consolidation of the Bureau of
Public Debt and the Financial Management Service.
DATA Act.--The Committee is supportive of the Department's
implementation of the DATA Act (P.L. 113-101). The Fiscal
Service has worked to establish a DATA Act Schema that
leverages industry standards to create a government-wide data
structure for federal spending information. However, the
Committee is concerned about the Administration's ability to
meet the May 2017 reporting deadline without clear, final
guidance from the Office of Management and Budget (OMB).
Specifically, the Committee is concerned by the findings in a
recent January 2016 GAO report (``Data Standards Established,
but More Complete and Timely Guidance Is Needed to Ensure
Effective Implementation''; GAO 16 261), which found that many
of the 57 draft data elements released by OMB and the Treasury
Department in August 2015 (``Federal Spending Transparency Data
Standards'') to have ambiguous or vague definitions that could
inhibit government-wide aggregation of agency reported data.
Moreover, final reporting guidance needs to be issued to
agencies to clarify how they are to extract, compile,
standardize, and report their spending data in advance of the
law's May 2017 deadline.
Within this appropriation, funding is included for
USAspending.gov. The Committee expects the Fiscal Service to
meet its transparency goals within USAspending.gov related to
the DATA Act and will monitor progress in achieving government
spending transparency. The Committee directs the Fiscal Service
to meet its transparency goals within USAspending.gov and
coordinate with OMB to publish all unclassified vendor
contracts and grant awards for all federal agencies on
USAspending.gov. The Committee directs the Fiscal Service to
display this information online and report to the Committees on
Appropriations of the House and Senate within 90 days of the
enactment of this Act on its progress in achieving government
spending transparency.
Judgment Fund.--The Committee appreciates Treasury's
release of the fiscal year 2015 annual report regarding
payments made by the Judgment Fund under 31 U.S.C. 1304. The
Committee directs the Department to issue the 2016 report
within 60 days of enactment of this Act for the 2016 fiscal
year, and directs that the report include all judgment fund
payments since 2008, unless the disclosure of such information
is otherwise prohibited by law or court order. The report shall
consist of: (1) the name of the plaintiff or claimant; (2) the
name of the counsel for the plaintiff or claimant; (3) the name
of the agency that submitted the claim; (4) a brief description
of the facts that gave rise to the claim; and (5) the amount
paid representing principal, attorney fees, and interest, if
applicable.
Do Not Pay Business Center.--The Committee supports the Do
Not Pay Business Center's goal of preventing ineligible
recipients from receiving payments or awards from the Federal
Government. This program supports the implementation of the
Improper Payments Elimination and Recovery Improvement Act of
2012 (P.L. 112-248) which requires executive agencies to review
all payments and awards before issuance. The Committee expects
the Fiscal Service to sufficiently support the Do Not Pay
Business Center within the Fiscal Service appropriation for
fiscal year 2017.
Alcohol and Tobacco Tax and Trade Bureau
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $106,439,000
Budget request, fiscal year 2017...................... 106,439,000
Recommended in the bill............................... 111,439,000
Bill compared with:
Appropriation, fiscal year 2016..................... +5,000,000
Budget request, fiscal year 2017.................... +5,000,000
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is
responsible for the enforcement of laws designed to eliminate
certain illicit activities and to regulate lawful activities
relating to distilled spirits, beer, wine, and nonbeverage
alcohol products, and tobacco. TTB focuses on collecting
revenue; reducing taxpayer burden and improving service while
preventing diversion; and protecting the public and preventing
consumer deception in certain regulated commodities.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $111,439,000
for the TTB.
Within this amount, an additional $5,000,000 is included to
help accelerate processing time for label and formula
applications, and an additional $5,000,000 is included for
increased enforcement of the Federal Alcohol Administration Act
(FAA Act).
Enforcement.--The Committee has included an additional
$5,000,000 over the fiscal year 2016 level for TTB to increase
enforcement efforts for industry trade practice violations.
Enforcement of basic trade practice functions, required under
the FAA Act, is critical to ensuring a competitive, fair, and
safe marketplace. The Committee directs the TTB to report to
the Committees on Appropriations of the House and Senate,
within 60 days of enactment of this Act, on how the additional
funding will be used to bolster enforcement, forensic audits,
and investigations particularly in known points in the supply
chain that are susceptible to illegal activity.
Processing Time.--The Committee has again included
$5,000,000 for TTB to accelerate processing times for formula
and label applications. The Committee continues to be concerned
by the delays involved in securing basic label and formula
approvals required under the FAA Act and has directed
additional funding to the agency for enforcement of the
regulations under the FAA Act. Building on the report from last
year, the Committee directs the TTB to again report to the
Committees on Appropriations of the House and Senate, within 60
days of enactment of this Act, on how the additional funding
will be used to create greater efficiencies in responding to
the growing demand from stakeholders.
United States Mint
UNITED STATES MINT PUBLIC ENTERPRISE FUND
The United States Mint manufactures coins, receives
deposits of gold and silver bullion, and safeguards the Federal
Government's holdings of monetary metals. In 1997, Congress
established the United States Mint Public Enterprise Fund
(Public Law 104-52), which authorized the Mint to use proceeds
from the sale of coins to finance the costs of its operations
and consolidated all existing Mint accounts into a single fund.
Public Law 104-52 also provided that, in certain situations,
the levels of capital investments for circulating coins and
protective services shall factor into the decisions of the
Congress.
COMMITTEE RECOMMENDATION
The Committee recommends a spending level for capital
investments by the Mint for circulating coinage and protective
services of $30,000,000 for fiscal year 2017.
Community Development Financial Institutions Fund Program Account
Appropriation, fiscal year 2016....................... $233,523,000
Budget request, fiscal year 2017...................... 245,923,000
Recommended in the bill............................... 250,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +16,477,000
Budget request, fiscal year 2017.................... +4,077,000
The Community Development Financial Institutions (CDFI)
Fund provides grants, loans, equity investments, and technical
assistance, on a competitive basis, to new and existing CDFIs
such as community development banks, community development
credit unions, and housing and microenterprise loan funds.
Recipients use the funds to support mortgages, small business
and economic development lending in underserved and distressed
neighborhoods and to support the availability of financial
services in these neighborhoods. The CDFI Fund is also
responsible for implementation of the New Markets Tax Credits.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $250,000,000
for the CDFI Fund program. Of the amounts provided,
$184,000,000 is for financial and technical assistance grants,
$6,000,000 is for CDFIs to provide technical and financial
assistance to individuals with disabilities, $16,000,000 is for
Native Initiatives, $19,000,000 is for the Bank Enterprise
Award Program, and $25,000,000 is for the administrative
expenses for all programs of which no less than $2,000,000 is
to build a stronger network of CDFIs to integrate their
programs with individuals with disabilities. In addition, the
Committee recommends a loan level of $250,000,000 for the Bond
Guarantee Program.
CDFIs in U.S. Insular Areas.--The Committee notes the
absence of CDFIs serving American Samoa, Northern Mariana
Islands and other U.S. insular areas and recommends that the
CDFI Fund use its Capacity Building Initiative to expand
service, to the extent practical, to these areas.
Likewise, the Committee encourages the expansion of CDFIs
in Puerto Rico.
CDFI Program Integration for Individuals with
Disabilities.-- The Committee is pleased to provide dedicated
funds for financial and technical assistance grants to position
more CDFI's to respond to the housing, transportation,
education, and employment needs of underserved, low-income,
individuals with disabilities. By increasing the visibility of
the disability community, the Committee expects CDFI's to
incorporate the needs of the disabled into their business plans
and practices. Additional funds are provided for capacity
building to provide instruction and education on how the needs
of low-income, individuals with disabilities can be integrated
into an array of investments and financial services.
The Committee directs the CDFI to submit a quarterly report
no later than 30 days following the end of each calendar
quarter in fiscal year 2017 to the Committees on Appropriations
of the House and Senate that include a summary of the progress
made toward developing a competitive application pool of CDFIs
to compete for these funds along with objective selection
criteria, promoting CDFI growth to assist individuals with
disabilities, and creating a timeline with milestones to
complete these activities. Additionally, the Committee is
interested in the number of awards, amount of each award, types
of programs and impact the funding has made on the disability
community. The report should also include CDFI's findings and
recommendations to improve upon the implementation of these
activities.
Internal Revenue Service
The Committee recommends providing $10,999,000,000 for the
IRS, which is $236,000,000 below current level and
$1,281,095,000 below the request. This recommendation would
fund the IRS, in total, below their fiscal year 2008 level.
Funding for the Taxpayer Service account is at $2,156,554,
which is equal to their current level. However, Congress
recommends an additional $290,000,000 dedicated to improve
taxpayer services, identity theft, and cybersecurity.
In addition, the Committee includes language to:
Prohibit funds for finalizing any regulation
related to the standards used to determine the tax-exempt
status of a 501(c)(4) organization;
Prohibit funds for IRS employee bonuses and awards
that do not consider the conduct and tax compliance of such
employees;
Prohibit funds for hiring former IRS employees
without considering the employees past conduct and tax
compliance;
Prohibit funds for targeting groups for regulatory
scrutiny based on their ideological beliefs;
Prohibit funds for targeting citizens for
exercising their First Amendment rights;
Prohibit funds for conferences that do not comply
with the Treasury Inspector General for Tax Administration's
(TIGTA) recommendations regarding conferences;
Prohibit funds for the production of videos that
have not been reviewed for cost, topic, tone, and purpose and
certified to be appropriate;
Prohibit the White House from ordering the IRS to
determine the tax-exempt status of an organization;
Require extensive reporting on IRS spending; and
Provide TIGTA with $170 million for its audit and
investigative oversight of the IRS.
The Committee remains aggrieved by the IRS' past attempt to
propose new regulations for determining the tax-exempt status
of 501(c)(4) organizations, which offended organizations across
the political spectrum. It is not evident what clarity these
proposed regulations will provide and it is likely they will
breed confusion among organizations regarding their tax-exempt
status. Given these concerns, the Committee continues a funding
prohibition to prevent the Department of the Treasury from
implementing their proposed or revised regulation regarding the
standards and definitions used to determine the tax-exempt
status of organizations under section 501(c)(4) of the Internal
Revenue Code.
A description of the Committee's recommendation by
appropriation is provided below.
TAXPAYER SERVICES
Appropriation, fiscal year 2016....................... $2,156,554,000
Budget request, fiscal year 2017...................... 2,406,318,000
Recommended in the bill............................... 2,156,554,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -249,764,000
The Taxpayer Services appropriation provides for taxpayer
services, including forms and publications; processing tax
returns and related documents; filing and account services;
taxpayer advocacy services; and assisting taxpayers to
understand their tax obligations, correctly file their returns,
and pay taxes due in a timely manner.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $2,156,554,000
for Taxpayer Services, which is $83 million below the account's
pre-sequestration funding level. Within the amount provided,
the Committee expects the IRS to sufficiently fund the Taxpayer
Advocate Service.
Identity Theft.--Identity theft remains a persistent
obstacle to accurate, fair, and efficient tax collection.
Innocent taxpayers, who otherwise comply with their tax
obligations, have their refunds delayed and are drawn
unwittingly into the IRS examination process because their
identity was stolen and misused. This problem is especially
pernicious in the U.S. territories and possessions, where
organized schemes fraudulently use the taxpayer identification
numbers of territorial residents to obtain credits or refunds
on tax returns filed with the United States, costing American
taxpayers billions of dollars.
The Committee requires a report, reviewed by the National
Taxpayer Advocate, from the IRS that covers 2010-2016 period
on: the number of taxpayers who have had their tax return
rejected because their Social Security or taxpayer
identification number was improperly used by another individual
to commit tax fraud; the average time to resolve the situation
and provide innocent taxpayers with their refund, when a refund
is due; and the number of cases involving taxpayer
identification numbers of residents of the territories. The
report will also include a discussion on IRS's progress and
plans to expedite resolution for these taxpayers, to prevent
non-victims from becoming victims, to educate the public on the
threat of identity theft, and to detect, prevent, and combat
identity-based tax fraud and actions. The report should address
IRS' plans and progress to implement the GAO recommendations
listed in its March 28, 2016, report ``Information Security''.
The Committee directs the IRS to submit the report to the
Committees on Appropriations of the House and Senate by June
17, 2017.
Pre-Filled or Simple Tax Returns.--The Committee believes
that converting a voluntary compliance system to a bill
presentment model would represent a significant change in the
relationship between taxpayers and their government. The simple
return model would also strain IRS resources and the data
retrieval systems required would create new burdens on
employers, particularly small businesses. In addition, a
fundamental conflict of interest seems to be inherent in the
nation's tax collector and compliance enforcer taking on the
simultaneous role of tax preparer and financial advisor. The
Committee expects that the IRS will not begin work on a simple
tax return pilot program or associated systems without first
seeking specific authorization and appropriations from
Congress, and should instead focus on helping Congress and the
Administration achieve real tax simplification and reform.
Level of Service Plan.--The IRS would benefit from
exploring new customer service innovations to deliver quality
and timely telephone and written correspondence service to
taxpayers. The Committee agrees with the Government Accounting
Office recommendation that the IRS should systematically and
periodically compare its level of telephone service to the best
in business to identify gaps between actual and desired
performance and directs IRS to submit a plan to the Committees
on Appropriations of the House and Senate six months after the
enactment of this Act. This should include a customer service
plan with specific goals, strategies, and resources to achieve
those goals.
Earned Income Tax Credits.--The Committee recognizes the
importance of continued efforts to improve the administration
of the Earned Income Tax Credits (EITC) for all taxpayers and
encourages the IRS to explore new strategies to reduce
fraudulent EITC claims.
ENFORCEMENT
Appropriation, fiscal year 2016....................... $4,860,000,000
Budget request, fiscal year 2017...................... 5,216,263,000
Recommended in the bill............................... 4,760,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... -100,000,000
Budget request, fiscal year 2017.................... -456,263,000
The Enforcement appropriation provides for the examination
of tax returns, both domestic and international; the
administrative and judicial settlement of taxpayer appeals of
examination findings; technical rulings; monitoring employee
pension plans; determining qualifications of organizations
seeking tax-exempt status; examining tax returns of exempt
organizations; enforcing statutes relating to detection and
investigation of criminal violations of the internal revenue
laws; identifying underreporting of tax obligations; securing
unfiled tax returns; and collecting unpaid accounts.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,760,000,000
for Enforcement. Of the funds provided, the Committee
recommends not less than $60,257,000 to support IRS activities
under the Interagency Crime and Drug Enforcement program. None
of the funds requested for implementation of the Patient
Protection and Affordable Care Act are provided.
Regulation of Paid Preparers.--Last year, the Committee
requested a report by the IRS on the regulation of paid
preparers to be reviewed by the Government Accountability
Office. The Committee is looking forward to the report in order
to learn more about the cost-effectiveness of education and
filing season readiness standards.
Favorable Determination Letters.--The Committee believes
the Favorable Determination Letter program is a valuable and
useful service, assuring tax administrators that they are
operating employee plans in compliance with tax law.
Guidelines for Pari-mutuel Winnings.--The Committee
appreciates the Department of the Treasury's proposed rule
(REG-132253-11) published on March 4, 2015, along with the
associated public hearing held on June 17, 2015. The Committee
encourages the Treasury to expedite final consideration of the
guidance which would modernize the rules governing pari-mutuel
wagering.
Foreign Account Tax Compliance Act.--No later than 180 days
after enactment of this Act, the Department of the Treasury
shall submit a report to the Committees of Appropriations of
the House and Senate on its decision (TD 9610 (78 FR 5874)) and
TD 9657 (79 FR 12811)) to require withholding on non-cash value
insurance premiums, including payments by foreign insurance
brokers. No later than 180 days after enactment of this Act,
the Committee directs the Government Accountability Office to
determine the impacts of FATCA on United States citizens living
abroad and make recommendations on FATCA implementation.
OPERATIONS SUPPORT
Appropriation, fiscal year 2016....................... $3,638,446,000
Budget request, fiscal year 2017...................... 4,314,099,000
Recommended in the bill............................... 3,502,446,000
Bill compared with:
Appropriation, fiscal year 2016..................... -136,000,000
Budget request, fiscal year 2017.................... -811,653,000
The Operations Support appropriation provides for overall
planning and direction of the IRS, including shared service
support related to facilities services, rent payments,
printing, postage, and security. Specific activities include
headquarters management activities such as strategic planning,
communications and liaison, finance, human resources, Equal
Employment Opportunity and diversity, research, information
technology, and telecommunications.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $3,502,446,000
for Operations Support. None of the funds requested for
implementation of the Patient Protection and Affordable Care
Act are provided.
Printed Forms and Instructions.--The Committee encourages
the IRS to continue to provide printed forms and instructions
to vulnerable populations, especially rural communities where
internet usage rates are below the national average.
Obligations and Employment.--Not later than 45 days after
the end of each quarter, the Internal Revenue Service shall
submit reports on its activities to the House and the Senate
Committees on Appropriations. The reports shall include
information about the obligations made during the previous
quarter by appropriation, object class, office, and activity;
the estimated obligations for the remainder of the fiscal year
by appropriation, object class, office, and activity; the
number of full-time equivalents within each office during the
previous quarter; and the estimated number of full-time
equivalents within each office for the remainder of the fiscal
year.
Information Technology Reports.--The Committee directs the
IRS to submit quarterly reports on particular major project
activities to the Committees on Appropriations of the House and
the Senate and the GAO, no later than 30 days following the end
of each calendar quarter in fiscal year 2017. The Committee
expects the reports to include detailed, plain English
explanations of the cumulative expenditures and schedule
performance to date, specified by fiscal year; the costs and
schedules for the previous 3 months; the anticipated costs and
schedules for the upcoming 3 months; and the total expected
costs to complete the following major information technology
project activities: IRS.gov; Returns Remittance Processing;
EDAS/IPM; Information Returns and Document Matching; E-
services; Taxpayer Advocate Service Integrated System;
Affordable Care Act administration; and other projects
associated with significant changes in law. In addition, the
quarterly report should clearly explain when the project was
started; the expected date of completion; the percentage of
work completed as compared to planned work; the current and
expected state of functionality; any changes in schedule; and
current risks unrelated to funding amounts and mitigation
strategies. The Committee directs the Department of the
Treasury to conduct a semi-annual review of IRS's IT
investments to ensure the cost, schedule, and scope of the
projects goals are transparent. The Committee further directs
GAO to review and provide an annual report to the Committees
evaluating the cost and schedule of activities of all major IRS
information technology projects for the year, with particular
focus on the projects about which the IRS is submitting
quarterly reports to the Committee.
Identity Protection Personal Identification Numbers.--The
IRS' Identity Protection Personal Identification Numbers (IP
PIN) pilot program, conducted in Florida, Georgia, and the
District of Columbia to prevent tax refund fraud by identity
theft, was suspended in FY 2016 due to ID PIN theft. The
Committee directs the IRS to submit a detailed report to the
Committees of Appropriations in the House and Senate not later
than 120 days after enactment of this Act on the security
enhancements implemented to prevent stolen ID PINs and make the
system operational again, cost of system improvements, the
number of people with stolen ID PINs, the number and total
dollar amount of refunds provided as a result of the stolen ID
PINs and the timeframe and assistance provided to victims of ID
PIN theft to file their taxes, obtain their refunds, and secure
their personal information.
BUSINESS SYSTEMS MODERNIZATION
Appropriation, fiscal year 2016....................... $290,000,000
Budget request, fiscal year 2017...................... 343,415,000
Recommended in the bill............................... 290,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -53,415,000
The Business Systems Modernization (BSM) appropriation
provides funding to modernize key business systems of the
Internal Revenue Service.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $290,000,000
for BSM. The Committee continues to support IRS in its efforts
to modernize its business systems such as CADE 2 and the
Enterprise Case Management systems as well as the Return Review
Program that enhances IRS capabilities to detect, address, and
prevent tax refund fraud.
Information Technology Reports.--The Committee expects the
IRS to continue to submit quarterly reports to the Committees
and GAO during fiscal year 2017, no later than 30 days
following the end of each calendar quarter. The Committee
expects the reports to include detailed, plain English
explanations of the cumulative expenditures and schedule
performance to date, specified by fiscal year; the costs and
schedules for the previous 3 months; the anticipated costs and
schedules for the upcoming 3 months; and the total expected
costs to complete CADE2 and MeF. In addition, the quarterly
report should clearly explain when the project was started; the
expected date of completion; the percentage of work completed
as compared to planned work; the current and expected state of
functionality; any changes in schedule; and current risks
unrelated to funding amounts and mitigation strategies. The
Committee directs the Department of the Treasury to conduct a
semi-annual review of CADE2 and MeF to ensure the cost,
schedule, and scope goals of the projects are transparent. The
Committee further directs GAO to review and provide an annual
report to the Committee evaluating the cost and schedule of
CADE2 and MeF activities for the year, as well as an assessment
of the functionality achieved.
Audit Trail Compliance.--Audit trails are a key component
of effective information technology security. Maintaining
sufficient audit trails is critical to establishing
accountability over users and their actions within information
systems. The Committee directs the IRS to submit quarterly
reports to the Committees on Appropriations of the House and
Senate and Treasury Inspector General for Tax Administration
(TIGTA) on its progress towards implementing the audit trail
requirements described in TIGTA's ``Semiannual Report to
Congress April 1, 2015--September 30, 2015'', consistent with
the Internal Revenue Manual, for legacy and planned business
systems modernization investments with priority consideration
to business systems presenting the most significant threats to
taxpayer information.
ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE
(INCLUDING TRANSFERS OF FUNDS)
Section 101. The Committee continues a provision that
allows for the transfer of five percent of any appropriation
made available to the IRS to any other IRS appropriation, upon
the advance approval of the Committees on Appropriations of the
House and Senate.
Section 102. The Committee continues a provision that
requires the IRS to maintain a training program to include
taxpayer rights, dealing courteously with taxpayers, cross-
cultural relations, and the impartial application of tax law.
Section 103. The Committee continues a provision that
requires the IRS to institute and enforce policies and
procedures that will safeguard the confidentiality of taxpayer
information and protect taxpayers against identity theft.
Section 104. The Committee continues a provision that makes
funds available for improved facilities and increased staffing
to provide efficient and effective 1-800 number help line
service for taxpayers.
Section 105. The Committee continues a provision with
modifications requiring videos produced by the IRS to be
approved in advance by the Service-Wide Video Editorial Board.
Section 106. The Committee continues a provision that
requires the IRS to notify employers of any address change
request and to give special consideration to offers in
compromise for taxpayers who have been victims of payroll tax
preparer fraud.
Section 107. The Committee continues a provision with
modifications that prohibits the IRS from targeting U.S.
citizens for exercising their First Amendment rights.
Section 108. The Committee continues a provision with
modifications that prohibits the IRS from targeting groups
based on their ideological beliefs.
Section 109. The Committee continues a provision with
modifications that requires the IRS to comply with procedures
and policies on conference spending as recommended by the
Treasury Inspector General for Tax Administration.
Section 110. The Committee includes a new provision that
prohibits funds made available in the healthcare reform act to
the Department of Health and Human Services from being
transferred to the IRS for implementing the healthcare reform
act.
Section 111. The Committee includes a new provision that
prohibits funds from being used to implement the individual
mandate of the Affordable Care Act.
Section 112. The Committee continues a provision with
modifications that prohibits funds for giving bonuses to
employees or hiring former employees without considering
conduct and compliance with Federal tax law.
Section 113. The Committee continues a provision with
modifications that prohibits funds to violate the
confidentiality of tax returns.
Section 114. The Committee continues a provision with
modifications that prohibits funds for pre-populated returns.
Section 115. In addition to the amounts otherwise made
available in this Act for the Internal Revenue Service,
$290,000,000, to be available until September 30, 2018, shall
be transferred by the Commissioner to the ``Taxpayer
Services'', ``Enforcement'', or ``Operations Support'' accounts
of the Internal Revenue Service for an additional amount to be
used solely for measurable improvements in the customer service
representative level of service rate, to improve the
identification and prevention of refund fraud and identity
theft, and to enhance cybersecurity to safeguard taxpayer data.
The required spending plan must include objective, and
quantifiable measures to improve the level of customer service
during and after the tax filing season, reduce the number of
taxpayer ID thefts and improve cybersecurity in order for
Congress and the public to evaluate how well the IRS achieved
its goals.
Administrative Provisions--Department of the Treasury
(INCLUDING TRANSFERS OF FUNDS)
Section 116. The Committee continues a provision that
authorizes the Department to purchase uniforms, insurance for
motor vehicles that are overseas, and motor vehicles that are
overseas without regard to the general purchase price
limitations; to enter into contracts with the State Department
for health and medical services for Treasury employees who are
overseas; and to hire experts or consultants.
Section 117. The Committee continues a provision, with
modification, that authorizes transfers, up to two percent,
between ``Departmental Offices--Salaries and Expenses'',
``Office of Inspector General'', ``Special Inspector General
for the Troubled Asset Relief Program'', ``Financial Crimes
Enforcement Network'', ``Bureau of the Fiscal Service'',
``Community Development Financial Institutions Fund Program
Account'', and ``Alcohol and Tobacco Tax and Trade Bureau''
appropriations under certain circumstances.
Section 118. The Committee continues a provision that
authorizes transfers, up to two percent, between the Internal
Revenue Service and the Treasury Inspector General for Tax
Administration under certain circumstances.
Section 119. The Committee continues a provision that
prohibits the Department of the Treasury from undertaking a
redesign of the one dollar Federal Reserve note.
Section 120. The Committee includes a provision that
provides for transfers from the Bureau of the Fiscal Service to
the Debt Collection Fund as necessary for the purposes of debt
collection.
Section 121. The Committee continues a provision that
requires congressional approval for the construction and
operation of a museum by the United States Mint.
Section 122. The Committee continues a provision
prohibiting funds in this or any other Act from being used to
merge the United States Mint and the Bureau of Engraving and
Printing without the approval of the House and Senate
committees of jurisdiction.
Section 123. The Committee continues a provision deeming
that funds for the Department of the Treasury's intelligence-
related activities are specifically authorized in fiscal year
2017 until enactment of the Intelligence Authorization Act for
fiscal year 2017.
Section 124. The Committee continues a provision permitting
the Bureau of Engraving and Printing to use $5,000 from the
Industrial Revolving Fund for reception and representation
expenses.
Section 125. The Committee continues a provision that
requires the Department to submit a capital investment plan.
Section 126. The Committee continues a provision that
requires a report on the Department's Franchise Fund.
Section 127. The Committee continues a provision that
prohibits the Department from finalizing any regulation related
to the standards used to determine the tax-exempt status of a
501(c)(4) organization.
Section 128. The Committee continues a provision that
requires quarterly reports of the Office of Financial Research
(OFR) and Office of Financial Stability.
Section 129. The Committee includes a new provision
requiring the OFR to provide public notice of not less than 90
days before issuing a rule, report, or regulation.
Section 130. The Committee includes a new provision that
limits the fees available for obligation by the OFR to the
amount provided in appropriations acts beginning in fiscal year
2018. The Committee believes that the activities of OFR should
be subject to the annual review of Congress.
Section 131. The Committee includes a new provision that
prohibits the Department from enforcing guidance for U.S.
positions on multilateral development banks which engage with
developing countries on coal-fired power generation.
Section 132. The Committee includes a new provision with
respect to the so-called people-to-people category of travel.
As set forth in title 31, section 515.565(b)(2) of the Code of
Federal Regulations, this category of travel contravenes the
explicit prohibition against tourist activities as provided in
section 910(b) of the Trade Sanctions Reform and Export
Enhancement Act of 2000 (TSRA). Furthermore, the stated purpose
of people-to-people travel, which is to promote the Cuban
people's independence from Cuban authorities, cannot be
accomplished through itineraries that mainly feature
interactions with representatives of a dictatorship that
actively oppresses the Cuban people, nor can it be accomplished
through itineraries that do not require meetings with pro-
democracy activists or independent members of Cuban civil
society.
Section 133. The Committee includes a new provision to
prohibit funds to approve, license, facilitate, authorize, or
otherwise allow the importation of property confiscated by the
Cuban Government.
Section 134. The Committee includes a new provision to
prohibit funds to approve, license, facilitate, authorize, or
otherwise allow any financial transactions with the Cuban
military or intelligence service. This section does not apply
to exports permitted under the Trade Sanctions Reform and
Export Enhancement Act of 2000 or to financial transactions
necessary for the maintenance and improvement of the military
base at Guantanamo Bay, Cuba.
Section 135. The Committee includes a new provision to
prohibit funds to approve or otherwise allow the licensing of a
mark, trade name, or commercial name that is substantially
similar to one that was used in connection with a business or
assets that were confiscated unless expressly consented.
Section 136. The Committee includes a new provision to
prohibit funds for the Internal Revenue Service (IRS) to
determine that a church is not exempt from taxation for
participating in, or intervening in, any political campaign on
behalf of (or in opposition to) any candidates for public
office unless the IRS Commissioner consents to such
determination, the Commissioner notifies the tax committees of
Congress, and the determination is effective 90 days after such
notification.
TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT
Funds appropriated in this title provide for the staff and
operations of the White House, along with other organizations
within the Executive Office of the President (EOP), which
formulate and coordinate policy on behalf of the President,
such as the National Security Council and the Office of
Management and Budget. The title also includes funding for the
Office of National Drug Control Policy and certain expenses of
the Vice President.
The White House
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $55,000,000
Budget request, fiscal year 2017...................... 55,214,000
Recommended in the bill............................... 55,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -214,000
The White House Salaries and Expenses account supports
staff and administrative services necessary for the direct
support of the President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $55,000,000
for the White House.
Executive Residence at the White House
OPERATING EXPENSES
Appropriation, fiscal year 2016....................... $12,723,000
Budget request, fiscal year 2017...................... 12,723,000
Recommended in the bill............................... 12,723,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
These funds provide for the care, maintenance, staffing and
operations of the Executive Residence, including official and
ceremonial functions of the President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $12,723,000
for the Operating Expenses of the Executive Residence. The bill
continues the same restrictions on reimbursable expenses for
use of the Executive Residence as were included in past years.
White House Repair and Restoration
Appropriation, fiscal year 2016....................... $750,000
Budget request, fiscal year 2017...................... 750,000
Recommended in the bill............................... 750,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
Funding in this account provides for the repair,
alteration, and improvement of the Executive Residence at the
White House.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $750,000 for
White House Repair and Restoration.
Council of Economic Advisers
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $4,195,000
Budget request, fiscal year 2017...................... 4,201,000
Recommended in the bill............................... 4,200,000
Bill compared with:
Appropriation, fiscal year 2016..................... +5,000
Budget request, fiscal year 2017.................... -1,000
The Council of Economic Advisers analyzes the national
economy and its various segments, advises the President on
economic developments, recommends policies for economic growth
and stability, appraises economic programs and policies of the
Federal Government, and assists in preparation of the annual
Economic Report of the President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,200,000 for
the Council of Economic Advisers.
National Security Council and Homeland Security Council
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $12,800,000
Budget request, fiscal year 2017...................... 13,069,000
Recommended in the bill............................... 10,896,000
Bill compared with:
Appropriation, fiscal year 2016..................... -1,904,000
Budget request, fiscal year 2017.................... -2,173,000
The National Security Council and the Homeland Security
Council have been combined to form the National Security Staff
which advises and assists the President in the integration of
domestic, foreign, military, intelligence, and economic aspects
of national security policy, and serves as the principal means
of coordinating executive departments and agencies in the
development and implementation of national security and
homeland security policies.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $10,896,000
for the National Security Council and Homeland Security
Council.
Staffing report.--The Committee is concerned about the size
of the National Security Council (NSC). What once was an
interagency review process has become a growing bureaucracy
that inhibits Secretary-level recommendations especially as
they relate to critical national security policy decisions. In
an effort to streamline the NSC, the Committee has reduced
funding for the NSC relative to its enacted level. In addition,
the Committee directs, within 90 days of enactment of this Act,
the NSC provide a report outlining the roles and
responsibilities of all of its full time equivalent (FTE)
employees. This report shall include a breakout of all
positions and FTEs that are assigned from other agencies to the
NSC and all FTEs which the NSC has detailed to other agencies
as well as associated start and end dates of assignment and any
unreimbursed costs. Finally, the report shall contain a
staffing reduction plan on how the NSC proposes to meet the
budget reduction.
Office of Administration
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $96,116,000
Budget request, fiscal year 2017...................... 96,116,000
Recommended in the bill............................... 96,116,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
The Office of Administration is responsible for providing
administrative services to the Executive Office of the
President. These services include financial, personnel,
procurement, information technology, records management, and
general office services.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $96,116,000
for the Office of Administration. Of the recommended amount,
not to exceed $12,760,000 is available until expended for
modernization of the information technology infrastructure
within the Executive Office of the President.
Presidential Transition Administrative Support
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... - - -
Budget request, fiscal year 2017...................... $7,582,000
Recommended in the bill............................... 7,582,000
Bill compared with:
Appropriation, fiscal year 2016..................... +7,582,000
Budget request, fiscal year 2017.................... - - -
The Presidential Transition Administrative Support account
is for costs of processing of records of departing President
and Vice President under the Presidential Records Act for
transfer to the National Archives and Records Administration
and other transition-related administrative expenses.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $7,582,000 for
the Presidential Transition Administrative Support account. The
Committee directs the Office of Administration to provide the
Committee on Appropriations of the House and Senate with
quarterly reports detailing how funds in this account are
spent.
Office of Management and Budget
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $95,000,000
Budget request, fiscal year 2017...................... 100,725,000
Recommended in the bill............................... 91,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... -4,000,000
Budget request, fiscal year 2017.................... -9,725,000
The Office of Management and Budget (OMB) assists the
President in the discharge of budgetary, economic, management,
and other executive responsibilities.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $91,000,000
for OMB. The recommendation also continues several long-
standing provisos, not requested by the President, limiting
certain OMB activities.
Budget Submission.--The recommendation provides sufficient
funds for OMB to consult with and provide Congressional
Committees with an appropriate number of printed and electronic
copies of the President's fiscal year 2018 budget request,
including documents such as the Appendix, Historical Tables,
and Analytical Perspectives. The Committee believes that if the
Administration wants the Congress to consider its proposed
budget that it should provide the Congress with copies of the
budget request.
Personnel and Obligations Report.--The Committee directs
OMB to provide the Committees on Appropriations of the House
and Senate with quarterly reports on personnel and obligations
consisting of on-board staffing levels, estimated staffing
levels by office for the remainder of the fiscal year, total
obligations incurred to date, estimated total obligations for
the remainder of the fiscal year, and a narrative description
of current hiring initiatives.
Unobligated Balances Report.--OMB is directed to report to
the Committees on Appropriations of the House and Senate within
45 days of the end of each fiscal quarter on available balances
at the start of the fiscal year, current year obligations, and
resulting unobligated balances for each discretionary account
within the Financial Services and General Government
subcommittee's jurisdiction.
Contracting models.--The Committee notes that in some
instances using transaction-based or no-cost contracting models
for delivering or procuring information technology goods and
services can save resources and increase efficiencies. The
Committee believes that OMB should provide guidance to agencies
on transaction-based and no-cost funding models, including when
it is appropriate to consider using these contract tools, how
to calculate potential savings from their use, and standards
and best practices for conducting their procurement.
Social Cost of Carbon.--The Committee believes that the
OIRA should not allow any regulations to be finalized using the
Technical Support Document: Technical Update of the Social Cost
of Carbon for Regulatory Impact Analysis Under Executive Order
12866, Interagency Working Group on Social Cost of Carbon,
United States Government, May 2013 until a new working group is
convened. The working group should include the relevant
agencies and affected stakeholders, re-examine the social cost
of carbon using the best available science, and revise the
estimates using an accurate discount rate and domestic estimate
in accordance with Executive Order 12866 and OMB Circular A-94.
To increase transparency, the working group should solicit
public comment prior to finalizing any updates.
Intellectual Property.--The Committee continues to strongly
support the Office of the Intellectual Property Enforcement
Coordinator (IPEC), including its important work promoting
private sector efforts to reduce online copyright infringement.
The Committee encourages IPEC to work with U.S.-based Internet
registrars and registries to ensure that parties are taking
voluntary, cooperative action against illegal activities
online. Given the growing threat of cybercrime and the link
between intellectual property theft and other forms of
cybercrime, including malware and hacking, OMB should provide
IPEC with an additional full-time equivalent position above its
current staffing level to focus on the area of cybercrime.
Rulemakings.--The Committee notes that Executive Order
13563 requires each agency to ensure the objectivity of any
scientific and technological information and processes used to
support the agency's regulatory actions. The Committee
emphasizes the requirement that federal agencies are
appropriately evaluating the quality, objectivity, utility, and
integrity of any scientific and economic information used to
support agency guidance and rulemakings.
Travel.--As part of OMB Memorandum M-12-12, Federal
agencies are directed to reduce their travel expenses by 30
percent below the fiscal year 2010 level. The Committee
supports OMB's efforts to reduce costs across Federal agencies
by eliminating unnecessary travel expenses and directs OMB to
submit a report to the Committee on Appropriations of the House
and Senate no later than 120 days after enactment of this Act
on whether agencies have complied with this memorandum during
the previous fiscal year. The report shall identify the savings
achieved by each agency, whether the 30 percent savings goal
was achieved, and how or if the changes in travel and
conference policies have impacted agencies' ability to perform
mission critical activities. The report shall also include
recommendations to improve upon OMB's travel policies. OMB
shall ensure that agencies are implementing policies regarding
travel, event, meeting or conference locations based on the
most efficient use of taxpayer funds.
Improper Payments.--The Committee believes OMB should work
with agencies across the Federal Government to ensure processes
are in place to eliminate payments to deceased persons. OMB is
directed to report to the Committees on Appropriations of the
House and Senate within 120 days of enactment of this Act on
how it is ensuring that agencies are not making improper
payments to deceased individuals.
DATA Act.--The Committee recognizes OMB's responsibilities
related to implementation of the Digital Accountability and
Transparency Act of 2014 (DATA Act). The Committee is concerned
that OMB has not adequately prioritized DATA Act
implementation. The Committee directs OMB to ensure agency
compliance of the data-centric approach to federal financial
reporting and fully standardized automated agency data
submissions. The Committee includes funding for activities
associated with DATA Act implementation and expects OMB to keep
the Committee informed on its DATA implementation efforts.
Federal Privacy Council.--In accordance with Executive
Order 13719, OMB shall convene the Federal Privacy Council at
least annually. The Director shall issue a public notice to
Congress regarding its meetings. The Council will be comprised
of the Senior Agency Officials for Privacy from the 24
departments and agencies listed in the Executive Order, and any
others that the Office of Management and Budget may deem
appropriate.
Customer Service.--The Committee appreciates that the
Administration has tried to improve customer service in
accordance with Executive Order 13571--Streamlining Service
Delivery and Improving Customer Service. However, more needs to
be done to improve the services that the government provides
whether it is citizens calling the Internal Revenue Service
with questions, or Office of Personnel Management processing
Federal employment retirement claims. The Committee directs OMB
to develop standards to improve customer service for all
agencies, and provide to the Committees on Appropriations of
the House and Senate a report on how these standards are
incorporated into the performance plans required under 31
U.S.C. 1115 within 90 days of the enactment of this Act.
Performance Measures.--In fiscal year 2014, the Committee
directed that the head of each agency link its performance
plans with their funding requests included in the President's
budget request. While some progress was made on this effort in
fiscal years 2015, 2016, and 2017, more needs to be done.
Performance measures in future budget justifications should
clearly demonstrate the extent to which performance reporting
under 31 U.S.C. 1116 demonstrates that prior year investments
in programs, projects, and activities are tied to progress
toward achieving performance and priority goals and include
estimates for how proposed investments will contribute to
additional progress. In particular, performance measures should
examine outcome measures, output measures, efficiency measures
and customer service measures as defined in 31 U.S.C. 1115(h).
The Committee urges OMB to work with agencies to ensure that
agency funding requests in fiscal year 2018 are directly linked
to agency performance plans. The Committee directs OMB to
report to the Committees on Appropriations of the House and
Senate within 180 days of enactment of this Act on its progress
improving the use of performance measures in the Executive
Branch's budgeting processes.
Poverty.--Strengthening America's social safety net to
better help those in need and improving education and training
programs will give individuals the ability to enter or reenter,
remain in, and, ultimately, succeed in the workforce. The
Federal Government administers over 100 programs and tax
credits designed to provide a pathway out of poverty. The
impact of this funding, however, is dulled by the bureaucratic,
fragmented, and formulaic nature of these programs. In its
central role for developing budget and policy, OMB can access
and coordinate the effectiveness of these programs.
Merit-based Grant Making Procedures.--The Committee notes
that current OMB Uniform Guidance requires agencies to design
and execute a merit review process for competitive grant
applications.
Online Budget Repository.--The Committee encourages OMB to
develop a central online repository where all Federal agency
budgets and their respective justifications are publicly
available in a consistent searchable, sortable, and machine
readable format.
Human Trafficking.--The Committee directs OMB to ensure
agencies fully comply with the Executive Order 13627.
Office of National Drug Control Policy
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $20,047,000
Budget request, fiscal year 2017...................... 19,274,000
Recommended in the bill............................... 19,274,000
Bill compared with:
Appropriation, fiscal year 2016..................... -773,000
Budget request, fiscal year 2017.................... - - -
The Office of National Drug Control Policy (ONDCP) was
established by the Anti-Drug Abuse Act of 1988. As the
President's primary source of support for counter-drug policy
development and program oversight, ONDCP is responsible for
developing and updating a National Drug Control Strategy,
developing a National Drug Control Budget, and coordinating and
evaluating the implementation of Federal drug control
activities. In addition, ONDCP manages several counter-drug
programs which are discussed under the ``Federal Drug Control
Programs'' heading below. These programs include the High
Intensity Drug Trafficking Areas (HIDTA) program and Drug-Free
Communities grants.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $19,274,000
for ONDCP Salaries and Expenses. The Committee expects ONDCP to
focus resources on the counter-drug policy development,
coordination and evaluation functions which are the primary
mission of the Office and the origins of its existence.
The Committee is pleased that the ONDCP is addressing the
heroin epidemic. It is the responsibility of ONDCP to ensure
that all Federal agencies involved in the Heroin Response
Strategy are coordinated and using resources efficiently. The
Committee directs ONDCP to report 180 days after enactment of
this Act to the Committees on Appropriations of the House and
Senate regarding all the expenditures and activities that the
ONDCP is overseeing in regards to the Heroin Response Strategy.
The Committee is aware of and recognizes the difficulty
that small and rural law enforcement agencies face with regard
to overtime compensation for participation in multi-agency drug
task forces. The Committee expects the ONDCP to coordinate with
small and rural law enforcement agencies and develop strategies
to improve the effectiveness of drug eradication efforts
through shared intelligence, technology, and manpower despite
limited resources.
FEDERAL DRUG CONTROL PROGRAMS
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM
(INCLUDING TRANSFERS OF FUNDS)
Appropriation, fiscal year 2016....................... $250,000,000
Budget request, fiscal year 2017...................... 196,410,000
Recommended in the bill............................... 253,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +3,000,000
Budget request, fiscal year 2017.................... +56,590,000
The High Intensity Drug Trafficking Areas (HIDTA) Program
provides resources to Federal and State, local, and tribal
agencies in designated HIDTAs to combat the production,
transportation and distribution of illegal drugs; to seize
assets derived from drug trafficking; to address violence in
drug-plagued communities; and to disrupt the drug marketplace.
Currently, 28 HIDTAs operate in 48 States plus the District
of Columbia, Puerto Rico, and the Virgin Islands. Each HIDTA is
managed by an Executive Board comprised of equal numbers of
Federal, State, local or tribal officials. Each HIDTA Executive
Board is responsible for designing and implementing initiatives
for the specific drug trafficking threats in its region.
Intelligence and information sharing are key elements of all
HIDTA programs.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $253,000,000
for the HIDTA Program. The Committee believes that the HIDTA
program has demonstrated its effectiveness and can serve as an
important tool in combating problems of drug trafficking and
drug-related violence.
The Committee includes language requiring that existing
HIDTAs receive funding at least equal to the fiscal year 2016
level unless the Director submits a justification for doing
otherwise to the Committees on Appropriations, based on clearly
articulated priorities and published performance measures.
The recommendation includes language directing ONDCP to
notify the Committees on Appropriations of the initial
allocation of HIDTA funds no later than 45 days after
enactment, and to notify the Committees of the proposed use of
funds no later than 90 days after enactment. The language
directs the ONDCP Director to work in consultation with the
HIDTA Directors in determining the uses of that discretionary
funding.
Finally, the Committee recommendation specifies that up to
$2,700,000 may be used for auditing services and related
activities.
OTHER FEDERAL DRUG CONTROL PROGRAMS
(INCLUDING TRANSFERS OF FUNDS)
Appropriation, fiscal year 2016....................... $109,810,000
Budget request, fiscal year 2017...................... 98,480,000
Recommended in the bill............................... 111,871,000
Bill compared with:
Appropriation, fiscal year 2016..................... +2,061,000
Budget request, fiscal year 2017.................... +13,391,000
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $111,871,000
for Other Federal Drug Control Programs. The recommended level
for fiscal year 2017 is distributed among specific programs and
activities as follows:
Drug-Free Communities................................. $97,000,000
[Training (Section 4 of P.L. 107-82)................ 2,000,000]
Drug court training and technical assistance.......... 2,000,000
Anti-Doping activities................................ 9,500,000
World Anti-Doping Agency dues......................... 2,121,000
Activities as authorized by Section 1105 of P.L. 109- 1,250,000
469..................................................
Within the total for the account, the Committee recommends
$97,000,000 for the Drug-Free Communities program. Within this
amount, $2,000,000 is for training authorized by Section 4 of
P.L. 107-82. This program makes grants of up to $125,000 per
year available to support local coalitions to develop and
implement community-based plans to reduce drug abuse among
youth. These coalitions are required to include participants
from a wide range of interests, including local government
agencies, schools, the media, service organizations, law
enforcement, parents, youth, and the business community. Local
matching contributions are required. Grants are awarded on a
competitive basis, and may be renewed for up to five years,
after which time the coalition must compete again for any
further funding.
Within this account, the Committee recommends $2,000,000
for drug court training and technical assistance and $9,500,000
for anti-doping activities. Anti-doping activities support
athlete drug testing programs, research initiatives,
educational programs, and enforce compliance with the World
Anti-Doping Code. Additionally, the Committee recommends
$2,121,000 for the United States membership dues to the World
Anti-Doping Agency (WADA). WADA is the international agency
created to promote, coordinate, and monitor efforts against
doping and illicit drug use in sport on a global basis.
In addition, the Committee includes $1,250,000 for
assistance to States in implementing effective drug laws
(section 1105 of P.L. 109-469). All funds under this heading
are to be awarded under a competitive process.
Information Technology Oversight and Reform
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... $30,000,000
Budget request, fiscal year 2017...................... 35,200,000
Recommended in the bill............................... 25,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... -5,000,000
Budget request, fiscal year 2017.................... -10,200,000
These funds support efforts to make the Federal
Government's investments in information technology (IT) more
efficient, secure and effective.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $25,000,000.
The Committee appreciates OMB's efforts to improve program and
contract management of information technology investments as
well as the Administration's efforts to utilize cloud computing
and consolidate data centers. The Committee expects OMB to
improve the processes used to develop information technology
systems. The Committee directs OMB to provide the Committees on
Appropriations of the House and the Senate with quarterly
reports on savings this program identifies by fiscal year,
agency and appropriation.
Special Assistance to the President
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $4,228,000
Budget request, fiscal year 2017...................... 4,228,000
Recommended in the bill............................... 4,228,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
These funds support the executive functions of the Office
of the Vice President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,228,000 for
the Office of the Vice President.
Official Residence of the Vice President
OPERATING EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... $299,000
Budget request, fiscal year 2017...................... 299,000
Recommended in the bill............................... 299,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
These funds support the care and operation of the Vice
President's residence and specifically support equipment,
furnishings, dining facilities, and services required to
perform and discharge the Vice President's official duties,
functions and obligations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $299,000 for
the Operating Expenses of the Vice President's residence.
Administrative Provisions--Executive Office of the President and Funds
Appropriated to the President
(INCLUDING TRANSFER OF FUNDS)
Section 201. The Committee includes language permitting the
transfer of not to exceed ten percent of funds between various
accounts within the Executive Office of the President, with
advance approval of the Committees on Appropriations. The
amount of an appropriation shall not be increased by more than
50 percent.
Section 202. The Committee continues language requiring the
Director of the Office of Management and Budget to report on
the costs of implementing the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Public Law 111-203).
Section 203. The Committee includes language requiring the
Director of the Office of Management and Budget to include a
statement of budgetary impact with any Executive Order or
Presidential Memorandum issued or rescinded during fiscal year
2017. The Committee believes the American people should
understand the impact on costs and revenues when the President
issues Executive Orders or Presidential Memorandums.
Section 204. The Committee includes language prohibiting
funds to prepare, sign or approve statements abrogating
legislation passed by the House of Representatives and the
Senate and signed by the President.
Section 205. The Committee includes language prohibiting
funds to prepare or implement Executive Orders or Presidential
Memorandums in contravention of existing law.
TITLE III--THE JUDICIARY
The funds recommended by the Committee in title III of the
accompanying bill are for the operation and maintenance of
United States Courts and include the salaries of judges,
probation and pretrial services officers, public defenders,
court clerks, law clerks, and other supporting personnel, as
well as security costs, information technology, and other
expenses of the Federal Judiciary. The Committee recommends a
total of $6,955,503,000 in discretionary funding for the
Judiciary in fiscal year 2017.
In addition to direct appropriations, the Judiciary
collects various fees and has certain multiyear funding
authorities. The Judiciary uses these non-appropriated funds to
offset its direct appropriation requirements. Consistent with
prior year practices and section 608 of this Act, the Committee
expects the Judiciary to submit a financial plan, within 60
days of enactment of this Act, allocating all sources of
available funds including appropriations, fee collections, and
carryover balances. This financial plan will be the baseline
for purposes of reprogramming notification.
Improving the physical security at buildings occupied by
the Judiciary and U.S. Marshals Service (USMS) and ensuring the
integrity of the judicial process by providing secure
facilities to conduct judicial business is a priority for the
Committee. Under the General Services Administration's (GSA)
Federal Buildings Fund appropriation, the Committee recommends
$26,700,000 for the Judiciary Capital Security program for
alterations to improve physical security in buildings occupied
by the Judiciary and USMS.
Supreme Court of the United States
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $75,838,000
Budget request, fiscal year 2017...................... 76,668,000
Recommended in the bill............................... 76,668,000
Bill compared with:
Appropriation, fiscal year 2016..................... +830,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $76,668,000
for fiscal year 2017 for the salaries and expenses of personnel
and the cost of operating the Supreme Court, excluding the care
of the building and grounds. The Committee includes bill
language making $1,500,000 available until expended for the
purpose of making information technology investments. The
Committee directs the Court to include an annual report with
its budget justification materials, showing information
technology carryover balances and describing expenditures made
in the previous fiscal year and planned expenditures in the
budget year.
CARE OF THE BUILDING AND GROUNDS
Appropriation, fiscal year 2016....................... $9,964,000
Budget request, fiscal year 2017...................... 14,868,000
Recommended in the bill............................... 14,868,000
Bill compared with:
Appropriation, fiscal year 2016..................... +4,904,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $14,868,000
for fiscal year 2017, to remain available until expended, for
personnel and other services relating to the structural and
mechanical care of the Supreme Court building and grounds. The
Architect of the Capitol has responsibility for these functions
and supervises the use of this appropriation.
United States Court of Appeals for the Federal Circuit
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $30,872,000
Budget request, fiscal year 2017...................... 30,108,000
Recommended in the bill............................... 30,108,000
Bill compared with:
Appropriation, fiscal year 2016..................... -764,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Court of Appeals for the Federal Circuit has exclusive
national jurisdiction over a large number of diverse subject
areas, including government contracts, patents, trademarks,
Federal personnel, and veterans' benefits. The Committee
recommends an appropriation of $30,108,000 for fiscal year
2017.
United States Court of International Trade
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $18,160,000
Budget request, fiscal year 2017...................... 18,462,000
Recommended in the bill............................... 18,462,000
Bill compared with:
Appropriation, fiscal year 2016..................... +302,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Court of International Trade has exclusive nationwide
jurisdiction of civil actions against the United States and
certain civil actions brought by the United States, arising out
of import transactions and administration and enforcement of
the Federal customs and international trade laws. The Committee
recommends an appropriation of $18,462,000 for fiscal year
2017.
Courts of Appeals, District Courts, and Other Judicial Services
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $4,918,969,000
Budget request, fiscal year 2017...................... 5,045,785,000
Recommended in the bill............................... 5,010,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +91,031,000
Budget request, fiscal year 2017.................... -35,785,000
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $5,010,000,000
for the operations of the regional courts of appeals, district
courts, bankruptcy courts, the Court of Federal Claims, and
probation and pretrial services offices.
The Committee recommends a reimbursement of $6,260,000 for
fiscal year 2017 from the Vaccine Injury Compensation Trust
Fund to cover expenses of the United States Court of Federal
Claims associated with processing cases under the National
Childhood Vaccine Injury Act of 1986.
DEFENDER SERVICES
Appropriation, fiscal year 2016....................... $1,004,949,000
Budget request, fiscal year 2017...................... 1,056,326,000
Recommended in the bill............................... 1,056,326,000
Bill compared with:
Appropriation, fiscal year 2016..................... +51,377,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
This account provides funding for the operation of the
Federal Public Defender and Community Defender organizations
and for compensation and reimbursement of expenses of panel
attorneys appointed pursuant to the Criminal Justice Act for
representation in criminal cases. The Committee recommends an
appropriation of $1,056,326,000 for fiscal year 2017.
FEES OF JURORS AND COMMISSIONERS
Appropriation, fiscal year 2016....................... $44,199,000
Budget request, fiscal year 2017...................... 43,723,000
Recommended in the bill............................... 43,723,000
Bill compared with:
Appropriation, fiscal year 2016..................... -476,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $43,723,000
for payments to jurors and land commissioners for fiscal year
2017.
COURT SECURITY
(INCLUDING TRANSFERS OF FUNDS)
Appropriation, fiscal year 2016....................... $538,196,000
Budget request, fiscal year 2017...................... 565,388,000
Recommended in the bill............................... 565,388,000
Bill compared with:
Appropriation, fiscal year 2016..................... +27,192,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $565,388,000
for Court Security in fiscal year 2017 to provide for necessary
expenses of security and protective services in courtrooms and
adjacent areas. The recommendation will provide for the highest
priority security needs identified by the courts and the U.S.
Marshals Service.
Administrative Office of the United States Courts
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $85,665,000
Budget request, fiscal year 2017...................... 87,748,000
Recommended in the bill............................... 87,500,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,835,000
Budget request, fiscal year 2017.................... -248,000
COMMITTEE RECOMMENDATION
The Administrative Office of the United States Courts (AO)
provides administrative and management support to the United
States Courts, including the probation and bankruptcy systems.
It also supports the Judicial Conference of the United States
in determining Federal Judiciary policies, in developing
methods to assist the courts to conduct business efficiently
and economically, and in enhancing the use of information
technology in the courts. The Committee recommends an
appropriation of $87,500,000 for the AO for fiscal year 2017.
Federal Judicial Center
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $27,719,000
Budget request, fiscal year 2017...................... 28,335,000
Recommended in the bill............................... 28,200,000
Bill compared with:
Appropriation, fiscal year 2016..................... +481,000
Budget request, fiscal year 2017.................... -135,000
COMMITTEE RECOMMENDATION
The Federal Judicial Center (FJC) improves the management
of Federal Judicial dockets and court administration through
education for judges and staff, and research, evaluation, and
planning assistance for the courts and the Judicial Conference.
The Committee recommends an appropriation of $28,200,000 for
the FJC for fiscal year 2018.
United States Sentencing Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $17,570,000
Budget request, fiscal year 2017...................... 18,150,000
Recommended in the bill............................... 18,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +430,000
Budget request, fiscal year 2017.................... -150,000
COMMITTEE RECOMMENDATION
The purpose of the U.S. Sentencing Commission is to
establish, review, and revise sentencing guidelines, policies,
and practices for the Federal criminal justice system. The
Commission is also required to monitor the operation of the
guidelines and to identify and report necessary changes to the
Congress. The Committee recommends $18,000,000 for the
Commission for fiscal year 2017.
Administrative Provisions--The Judiciary
(INCLUDING TRANSFER OF FUNDS)
Section 301. The Committee continues language to permit
funds for salaries and expenses to be available for employment
of experts and consultant services as authorized by 5 U.S.C.
3109.
Section 302. The Committee continues language that permits
up to five percent of any appropriation made available for
fiscal year 2017 to be transferred between Judiciary
appropriations provided that no appropriation shall be
decreased by more than five percent or increased by more than
ten percent by any such transfer except in certain
circumstances. In addition, the language provides that any such
transfer shall be treated as a reprogramming of funds under
sections 604 and 608 of the accompanying bill and shall not be
available for obligation or expenditure except in compliance
with the procedures set forth in those sections.
Section 303. The Committee continues language authorizing
not to exceed $11,000 to be used for official reception and
representation expenses incurred by the Judicial Conference of
the United States.
Section 304. The Committee continues language through
fiscal year 2017 regarding the delegation of authority to the
Judiciary for contracts for repairs of less than $100,000.
Section 305. The Committee continues language to authorize
a court security pilot program.
Section 306. The Committee includes language requested by
the Judicial Conference of the United States to extend
temporary judgeships in Alabama, Arizona, California, Florida,
Kansas, Missouri, New Mexico, North Carolina and Texas.
Section 307. The Committee includes new language to
authorize an increase of the daily juror attendance fee by $10.
Section 308. The Committee includes language requested by
the Judicial Conference of the United States to extend
temporary bankruptcy judgeships in Virginia, Michigan, Puerto
Rico, Delaware, and Florida.
TITLE IV--DISTRICT OF COLUMBIA
Federal Funds
The Appropriations Committees have a special relationship
with the District of Columbia that is unlike any other city in
the country. For example, the Appropriations Committees are
authorized by law to fund the court operations of the District
of Columbia. Title IV of this Act provides a Federal payment
totaling $612,176,000 for the cost of judges, court personnel,
offender and defendant supervision, and defendant
representation. Title IV also provides Federal Payments to
District of Columbia programs in areas such as education and
security. In addition, the United States Department of Justice
provides hundreds of United States Attorneys and Deputy United
States Marshals to prosecute local crimes and provide security
for the D.C. Court system. The Federal Bureau of Prisons houses
thousands of District of Columbia prisoners. Federal taxpayers
do not fund similar activities for any other city.
FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT
Appropriation, fiscal year 2016....................... $40,000,000
Budget request, fiscal year 2017...................... 40,000,000
Recommended in the bill............................... 20,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... -20,000,000
Budget request, fiscal year 2017.................... -20,000,000
The Resident Tuition Support program, also known as the DC
Tuition Assistance Grant (DCTAG) program, provides up to
$10,000 annually for undergraduate District students to attend
eligible four-year public universities and colleges nationwide
at in-state tuition rates. Grants of up to $2,500 per year are
available for students to attend private universities and
colleges in the D.C. metropolitan area, private Historically
Black Colleges and Universities nationwide, and public two-year
community colleges nationwide.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $20,000,000
for the resident tuition support program. The District of
Columbia can contribute local funds to this program and is
authorized to prioritize applications based on income and need
if there is demand for the program beyond the available level
of Federal funds.
FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE
DISTRICT OF COLUMBIA
Appropriation, fiscal year 2016....................... $13,000,000
Budget request, fiscal year 2017...................... 34,895,000
Recommended in the bill............................... 40,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +27,000,000
Budget request, fiscal year 2017.................... +5,105,000
As the seat of the national government, the District of
Columbia has a unique and significant responsibility for
protecting the property and personnel of the Federal
Government. The Federal Payment for Emergency Planning and
Security Costs is provided to help address the impact of the
Federal presence on public safety in the District of Columbia.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $40,000,000
for emergency planning and security costs. The recommendation
includes an increase for Presidential inauguration-related
activities. Prior-year balances are available if needs exceed
the funds provided in the bill.
FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS
Appropriation, fiscal year 2016....................... $274,401,000
Budget request, fiscal year 2017...................... 274,681,000
Recommended in the bill............................... 274,541,000
Bill compared with:
Appropriation, fiscal year 2016..................... +140,000
Budget request, fiscal year 2017.................... -140,000
Under the National Capital Revitalization and Self-
Government Improvement Act of 1997, the Federal Government is
required to finance the District of Columbia Courts. This
Federal payment to the District of Columbia Courts funds the
operations of the District of Columbia Court of Appeals,
Superior Court, the Court System, and the Capital Improvement
Program.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $274,541,000
for operation of the District of Columbia Courts. This amount
includes $14,303,000 for the Court of Appeals; $124,800,000 for
the Superior Court; $74,783,000 for the Court System; and
$60,655,000 for capital improvements to courthouse facilities.
The District of Columbia Courts are directed to provide
quarterly expenditures, unobligated balances and staffing
reports to the Committees on Appropriations of the House and
Senate for all programs, to be submitted within 30 days after
the end of each quarter.
FEDERAL PAYMENT FOR DEFENDER SERVICES IN THE DISTRICT OF COLUMBIA
COURTS
Appropriation, fiscal year 2016....................... $49,890,000
Budget request, fiscal year 2017...................... 49,890,000
Recommended in the bill............................... 49,890,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
The District of Columbia Courts appoint and compensate
attorneys to represent persons who are financially unable to
obtain such representation.
COMMITTEE RECOMMENDATION
The Committee recommends $49,890,000 for Defender Services
in the District of Columbia Courts.
The District of Columbia Courts are directed to provide
quarterly expenditure and unobligated balance reports to the
Committees on Appropriations of the House and Senate, within 30
days after the end of each quarter.
FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY
FOR THE DISTRICT OF COLUMBIA
Appropriation, fiscal year 2016....................... $244,763,000
Budget request, fiscal year 2017...................... 248,008,000
Recommended in the bill............................... 246,386,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,623,000
Budget request, fiscal year 2017.................... -1,622,000
The Court Services and Offender Supervision Agency (CSOSA)
for the District of Columbia is an independent Federal agency
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997. CSOSA acquired the
operational responsibilities for the former District agencies
in charge of probation and parole, and houses the Pretrial
Services Agency (PSA) for the District of Columbia within its
framework.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $246,386,000
for the CSOSA. Of the amounts provided, $182,564,000 is for
Community Supervision and Sex Offender Registration and
$63,822,000 is for the PSA.
In January 2016, the District of Columbia Courts, Public
Defender Service, and Court Services and Offender Supervision
Agency Act of 2015 (Public Law 114-118) was signed into law,
giving permanent authority for CSOSA to accept, solicit, and
use in-kind donations.
CSOSA is directed to provide a quarterly report on its
expenditures, unobligated balances and staffing to the
Committees on Appropriations of the House and Senate, to be
submitted within 30 days after the end of each quarter.
FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA PUBLIC DEFENDER SERVICE
Appropriation, fiscal year 2016....................... $40,889,000
Budget request, fiscal year 2017...................... 41,829,000
Recommended in the bill............................... 41,359,000
Bill compared with:
Appropriation, fiscal year 2016..................... +470,000
Budget request, fiscal year 2017.................... -470,000
The Public Defender Service (PDS) for the District of
Columbia is an independent organization authorized by the
National Capital Revitalization and Self-Government Improvement
Act of 1997, whose purpose is to provide legal representation
services within the District of Columbia justice system.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $41,359,000
for the PDS for the District of Columbia.
FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL
Appropriation, fiscal year 2016....................... $1,900,000
Budget request, fiscal year 2017...................... 2,000,000
Recommended in the bill............................... 2,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +100
Budget request, fiscal year 2017.................... - - -
The Criminal Justice Coordinating Council (CJCC) provides a
forum for District of Columbia and Federal law enforcement to
identify criminal justice issues and solutions, and improve the
coordination of their efforts. In addition, the CJCC developed
and maintains the Justice Integrated Information System which
provides for the seamless sharing of information with Federal
and local law enforcement.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $2,000,000 to
the CJCC.
FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS
Appropriation, fiscal year 2016....................... $565,000
Budget request, fiscal year 2017...................... 585,000
Recommended in the bill............................... 585,000
Bill compared with:
Appropriation, fiscal year 2016..................... +20,000
Budget request, fiscal year 2017.................... - - -
This appropriation provides funding for the two judicial
commissions. The first is the Judicial Nomination Commission
(JNC), which recommends a panel of three candidates to the
President for each judicial vacancy in the District of Columbia
Court of Appeals and Superior Court. From the panel selected by
the JNC, the President nominates a person for each vacancy and
submits his or her name for confirmation to the Senate. The
second commission is the Commission on Judicial Disabilities
and Tenure (CJDT), which has jurisdiction over all judges of
the Court of Appeals and Superior Court to determine whether a
judge's conduct warrants disciplinary action and whether
involuntary retirement of a judge for health reasons is
warranted. In addition, the CJDT conducts evaluations of judges
seeking reappointment and judges who retire and wish to
continue service as a senior judge.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $310,000 for
the Commission on Judicial Disabilities and Tenure, and
$275,000 for the Judicial Nomination Commission.
FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT
Appropriation, fiscal year 2016....................... $45,000,000
Budget request, fiscal year 2017...................... 43,200,000
Recommended in the bill............................... 45,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... +1,800,000
The Scholarships for Opportunity and Results (SOAR) Act
authorizes funds to be evenly divided between District of
Columbia Public Schools, Public Charter Schools and Opportunity
Scholarships.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $45,000,000
for school improvement. Based on the statutory funding formula,
this will provide $15,000,000 for District of Columbia Public
Schools, $15,000,000 for Public Charter Schools and $15,000,000
for Opportunity Scholarships.
FEDERAL PAYMENT FOR THE DISTRICT OF COLUMBIA NATIONAL GUARD
Appropriation, fiscal year 2016....................... $435,000
Budget request, fiscal year 2017...................... 450,000
Recommended in the bill............................... 450,000
Bill compared with:
Appropriation, fiscal year 2016..................... +15,000
Budget request, fiscal year 2017.................... - - -
The Major General David F. Wherley, Jr. District of
Columbia National Guard Retention and College Access Program
pays for the costs of a tuition assistance program for guard
members.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $450,000 for
the Major General David F. Wherley, Jr. District of Columbia
National Guard Retention and College Access Program. The
Committee acknowledges the unique role of the D.C. National
Guard in addressing emergencies that may occur as a result of
the presence of the Federal Government.
FEDERAL PAYMENT FOR TESTING AND TREATMENT OF HIV/AIDS
Appropriation, fiscal year 2016....................... $5,000,000
Budget request, fiscal year 2017...................... 5,000,000
Recommended in the bill............................... 5,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
Currently, 2.4 percent of the population of the District of
Columbia has been diagnosed with HIV. The World Health
Organization defines an HIV epidemic as ``severe'' when the
percent of infection among residents exceeds one percent.
COMMITTEE RECOMMENDATION
The Committee recommendation includes $5,000,000 for a
Federal payment for testing and treatment of HIV/AIDS.
District of Columbia Funds
The Committee continues to consider the referendum
providing local funds budget autonomy as an expression of the
opinion of the District of Columbia residents without any
authority to change or alter the existing relationship between
Federal appropriations and the District. The Committee's
position was affirmed by the Government Accountability Office
in a January 2014 opinion. Notwithstanding the Superior Court
of the District of Columbia's decision of March 18, 2016, the
bill appropriates local funds to the District of Columbia in
accordance with and required by Article I, Section 8, clause 17
and Article I, Section 9, clause 7 of the Constitution.
This bill provides local funds for the operation of the
District of Columbia as approved by the District of Columbia
Council and the Mayor. The local budget proposed by the Mayor
provides an appropriation of $14,089,565,000 for operations of
the District of Columbia. This amount includes estimated
funding of $8,190,263,000 of local funds, $2,191,023,000 in
Medicaid payments, and the remainder from other Federal and
local funds.
The Committee includes language that provides the District
with the authority to spend their local funds in the following
fiscal year in the event of an absence in appropriations. This
authority is continued in section 816 of this Act.
TITLE V--INDEPENDENT AGENCIES
Administrative Conference of the United States
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $3,100,000
Budget request, fiscal year 2017...................... 3,200,000
Recommended in the bill............................... 3,100,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -100,000
The Administrative Conference of the United States (ACUS)
is an independent agency that studies Federal administrative
procedures and processes to recommend improvements to the
President, Congress and other agencies.
COMMITTEE RECOMMENDATION
The Committee recommends $3,100,000 for ACUS.
Bureau of Consumer Financial Protection
ADMINISTRATIVE PROVISIONS
Five-Member Commission.--The CFPB has oversight over a wide
range of consumer financial products. As such, the CFPB's
activities have the potential to significantly affect
consumers' access to credit and the operations of both banks
and nonbanks. The Committee believes the Dodd-Frank Wall Street
Reform and Consumer Protection Act provides inadequate checks
on the CFPB's powers. The Committee's experience overseeing the
Federal Communications Commission, the Federal Trade
Commission, the Securities and Exchange Commission, the
Consumer Product Safety Commission, and other Federal agencies
with powers to protect consumers and investors leads the
Committee to conclude that a five-member commission is more
suitable for guiding the CFPB than a single director. A
commission ensures that multiple disciplines, experiences, and
perspectives are brought to bear on CFPB rules, policies, and
enforcement actions. The appointment and removal process and
staggered terms of commissioners can provide checks and
balances to an agency's operations and priorities, as well as a
measure of continuity that a single director cannot. The
Committee includes section 505 to address this issue.
Arbitration.--The Committee has included bill language that
prohibits any funding to be used by the CFPB and restricts the
legal effectiveness of any rule or regulation finalized by the
CFPB to regulate pre-dispute arbitration agreements, including
any rules or guidelines pursuant to section 1028(b) of Public
Law 111-203 (12 U.S.C. 5518(b)), until the CFPB fully complies
with requirements regarding pre-dispute arbitration as follows.
Prior to completion of the study and before preparation of
the report to Congress, the Bureau shall issue a public notice
identifying with specificity the topics that may be addressed
in the report and soliciting public comment with respect to the
appropriateness of addressing those topics, and any additional
topics that should be addressed in the report. After
considering the comments, the CFPB shall publish a notice
identifying with specificity the topics that may be addressed
in the report and soliciting public comment, including
empirical data, regarding those topics. The deadline for filing
comments shall be no earlier than ninety days after publication
of the notice in the Federal Register. The topics addressed in
the report shall also include the following: (A) how, for the
kinds of disputes that most consumers are likely to have, the
accessibility, cost, fairness, and efficiency of the process
afforded by litigation compares to the accessibility, cost,
fairness, and efficiency of the process afforded by pre-dispute
arbitration; (B) the extent to which arbitration and litigation
encourage companies to resolve disputes before their customers
file formal claims; (C) whether consumers' use of arbitration
is adversely affected by a lack of information and the steps
that could be taken to better inform consumers about
arbitration and to make arbitration more accessible to
consumers; (D) the extent to which private class action
proceedings on behalf of consumers regarding consumer financial
products and services will provide net benefits to consumers in
light of the CFPB's enforcement and examination authority; (E)
the extent to which particular limitations or conditions on the
use of pre-dispute arbitration will have the practical effect
of eliminating pre-dispute arbitration; and (F) the impact on
cost and availability of credit to consumers and small
businesses of prohibiting or limiting pre-dispute arbitration.
After it has adopted tentative conclusions, but before
those conclusions have been finalized, the CFPB shall publish
those conclusions together with sufficient supporting and
explanatory information, and solicit public comment regarding
the tentative conclusions. The deadline for filing comments
shall be no earlier than forty-five days after publication of
the tentative conclusions. The CFPB shall consider the public
comments in formulating its final conclusions and shall explain
in the report to Congress its reason for disagreeing with
significant comments. In carrying out the study, the CFPB shall
use a research process that includes peer review of the CFPB's
methodology and findings by a diverse group of individuals with
relevant expertise in quantitative and qualitative research
methods from the private and public sectors. The Director of
the CFPB shall select individuals whose expertise in research
methods is unrelated to dispute resolution. The composition of
the peer review panel shall be subject to the procedures for a
rulemaking under section 553 of title 5, United States Code,
including its procedures for notice and comment. No political
appointee may participate on a peer review panel. The Director
of the CFPB shall promulgate a conflict of interest policy that
ensures public transparency and accountability, and requires
full disclosure of any real or potential conflicts of interest
on the parts of individuals that participate in the peer review
process. The term ``political appointee'' means any individual
who is employed in a position described in sections 5312
through 5316 of title 5, United States Code (relating to the
executive schedule); is a limited term appointee, limited
emergency appointee, or non-career appointee in the Senior
Executive Service, as defined under paragraphs (5), (6), and
(7), respectively, of section 3132(a) of title 5, United States
Code; is employed in a position in the executive branch of the
Government of a confidential or policy-determining character
under schedule C of subpart C of part 213 of title 5, Code of
Federal Regulations; or is employed in a position described in
section 1011(b) of Public Law 111-203 (12 U.S.C. 5491(b)).
When the CFPB submits the report to Congress, the CFPB
shall at the same time make publicly available a description of
the peer review process, including an explanation of the peer
review panel's conclusions about the CFPB's methodology and
findings, sufficient to provide a basis for judicial review
under section 706 of title 5 United States Code, of the
report's conclusions to the extent the CFPB sought to use them
as the basis for a proposed or final regulation under section
1028(b) of Public Law 111-203 (12 U.S.C. 5518(b)). The deadline
for filing comments shall be no earlier than ninety days after
publication of the notice in the Federal Register. In addition,
in determining whether any rule or final regulation
implementing a prohibition or imposition of conditions or
limitations on the use of an agreement between a covered person
and a consumer for a consumer financial product or service
providing for arbitration of any future dispute between the
parties is in the public interest and for the protection of
consumers, the CFPB shall consider the costs and benefits to
consumers including: (1) the practical effect on consumers'
access to low cost, fair, and efficient means of resolving
claims for the types of injuries that consumers most often
incur and that are less likely to be the subject of government
enforcement actions; (2) the extent to which private class
action proceedings on behalf of consumers regarding consumer
financial products and services provide net benefits to
consumers in light of the CFPB's and other regulators'
enforcement and examination authority; (3) the practical effect
of any proposed or final regulation on the availability of pre-
dispute arbitration; and (4) the impact of any proposed or
final regulation on the cost and availability of credit to
consumers and small business. The CFPB shall make a
determination based on the information before it that the
demonstrable benefits of any proposed or final regulation or
rule to consumers outweigh the costs to consumers, taking into
account the factors enumerated just above and other relevant
factors; and, the rule subjects pre-dispute arbitration to no
more regulation than is necessary to serve the public interest
and protect consumers. Such determinations, together with the
CFPB analysis and underlying data, shall be published in the
Federal Register.
Small Institutions Exemption.--The Committee believes the
CFPB should strongly consider the impact the Bureau's rules
have on small institutions, like community banks and credit
unions. While these entities are not under direct supervisory
oversight by the Bureau, they are still required to comply with
rules written for entities many times their size. The Committee
is concerned the Bureau may be unintentionally burdening
community-based financial institutions and limiting their
ability to provide consumer credit. The Dodd-Frank Act gave the
Bureau explicit power in section 1022 to tailor its regulations
to exempt ``any class'' of entity from individual rulemakings.
To date, the CFPB has made very limited use of this authority.
The Committee believes that the CFPB must do more in this area
to better tailor its rules to ensure that the Bureau's
regulations do not unnecessarily burden smaller institutions.
The Committee directs the Bureau to report to the
Committees on Appropriations of the House and Senate, the
Committee on Financial Services of the House, and the Committee
on Banking, Housing, and Urban Affairs of the Senate, within
120 days of enactment of this Act, on how it has used its
authority under section 1022 in rulemakings to exempt certain
classes, any plans to revisit previous rulemakings to more
carefully tailor or grant exemptions to rules that have been
especially burdensome, and the process for the Bureau to
consider exemptions to community institutions in future
rulemakings.
Short-term Lending.--The Committee supports meaningful
safeguards to prevent predatory lending practices in the short-
term lending market. However, the Committee believes the Bureau
has not carefully balanced existing regulatory frameworks
within States and the need to provide consumers with access to
a range of short-term financial services products. In order to
ensure viable credit options for all consumers, the Committee
believes the Bureau needs to better engage stakeholders,
including States with robust statutes in this area, in an open
and transparent manner as the Bureau considers any proposed
rules. The Committee expects the Bureau to base any regulatory
action on complete data and sound analysis, taking into
consideration successful State models which have encouraged
lending practices that are fair and transparent without
restricting access to credit.
Pursuant to its mandate in section 1021 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, the Bureau
shall `enforce Federal consumer financial law consistently for
the purpose of ensuring that all consumers have access to
markets for consumer financial products and services'. The
Committee believes the Bureau is statutorily prohibited from
taking any action that would in any way restrict consumer
access to credit.
State-based Insurance.--The U.S. has a strong history of
promoting State-based regulation of the business of insurance.
The Committee remains concerned about preemption of these
effective State-based regulatory models, including those
products that helps consumers manage the risks associated with
owning a motor vehicle. Furthermore, the Committee supports
these products being regulated by State insurance commissioners
and reiterates that they are exempt under the Dodd-Frank Act
from direct oversight by the Consumer Financial Protection
Bureau (CFPB).
Manufactured Housing.--The Committee does not support
abusive home financing practices. However, the Committee is
concerned that since Dodd-Frank, new tests for high-cost loans
are pricing consumers out of the market, particularly for homes
valued at $250,000 and below. The Committee believes this
especially affects consumers who want to purchase manufactured
homes. Credit for these consumers should not be reduced because
of overregulation by the Federal Government.
Indirect Auto Lending.--The Committee is concerned the
Bureau's recent actions related to auto lending are reducing
competition, regulating auto dealers--over which the Bureau has
no jurisdiction--and raising costs to consumers. The Committee
strongly supports fair lending protections for consumers but
believes that the Bureau needs to act within the law
established by Congress and believes that there are significant
deficiencies in the Bureau's statistical methodology and
approach to enforcing the Equal Credit Opportunity Act with
regard to indirect auto lending.
Qualified Mortgages.--The Committee is supportive of recent
efforts to allow for residential mortgages held in portfolio by
lenders to be recognized as qualified mortgages for the
purposes of the Bureau's mortgage lending rules. These efforts
would especially help community bankers and credit unions who
have decreased their mortgage lending business in recent years
due to onerous regulatory requirements.
In addition, the Committee supports efforts to clarify the
definition of ``points and fees'' for qualified mortgages in
order to improve access to credit for low and moderate income
borrowers. The change in definition under Dodd-Frank has caused
many borrowers to be unable to obtain a qualified mortgage,
causing higher costs and less convenience for the consumers.
Financial Literacy.--The Committee directs the CFPB, in
consultation with the Financial Literacy and Education
Commission, to report to the Committees on Appropriations of
the House and Senate, not less than one year after enactment of
this Act, on the feasibility of designating qualified
institutions, like universities, State and local educational
agencies, and qualified nonprofit agencies or financial
institutions as centers of excellence to develop and implement
effective financial literacy programs.
The Committee includes the following provisions in the
bill:
Section 501. The Committee repeals the prohibition against
the Committees on Appropriations reviewing transfers from the
Federal Reserve System to the CFPB. Congress has a duty to
examine and critique the activities of the CFPB, especially
since its expenditures, like any other Federal agency,
contribute to a growing Federal debt.
Section 502. The Committee changes the CFPB's source of
funding from transfers from the Federal Reserve System to
annual appropriations beginning in fiscal year 2018. Under the
Dodd-Frank Wall Street Reform and Consumer Protection Act, the
CFPB can spend more than half a billion dollars without an
annual review by Congress. The Committee believes the CFPB
needs oversight as much as banks and nonbanks do and further
reminds the CFPB to remain steadfast to its mission to promote
fairness and transparency for mortgages, credit cards, and
other consumer financial products and services and not to stray
into consumer advocacy.
Section 503. The Committee repeats, with modifications, a
provision enacted in fiscal year 2016 that requires CFPB to
notify the Committees on Appropriations of the House and
Senate, the Committee on Financial Services of the House, and
the Committee on Banking, Housing, and Urban Affairs of the
Senate of requests for a transfer of funds from the Federal
Reserve System.
Section 504. The Committee directs the CFPB to submit
quarterly reports on its activities and to testify on its
activities when requested. The report shall include, among
other things, how the CFPB allocates its funds and staff.
Section 505. The Committee changes the management of the
CFPB to a five-member Board of Directors, to be appointed by
the President and approved by the Senate. Most financial
regulatory agencies have a five-member commission or board.
More voices at the top of the Bureau's management structure
will help the CFPB become attuned to more diverse viewpoints.
Section 506. The Committee prohibits the CFPB from
implementing a rule regarding the use of arbitration until the
Bureau addresses certain requirements.
Consumer Product Safety Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $125,000,000
Budget request, fiscal year 2017...................... 130,500,000
Recommended in the bill............................... 121,300,000
Bill compared with:
Appropriation, fiscal year 2016..................... -3,700,000
Budget request, fiscal year 2017.................... -9,200,000
The Consumer Product Safety Act established the Consumer
Product Safety Commission (CPSC), an independent Federal
regulatory agency, to reduce the risk of injury associated with
consumer products.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $121,300,000
for the CPSC for fiscal year 2017. Within the amount provided
under this heading, $1,300,000 is for the Virginia Graeme Baker
Pool and Spa Safety Act grant program and $1,000,000 is for
CPSC to establish three advisory committees to address (1) the
importation of products within CPSC's jurisdiction (2) consumer
product recalls (3) public disclosures of information. Each
advisory committee shall consist of 20 members appointed by the
Chairperson of the Commission and approved by a majority of
Commissioners; meet at least once per quarter and submit a
quarterly report to the Commission, the Committees on
Appropriations of the House of Representatives and the Senate,
the Committee on Energy and Commerce of the House, and the
Committee on Commerce, Science, and Transportation of the
Senate. Not later than 30 days after the second quarterly
meeting of an advisory committee, each such advisory committee
is directed to submit a report on the findings of the advisory
committee to the Committees on Appropriations of the House of
Representatives and the Senate, the Committee on Energy and
Commerce of the House, and the Committee on Commerce, Science,
and Transportation of the Senate. These advisory committees
will terminate at the end of fiscal year 2017.
Test Burden Reduction.--In fiscal years 2015 and 2016, the
Committee provided the Commission a total of $2 million for the
specific purpose of carrying out the congressionally mandated
responsibility of reducing the burden associated with third-
party testing rules. The Committee is frustrated that there has
been no real tangible relief to small businesses despite the
amount of resources the Commission has been provided. The CPSC
has identified a significant number of opportunities for test
burden reduction, however, to date nothing in the way of
meaningful burden reduction has been accomplished. The
Committee directs the Commission to continue to provide
quarterly reports updating the Committees on Appropriations of
the House and Senate on its efforts to reduce the costs of
third-party testing, including any that the Commission has
chosen not to pursue.
Voluntary Recall.--The Committee remains concerned about
proposed changes to the voluntary recall system that would
serve to negatively impact small businesses. Despite
overwhelming opposition, the Commission continues to move
forward with a final rule on voluntary recalls. The Committee
opposes making unnecessary changes to a recall system that has
worked well over the past 40 years, owing to a successful
partnership between businesses and the Commission. To that end,
the Committee prohibits funds to finalize, implement, or
enforce the proposed rule on voluntary recalls.
Public Disclosures of Information.--Section 6(b) of the
Consumer Product Safety Act (CPSA) requires CPSC to take
reasonable steps to ensure that any disclosure of information
relating to a consumer product safety incident is accurate and
fair. The Committee remains concerned that the Commission is
proceeding with a proposed rule on section 6(b) that threatens
to undermine a successful partnership based on openness and
trust between industry and the Commission. The Committee
cautions the Commission about making changes to a process that
has succeeded in both protecting the consumer against harm and
protecting industry against inaccurate disclosures of
information before an investigation has been completed.
Consequently, the Committee prohibits funds to finalize,
implement, or enforce the proposed rule on information
disclosures under Section 6(b).
Window Coverings.--The Committee continues to support the
cooperative efforts of CPSC and the window coverings industry
to educate consumers on window covering safety. The Committee
encourages continued cooperation between CPSC and industry on
developing voluntary standards for its products through the
current voluntary standards setting process.
Pool and Spa Safety.--The Committee commends the CPSC for
continuing to provide resources for the national and grassroots
``Pool Safely'' campaign, a safety information and education
program designed to reduce child drownings and near-drowning
injuries and maintain a zero fatality rate for drain
entrapments. This multifaceted initiative includes consumer and
industry education efforts, press events, partnerships,
outreach, and advertising. The Committee provides $1,000,000
for the Pool Safely campaign.
In fiscal year 2016, the Commission awarded five local
governments more than $780,000 for pool and spa safety grants
established by the Virginia Graeme Baker Pool and Spa Safety
Act. The funding will provide assistance to local governments
for education, training, and enforcement of pool safety
requirements that are intended to save lives and prevent
serious injuries. The Committee applauds the Commission's
efforts to distribute guidance and model legislation to assist
all states in becoming active participants in the enforcement
and education of the Virginia Graeme Baker Pool and Spa Safety
Act.
Flame Retardant Chemicals.-- As the Commission considers
new upholstered furniture flammability standards, the Committee
encourages the Commission to take steps to reduce or limit the
use of flame retardant chemicals.
ADMINISTRATIVE PROVISION--CONSUMER PRODUCT SAFETY COMMISSION
Section 510. The Committee continues language prohibiting
funds to finalize, implement, or enforce the proposed rule on
recreational off-highway vehicles until a study is completed by
the National Academy of Sciences.
Election Assistance Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $9,600,000
Budget request, fiscal year 2017...................... 9,800,000
Recommended in the bill............................... 4,900,000
Bill compared with:
Appropriation, fiscal year 2016..................... -4,700,000
Budget request, fiscal year 2017.................... -4,900,000
The Election Assistance Commission (EAC) was established by
the Help America Vote Act of 2002 (HAVA) and is charged with
implementing provisions of that Act relating to the reform of
Federal election administration.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,900,000 for
the Salaries and Expenses of the EAC.
The Committee strongly supports the successful
administration of Federal elections and the Help America Vote
Act (HAVA) of 2002. However, the Committee believes the EAC is
no longer effectively carrying out its mandate. At present, one
seat remains vacant and the agency has been operating without
legislative authorization since 2005. For six years the
Administration has not requested additional grant funding for
HAVA grants, and there is currently less than $10 million left
in grants to distribute. The work of the EAC consists largely
of auditing HAVA grant money previously distributed, some of
which is carried out by the EAC Inspector General, and
examining new voting technologies, the technology aspects of
which are performed by the National Institute of Standards and
Technology and private testing laboratories.
In February 2013, rather than turn to the EAC, the
President chose to form a new ad hoc commission by Executive
Order to review and propose best practices related to concerns
from the 2012 elections regarding polling place wait times, and
military and oversees voting.
This Committee is not advocating doing away with the
changes made to voting law in HAVA. Rather, the Committee
believes these laws do not require an independent Federal
agency. The Committee supports legislation that was introduced
in the 114th Congress and reported by the Committee on House
Administration to terminate the EAC.
Federal Communications Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $384,012,000
Budget request, fiscal year 2017...................... 358,286,000
Recommended in the bill............................... 314,844,000
Bill compared with:
Appropriation, fiscal year 2016..................... -69,168,000
Budget request, fiscal year 2017.................... -43,442,000
The mission of the Federal Communications Commission (FCC)
is to implement the Communications Act of 1934 and assure the
availability of high quality communications services for all
Americans.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $314,844,000
for the Salaries and Expenses of the FCC, all of which is to be
derived from offsetting collections.
The Committee recommendation includes bill language,
similar to language included in previous Appropriations Acts,
which allows: (1) up to $4,000 for official reception and
representation expenses; (2) purchase and hire of motor
vehicles; (3) special counsel fees; (4) collection of
$314,844,000 in section 9 fees; (5) a prohibition on amounts
collected in excess of $314,844,000 from being available for
obligation; (6) a prohibition on remaining offsetting
collections from prior years from being available for
obligation; (7) a cap of $106,000,000 for the administration
and implementation of incentive auctions, as required by P.L.
112-96; and (8) provides not less than $11,751,000 for the
Office of the Inspector General. The Committee notes its
support for the Office of Engineering and Technology.
Net Neutrality/Open Internet.--The Committee has
purposefully kept funding for the FCC flat since fiscal year
2012 to keep the agency focused on mission-critical work.
Instead, the FCC has prioritized politically polarizing
rulemakings at the expense of the important work the Commission
has to do. The U.S. has four times more capital investment in
broadband, twice as much investment in mobile services, and
more competition and access to high-speed networks than Europe.
At a time when U.S. innovation, investment, and demand in this
area is expanding, it is truly concerning that the FCC would
act to limit both future investment and, potentially, consumer
choice. With an increased level of competition in the
marketplace, there should be less need for regulation. The
internet has been an unparalleled catalyst for innovation, yet
the FCC has voted to constrain and control something that has
brought about innumerable technological advancements and
American jobs.
The Committee has included sections 630, 631, and 632 to
address some of these concerns.
Incentive Auction.--The Middle Class Tax Relief and Job
Creation Act of 2012 (P.L. 112-96) authorized the FCC to
conduct a voluntary broadcast incentive auction and Congress
allocated $1.75 billion to reimburse the service and equipment
costs of channel relocation incurred by the television
broadcast industry, such as changes to antennas, transmitters,
transmission lines, and towers. The Committee is aware of
concerns about the length of time and funds available to
broadcasters to repack stations at the conclusion of the
incentive auction. The Committee intends to monitor this issue
closely. Both broadcasters and those purchasing spectrum must
participate in good faith for the incentive auction to be
successful. The Committee supports the Commission's
administration of these auctions and expects the FCC to take
into careful consideration any participating entity's concerns.
The Committee has consistently supported the incentive auction
and expects the FCC to continue to work toward its success.
Auction Administration.--The Committee has been supportive
of the FCC's administration of the incentive auction, as
required by Public Law 112-96, and recognizes the substantial
work associated with the implementation of these auctions. Over
the past three years, the Committee has increased the FCC's
auction administration cap in order to support the
administration of the incentive auction. However, the Committee
is concerned the Commission may have confused increased funding
for a specific time-limited activity with increased funding in
general. Any increase in funding for auction administration is
less funding for deficit reduction. The FCC should carefully
consider any further requested increases to the auction
administration cap and provide sufficient justification for the
increase in funding.
In addition, the Committee believes greater budget
transparency is still needed in order to better understand how
the use of these funds fits into the Commission's overall
budget request. In fiscal year 2015, the Committee directed the
Commission to provide annually in the budget submission a
detailed justification on how the Commission intends to spend
these funds, including FTE levels and programmatic initiatives.
The Committee believes the disclosures of how auction
administration funds are spent is an important part of its
oversight of the Commission and directs the FCC to continue to
include a detailed justification in its annual budget
submission and to make the detailed report on the use of
auction funds publically available on the Commission's website.
Enforcement.--The Committee is concerned that the penalties
the Commission has imposed in recent years are less tied to the
evidence of harm and clear metrics, and more to bring attention
to the Commission. While the Committee generally supports FCC's
efforts in protecting consumers, the Commission must be
cognizant of its responsibility to find clear evidence of
violations before imposing penalties, and to provide the
subject of an enforcement action adequate prior notice and the
opportunity to respond to the alleged violation. If the
Commission finds evidence of wrongdoing, the Committee expects
the Commission to collect fines in a timely manner.
Fines.--The Committee is concerned that the Commission is
not collecting fines in a timely manner, potentially rendering
fines uncollectable due to the statute of limitations.
Beginning not later than 90 days after enactment of this Act,
the FCC shall submit quarterly reports to the Committees on
Appropriations of the House and Senate, the Committee on Energy
and Commerce in the House, and the Committee on Commerce,
Science, and Transportation in the Senate on the status of its
efforts on tracking and collecting monetary penalties assessed
by the agency. The reports shall include a list of all Notices
of Apparent Liability (NALs) pending, including the date it was
issued; all NALs released, including the date of release; all
forfeiture orderspending, including the date it was issued; all
forfeiture orders released, including date of release and date
upon which payment is due; all timely paid forfeiture orders;
all forfeiture orders referred to the Department of Justice for
collection, including date of referral; all consent decrees,
including date adopted; and all consent decrees that have
resulting in a payment, including date of payment.
Additionally, for each of the items listed above, the
Commission shall provide the date on which the U.S. Government
will no longer be able to effectively prosecute the alleged
violation as a result of the statute of limitations. The
initial report shall also include a description of the FCC's
collection process.
Set-Top Boxes.--The Committee has strong concerns with the
recent proposal related to set-top boxes. While the Committee
supports advances in technology in this area that benefit
consumers, the Committee believes the Commission's proposal
falls short, especially with regard to privacy and copyright
concerns. Consumer privacy and legal copyright concerns are not
adequately addressed in the FCC's proposal, nor is the clear
fact that most set-top boxes will be obsolete in the coming
years. It seems that technology and active marketplace
competition are outpacing the Commission's rulemakings. The
Committee strongly encourages the Commission to further review
its proposal for the widespread impact it may have on consumer
privacy, all parties in the video programming marketplace,
content diversity, and intellectual property and content
licensing. These impacts should be carefully studied and
considered before the Commission moves forward with any final
rule. The Committee has included section 636 to address this
issue.
Telephone Consumer Protection Act.--The Committee believes
that the FCC must do more to ensure that consumers are able to
receive important notifications and timely updates about
financial developments that will impact their existing accounts
at depository institutions. The Committee is concerned that the
FCC's recent Order related to the Telephone Consumer Protection
Act (TCPA) will make it more difficult for financial
institutions to contact their members about identity theft or
data breaches. While the FCC adopted an exemption for ``free
end user calls'' made by financial institutions, specifically
for the purpose of: (1) calls intended to prevent fraudulent
transactions or identity theft; (2) data security breach
notifications; (3) measures consumers may take to prevent
identity theft following a data breach; and (4) money transfer
notifications, there is still a great deal of confusion. The
Committee strongly encourages the FCC to revisit the Order and
address technical questions that have been raised that may be
impossible for a financial institution to resolve, such as
whether or not the consumer will be charged for such texts or
calls by their plan provider, or if they will count against
their plan limits. The Committee also believes that the FCC
should provide more flexibility to the prescriptive
requirements for financial institutions using this exemption,
especially because this exemption was meant to apply in exigent
circumstances to protect consumers. The Committee notes the
Commission currently has a number of outstanding petitions to
clarify its TCPA Order.
Broadband Access.--The Committee strongly encourages the
FCC to continue to work with the Universal Service
Administrative Company (USAC) to allocate Universal Service
Funds for broadband expansion, especially in areas that could
most benefit from increased job opportunities that can come
from access to broadband. In particular, the Committee believes
the Commission should support and focus efforts on broadband
expansion in rural and economically disadvantaged areas in
order to maximize the use of USF funds. The Committee believes
the deployment of broadband in rural and economically
disadvantaged areas is a driver of economic development and
jobs and expects the Commission to prioritize these efforts.
Rate floor.--As the Commission works to complete a rule to
develop a ``rate floor'' methodology, the Committee encourages
the Commission to be sure the methodology is more reflective of
the effective value of local voice telephony service to a given
customer in high-cost rural areas (including the number of
other customers that can be reached via a local call) and that
ultimately sets the ``rate floor'' at a range below the
national average of local urban rates plus state regulated fees
for such service that better reflects reasonable comparability
of local voice telephony rates as required by law.
Universal Service.--In recognition of the ongoing rapidly
changing communications industry landscape, the Committee
believes it is imperative that the Federal State Joint Board on
Universal Service identify and provide Universal Service Fund
(USF) contributions reform recommendations to the FCC. The
committee further urges that such recommendations should
expressly recognize that continuing to base contributions only
on legacy telecommunications services revenues (and a limited
number of other service revenues) will undermine, and
ultimately threaten universal access to advanced communications
by eroding the sustainability of the USF program and placing
unfair and inequitable burdens for support of the program on a
small subset of communications network users.
Universal Service Fund High Cost Program.--The Committee
believes the Commission should continue to move toward
concluding its work of updating the rate-of-return distribution
mechanism of the Universal Service Fund (USF) High Cost program
in a manner that is consistent with the statutory mandate of
providing specific, predictable, and sufficient support to
ensure universal access to reasonably comparable services at
reasonably comparable rates. The reformed mechanism should
allow rural consumers to purchase standalone broadband at
affordable rates, and support the construction, maintenance,
and operation of networks that can be efficiently upgraded over
time to keep pace with consumer needs. The FCC should also be
mindful of the potential impacts of any reforms on other
important federal governmental programs, such as those
administered by the Rural Utilities Service (RUS), which
promote and sustain the deployment of broadband-capable
networks to customers in rural areas, particularly given that
such impacts could also adversely affect the Federal budget.
Finally, the Commission should work quickly and collaboratively
with Congress, the RUS, other agencies, and other affected
stakeholders if any adverse or negative unintended consequences
arise out of the reforms.
Call Completion.--The FCC shall submit a report to the
Committees on Appropriations of the House and Senate within 90
days of enactment of this Act detailing the agency's efforts to
resolve call completion issues and to prevent discriminatory
delivery of calls to any area of the country.
Territories and Tribal Lands.--The Committee is concerned
about the disparity in access to broadband between the
territories, tribal lands, and the 50 states. The Committee
encourages the Commission to implement policies that increase
broadband access and adoption in these areas.
Vacant Channels.--The Committee is concerned about the
FCC's ``vacant channel'' proceeding, in which the FCC
contemplates setting aside additional broadcast television
spectrum after the broadcast incentive auction for unlicensed
use. The broadcast spectrum the Commission is considering for
unlicensed could otherwise meet demand for LPTV and translator
licenses in the post-auction broadcast band. While the
Committee recognizes the value of unlicensed spectrum to our
national information economy, LPTV and translators also serve
an important role in serving rural and underserved television
viewing audiences. Given the uncertainty LPTV and translator
licensees face at the end of the incentive auction, the FCC
should not pursue additional unlicensed spectrum in the
broadcast band at the expense of LPTV and translator licensees
until the incentive auction is complete, so that it can
accurately assess the need for spectrum to serve communities
with LPTV stations and translators.
Federal Deposit Insurance Corporation
OFFICE OF THE INSPECTOR GENERAL
Appropriation, fiscal year 2016....................... $34,568,000
Budget request, fiscal year 2017...................... 35,958,000
Recommended in the bill............................... 35,958,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,390,000
Budget request, fiscal year 2017.................... - - -
Funding for the Office of the Inspector General (OIG) at
the Federal Deposit Insurance Corporation (FDIC) is provided
pursuant to 31 U.S.C. 1105(a)(25), which requires a separate
appropriation for each Office of Inspector General established
under section 11(2) of the Inspector General Act of 1978.
COMMITTEE RECOMMENDATION
The Committee recommends $35,958,000 from the Deposit
Insurance Fund and the Federal Savings and Loan Insurance
Corporation (FSLIC) Resolution Fund to finance the OIG.
Federal Election Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $76,119,000
Budget request, fiscal year 2017...................... 80,540,000
Recommended in the bill............................... 80,540,000
Bill compared with:
Appropriation, fiscal year 2016..................... +4,421,000
Budget request, fiscal year 2017.................... - - -
The Federal Election Commission (FEC) administers the
disclosure of campaign finance information, enforces
limitations on contributions and expenditures, and performs
other tasks related to Federal elections.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $80,540,000
for the Salaries and Expenses of the FEC.
In fiscal year 2016, the Committee provided the FEC with
$5,000,000 for costs associated with a facilities relocation,
and provides an additional $8,000,000 in fiscal year 2017. The
Committee is supportive of providing the FEC with adequate
resources for its facilities and expects future funding
requests to be reduced.
Federal Labor Relations Authority
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $26,200,000
Budget request, fiscal year 2017...................... 27,062,000
Recommended in the bill............................... 26,631,000
Bill compared with:
Appropriation, fiscal year 2016..................... +431,000
Budget request, fiscal year 2017.................... -431,000
Established by title VII of the Civil Service Reform Act of
1978, the Federal Labor Relations Authority (FLRA) serves as a
neutral arbiter in the labor activities of non-postal Federal
employees, Departments and agencies, and Federal unions on
matters outlined in the Act, including collective bargaining
and the settlement of disputes. Establishment of the FLRA gives
full recognition to the role of the Federal Government as an
employer. Under the Foreign Service Act of 1980, the FLRA also
addresses similar issues affecting Foreign Service personnel by
providing staff support for the Foreign Service Impasse
Disputes Panel and the Foreign Service Labor Relations Board.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $26,631,000
for the FLRA for fiscal year 2017.
Federal Trade Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $306,900,000
Budget request, fiscal year 2017...................... 342,000,000
Recommended in the bill............................... 317,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +10,100,000
Budget request, fiscal year 2017.................... -25,000,000
The mission of the Federal Trade Commission (FTC) is to
enforce a variety of Federal antitrust and consumer protection
laws. Appropriations for both the Antitrust Division of the
Department of Justice and the Commission are partially financed
by Hart-Scott-Rodino Act pre-merger filing fees. The
Commission's appropriation is also partially offset by Do-Not-
Call registry fees.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $317,000,000
for the Salaries and Expenses of the FTC. The Congressional
Budget Office estimates $125,000,000 of collections from Hart-
Scott-Rodino premerger filing fees and $15,000,000 of
collections from Do-Not-Call list fees will partially offset
the appropriation requirement for this account.
Deceptive Online Marketing.--The Committee remains
concerned that certain market conditions create incentives for
fraudulent and deceptive online activity associated with third-
party online hotel resellers or affiliates that do not have
direct contractual relationship with hotel companies. The
Committee believes the FTC should further investigate deceptive
online advertising that misleads consumers into mistakenly
providing their credit card information to fraudulent online
websites purporting to be a hotel's website or online booking
portal. Financial harm to the consumer is significant and
growing as more consumers utilize internet booking from mobile
devices. The Committee directs the Commission to study the
mobile and online hotel booking market focusing on deceptive
activity associated with third party online hotel resellers or
affiliates that do not have a contract with a hotel company.
The Committee directs the Commission to report back to the
Committees on Appropriations of the House and Senate within 90
days of enactment on recommended enforcement actions against
deceptive marketers engaging in the online hotel booking market
and appropriate remedies to apply in this area to protect
consumers from falling victim to these scams.
Credit Education.--The Committee believes that consumers
should be able to obtain personalized, legitimate credit
education products and tools in order to improve their
financial health. However, the Committee is concerned that the
broad scope of the Credit Repair Organizations Act (CROA) has
created a barrier for legitimate companies from being able to
provide these valuable services in a consumer-friendly manner.
The Committee directs the FTC to report to the Committees on
Appropriations of the House and Senate, the Committee on Energy
and Commerce of the House, the Committee on Commerce, Science,
and Transportation of the Senate, the Committee on Financial
Services of the House, and the Committee on Banking, Housing,
and Urban Affairs of the Senate, not later than 120 days after
the date of enactment of this Act, on the benefits of consumer
access to credit education and improvement services, and the
extent to which CROA impedes the research, development, and
provision of new credit education products, services, and
technology in the marketplace by consumer reporting agencies as
defined by the Fair Credit Reporting Act and other entities.
The FTC shall publish the report on its website.
Contact Lenses.--The Committee is aware of the FTC's
ongoing review of its contact lens rule and urges the agency to
make modifications to the rule that prioritize patient safety
and strengthen enforcement mechanisms.
Agency Overlap.--The creation of the Bureau of Consumer
Financial Protection (CFPB) transferred some areas of consumer
protection jurisdiction that were once the sole purview of the
FTC to the CFPB. The Committee is aware of the Memorandum of
Understanding signed by both the CFPB and the FTC and
understands that the agencies consult on areas of common
jurisdiction, such as debt collection. However, the Committee
intends to continue to monitor this issue as duplicative
efforts in regulatory rulemaking and enforcement activities
waste agency resources, and could place unnecessary burdens on
businesses, the economy, and the American taxpayer. The
Committee expects the FTC to continue to ensure duplicative
efforts on rulemakings are avoided before agency resources are
wasted.
General Services Administration
The Committee continues several reporting requirements for
the General Services Administration (GSA) for fiscal year 2017.
Takings and Exchanges.--Using existing statutory
authorities, GSA has been working to dispose of properties that
no longer meet the needs of Federal agencies in exchange for
assets of like value. Some of these exchanges are very complex
in nature and involve multi-year, multi-party, and multi-
billion dollar contracts. In addition, GSA also has the
statutory authority to take properties. The Committee believes
in some instances employing such authorities can result in
savings to the taxpayer when appropriately executed and wants
to be kept informed of these activities. In order to provide
increased transparency for the use and planned use of these
authorities, the Administrator is directed to report to the
Committees on Appropriations of the House and Senate not later
than 30 days after the end of each quarter on the use of these
authorities. The report shall include a description of all
takings and exchange actions that occurred or were considered
during the most recently completed quarter of the fiscal year,
including the costs, benefits, and risks for each action. The
report shall also include the planned or considered use of
takings and exchange authorities during the remainder of the
fiscal year, including the costs, benefits, and risks of each
action.
Spending Report.--Within 50 days after the end of each
quarter, GSA shall submit spending reports to the Committees on
Appropriations of the House and Senate. The reports shall
include actual obligations incurred and estimated obligations
for the remainder of the fiscal year for each appropriation in
the Federal Buildings Fund and regular discretionary
appropriations. The reports shall include obligations by object
class, program, project and activity.
State of the Portfolio.--Not later than 45 days after the
date of enactment of this Act, the Administrator shall submit
to the Committees on Appropriations of the House and Senate a
report on the state of the Public Buildings Service's real
estate portfolio for fiscal year 2016. The content included in
the report shall be comparable to the tabular information
provided in past State of the Portfolio reports, including, but
not limited to, the number of leases; the number of buildings;
amount of square feet, revenue, expenses by type, and vacant
space; top customers by square feet and annual rent; completed
new construction, completed major repairs and alterations, and
disposals, in total and by region where appropriate.
Land Ports of Entry State of the Portfolio.--Within 90 days
of the date of enactment of this Act, GSA is directed to
provide the Committees on Appropriations of the House and
Senate a report on the state of the land ports of entry
portfolio. The content of this report shall include, but shall
not be limited to, a prioritized list of new construction and
major repairs and alterations projects.
Activities Report.--The Committee directs GSA to submit a
report no later than 120 days after the enactment of this Act
regarding how it ensures an appropriate level of minority,
women, and veteran owned firms' participation in its facilities
and procurement activities.
Courthouse Construction.--The Committee provided
significant funding for new courthouse construction in fiscal
year 2016. The Committee is encouraged by the collaborative
working relationship of the Administrative Office of the U.S.
Courts, the U.S. Marshals Service, and GSA to ensure
construction projects are completed on schedule and on budget.
Alamo Mission.--The State of Texas is working to develop a
Master Plan for the Alamo Mission that will preserve and
interpret this historic shrine for future generations. With
Federally-owned buildings located adjacent to the Alamo
Mission, the Committee encourages the GSA to be an active
participant in the development of a Master Plan, including
offering federal property for lease or sale to the State of
Texas for fair market value.
REAL PROPERTY ACTIVITIES
FEDERAL BUILDINGS FUND
LIMITATIONS ON AVAILABILITY OF REVENUE
(INCLUDING TRANSFERS OF FUNDS)
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2016.......... $10,196,124,000
Limitation on availability, budget request, fiscal 10,178,338,000
year 2017............................................
Recommended in the bill............................... 9,244,808,000
Bill compared with:
Availability limitation, fiscal year 2016........... -951,316,000
Availability limitation, fiscal year 2017 request... -933,530,000
The Federal Buildings Fund (FBF) accounts for the
activities of the Public Buildings Service (PBS), which
provides space and services for Federal agencies in a
relationship similar to that of landlord and tenant. The FBF,
established in 1975, replaces direct appropriations with income
derived from rent assessments, which approximate commercial
rates for comparable space and services. The Committee makes
funds available through a process of placing limitations on
obligations from the FBF as a way of allocating funds for
various FBF activities.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation on the availability
of funds of $9,244,808,000 for the FBF.
To carry out the purposes of the FBF, the revenues and
collections deposited into the FBF shall be available for
necessary expenses in the aggregate amount of $9,244,808,000 of
which: $504,918,000 is for construction and acquisition,
$758,790,000 is for repairs and alterations, $5,645,000,000 is
for rental of space, and $2,336,100,000 is for building
operations.
Historically, prior to obligating funding for prospectus-
level construction, alterations, or leases, the Administration
has waited for the project to be authorized through a
resolution approved by the Committee on Transportation and
Infrastructure in the House and the Committee on Environment
and Public Works in the Senate as required by title 40 of the
United States Code and in accordance with the proviso included
in the FBF appropriations limiting the obligation of funds to
prospectus-level projects approved by the authorizing
committees. The Committee supports this process and believes
that prospectus-level projects warrant a thorough review from
both the Appropriations Committee and the authorizing
committees. The Committee expects the Administration to
continue to follow this process.
CONSTRUCTION AND ACQUISITION
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2016.......... $1,607,738,000
Limitation on availability, budget request, fiscal 1,330,522,000
year 2017............................................
Recommended in the bill............................... 504,918,000
Bill compared with:
Availability limitation, fiscal year 2016........... -1,102,820,000
Availability limitation, fiscal year 2017 request... -825,604,000
The construction and acquisition fund finances the project
cost of design, construction, and management and inspection
costs of new Federal facilities.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $504,918,000 for
construction and acquisition:
$200,000,000 for the FBI Headquarters
Consolidation;
$248,213,000 for the Calexico West, California,
United States Land Port of Entry;
$7,000,000 for the Southeast Federal Center
Remediation, District of Columbia, Washington;
$5,749,000 for the United States Department of
Agriculture Animal and Plant Health Inspection Service,
Pembina, North Dakota;
$31,200,000 for a Federal Office Building, Boyers,
Pennsylvania;
$12,756,000 for the Internal Revenue Service Annex
Building, Austin, Texas.
REPAIRS AND ALTERATIONS
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2016.......... $735,331,000
Limitation on availability, budget request, fiscal 841,617,000
year 2017............................................
Recommended in the bill............................... 758,790,000
Bill compared with:
Availability limitation, fiscal year 2016........... +23,459,000
Availability limitation, fiscal year 2017 request... -82,827,000
The repairs and alterations activity funds the project cost
of design, construction, management and inspection for the
repair, alteration, and modernization of existing real estate
assets in addition to various special programs.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $758,790,000 to
remain available until expended for repairs and alterations.
Major Repairs and Alterations.--The Committee recommends
$300,000,000 for repairs and alterations projects that exceed
the prospectus threshold. The funds are provided to address
GSA's highest priority facility needs. The Committee directs
GSA to submit a detailed plan, by project, regarding the use of
Major Repairs and Alterations funds, not later than 45 days
after enactment of this Act. GSA is directed to provide
notification to the Committees on Appropriations of the House
and Senate within 15 days prior to any changes in the use of
these funds.
Basic Repairs and Alterations.--The Committee recommends
$312,090,000 for non-recurring repairs and alterations projects
between $10,000 and the current prospectus threshold of
$2,850,000.
Fire and Life Safety.--The Committee recommends $20,000,000
to improve building safety, abate hazardous material, and
repair structural deficiencies. These projects include, but are
not limited to, fire alarm, sprinkler, electrical, ventilation,
heating, and elevator systems.
Judiciary Court Security Program.--The Committee recommends
$26,700,000 for the construction, acquisition, repair,
alteration, and security projects for the Judiciary as
prioritized by the Judicial Conference of the United States.
Consolidation Activities.--The Committee recommends
$100,000,000 for the cost of consolidating space. Given the
reduction in the Federal workforce and Federal agency budgets,
the Committee believes that it is prudent to reduce the GSA
building inventory, particularly with regard to the thousands
of surplus and underutilized buildings. The Committee
appreciates the Administration's commitment to ``freeze the
footprint'' of the Federal Government (OMB management
procedures memorandum 2013-02) by prohibiting increases in the
total square footage of domestic offices and warehouses.
Projects selected for consolidation should result in reduced
annual rent paid by the agency, not exceed $10,000,000 in
costs, and have an approved prospectus. GSA is required to
submit a spend plan and explanation for each project including
estimated savings to the Committees on Appropriations of the
House and Senate before obligating funds.
Federal Bureau of Investigation (FBI) Headquarters.--The
Committee recommends $200,000,000 for the FBI Headquarters
consolidation.
In fiscal year 2016, the Committee provided GSA with $75
million in recognition of the need for a new consolidated FBI
Headquarters. However, GSA's insistence on using its exchange
authorities to fund the design and construction of a new
headquarters through the sale of the J. Edgar Hoover Building
is another example of weak property disposal. GSA's request for
$1.4 billion for the FBI in fiscal year 2017 is evidence of its
inexperience and inability to execute an exchange of this
scale.
This Committee has consistently questioned whether an
exchange was financially and practically advisable and whether
GSA's decision to forgo the normal disposal process would
obtain the best deal for the taxpayer. To date, GSA has not
provided the Committee with the total project cost, estimated
costs of site acquisition, or its current valuation of the J.
Edgar Hoover Building.
Furthermore, GSA has failed to explain the massive
miscalculation of construction and acquisition costs compared
to its original projection that the value of the Hoover
building would more than pay for a new FBI Headquarters. The
absence of a House Transportation and Infrastructure Committee
approved prospectus for the FBI Headquarters consolidation
casts further doubt about the exchange. The Committee is
frustrated by the lack of detail regarding the project cost and
expects GSA to be more forthcoming with information.
RENTAL OF SPACE
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2016.......... $5,579,055,000
Limitation on availability, budget request, fiscal 5,655,581,000
year 2017............................................
Recommended in the bill............................... 5,645,000,000
Bill compared with:
Availability limitation, fiscal year 2016........... +65,945,000
Availability limitation, fiscal year 2017 request... -10,581,000
The rental of space program funds lease payments made to
privately-owned buildings, temporary space for Federal
employees during major repair and alteration projects, and
relocations from Federal buildings due to forced moves and
relocations as a result of health and safety conditions.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $5,645,000,000 for
rental of space. The Committee expects GSA to reduce the amount
of leased space in its inventory at a faster pace.
BUILDING OPERATIONS
Limitations on Availability of Revenue:
Limitation on availability, fiscal year 2016.......... $2,274,000,000
Limitation on availability, budget request, fiscal 2,350,618,000
year 2017............................................
Recommended in the bill............................... 2,336,100,000
Bill compared with:
Availability limitation, fiscal year 2016........... +62,100,000
Availability limitation, fiscal year 2017 request... -14,518,000
The building operations account funds services that Federal
agencies in GSA-owned buildings and occasionally in GSA-leased
buildings, when not provided by the lessor, directly benefit
from such as building security, cleaning, utilities, window
washing, snow removal, pest control, and maintenance of
heating, air conditioning, ventilating, plumbing, sewage,
electrical, elevator, escalator, and fire protection systems.
In addition, this account funds all the personnel and
administrative expenses for carrying out construction and
acquisition, repair and alteration, and leasing activities.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $2,336,100,000 for
Building Operations and Maintenance. Within this amount,
$1,184,790,000 is for building services and $1,151,310,000 is
for salaries and expenses. Up to five percent of the funds may
be transferred between these activities upon the advance
notification to the Committees on Appropriations of the House
and Senate. Not later than 60 days after the date of enactment
of this Act, the Administrator shall submit a spend plan, by
region, regarding the use of these funds to the Committees on
Appropriations of the House and Senate.
GENERAL ACTIVITIES
GOVERNMENT-WIDE POLICY
Appropriation, fiscal year 2016....................... $58,000,000
Budget request, fiscal year 2017...................... 64,497,000
Recommended in the bill............................... 58,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -6,497,000
The Office of Government-Wide Policy provides Federal
agencies with guidelines, best practices, and performance
measures for complying with all the laws, regulations, and
executive orders related to: acquisition and procurement,
personal and real property management, travel and
transportation management, electronic customer service
delivery, and use of Federal advisory committees.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $58,000,000
for Government-wide Policy.
Green Buildings.--The Committee shares the GSA's goal of
reducing building expenses through the efficient use of energy
and water and encourages energy efficiency to be considered
when purchasing construction and building materials, such as
sustainable wood products. The Committee is concerned, however,
that GSA's current green building policies and practices are
tailored to reflect the standards of a specific third-party
certification system rather than the public interest in greater
energy and water efficiency. All agencies should be wary of
becoming captured; no third-party certification program has a
monopoly on how to attain efficiency, much less sustainability.
For example, efficiency and sustainability can be achieved not
just through the design of buildings or major renovations and
the selection of materials, but also through proper building
maintenance and usage, building codes, energy codes, energy
efficiency rating systems, or a combination thereof.
The Committee recognizes sustainable roofing systems as a
viable option for government buildings. The Committee notes
that proper thermal insulation is a cost-effective and energy
efficient technology.
Information Technology Supply Chain Report.--No later than
120 days after the enactment of this act, the GSA shall consult
with the Department of Defense (DOD) about the effectiveness of
DOD's implementation of the supply chain security requirements
set forth in Section 806 of the Fiscal Year 2011 National
Defense Authorization Act, which required DOD to better manage
its information technology supply chain. After consultation
with DOD, GSA shall submit an unclassified report to the
Committees on Appropriations of the House and Senate on the
feasibility of adopting DOD-like supply chain security
initiatives. This report should also include an unclassified
assessment of the supply chain risks posed by potentially
untrustworthy sub-contractors, as well as a general plan to
mitigate such risks.
SDVOSB Participation.--The Committee encourages GSA to work
with the Department of Veterans Affairs and other Federal
agencies to ensure the participation of Service-Disabled
Veteran-Owned Small Businesses (SDVOSBs), consistent with the
provisions of P.L. 109-461 and Executive Order 13360, in
conjunction with the Federal Strategic Sourcing Initiative
(FSSI) for purchasing channel decisions, other agency
contracting and procurement opportunities relevant to
Janitorial and Sanitation products, and other areas. The
Committee encourages GSA to take proactive steps to ensure
SDVOSBs have fair and reasonable opportunities to participate
in GSA procurement processes when they have valid Federal
Supply Schedules (FSS).
OPERATING EXPENSES
Appropriation, fiscal year 2016....................... $49,376,000
Budget request, fiscal year 2017...................... 50,174,000
Recommended in the bill............................... 47,966,000
Bill compared with:
Appropriation, fiscal year 2016..................... -1,410,000
Budget request, fiscal year 2017.................... -2,208,000
This account provides appropriations for activities that
are not feasible for a user fee arrangement. Included under
this heading are personal property utilization and donation
activities of the Federal Acquisition Service; real property
utilization and disposal activities of the Public Buildings
Service; select management and administration activities
including support of government-wide emergency management
activities; and top-level, agency-wide management communication
activities.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $47,966,000
for operating expenses. Within the amount provided under this
heading, $24,569,000 is for Real and Personal Property
Management and Disposal, and $23,397,000 is for the Office of
the Administrator.
Federal Real Property Profile.--The Committee remains
extremely frustrated with the slow pace at which GSA and other
Federal agencies are improving the accuracy of the Federal Real
Property Profile. The U.S. Government Accountability Office
(GAO) named managing Federal real property to its 2015 High
Risk List. The Committee is concerned that despite language in
the fiscal year 2015 and 2016 reports, GSA has not made
progress on the value and accuracy of its inventory, taken
steps to include public lands as required by Executive Order
13327, made the FRPP available to the public, or geo-enabling
the FRPP. The Committee is outraged that the Federal Government
cannot provide an accurate accounting to the American public of
all the property that it owns. The Committee expects GSA to
work with agencies across government and utilize geographic
information technology to improve the data contained in this
report and enhance transparency to the American taxpayer. The
Committee directs GSA to report to the Committees on
Appropriations of the House and Senate on steps taken to
improve the quality and transparency of the profile within 60
days after the enactment of this Act.
CIVILIAN BOARD OF CONTRACT APPEALS
Appropriation, fiscal year 2016....................... $9,184,000
Budget request, fiscal year 2017...................... 9,275,000
Recommended in the bill............................... 9,275,000
Bill compared with:
Appropriation, fiscal year 2016..................... +91,000
Budget request, fiscal year 2017.................... - - -
This account provides appropriations for the Civilian Board
of Contract Appeals (CBCA). The CBCA is charged with
facilitating the prompt, efficient, and inexpensive resolution
of disputes through the use of alternate dispute resolution.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $9,275,000 for
the Civilian Board of Contract Appeals.
OFFICE OF INSPECTOR GENERAL
Appropriation, fiscal year 2016....................... $65,000,000
Budget request, fiscal year 2017...................... 66,000,000
Recommended in the bill............................... 65,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -1,000,000
This appropriation provides agency-wide audit and
investigative functions to identify and correct GSA management
and administrative deficiencies that create conditions for
existing or potential instances of fraud, waste, and
mismanagement. The audit function provides internal and
contract audits. Internal audits review and evaluate all facets
of GSA operations and programs, test internal control systems,
and develop information to improve operating efficiencies and
enhance customer services. Contract audits provide professional
advice to GSA contracting officials on accounting and financial
matters relative to the negotiation, award, administration,
repricing, and settlement of contracts. The investigative
function provides for the detection and investigation of
improper and illegal activities involving GSA programs,
personnel, and operations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $65,000,000
for the Office of Inspector General.
ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
Appropriation, fiscal year 2016....................... $3,277,000
Budget request, fiscal year 2017...................... 3,865,000
Recommended in the bill............................... 1,932,000
Bill compared with:
Appropriation, fiscal year 2016..................... -1,345,000
Budget request, fiscal year 2017.................... -1,933,000
This appropriation provides pensions, office staff, and
related expenses for former Presidents Jimmy Carter, George
H.W. Bush, William Clinton, and George W. Bush, and future
former President Barack Obama.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $1,932,000 for
allowances and office staff for former Presidents.
EXPENSES, PRESIDENTIAL TRANSITION
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... - - -
Budget request, fiscal year 2017...................... $9,500,000
Recommended in the bill............................... 9,500,000
Bill compared with:
Appropriation, fiscal year 2016..................... +9,500,000
Budget request, fiscal year 2017.................... - - -
In accordance with the Presidential Transition Act of 1963,
as amended, this appropriation provides for transition services
to the outgoing and incoming Presidential offices. The
Committee directs GSA to provide the Committee on
Appropriations of the House and Senate with quarterly reports
detailing how funds in this account are spent.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $9,500,000 for
presidential transition.
FEDERAL CITIZEN SERVICES FUND
(INCLUDING TRANSFERS OF FUNDS)
Appropriation, fiscal year 2016....................... $55,894,000
Budget request, fiscal year 2017...................... 58,428,000
Recommended in the bill............................... 55,894,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -2,534,000
The Federal Citizen Services Fund (the Fund) appropriation
provides for the salaries and expenses of GSA's Office of
Citizen Services and Innovative Technologies (OCSIT). The Fund
enables citizen access and engagement with government through
an array of operational programs and direct citizen facing
services. The Fund provides electronic or other methods of
access to and understanding of Federal information, benefits,
and services to citizens, businesses, local governments, and
the media.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $55,894,000
for the Federal Citizen Services Fund. The Committee expects
the funds provided for these activities, combined with
efficiency gains and resource prioritization will result in
increased delivery of information to the public and in the ease
of transaction with the government.
All the income collected by the Office of Citizen Services
and Innovative Technologies (OCSIT) in the form of
reimbursements from Federal agencies, user fees for
publications ordered by the public, payments from private
entities for services rendered, and gifts from the public is
available to the OCSIT without regard to fiscal year
limitations, but is subject to an annual limitation of
$150,000,000. Any revenues accruing in excess of this amount
shall remain in the fund and are not available for expenditure
except as authorized in Appropriation Acts.
Administrative Provisions--General Services Administration
(INCLUDING TRANSFER OF FUNDS)
Section 520. The Committee continues the provision
providing authority for the use of funds for the hire of motor
vehicles.
Section 521. The Committee continues the provision
providing that funds made available for activities of the
Federal Buildings Fund may be transferred between
appropriations with advance approval of the Committees on
Appropriations of the House and Senate.
Section 522. The Committee continues the provision
requiring funds proposed for developing courthouse construction
requests to meet appropriate standards and the priorities of
the Judicial Conference.
Section 523. The Committee continues the provision
providing that no funds may be used to increase the amount of
occupiable square feet, provide cleaning services, security
enhancements, or any other service usually provided, to any
agency which does not pay the assessed rent.
Section 524. The Committee continues the provision that
permits GSA to pay small claims (up to $250,000) made against
the Federal Government.
Section 525. The Committee continues the provision
requiring the Administrator to ensure that the delineated area
of procurement for all lease agreements is identical to the
delineated area included in the prospectus unless prior notice
is given to the committees of jurisdiction.
Section 526. The Committee continues the provision
requiring a spend plan for certain accounts and programs.
Section 527. The Committee includes a new provision
eliminating GSA's authority from transferring lapsed funds into
the Working Capital Fund.
Merit Systems Protection Board
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... $46,835,000
Budget request, fiscal year 2017...................... 47,428,000
Recommended in the bill............................... 47,131,000
Bill compared with:
Appropriation, fiscal year 2016..................... +296,000
Budget request, fiscal year 2017.................... -297,000
The Merit Systems Protection Board (MSPB) is an
independent, quasi-judicial agency established to protect the
civil service merit system. The MSPB adjudicates appeals
primarily involving personnel actions, certain Federal employee
complaints, and retirement benefits issues. The MSPB reports to
the President whether merit systems are sufficiently free of
prohibited employment practices.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $47,131,000
for the MSPB. The recommendation includes a transfer of
$2,345,000 from the Civil Service Retirement and Disability
Fund.
National Archives and Records Administration
OPERATING EXPENSES
Appropriation, fiscal year 2016....................... $379,393,000
Budget request, fiscal year 2017...................... 380,634,000
Recommended in the bill............................... 380,634,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,241,000
Budget request, fiscal year 2017.................... - - -
This appropriation provides NARA with funds for its basic
operations for management of the Federal Government's archives
and records, services to the public, operation of Presidential
libraries, review for declassification of classified security
information, and includes funding for the Electronic Records
Archives which preserves, stores, and manages digital Federal
records for archival purposes, ensuring long-term access.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $380,634,000
for the Operating Expenses of NARA.
Records Management.--The Committee encourages NARA to
leverage private sector records management capabilities, where
private vendors have invested their own capital to develop
facilities that are compliant with NARA's stringent building
standards. The Committee encourages NARA to identify NARA
records management storage facilities that can be cost
effectively managed by private records management companies,
especially those housing temporary Federal records.
The Committee directs NARA to submit a report to the
Committees on Appropriations of the House and Senate, no later
than April 30, 2017, detailing the Archives' activity and
spending related to the Presidential transition.
OFFICE OF INSPECTOR GENERAL
Appropriation, fiscal year 2016....................... $4,180,000
Budget request, fiscal year 2017...................... 4,801,000
Recommended in the bill............................... 4,801,000
Bill compared with:
Appropriation, fiscal year 2016..................... +621,000
Budget request, fiscal year 2017.................... - - -
The Office of Inspector General (OIG) provides audits and
investigations and serves as an independent, internal advocate
to promote economy, efficiency, and effectiveness within NARA.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,801,000 for
the OIG for fiscal year 2016.
REPAIRS AND RESTORATION
Appropriation, fiscal year 2016....................... $7,500,000
Budget request, fiscal year 2017...................... 7,500,000
Recommended in the bill............................... 7,500,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
This appropriation provides for the repair, alteration, and
improvement of Archives facilities and Presidential libraries
nationwide. It enables the National Archives to maintain its
facilities in proper condition for visitors, researchers, and
employees, and also maintain the structural integrity of the
buildings.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $7,500,000 for
repairs and restoration.
NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION GRANTS PROGRAM
Appropriation, fiscal year 2016....................... $5,000,000
Budget request, fiscal year 2017...................... 5,000,000
Recommended in the bill............................... 6,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,000,000
Budget request, fiscal year 2017.................... +1,000,000
The National Historical Publications and Records Commission
(NHPRC) program provides for grants to preserve and publish
records that document American history. Administered within the
National Archives and Records Administration, the NHPRC helps
State, local, and private institutions preserve non-Federal
records, helps publish the papers of major figures in American
history, and helps archivists and records managers improve
their techniques, training, and ability to serve a range of
information users.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $6,000,000
NHPRC.
National Credit Union Administration
COMMUNITY DEVELOPMENT REVOLVING LOAN FUND
Appropriation, fiscal year 2016....................... $2,000,000
Budget request, fiscal year 2017...................... 2,000,000
Recommended in the bill............................... 2,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
The Community Development Revolving Loan Fund Program
(CDRLF) was established in 1979 to assist officially designated
``low-income'' credit unions in providing basic financial
services to low-income communities. Low-interest loans and
deposits are made available to assist these credit unions.
Loans or deposits are normally repaid in five years, although
shorter repayment periods may be considered. Technical
assistance grants are also available to low-income credit
unions. Earnings generated from the CDRLF are available to fund
technical assistance grants in addition to funds provided for
specifically in appropriations acts. Grants are available for
improving operations as well as addressing safety and soundness
issues.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $2,000,000 for
the National Credit Union Administration's CDRLF for technical
assistance grants. The Committee expects the CDRLF to continue
making loans from their available funds derived from repaid
loans and interest earned on previous loans to designated
credit unions.
Office of Government Ethics
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $15,742,000
Budget request, fiscal year 2017...................... 16,090,000
Recommended in the bill............................... 16,090,000
Bill compared with:
Appropriation, fiscal year 2016..................... +348,000
Budget request, fiscal year 2017.................... - - -
The Office of Government Ethics (OGE) established by the
Ethics in Government Act of 1978, partners with other executive
branch Departments and agencies to foster high ethical
standards. The OGE issues and monitors rules regulations, and
memoranda pertaining to the prevention and resolution of
conflicts of interest, post-employment restrictions, standards
of conduct, and financial disclosure for executive branch
employees. The OGE is also responsible for creating and running
an electronic financial disclosure system under the Stop
Trading on Congressional Knowledge (STOCK) Act.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $16,090,000
for the OGE.
Office of Personnel Management
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF TRUST FUNDS)
Appropriation, fiscal year 2016....................... $245,238,000
Budget request, fiscal year 2017...................... 289,520,000
Recommended in the bill............................... 286,478,000
Bill compared with:
Appropriation, fiscal year 2016..................... +41,240,000
Budget request, fiscal year 2017.................... -3,042,000
The Office of Personnel Management (OPM) is the Federal
agency responsible for management of Federal human resources
policy and oversight of the merit civil service system. OPM
provides a government-wide policy framework for personnel
matters, advises and assists agencies (often on a reimbursable
basis), and ensures that agency operations are consistent with
requirements of law, with emphasis on such issues as veterans
preference. OPM oversees examining of applicants for
employment; issues regulations and policies on hiring,
classification and pay, training, investigations; and many
other aspects of personnel management, and operates a
reimbursable training program for the Federal Government's
managers and executives. OPM is also responsible for
administering the retirement, health benefits and life
insurance programs affecting most Federal employees, retired
Federal employees, and their survivors.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $144,867,000
for the General Fund. The Committee also recommends
$141,611,000 for administrative expenses, to be transferred
from the appropriate trust funds.
OPM has struggled for decades to process Federal retirees'
pension claims quickly and accurately. As a result, tens of
thousands of new retirees wait months to receive their complete
annuities--some wait more than a year--and in the meantime they
may be constrained by reduced interim pensions. The Committee
expects OPM to continue to make retirement processing a
priority and move to a fully-automated electronic filing
system. The Committee believes that the backlog and delays in
retirement processing are unacceptable and directs OPM to
continue to provide the Committees on Appropriations of the
House and Senate with monthly reports on its progress in
addressing the backlog in claims.
In the wake of the two massive data breaches, OPM must
continue to take steps to secure the personally identifiable
information and material relating to security clearances of all
current, former, and prospective federal government employees.
The Committee has provided full funding for the
Administration's fiscal years 2016 and 2017 requests for
cybersecurity and expects OPM to continue with IT upgrades to
secure its networks against future attacks.
National Bureau of Investigations.--The Committee requires
more information about the Administration's proposal to create
the National Bureau of Investigations (NBIB), which will
replace OPM's Federal Investigative Services Branch, and,
therefore, directs OPM to submit to the Committees on
Appropriations of the House and Senate quarterly progress
reports highlighting the NBIB implementation plan, timeline,
and milestones; costs for each phase of implementation and
anticipated outyear costs; governance, resource management, and
accountability policies between OPM and Department of Defense;
and a human capital plan as well as other significant issues
related to standing-up the NBIB.
Critical Functions.--The recent security breaches, focus on
system upgrades, and the new National Background Investigations
Bureau should not detract OPM from fulfilling its critical
functions such as recruiting, retaining and developing a
Federal workforce to serve the American people. OPM serves the
Federal workforce by directing human resources and employee
management services, and administering retirement benefits,
managing healthcare and insurance programs, overseeing merit-
based and inclusive hiring in to the civil service, and
providing a secure employment process. The Committee reminds
OPM's senior management to not lose sight of its mission as it
responds to critical IT challenges.
Recruitment.--The Committee is concerned with the length of
time it often takes the Federal Government to hire qualified
employees. Rigid rules along with long delays in the hiring and
interview process discourage top candidates from applying for
or accepting Federal positions. The Committee encourages the
OPM to seek feedback on its recruitment process, explore and
implement hiring policies to reduce barriers to Federal
employment, such as those faced by the re-entry population, and
to reduce the delays in the hiring and notification process,
and improve overall the Federal recruitment process.
As part of OPM's mission to recruit and hire the most
talented and diverse Federal workforce, the Committee
encourages Federal agencies to increase recruitment efforts
within the United States and the territories and at Hispanic
Serving Institutions and Historically Black Colleges and
Universities.
CyberCorps.--A concern throughout the Federal Government is
hiring qualified cyber security staff. The CyberCorps
Scholarship for Service Program is a unique program designed to
increase and strengthen the cadre of cyber professionals by
providing students with academic scholarships in return for
their service in Federal, state, or local government. A greater
effort is needed to promote Federal cyber positions among
recent CyberCorps graduates and to streamline the hiring
process to attract these individuals to Federal service. OPM is
directed to submit a report to the Committees on Appropriations
of the House and Senate, House Permanent Select Committee on
Intelligence, and the Senate Select Committee on Intelligence
within 90 days of enactment of this Act outlining the steps OPM
will take to improve the hiring process of CyberCorps
graduates.
Domestic Violence, Sexual Assault, and Stalking.--The
Committee directs the Office of Personnel Management to create
a report no later than 180 days of enactment of this Act
detailing the impact of the February 2013 Guidance for Agency-
specific Domestic Violence, Sexual Assault, and Stalking on
Federal agency employee leave policies. The Committee directs
the Office of Personnel Management to publish, at minimum, the
following information: (1) a comprehensive summary of agency
leave policies in a 12-month period for domestic violence,
sexual assault, and stalking survivors; (2) a comprehensive
summary of agency safety precaution policies for domestic
violence, sexual assault, and stalking survivors; and (3) a
list of agencies that have not yet submitted final policies
adhering to the 2013 Office of Personnel Management guidance or
are not engaged in active implementation efforts.
Office of Inspector General
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF TRUST FUNDS)
Appropriation, fiscal year 2016....................... $26,844,000
Budget request, fiscal year 2017...................... 31,734,000
Recommended in the bill............................... 31,734,000
Bill compared with:
Appropriation, fiscal year 2016..................... +4,890,000
Budget request, fiscal year 2017.................... - - -
This appropriation provides for the Office of Inspector
General's (OIG) agency-wide audit, investigative, evaluation,
and inspection functions, which identify management and
administrative deficiencies, fraud, waste and mismanagement.
The OIG performs internal agency audits and insurance audits,
and offers contract audit services. Internal audits review and
evaluate all facets of agency operations, including financial
statements. Evaluation and inspection services provide detailed
technical evaluations of agency operations. Insurance audits
review the operations of health and life insurance carriers,
health care providers, and insurance subscribers. Contract
auditors provide professional advice to agency contracting
officials on accounting and financial matters regarding the
negotiation, award, administration, repricing, and settlement
of contracts. The investigative function provides for the
detection and investigation of improper and illegal activities
involving programs, personnel, and operations.
COMMITTEE RECOMMENDATION
The Committee recommends a general fund appropriation of
$5,072,000 for the OIG. In addition, the recommendation
provides $26,662,000 from appropriate trust funds.
National Bureau of Investigations.--Of particular interest
to the Committee is the implementation of OPM's National
Background Investigations Bureau (NBIB). The Committee directs
the Inspector General to submit a report to the Committees on
Appropriations of the House and Senate not less than 12 months
after enactment of this Act assessing the implementation of
NBIB; staff transitions from the Federal Investigative Services
and future staffing needs; current and future costs; governance
and accountability structure among the NBIB, Department of
Defense, OPM IG and Performance Accountability Council; and
recommendations and weaknesses found.
Office of Special Counsel
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $24,119,000
Budget request, fiscal year 2017...................... 26,535,000
Recommended in the bill............................... 25,735,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,616,000
Budget request, fiscal year 2017.................... -800,000
The Office of Special Counsel (OSC): (1) investigates
Federal employee allegations of prohibited personnel practices
(including reprisal for whistleblowing) and, when appropriate,
prosecutes before the Merit Systems Protection Board; (2)
provides a channel for whistleblowing by Federal employees; and
(3) enforces the Hatch Act. The Office may transmit
whistleblower allegations to the agency head concerned and
require an agency investigation and a report to the Congress
and the President when appropriate. Additionally, the Office
enforces the civilian employment and reemployment rights of
military service members under the Uniformed Services
Employment and Re-employment Rights Act.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $25,735,000
for the OSC.
Postal Regulatory Commission
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... $15,200,000
Budget request, fiscal year 2017...................... 17,726,000
Recommended in the bill............................... 16,200,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,000,000
Budget request, fiscal year 2017.................... -1,526,000
The Commission establishes and maintains the U.S. Postal
Service's ratemaking systems, measures service and performance,
ensures accountability, and has enforcement mechanisms,
including the authority to issue subpoenas.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation, out of the
Postal Fund, of $16,200,000 for the Postal Regulatory
Commission (Commission). The Committee believes the Commission
can make better use of its office space and reduce annual
rental costs through consolidation and reconfiguration. The
Committee directs the Commission to work with the General
Services Administration on optimizing the Commission's space to
reduce the Commission's footprint and save additional
resources.
Privacy and Civil Liberties Oversight Board
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $21,297,000
Budget request, fiscal year 2017...................... 10,081,000
Recommended in the bill............................... 8,297,000
Bill compared with:
Appropriation, fiscal year 2016..................... -13,000,000
Budget request, fiscal year 2017.................... -1,784,000
The Privacy and Civil Liberties Oversight Board (the Board)
is an independent agency within the Executive Branch whose
purpose is to (1) analyze and review actions the Executive
Branch takes to protect the nation from terrorism, ensuring
that the need for such actions is balanced with the need to
protect privacy and civil liberties; and (2) ensure that
liberty concerns are appropriately considered in the
development and implementation of laws, regulations, and
policies related to efforts to protect the nation against
terrorism. The Board consists of 4 part-time members and full-
time chairman.
COMMITTEE RECOMMENDATION
The Committee recommends $8,297,000 for the Board.
The Committee is appreciative of the Board's decision to
secure the most cost-effective facilities lease and encourages
the Board to continue to work with the General Services
Administration in maintaining such measures, particularly at a
time when resources are limited. The Committee directs the
Board to provide quarterly briefings to the Committees on
Appropriations of the House and Senate on the progress of the
Board's facilities move.
Securities and Exchange Commission
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $1,605,000,000
Budget request, fiscal year 2017...................... 1,781,457,278
Recommended in the bill............................... 1,555,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... -50,000,000
Budget request, fiscal year 2017.................... -226,457,278
The primary mission of the Securities and Exchange
Commission (SEC) is to protect investors, maintain the
integrity of the securities markets, and assure adequate
information on the capital markets is made available to market
participants and policy makers. This includes monitoring the
rapid evolution of the capital markets, ensuring full
disclosure of all appropriate financial information, regulating
the Nation's securities markets, and preventing fraud and
malpractice in the securities and financial markets.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $1,555,000,000
for the SEC. The Committee designates not less than $14,700,000
for Office of Inspector General and $72,049,000 for the
Division of Economic and Risk Analysis.
Reserve Fund/Information Technology.--The Committee is
supportive of the SEC's prioritization of robust and effective
information technology (IT) systems within the Commission. The
SEC has indicated that the planned use of the Dodd-Frank
mandatory Reserve Fund is to support the Commission's IT
initiatives. However, this fund is not overseen by Congress and
it is left to the discretion of the Commission as to its use.
The Committee believes emergency reserve funds should be used
for natural disaster emergencies and other crises, not
discretionary priorities within a Federal agency. While the
Committee does not support the use of the Reserve Fund, an
increase to IT funding is provided through the Commission's
overall appropriation. The Committee's recommended funding
level for IT initiatives increases the overall funding level by
$50,000,000 specifically to support IT funding priorities. The
Committee includes a limitation (section 624) prohibiting funds
from the Reserve Fund from being used by the Commission.
The Committee expects the Commission to continue to improve
network safeguards and security controls, both physical and
cyber, from potential intrusions. The Committee expects the
Commission to prioritize and fully implement the information
security program as soon as possible.
Fiduciary Standard.--The Committee remains concerned with
the Department of Labor (DOL) newly released rule regarding
fiduciary standards for broker-dealers. This rule overlaps with
SEC's jurisdiction and the implications for regulatory conflict
and investor harm are far-reaching. The DOL is neither an
expert in the area of overseeing investment advisors, nor the
primary regulator for broker-dealers. The Committee knows of no
peer-reviewed studies that have established causation between a
fiduciary standard and returns on investment. Further, the
impact on low to moderate income retail investors is of
significant concern. The Committee will continue to closely
monitor any SEC rulemaking in this area and expects the SEC to
take into consideration the impact on retail investors and the
availability of affordable investment advice.
Liquidity.--The Committee believes the SEC is the expert
regulator with regard to the U.S. capital markets. Since the
passage of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), prudential regulators, through
the Financial Stability Oversight Council (FSOC), have been
able to influence and, in many cases, impair the U.S. markets'
functionality. Although both the banking sector and capital
markets affect the U.S. and global economy, prudential
regulation and market regulation are inherently different and
should be treated as such.
The Committee has strong concerns about the effect that the
Dodd-Frank Act and other layers of financial regulation have
had, and will continue to have, on overall market liquidity.
The Committee believes these layers of regulation have resulted
in an alarming lack of liquidity in U.S. markets, particularly
fixed income markets. In FY 2016 the Committee directed the
SEC's Division of Economic and Risk Analysis (DERA) to report
to the Committee within one year of enactment of this Act, on
the combined impacts that the Dodd-Frank Act--especially
section 619--and other financial regulations, such as Basel
III, have had on: (1) access to capital for consumers,
investors, and businesses, and (2) market liquidity, to include
U.S. Treasury markets and corporate debt. The Committee looks
forward to reviewing this report.
The Committee has been supportive of DERA in order to
encourage the Commission prioritize robust and thorough expert
economic analysis of SEC rulemakings. The Committee expects
DERA, when it performs economic analysis for proposed SEC
regulations, to consider the overall economic effects of all
financial regulations--not just those proposed by the SEC--and
their effect on the U.S. markets.
BDC Modernization.--Congress created Business Development
Companies (BDCs) in 1980 to facilitate capital formation in
small and medium size companies. BDCs have recently invested in
small and medium-size companies that provide vital services to
the American public, including companies involved in disease
treatment and prevention, education, information technology
security, agriculture, and construction. Many BDCs specialize
in financing acquisitions made by private equity firms. While
there is a wide variation among BDCs in the size of their
investments, the companies they invest in, and the industries
in which they concentrate, they all share a common investment
objective of making it easier for small and medium-sized
companies to obtain access to capital. Funding from BDCs has
become more important for small businesses as the stifling
regulatory environment resulting from the regulatory
overreaction to the financial crisis has restricted bank and
other traditional financing options for these companies. The
Committee instructs the SEC to modernize the business
development company regulatory regime consistent with H.R.
3868, the Small Business Credit Availability Act as reported by
the Committee on Financial Services on November 3, 2015.
BDC Acquired Fund Fee and Expense Rule.--The SEC issued its
acquired fund fees and expenses (AFFE) rule in 2003 to deal
with the ``Funds of Funds'' business models. As the law does
not consider BDCs to be Funds of Funds, the SEC did not mention
BDCs in the rule. Today the BDC industry has grown dramatically
and the AFFE rule unnecessarily harms the industry. Retail
investors benefit from having professional firms and indexes
analyze BDC securities. However, retail investors are not being
given adequate market protections because the AFFE rule
prohibits BDC securities from inclusion in indexes, which
results in fewer research analysts that cover the BDC industry.
The Committee recommends that the SEC re-open the AFFE rule for
public comment to consider the impacts on the BDC industry and
its investors.
Disclosures.--Effective disclosures are at the core of
investor protection and must be timely, accurate, and
understandable to both retail and institutional investors.
Corporate disclosures should also be provided in an easily
accessible format. The current disclosure regime system must be
overhauled in order to eliminate obsolete and onerous
disclosures, which the SEC has previously acknowledged. The
Committee directs the SEC submit a report, within 90 days of
enactment of this Act, to the Committees on Appropriations of
the House and Senate outlining the Commission's efforts to
modernize the disclosure requirements.
Organizational Structure.--The Committee remains concerned
that a lack of managerial accountability, focus,
prioritization, and internal communication hampers the
effectiveness of the SEC. The Committee has concurred with the
recommendation put forth in the Boston Consulting Group (BCG)
report that the SEC must reorganize in order to become more
efficient. While progress has been made in reorganizing certain
offices, the Committee believes there is more to be done to
make the Commission better able to respond to dynamic markets.
The Committee again directs the SEC to provide an updated
report on a reorganization plan outlining areas of improvement.
Within the report the Committee directs the SEC to undertake a
review of the overall organizational structure. This report is
to be delivered to the Committees on Appropriations of the
House and Senate within 90 days of enactment of this Act.
Financial Accounting Standards.--Any proposals issued by
the SEC on whether to adopt International Financial Reporting
Standards (IFRS) by U.S. public companies must account for the
impact on U.S. tax and accounting policies, and the differences
between U.S. Generally Accepted Accounting Principles (GAAP)
and IFRS. The SEC must also consider the economic costs that
IFRS could impose on cost of capital and investment in the U.S.
The Committee expects that the SEC would subject any proposal
to adopt IFRS to be subject to the notice-and-comment
requirements of the Administrative Procedure Act so that the
SEC can receive input from all interested parties.
Joint Rulemakings.--The Committee directs the SEC to work
cooperatively with the Commodity Futures Trading Commission
(CFTC) on all joint rulemakings as required by the Dodd-Frank
Wall Street Reform and Consumer Protection Act.
Selective Service System
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $22,703,000
Budget request, fiscal year 2017...................... 22,900,000
Recommended in the bill............................... 22,703,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -197,000
The Selective Service System was established by the
Selective Service Act of 1948. The mission of the System is to
be prepared to supply manpower to the Armed Forces adequate to
ensure the security of the United States during a time of
national emergency. Since 1973, the Armed Forces have relied on
volunteers to fill military manpower requirements, but
selective service registration was reinstituted in July 1980.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $22,703,000
for the Selective Service System.
Small Business Administration
The Small Business Administration (SBA) assists small
businesses through programs including loans, grants, and
contracting preferences. These programs maintain and strengthen
an economy that depends on small businesses for 60 to 80
percent of job creation. SBA programs also serve disadvantaged
populations so that these small business enterprises may
overcome economic and social obstacles to success.
The recommendation provides a total of $883,361,000 for the
SBA for fiscal year 2017. Detailed guidance for the SBA
appropriations accounts is presented below.
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $268,000,000
Budget request, fiscal year 2017...................... 275,033,000
Recommended in the bill............................... 268,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -7,033,000
COMMITTEE RECOMMENDATION
The Committee recommends $268,000,000 for the salaries and
expenses of the SBA.
SBIC Virtual Data Rooms.--The Committee believes the SBA
has longstanding problems with maintaining and updating
technology. The SBA continues to use inadequate technological
systems to share files, reports, contracts, and other
information that is communicated between SBA staff as well as
between SBICs and the SBA. Virtual Data Rooms (VDR) are
regularly used in the private sector and would make data more
secure and increase operational efficiencies for both SBA and
SBICs. VDRs could also streamline the collection of data by SBA
staff, removing redundant processes at the SBA and saving time
and resources. The Committee recommends that the SBA should
give SBICs the option to select their own VDR provider which
would serve as a communication vehicle for SBICs and the SBA in
a single, secure location for all regulatory documents,
submissions, requests, and communications.
SBIC Program and State Data.--For decades an important set
of consolidated SBIC Program data has routinely been shared
with industry, Congress, and the public. This important
information, which is both a meaningful economic indicator on
the small business sector as well as an indicator of SBA's
activities and performance, was made available on a monthly
basis. In addition to the SBIC Program data, the SBA routinely
released annual data on the impact of SBIC investments as well
as specific companies in all fifty states. The SBA has only
released the SBIC program data once since the end of the 2015
fiscal year and the SBA has not released the state data since
the 2013 fiscal year. The Committee recommends that SBA should
release this data to industry and Congress to allow for a
thorough review of the impact of the SBIC Program on the
economy and an analysis of the performance of the SBA.
SBIC Program Licensing.--The Committee continues to be
concerned with the slow pace of licensing at the SBIC Program.
SBA has a six month goal to approve licenses that are in the
application process. The SBA fails to meet this basic goal and
the average time to license is often well over a year. These
delays are occurring in contradiction to the fact that the
number of applications has decreased. The Committee again
recommends that the SBA should create a meaningfully expedited
and streamlined licensing process of repeat licensees, those
SBICs that have the same management teams and proven track
record in the SBIC Program. This fast track process for repeat
licensees should be completed no longer than 45 days after an
application is submitted to the SBA, which will allow SBA to
properly redirect their resources to first time funds. The
Committee also believes the SBA Investment Division should
consider reorganizing the SBIC licensing process and personnel
to more efficiently use the resources allocated. In particular,
the SBA should: combine the licensing and development staff;
reduce the number of licensing committees and steps for all
applicants; and create a meaningful green light letter process
that clearly outlines for applicants the needed benchmarks for
license approval without changing any of the terms on the
applicant during licensing.
Credit Elsewhere.--The Committee believes that SBA
guaranteed loans should be targeted at borrowers who would
otherwise not be able to receive a loan elsewhere. The
Committee directs the Government Accountability Office (GAO) to
conduct a study and report to the Committees on Appropriations
of the House and Senate, and the Committee on Small Business of
the House, and the Committee on Small Business and
Entrepreneuship of the Senate no later than 120 days after
enactment of this Act on credit elsewhere, to include an
analysis of the criteria currently used to identify whether
businesses are unable to obtain credit elsewhere is sufficient,
and if not, what additional criteria could be used.
The Committee recognizes the value of the 8(a) program in
helping small and disadvantaged businesses compete in the
marketplace. The bill provides sufficient funding to execute
the 8(a) program.
ENTREPRENEURIAL DEVELOPMENT PROGRAMS
Appropriation, fiscal year 2016....................... $231,100,000
Budget request, fiscal year 2017...................... 230,600,000
Recommended in the bill............................... 243,100,000
Bill compared with:
Appropriation, fiscal year 2016..................... +12,000,000
Budget request, fiscal year 2017.................... +12,500,000
The SBA's Entrepreneurial Development Programs support non-
credit business assistance to entrepreneurs. The appropriation
includes funding for a network of resource partners located
throughout the United States that provide training, counseling,
and technical assistance to small business entrepreneurs.
COMMITTEE RECOMMENDATION
The Committee recommendations for Entrepreneurial
Development Programs, by program, are displayed in the
following table:
ENTREPRENEURIAL DEVELOPMENT PROGRAMS
[In thousands of dollars]
[In thousands of dollars]
7(j) Technical Assistance............................. $2,800
Entrepreneurship Education............................ 10,000
HUBZone Program....................................... 4,000
Microloan Technical Assistance........................ 31,000
National Women's Business Council..................... 1,500
Native American Outreach.............................. 2,000
PRIME Technical Assistance............................ 5,000
SCORE................................................. 10,500
Small Business Development Centers (SBDCs)............ 125,000
State & Trade Export Promotion (STEP)................. 20,000
Veterans Outreach*.................................... 12,300
Women's Business Centers (WBC)........................ 19,000
-----------------
Total, Entrepreneurial Development Programs......... $243,100
*Veterans Outreach includes funding for: Boots to Business, Veterans
Business Outreach Centers (VBOC), Veteran Women Igniting the Spirit of
Entrepreneurship (V Wise), Entrepreneurship Bootcamp for Veterans with
Disabilities (EBV), and Boots to Business reboot.
The SBA shall not reduce these non-credit programs from the
amounts specified above and the SBA shall not merge any of the
non-credit programs without advance written approval from the
Committee. The Committee strongly supports the development
programs listed in the table above and will carefully monitor
SBA support of these programs.
Women's Business Centers.--The Committee notes the absence
of WBCs serving many of the U.S. territories and other U.S.
insular areas, and recommends that the SBA consider including
these areas in WBC services.
Veterans Programs.--The Committee strongly supports
programs for veterans transitioning from active duty who are
interested in starting small businesses. The Committee
recognizes that many veterans are small businesses owners and
believes these veteran-owned businesses should be supported by
the SBA through trainings and other educational opportunities.
The Committee continues to fully fund the request for veterans'
entrepreneurial programs for fiscal year 2017.
OFFICE OF INSPECTOR GENERAL
Appropriation, fiscal year 2016....................... $19,900,000
Budget request, fiscal year 2017...................... 19,900,000
Recommended in the bill............................... 19,900,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Committee recommends $19,900,000 for the Office of
Inspector General of the SBA.
OFFICE OF ADVOCACY
Appropriation, fiscal year 2016....................... $9,120,000
Budget request, fiscal year 2017...................... 9,320,000
Recommended in the bill............................... 9,320,000
Bill compared with:
Appropriation, fiscal year 2016..................... +200,000
Budget request, fiscal year 2017.................... - - -
COMMITTEE RECOMMENDATION
The Committee recommends $9,320,000 for the Office of
Advocacy of the SBA. The Committee supports the Office's
mission to reduce regulatory burdens that Federal policies
impose on small businesses and to maximize the benefits small
businesses receive from the government.
BUSINESS LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... $156,064,000
Budget request, fiscal year 2017...................... 157,064,000
Recommended in the bill............................... 157,064,000
Bill compared with:
Appropriation, fiscal year 2016..................... +1,000,000
Budget request, fiscal year 2017.................... - - -
The SBA Business Loans Program serves as an important
source of capital for America's small businesses. The
recommendation supports the 7(a) business loan program at a
level of $28.5 billion, the 504 certified development company
program at a level of $7.5 billion, Small Business Investment
Company (SBIC) debentures, and the Secondary Market Guarantee
Program.
COMMITTEE RECOMMENDATION
The Committee recommends a total of $157,064,000 for the
Business Loans Program Account. Of the amount appropriated,
$152,726,000 is for administrative expenses related to business
loan programs. The amount provided for administrative expenses
may be transferred to and merged with the appropriation for SBA
salaries and expenses to cover the common overhead expenses
associated with business loans. Funding is included to fully
support the Microloan program.
The Committee notes the mission of the Surety Bond
Guarantee (SBG) program is to provide and manage surety bond
guarantees for qualified small and emerging businesses, in
direct partnership with surety companies and their agents,
utilizing the most efficient and effective operational policies
and procedures. The Committee is supportive of SBG's efforts to
encourage surety companies to bond small businesses who
otherwise would have difficulty obtaining bonding on their own.
DISASTER LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
Appropriation, fiscal year 2016....................... $186,858,000
Budget request, fiscal year 2017*..................... 185,977,000
Recommended in the bill............................... 185,977,000
Bill compared with:
Appropriation, fiscal year 2016..................... -881,000
Budget request, fiscal year 2017.................... - - -
*The Committee funds this program within its discretionary allocation.
The Administration proposed funding most of these costs with a
disaster cap adjustment.
COMMITTEE RECOMMENDATION
The Committee recommends a total of $185,977,000 for
Disaster Loan Program administrative expenses which may be
transferred and merged with Salaries and Expenses. The
Committee provides $1,000,000 for the Office of Inspector
General for audits and reviews of the disaster loans program.
The Committee wants to ensure that disaster victims have
full access to SBA's programs. The Committee has been very
supportive of the SBA Disaster Loan Program in past fiscal
years, including appropriating $804,000,000 for the Hurricane
Sandy disaster in fiscal year 2013. However, SBA has not
obligated all the funds appropriated for the Sandy Disaster and
has continued to carry over large amounts of no-year funding
for disaster subsidy. The Committee expects the SBA to take
into consideration these balances in future requests.
The Committee directs the SBA to continue providing updates
on available resources for the disaster loans program on a
monthly basis.
Pre-mitigation activities within the Disaster Loan
Program.--The Committee urges the SBA to coordinate with
Federal Emergency Management Agency (FEMA) to evaluate the
feasibility of expanding the SBA Disaster Loan Program to allow
applicants in areas of high flood or natural disaster risk to
utilize loans for pre-disaster mitigation projects that adhere
to FEMA's standards of mitigation activities that significantly
reduce a structure's long-term flood risk. The SBA should
coordinate with FEMA to weigh the financial exposure of the SBA
against the potential reduction of claims payments from the
National Flood Insurance Program.
ADMINISTRATIVE PROVISIONS--SMALL BUSINESS ADMINISTRATION
(INCLUDING TRANSFER AND RESCISSION OF FUNDS)
Section 530. The Committee continues a provision for the
SBA authorizing transfers of up to five percent of any SBA
appropriation to other appropriations, provided that transfers
do not increase an appropriation by more than 10 percent. The
provision also requires that transfers be treated as a
reprogramming of funds.
Section 531. The Committee continues a provision waiving
7(a) loan guarantee fees for veterans and their spouses.
Section 532. The Committee includes a provision rescinding
prior year unobligated balances related to business loan
subsidy for programs that are now zero subsidy.
United States Postal Service
PAYMENT TO THE POSTAL SERVICE FUND
Appropriation, fiscal year 2016....................... $55,075,000
Budget request, fiscal year 2017...................... 63,658,000
Recommended in the bill............................... 41,151,000
Bill compared with:
Appropriation, fiscal year 2016..................... -13,924,000
Budget request, fiscal year 2017.................... -22,507,000
The United States Postal Service (USPS) is funded almost
entirely by Postal ratepayers rather than taxpayers. Funds
provided to the Postal Service in the Payment to the Postal
Service Fund include appropriations for revenue forgone,
including providing free mail for the blind, and for overseas
absentee voting.
COMMITTEE RECOMMENDATION
The Committee recommends appropriations totaling
$41,151,000 for Payment to the Postal Service Fund. The
recommendation funds free mail for the blind and overseas
voting and reconciliation of prior year cost adjustment. The
recommendation includes language requiring the Postal Service
to maintain and comply with service standards for First Class
Mail and periodicals effective on July 1, 2012.
Rural Post Offices.--The Committee believes that the United
States postal facility network is an asset of significant
value. The closure of post offices in rural communities creates
an economic burden for people in the United States that depend
on the Postal Service for communication and package services.
In addition to typical postal services, post offices are part
of the identity of rural communities and provide a significant
social value. The closure process of post offices does not
adequately take into account community input.
Notification to Congress.--Title 39 of the U.S. Code
requires the Postal Service to provide the public with notice
prior to closing or consolidating a post office. The Committee
understands that it is the Postal Service's policy to inform
Member of Congress' district and Washington, D.C. offices when
the public receives notice. The Committee directs the Postal
Service to keep Members of Congress informed of Postal Service
activities impacting their constituents and expects the Postal
Service to ensure that Members of Congress are appropriately
informed simultaneously or prior to all public notices.
Postmarks on Mail.--The Committee believes postmarks on
mail should accurately reflect the day on which it was received
by the Postal Service.
Preservation.--The Committee appreciates the Postal
Service's mission to preserve its artistic and historical
heritage and is pleased that the Postal Service currently
employs a federal preservation officer and historian to care
for their collection of Postal Fine Arts, representing more
than 1,400 murals and sculptures from the New Deal Program,
that are on display in postal facilities around the country.
The Committee recognizes the important cultural enrichment that
these murals and sculptures provide. In addition, the Committee
recognizes the importance of the arts in local communities
including the display of art in public spaces including
interested local postal facilities with the consent of, and at
no expense to, the U.S. Postal Service.
Accessibility for Disabled Individuals.--The Committee
notes that under the Architectural Barriers Act, the Postal
Service is required to meet accessibility requirements for
disabled individuals.
The Committee is pleased with the passage of the
Multinational Species Conservation Fund Semi-postal Stamp
Reauthorization Act, but is concerned that sales of the stamp
will not improve without support from the Postal Service. The
Committee directs the Postmaster General to submit a report,
within 90 days of enactment of this Act, on the actions planned
and taken by the Postal Service to increase sales of the stamp.
P.L. 113-165 reauthorized the printing of the Multinational
Species Conservation Fund semi-postal stamp for an additional 4
years. Although the Postal Service reissued the stamp as
directed by Congress, disappointingly little effort was made to
make the public aware of the stamp's return and sales during
the holiday season. The Committee directs the Postmaster
General to report quarterly to the Committee on Appropriations
of the House and Senate on how many stamps have been sold and
how many remain in stock.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriation, fiscal year 2016....................... $248,600,000
Budget request, fiscal year 2017...................... 258,800,000
Recommended in the bill............................... 258,000,000
Bill compared with:
Appropriation, fiscal year 2016..................... +9,400,000
Budget request, fiscal year 2017.................... -800,000
The Office of Inspector General (OIG) conducts audits,
reviews and investigations, and keeps Congress informed on the
efficiency and economy of United States Postal Service (USPS)
programs and operations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $258,000,000
for the OIG.
United States Tax Court
SALARIES AND EXPENSES
Appropriation, fiscal year 2016....................... $51,300,000
Budget request, fiscal year 2017...................... 53,861,000
Recommended in the bill............................... 51,300,000
Bill compared with:
Appropriation, fiscal year 2016..................... - - -
Budget request, fiscal year 2017.................... -2,561,000
The U.S. Tax Court adjudicates controversies involving
deficiencies in income, estate, and gift taxes. The Court also
has jurisdiction to determine deficiencies in certain excise
taxes, to issue declaratory judgments in the areas of
qualifications of retirement plans and exemptions of charitable
organizations, and to decide certain cases involving disclosure
of tax information by the Commissioner of the Internal Revenue
Service.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $51,300,000
for the U.S. Tax Court.
TITLE VI--GENERAL PROVISIONS--THIS ACT
(INCLUDING RESCISSION)
Section 601. The Committee continues the provision
prohibiting pay and other expenses for non-Federal parties in
regulatory or adjudicatory proceedings funded in this Act.
Section 602. The Committee continues the provision
prohibiting obligations beyond the current fiscal year and
prohibits transfers of funds unless expressly so provided
herein.
Section 603. The Committee continues the provision limiting
procurement contracts for consulting service expenditures to
contracts that are matters of public record and available for
public inspection.
Section 604. The Committee continues the provision
prohibiting transfer of funds in this Act without express
authority.
Section 605. The Committee continues the provision
prohibiting the use of funds to engage in activities that would
prohibit the enforcement of section 307 of the 1930 Tariff Act.
Section 606. The Committee continues the provision
concerning compliance with the Buy American Act.
Section 607. The Committee continues the provision
prohibiting the use of funds by any person or entity convicted
of violating the Buy American Act.
Section 608. The Committee continues the provision
specifying reprogramming procedures. The provision requires
that agencies or entities funded by the Act notify the
Committee and obtain prior approval from the Committee for any
reprogramming of funds that: (1) creates a new program; (2)
eliminates a program, project, or activity; (3) increases funds
or personnel for any program, project, or activity for which
funds have been denied or restricted by the Congress; (4)
proposes to use funds directed for a specific activity by
either the House or Senate Committees on Appropriations for a
different purpose; (5) augments existing programs, projects, or
activities in excess of $5,000,000 or 10 percent, whichever is
less; (6) reduces existing programs, projects, or activities by
$5,000,000 or 10 percent, whichever is less; or (7) reorganizes
offices, programs, or activities. The provision directs
agencies funded by this Act to consult with the Committee prior
to any significant reorganization. The provision also directs
the agencies funded by this Act to submit operating plans for
the Committee's review within 60 days of the bill's enactment.
Section 609. The Committee continues the provision
providing that fifty percent of unobligated balances may remain
available through September 30, 2018, for certain purposes.
Section 610. The Committee continues the provision
prohibiting funding for the Executive Office of the President
to request either a Federal Bureau of Investigation background
investigation or Internal Revenue Service determination with
respect to section 501(a) of the Internal Revenue Code of 1986,
except with the express consent of the individual involved in
an investigation or in extraordinary circumstances involving
national security.
Section 611. The Committee continues the provision
regarding cost accounting standards for contracts under the
Federal Employee Health Benefits Program.
Section 612. The Committee continues the provision
regarding non-foreign area cost-of-living allowances.
Section 613. The Committee continues the provision
prohibiting the expenditure of funds for abortion under the
Federal Employees Health Benefits Program.
Section 614. The Committee continues the provision making
exceptions to the preceding provision where the life of the
mother is in danger or the pregnancy is a result of an act of
rape or incest.
Section 615. The Committee continues the provision carried
annually since 2004 waiving restrictions on the purchase of
non-domestic articles, materials, and supplies in the case of
acquisition of information technology by the Federal
Government.
Section 616. The Committee continues the provision
prohibiting officers or employees of any regulatory agency or
commission funded by this Act from accepting travel payments or
reimbursements from a person or entity regulated by such agency
or commission.
Section 617. The Committee continues the provision
permitting the Securities and Exchange Commission and
Commodities Futures Trading Commission to fund a joint advisory
committee to advise on emerging regulatory issues,
notwithstanding section 708 of this Act.
Section 618. The Committee continues the provision
requiring certain agencies in this Act to consult with the
General Services Administration before seeking new office space
or making alterations to existing office space.
Section 619. The Committee continues language providing for
several appropriated mandatory accounts. These are accounts
where authorizing language requires the payment of funds. The
Congressional Budget Office estimates the cost for the
following programs addressed in this provision: $450,000 for
Compensation of the President including $50,000 for expenses,
$161,000,000 for the Judicial Retirement Funds (Judicial
Officers' Retirement Fund, Judicial Survivors' Annuities Fund,
and the United States Court of Federal Claims Judges'
Retirement Fund), $12,699,000,000 for the Government Payment
for Annuitants, Employee Health Benefits, $47,000,000 for the
Government Payment for Annuitants, Employee Life Insurance, and
$8,469,000,000 for the Payment to the Civil Service Retirement
and Disability Fund.
Section 620. The Committee continues the provision
prohibiting funds for the Federal Trade Commission to complete
the draft report entitled ``Interagency Working Group on Food
Marketed to Children: Preliminary Proposed Nutrition Principles
to Guide Industry Self-Regulatory Efforts'' unless the
Interagency Working Group on Food Marketed to Children complies
with Executive Order 13563, including the requirement in it to
provide quantified present and future benefits and costs.
Section 621. The Committee modifies the provision
prohibiting funding for certain czars including the Director of
the White House Office of Health Reform, the Assistant to the
President for Energy and Climate Change, the Senior Advisor to
the Secretary of the Treasury assigned to the Presidential Task
Force on the Auto Industry and Senior Counselor for
Manufacturing Policy, and the White House Director of Urban
Affairs, or any substantially similar positions.
Section 622. The Committee continues the provision
prohibiting funds in contravention of the Federal Records Act.
Section 623. The Committee includes language requiring
certain regulatory agencies to provide a report on increasing
public participation in rulemaking, improving coordination
among Federal agencies, and identifying ineffective or
excessively burdensome regulations.
Section 624. The Committee includes language permanently
rescinding funds in fiscal year 2017 from the Securities and
Exchange Commission Reserve Fund established by the Dodd-Frank
Wall Street Reform and Consumer Protection Act. The Committee
believes the Commission should request the level of funding it
believes is necessary in any given fiscal year and not have
access to reserve funding that is outside of the Congressional
review process.
Section 625. The Committee includes language prohibiting
funds for the Securities and Exchange Commission to require the
disclosure of political contributions to tax exempt
organizations, or dues paid to trade associations.
Section 626. The Committee includes language prohibiting
the Financial Stability Oversight Council from designating
nonbanks as systemically important financial institutions until
it identifies the risks to financial stability presented by the
nonbank and allows the nonbank to present a plan to modify its
business, structure, or operation to mitigate the identified
risk prior to final designation.
Section 627. The Committee includes language prohibiting
agencies from requiring Internet Service Providers (ISPs) to
disclose electronic communications information in a manner that
violates the Fourth Amendment.
Section 628. The Committee includes a new provision
clarifying language related to joint sales agreements included
in P.L. 114-113.
Section 629. The Committee includes language prohibiting
any modification of Universal Service Fund rules related to
Mobility Fund Phase II.
Section 630. The Committee includes language prohibiting
the Federal Communications Commission (FCC) from implementing,
administering, or enforcing any rule unless the FCC publishes
the text of the rule 21 days before a vote on the rule.
Section 631. The Committee includes language prohibiting
the Federal Communications Commission from regulating rates for
either broadband or wireless internet providers.
Section 632. The Committee includes language prohibiting
the Federal Communications Commission from implementing FCC
Order 15-24 regarding open internet until specific court
challenges have been resolved.
Section 633. The Committee includes a new provision
requiring the Office of Management and Budget to submit a
report on cybersecurity spending.
Section 634. The Committee includes language to dissolve
the Christopher Columbus Fellowship Foundation (CCFF) as a
Federal agency within one year of enactment of this Act. The
CCFF, if it so chooses, may reconstitute itself as a private,
non-profit organization and apply for tax exempt status.
Section 635. The Committee includes a new provision
prohibiting any funds made available in this Act from being
used to establish a computer network unless such network blocks
the viewing, downloading, and exchanging of pornography.
Section 636. The Committee includes a new provision
requiring a study and public comment before any proposed rules
under section 629 of the Communications Act of 1934 (47 U.S.C.
549) go into effect.
Section 637. The Committee includes a new provision
revising the definition of a mortgage originator as the term
applies to manufactured housing.
Section 638. The Committee includes a new provision
revising the definition of a high-cost mortgage as the term
applies to manufactured housing.
Section 639. The Committee includes a new provision
prohibiting funding for the Consumer Financial Protection
Bureau to issue or enforce any rule with respect to payday
loans, vehicle title loans, or similar loans during fiscal year
2017 or after until the Bureau has submitted a report to
Congress.
Section 640. The Committee includes a new provision
prohibiting funds from being used to implement, promulgate,
finalize or enforce Executive Order 13673 until a study is
conducted by the Comptroller General and reviewed by the
Secretary of Labor.
Section 641. The Committee includes a new provision
prohibiting funds to pay for an abortion or the administrative
expenses in connection with a multi-State qualified health plan
offered under a contract under section 1334 of the Patient
Protection and Affordable Care Act which provides any benefits
or coverage for abortions, except for endangerment of the life
of the mother, rape or incest.
TITLE VII--GENERAL PROVISIONS--GOVERNMENT WIDE
Departments, Agencies, and Corporations
(INCLUDING TRANSFER OF FUNDS)
Section 701. The Committee continues the provision
requiring agencies to administer a policy designed to ensure
that all of its workplaces are free from the illegal use of
controlled substances.
Section 702. The Committee continues the provision
establishing price limitations on vehicles to be purchased by
the Federal Government with an exemption for the purchase of
electric, plug-in hybrid electric, and hydrogen fuel cell
vehicles.
Section 703. The Committee continues the provision allowing
funds made available to agencies for travel to also be used for
quarters allowances and cost-of-living allowances.
Section 704. The Committee continues the provision
prohibiting the employment of noncitizens with certain
exceptions.
Section 705. The Committee continues the provision giving
agencies the authority to pay General Services Administration
bills for space renovation and other services.
Section 706. The Committee continues, with modification,
the provision allowing agencies to finance the costs of
recycling and waste prevention programs with proceeds from the
sale of materials recovered through such programs.
Section 707. The Committee continues the provision
providing that funds made available to corporations and
agencies subject to 31 U.S.C. 91 may pay rent and other service
costs in the District of Columbia.
Section 708. The Committee continues the provision
prohibiting interagency financing of groups absent prior
statutory approval.
Section 709. The Committee continues the provision
prohibiting the use of funds for enforcing regulations
disapproved in accordance with the applicable law of the U.S.
Section 710. The Committee continues the provision limiting
the amount of funds that can be used for redecoration of
offices under certain circumstances.
Section 711. The Committee continues the provision to allow
for interagency funding of national security and emergency
telecommunications initiatives.
Section 712. The Committee continues the provision
requiring agencies to certify that a Schedule C appointment was
not created solely or primarily to detail the employee to the
White House.
Section 713. The Committee continues the provision
prohibiting the payment of any employee who prohibits,
threatens or prevents another employee from communicating with
Congress.
Section 714. The Committee continues the provision
prohibiting Federal training not directly related to the
performance of official duties.
Section 715. The Committee continues the provision
prohibiting, other than for normal and recognized executive-
legislative relationships, propaganda, publicity and lobbying
by executive agency personnel in support or defeat of
legislative initiatives.
Section 716. The Committee continues the provision
prohibiting any Federal agency from disclosing an employee's
home address to any labor organization, absent employee
authorization or court order.
Section 717. The Committee continues the provision
prohibiting funds to be used to provide non-public information
such as mailing, telephone, or electronic mailing lists to any
person or organization outside the government without the
approval of the Committees on Appropriations.
Section 718. The Committee continues the provision
prohibiting the use of funds for propaganda and publicity
purposes not authorized by Congress.
Section 719. The Committee continues the provision
directing agency employees to use official time in an honest
effort to perform official duties.
Section 720. The Committee continues the provision
authorizing the use of funds to finance an appropriate share of
the Federal Accounting Standards Advisory Board.
Section 721. The Committee continues the provision
authorizing the transfer of funds to the General Services
Administration to finance an appropriate share of various
government-wide boards and councils and for Federal Government
Priority Goals under certain conditions.
Section 722. The Committee continues the provision that
permits breastfeeding in a Federal building or on Federal
property if the woman and child are authorized to be there.
Section 723. The Committee continues the provision that
permits interagency funding of the National Science and
Technology Council and provides for a report on the budget and
resources of the National Science and Technology Council.
Section 724. The Committee continues the provision
requiring documents involving the distribution of Federal funds
to indicate the agency providing the funds and the amount
provided.
Section 725. The Committee continues the provision
prohibiting the use of funds to monitor personal access or use
of Internet sites or to collect, review, or obtain any
personally identifiable information relating to access to or
use of an Internet site.
Section 726. The Committee continues a provision requiring
health plans participating in the Federal Employees Health
Benefits Program to provide contraceptive coverage and provides
exemptions to certain religious plans.
Section 727. The Committee continues language supporting
strict adherence to anti-doping activities.
Section 728. The Committee continues a provision allowing
funds for official travel to be used by departments and
agencies, if consistent with OMB Circular A-126, to participate
in the fractional aircraft ownership pilot program.
Section 729. The Committee continues a provision
prohibiting funds for implementation of Office of Personnel
Management regulations limiting detailees to the Legislative
Branch, and implementing limitations on the Coast Guard
Congressional Fellowship Program.
Section 730. The Committee continues the provision that
restricts the use of funds for Federal law enforcement training
facilities.
Section 731. The Committee continues the provision that
prohibits Executive Branch agencies from creating prepackaged
news stories that are broadcast or distributed in the United
States unless the story includes a clear notification within
the text or audio of such news story that the prepackaged news
story was prepared or funded by that executive branch agency.
This provision confirms the opinion of the Government
Accountability Office dated February 17, 2005 (B-304272).
Section 732. The Committee continues the provision
prohibiting use of funds in contravention of section 552a of
title 5, United States Code (the Privacy Act) and regulations
implementing that section.
Section 733. The Committee continues the provision
prohibiting funds from being used for any Federal Government
contract with any foreign incorporated entity which is treated
as an inverted domestic corporation.
Section 734. The Committee continues the provision
requiring agencies to pay a fee to the Office of Personnel
Management for processing retirement of employees who separate
under Voluntary Early Retirement Authority or who receive
Voluntary Separation Incentive payments.
Section 735. The Committee includes language prohibiting
funds to require any entity submitting an offer for a Federal
contract or participating in an acquisition to disclose
political contributions.
Section 736. The Committee continues the provision
prohibiting funds for the painting of a portrait of an employee
of the Federal Government, including the President, the Vice
President, a Member of Congress, the head of an executive
branch agency, or the head of an office of the legislative
branch.
Section 737. The Committee continues the provision limiting
the pay increases of certain prevailing rate employees.
Section 738. The Committee continues a provision
eliminating automatic statutory pay increases for the Vice
President, political appointees paid under the executive
schedule, ambassadors who are not career members of the Foreign
Service, politically appointed (non-career) Senior Executive
Service employees, and any other senior political appointee
paid at or above level IV of the executive schedule.
Section 739. The Committee continues a provision, with
modification, requiring agencies to submit reports to
Inspectors General concerning expenditures for agency
conferences.
Section 740. The Committee continues a provision
prohibiting funds to be used to increase, eliminate, or reduce
funding for a program or project unless such change is made
pursuant to reprogramming or transfer provisions.
Section 741. The Committee continues the provision ensuring
contractors are not prevented from reporting waste, fraud, or
abuse by signing confidentiality agreements that would prohibit
such disclosure.
Section 742. The Committee continues the provision
prohibiting the expenditure of funds for the implementation of
certain nondisclosure agreements unless certain provisions are
included in the agreements.
Section 743. The Committee continues the provision
prohibiting funds to any corporation with certain unpaid
Federal tax liabilities unless an agency has considered
suspension or debarment of the corporation and made a
determination that further action is not necessary to protect
the interests of the Government.
Section 744. The Committee continues the provision
prohibiting funds to any corporation that was convicted of a
felony criminal violation within the preceding 24 months unless
an agency has considered suspension or debarment of the
corporation and made a determination that further action is not
necessary to protect the interests of the Government.
Section 745. The Committee modifies a provision on the
conditions for implementing Executive Order 13690.
Section 746. The Committee continues the provision
concerning the non-application of these general provisions to
title IV and to title VIII.
TITLE VIII--GENERAL PROVISIONS--DISTRICT OF COLUMBIA
(INCLUDING TRANSFERS OF FUNDS)
Section 801. The Committee continues language that
appropriates funds to refund overpayments of taxes collected
and to pay settlements and judgments against the District of
Columbia government.
Section 802. The Committee continues language prohibiting
the use of Federal funds for publicity or propaganda purposes.
Section 803. The Committee continues language establishing
reprogramming procedures for Federal and local funds.
Section 804. The Committee continues language prohibiting
the use of Federal funds to provide salaries or other costs
associated with the offices of United States Senator or
Representative.
Section 805. The Committee continues language restricting
the use of official vehicles to official duties.
Section 806. The Committee continues language prohibiting
the use of Federal funds for any petition drive or civil action
which seeks to require Congress to provide for voting
representation in Congress for the District of Columbia.
Section 807. The Committee includes language prohibiting
the use of Federal funds for needle exchange programs.
Section 808. The Committee continues language providing for
a ``conscience clause'' on legislation that pertains to
contraceptive coverage by health insurance plans.
Section 809. The Committee continues language prohibiting
the use of Federal funds to legalize or reduce penalties
associated with the possession, use, or distribution on any
schedule I substance under the Controlled Substances Act or any
tetrahydrocannabinols derivative.
Language is also included prohibiting local and Federal
funds to legalize or reduce penalties associated with the
possession, use, or distribution of any schedule I substance
under the Controlled Substance Act or any tetrahydrocannabinols
derivative for recreational use.
Section 810. The Committee continues the provision that
prohibits the use of funds for abortion except in the cases of
rape or incest or if necessary to save the life of the mother.
Section 811. The Committee continues language requiring the
Chief Financial Officer (CFO) to submit a revised operating
budget for all agencies in the D.C. government, no later than
30 calendar days after the enactment of this Act that realigns
budgeted data with anticipated actual expenditures.
Section 812. The Committee continues language requiring the
CFO to submit a revised operating budget for D.C. Public
Schools, no later than 30 calendar days after the enactment of
this Act, that realigns school budgets to actual school
enrollment.
Section 813. The Committee continues language allowing the
transfer of local funds and capital and enterprise funds.
Section 814. The Committee continues language prohibiting
the obligation of Federal funds beyond the current fiscal year
and transfers of funds unless expressly provided herein.
Section 815. The Committee continues language providing
that not to exceed 50 percent of unobligated balances from
Federal appropriations for salaries and expenses may remain
available for certain purposes. This provision will apply to
the District of Columbia Courts, the Court Services and
Offender Supervision Agency and the District of Columbia Public
Defender Service.
Section 816. The Committee continues language appropriating
local funds during fiscal year 2018 if there is an absence of a
continuing resolution or regular appropriation for the District
of Columbia. Funds are provided under the same authorities and
conditions and in the same manner and extent as provided for in
fiscal year 2017.
Section 817. The Committee includes a new provision to
repeal the Local Budget Autonomy Amendment Act of 2012.
Section 818. The Committee continues language limiting
references to ``this Act'' as referring to only this title and
title IV.
TITLE IX--SCHOLARSHIPS FOR OPPORTUNITY AND RESULTS ACT
The bill reauthorizes the Scholarships for Opportunity and
Results Act through fiscal year 2021.
TITLE X--SEC SMALL BUSINESS ADVOCATE ACT
The bill establishes the Office of the Advocate for Small
Business Capital Formation and Small Business Capital Formation
Advisory Committee.
TITLE XI--FINANCIAL INSTITUTION BANKRUPTCY ACT
The bill amends the Bankruptcy Code for financial
institutions.
TITLE XII--ADDITIONAL GENERAL PROVISION
SPENDING REDUCTION ACCOUNT
Section 1201. The Committee includes a provision
establishing a ``Spending Reduction Account'' in the bill.
HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS
The following items are included in accordance with various
requirements of the Rules of the House of Representatives:
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the following is a statement of
general performance goals and objectives for which this measure
authorizes funding:
The Committee on Appropriations considers program
performance, including a program's success in developing and
attaining outcome-related goals and objectives, in developing
funding recommendations.
Rescission of Funds
Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following table is submitted
describing the rescissions recommended in the accompanying
bill:
Treasury Forfeiture Fund.............................. $753,610,000
Securities and Exchange Commission.................... $75,000,000
Small Business Administration......................... $55,000,000
Transfer of Funds
Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following is submitted describing
the transfer of funds provided in the accompanying bill:
UNDER TITLE I--DEPARTMENT OF THE TREASURY
Section 101 allows the transfer of five percent of any
appropriation made available to the Internal Revenue Service
(IRS) to any other IRS appropriation, subject to prior
congressional approval.
Section 115 authorizes the transfers of funds to IRS to
improve customer service, fraud prevention, and cybersecurity.
Section 117 authorizes transfers, up to two percent,
between Departmental Offices, Office of Inspector General,
Special Inspector General for Troubled Asset Relief Program,
Financial Crimes Enforcement Network, Bureau of the Fiscal
Service, Alcohol and Tobacco Tax and Trade Bureau, and
Community Development Financial Institutions Fund Program Fund
Account appropriations under certain circumstances.
Section 118 authorizes transfers, up to two percent,
between the IRS and the Treasury Inspector General for Tax
Administration under certain circumstances.
Section 120 authorizes the transfer of funds from the
``Bureau of the Fiscal Service'' to the ``Debt Collection
Fund'' as necessary to cover the cost of debt collection.
UNDER TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT
Language is included under Presidential Transition
Administrative Support, which allows for the transfer of funds
within the Executive Office of the President.
Language is included under Federal Drug Control Programs,
``High Intensity Drug Trafficking Areas Program'', which allows
for the transfer of funds to Federal departments or agencies
and State and local entities.
Language is included under ``Other Federal Drug Control
Programs'', allowing the transfers of funds to other Federal
departments and agencies to carry out activities.
Language is included under ``Information Technology
Oversight and Reform'', allowing the transfer of funds to other
agencies to carry out projects.
Language is included under the Official Residence of the
Vice President, ``Operating Expenses'', allowing the transfer
of funds to other Federal departments or agencies.
Section 201 permits the Executive Office of the President
to transfer up to 10 percent of any appropriation, subject to
approval of the Committee.
UNDER TITLE III--THE JUDICIARY
Language is included under ``Courts of Appeals, District
Courts, and Other Judicial Services, Court Security'', allowing
funds to be transferred to the United States Marshals Service
for courthouse security.
Section 302 permits the Judiciary to transfer up to five
percent of any appropriation with certain limitations.
UNDER TITLE V--INDEPENDENT AGENCIES
Under Title V, Independent Agencies, a number of transfers
are allowed.
(1) Under the General Services Administration, amounts may
be transferred within the Federal Buildings Fund, under certain
circumstances, after approval of the Committee on
Appropriations.
(2) Under the General Services Administration, ``Federal
Citizens Services Fund'', transfers are allowed from the
Federal Citizens Services Fund to Federal agencies.
(3) Under the General Services Administration, ``Federal
Citizens Services Fund'', transfers are allowed from
unobligated funding provided to the ``Electronic Government
Fund'' to the Federal Citizens Services Fund.
(4) Under the General Services Administration, ``Expenses,
Presidential Transition'', amounts may be transferred to the
``Acquisition Services Fund'' or ``Federal Buildings Fund''.
(5) Section 521 permits the General Services Administration
to transfer funds in the Federal Buildings Fund after approval
of the Committee on Appropriations.
(6) Under Merit Systems Protection Board, an amount is
transferred from the Civil Service Retirement and Disability
Fund.
(7) Under Office of Personnel Management, amounts from
certain trust funds are transferred to the Salaries and
Expenses and Office of Inspector General accounts for
administrative expenses;
(8) Under the Postal Regulatory Commission, amounts are
transferred from the Postal Service Fund;
(9) Under Small Business Administration, Business Loans
Program Account, amounts may be transferred to and merged with
Salaries and Expenses.
(10) Under Small Business Administration, Disaster Loans
Program Account, amounts may be transferred to and merged with
the Office of Inspector General, and Salaries and Expenses.
(11) Section 530 permits the Small Business Administration,
to transfer funds between appropriations of the Small Business
Administration.
(12) Under United States Postal Service, Office of
Inspector General, amounts are transferred from the Postal
Service Fund.
UNDER TITLE VII--GOVERNMENT WIDE
Section 721 authorizes departments and agencies to transfer
funds to the General Services Administration to support certain
financial, information technology, procurement, and other
management initiatives.
UNDER TITLE VIII--GENERAL PROVISIONS, DISTRICT OF COLUMBIA
Section 803 authorizes the District of Columbia to transfer
local funds and section 813 allows transfer funds between
operations and capital accounts.
Disclosure of Earmarks and Congressionally Directed Spending Items
Neither the bill nor the report contains any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
(Public Law 111-203)
* * * * * * *
TITLE I--FINANCIAL STABILITY
* * * * * * *
Subtitle B--Office of Financial Research
* * * * * * *
SEC. 155. FUNDING.
(a) Financial Research Fund.--
(1) Fund established.-- There is established in the
Treasury of the United States a separate fund to be
known as the ``Financial Research Fund''.
(2) Fund receipts.-- All amounts provided to the
Office under subsection (c), and all assessments that
the Office receives under subsection (d) shall be
deposited into the Financial Research Fund.
(3) Investments authorized.--
(A) Amounts in fund may be invested.-- The
Director may request the Secretary to invest
the portion of the Financial Research Fund that
is not, in the judgment of the Director,
required to meet the needs of the Office.
(B) Eligible investments.-- Investments shall
be made by the Secretary in obligations of the
United States or obligations that are
guaranteed as to principal and interest by the
United States, with maturities suitable to the
needs of the Financial Research Fund, as
determined by the Director.
(4) Interest and proceeds credited.-- The interest
on, and the proceeds from the sale or redemption of,
any obligations held in the Financial Research Fund
shall be credited to and form a part of the Financial
Research Fund.
(b) Use of Funds.--
(1) In general.-- Funds obtained by, transferred to,
or credited to the Financial Research Fund shall be
[immediately] available to the Office as provided for
in appropriation Acts , and shall remain available
until expended, to pay the expenses of the Office in
carrying out the duties and responsibilities of the
Office.
[(2) Fees, assessments, and other funds not
government funds.-- Funds obtained by, transferred to,
or credited to the Financial Research Fund shall not be
construed to be Government funds or appropriated
moneys.]
[(3)] (2) Amounts not subject to apportionment.--
Notwithstanding any other provision of law, amounts in
the Financial Research Fund shall not be subject to
apportionment for purposes of chapter 15 of title 31,
United States Code, or under any other authority, or
for any other purpose.
(c) Interim Funding.--During the 2-year period following the
date of enactment of this Act, the Board of Governors shall
provide to the Office an amount sufficient to cover the
expenses of the Office.
(d) [Permanent Self-funding] Assessment Schedule.--Beginning
2 years after the date of enactment of this Act, the Secretary
shall establish, by regulation, and with the approval of the
Council, an assessment schedule, including the assessment base
and rates, applicable to bank holding companies with total
consolidated assets of 50,000,000,000 or greater and nonbank
financial companies supervised by the Board of Governors, that
takes into account differences among such companies, based on
the considerations for establishing the prudential standards
under section 115, to collect assessments equal to the total
expenses of the Office.
* * * * * * *
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
* * * * * * *
Subtitle A--Bureau of Consumer Financial Protection
* * * * * * *
SEC. 1017. FUNDING; PENALTIES AND FINES.
(a) Transfer of Funds From Board Of Governors.--
(1) In general.-- Each year (or quarter of such
year), beginning on the designated transfer date, and
each quarter thereafter, the Board of Governors shall
transfer to the Bureau from the combined earnings of
the Federal Reserve System, the amount determined by
the Director to be reasonably necessary to carry out
the authorities of the Bureau under Federal consumer
financial law, taking into account such other sums made
available to the Bureau from the preceding year (or
quarter of such year).
(2) Funding cap.--
(A) In general.-- Notwithstanding paragraph
(1), and in accordance with this paragraph, the
amount that shall be transferred to the Bureau
in each fiscal year shall not exceed a fixed
percentage of the total operating expenses of
the Federal Reserve System, as reported in the
Annual Report, 2009, of the Board of Governors,
equal to--
(i) 10 percent of such expenses in
fiscal year 2011;
(ii) 11 percent of such expenses in
fiscal year 2012; and
(iii) 12 percent of such expenses in
fiscal year 2013, and in each year
thereafter.
(B) Adjustment of amount.-- The dollar amount
referred to in subparagraph (A)(iii) shall be
adjusted annually, using the percent increase,
if any, in the employment cost index for total
compensation for State and local government
workers published by the Federal Government, or
the successor index thereto, for the 12-month
period ending on September 30 of the year
preceding the transfer.
[(C) Reviewability.-- Notwithstanding any
other provision in this title, the funds
derived from the Federal Reserve System
pursuant to this subsection shall not be
subject to review by the Committees on
Appropriations of the House of Representatives
and the Senate.]
(3) Transition period.-- Beginning on the date of
enactment of this Act and until the designated transfer
date, the Board of Governors shall transfer to the
Bureau the amount estimated by the Secretary needed to
carry out the authorities granted to the Bureau under
Federal consumer financial law, from the date of
enactment of this Act until the designated transfer
date.
(4) Budget and financial management.--
(A) Financial operating plans and
forecasts.-- The Director shall provide to the
Director of the Office of Management and Budget
copies of the financial operating plans and
forecasts of the Director, as prepared by the
Director in the ordinary course of the
operations of the Bureau, and copies of the
quarterly reports of the financial condition
and results of operations of the Bureau, as
prepared by the Director in the ordinary course
of the operations of the Bureau.
(B) Financial statements.-- The Bureau shall
prepare annually a statement of--
(i) assets and liabilities and
surplus or deficit;
(ii) income and expenses; and
(iii) sources and application of
funds.
(C) Financial management systems.-- The
Bureau shall implement and maintain financial
management systems that comply substantially
with Federal financial management systems
requirements and applicable Federal accounting
standards.
(D) Assertion of internal controls.-- The
Director shall provide to the Comptroller
General of the United States an assertion as to
the effectiveness of the internal controls that
apply to financial reporting by the Bureau,
using the standards established in section
3512(c) of title 31, United States Code.
(E) Rule of construction.-- This subsection
may not be construed as implying any obligation
on the part of the Director to consult with or
obtain the consent or approval of the Director
of the Office of Management and Budget with
respect to any report, plan, forecast, or other
information referred to in subparagraph (A) or
any jurisdiction or oversight over the affairs
or operations of the Bureau.
(F) Financial statements.-- The financial
statements of the Bureau shall not be
consolidated with the financial statements of
either the Board of Governors or the Federal
Reserve System.
(5) Audit of the bureau.--
(A) In general.-- The Comptroller General
shall annually audit the financial transactions
of the Bureau in accordance with the United
States generally accepted government auditing
standards, as may be prescribed by the
Comptroller General of the United States. The
audit shall be conducted at the place or places
where accounts of the Bureau are normally kept.
The representatives of the Government
Accountability Office shall have access to the
personnel and to all books, accounts,
documents, papers, records (including
electronic records), reports, files, and all
other papers, automated data, things, or
property belonging to or under the control of
or used or employed by the Bureau pertaining to
its financial transactions and necessary to
facilitate the audit, and such representatives
shall be afforded full facilities for verifying
transactions with the balances or securities
held by depositories, fiscal agents, and
custodians. All such books, accounts,
documents, records, reports, files, papers, and
property of the Bureau shall remain in
possession and custody of the Bureau. The
Comptroller General may obtain and duplicate
any such books, accounts, documents, records,
working papers, automated data and files, or
other information relevant to such audit
without cost to the Comptroller General, and
the right of access of the Comptroller General
to such information shall be enforceable
pursuant to section 716(c) of title 31, United
States Code.
(B) Report.-- The Comptroller General shall
submit to the Congress a report of each annual
audit conducted under this subsection. The
report to the Congress shall set forth the
scope of the audit and shall include the
statement of assets and liabilities and surplus
or deficit, the statement of income and
expenses, the statement of sources and
application of funds, and such comments and
information as may be deemed necessary to
inform Congress of the financial operations and
condition of the Bureau, together with such
recommendations with respect thereto as the
Comptroller General may deem advisable. A copy
of each report shall be furnished to the
President and to the Bureau at the time
submitted to the Congress.
(C) Assistance and costs.-- For the purpose
of conducting an audit under this subsection,
the Comptroller General may, in the discretion
of the Comptroller General, employ by contract,
without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5),
professional services of firms and
organizations of certified public accountants
for temporary periods or for special purposes.
Upon the request of the Comptroller General,
the Director of the Bureau shall transfer to
the Government Accountability Office from funds
available, the amount requested by the
Comptroller General to cover the full costs of
any audit and report conducted by the
Comptroller General. The Comptroller General
shall credit funds transferred to the account
established for salaries and expenses of the
Government Accountability Office, and such
amount shall be available upon receipt and
without fiscal year limitation to cover the
full costs of the audit and report.
(b) Consumer Financial Protection Fund.--
(1) Separate fund in federal reserve established.--
There is established in the Federal Reserve a separate
fund, to be known as the ``Bureau of Consumer Financial
Protection Fund'' (referred to in this section as the
``Bureau Fund''). The Bureau Fund shall be maintained
and established at a Federal reserve bank, in
accordance with such requirements as the Board of
Governors may impose.
(2) Fund receipts.-- All amounts transferred to the
Bureau under subsection (a) shall be deposited into the
Bureau Fund.
(3) Investment authority.--
(A) Amounts in bureau fund may be invested.--
The Bureau may request the Board of Governors
to direct the investment of the portion of the
Bureau Fund that is not, in the judgment of the
Bureau, required to meet the current needs of
the Bureau.
(B) Eligible investments.-- Investments
authorized by this paragraph shall be made in
obligations of the United States or obligations
that are guaranteed as to principal and
interest by the United States, with maturities
suitable to the needs of the Bureau Fund, as
determined by the Bureau.
(C) Interest and proceeds credited.-- The
interest on, and the proceeds from the sale or
redemption of, any obligations held in the
Bureau Fund shall be credited to the Bureau
Fund.
(c) Use of Funds.--
(1) In general.-- Funds obtained by, transferred to,
or credited to the Bureau Fund shall be immediately
available to the Bureau and under the control of the
Director, and shall remain available until expended, to
pay the expenses of the Bureau in carrying out its
duties and responsibilities. The compensation of the
Director and other employees of the Bureau and all
other expenses thereof may be paid from, obtained by,
transferred to, or credited to the Bureau Fund under
this section.
(2) Funds that are not government funds.-- Funds
obtained by or transferred to the Bureau Fund shall not
be construed to be Government funds or appropriated
monies.
(3) Amounts not subject to apportionment.--
Notwithstanding any other provision of law, amounts in
the Bureau Fund and in the Civil Penalty Fund
established under subsection (d) shall not be subject
to apportionment for purposes of chapter 15 of title
31, United States Code, or under any other authority.
(d) Penalties and Fines.--
(1) Establishment of victims relief fund.-- There is
established in the Federal Reserve a separate fund, to
be known as the ``Consumer Financial Civil Penalty
Fund'' (referred to in this section as the ``Civil
Penalty Fund''). The Civil Penalty Fund shall be
maintained and established at a Federal reserve bank,
in accordance with such requirements as the Board of
Governors may impose. If the Bureau obtains a civil
penalty against any person in any judicial or
administrative action under Federal consumer financial
laws, the Bureau shall deposit into the Civil Penalty
Fund, the amount of the penalty collected.
(2) Payment to victims.-- Amounts in the Civil
Penalty Fund shall be available to the Bureau, without
fiscal year limitation, for payments to the victims of
activities for which civil penalties have been imposed
under the Federal consumer financial laws. To the
extent that such victims cannot be located or such
payments are otherwise not practicable, the Bureau may
use such funds for the purpose of consumer education
and financial literacy programs.
(e) Authorization of Appropriations; Annual Report.--
(1) Determination regarding need for appropriated
funds.--
(A) In general.-- The Director is authorized
to determine that sums available to the Bureau
under this section will not be sufficient to
carry out the authorities of the Bureau under
Federal consumer financial law for the upcoming
year.
(B) Report required.-- When making a
determination under subparagraph (A), the
Director shall prepare a report regarding the
funding of the Bureau, including the assets and
liabilities of the Bureau, and the extent to
which the funding needs of the Bureau are
anticipated to exceed the level of the amount
set forth in subsection (a)(2). The Director
shall submit the report to the President and to
the Committee on Appropriations of the Senate
and the Committee on Appropriations of the
House of Representatives.
(2) Authorization of appropriations.-- If the
Director makes the determination and submits the report
pursuant to paragraph (1), there are hereby authorized
to be appropriated to the Bureau, for the purposes of
carrying out the authorities granted in Federal
consumer financial law, $200,000,000 for each of fiscal
years 2010, 2011, 2012, 2013, and 2014.
(3) Apportionment.-- Notwithstanding any other
provision of law, the amounts in paragraph (2) shall be
subject to apportionment under section 1517 of title
31, United States Code, and restrictions that generally
apply to the use of appropriated funds in title 31,
United States Code, and other laws.
(4) Annual report.-- The Director shall prepare and
submit a report, on an annual basis, to the Committee
on Appropriations of the Senate and the Committee on
Appropriations of the House of Representatives
regarding the financial operating plans and forecasts
of the Director, the financial condition and results of
operations of the Bureau, and the sources and
application of funds of the Bureau, including any funds
appropriated in accordance with this subsection.
* * * * * * *
----------
JUDICIAL IMPROVEMENTS ACT OF 1990
TITLE II--FEDERAL JUDGESHIPS
* * * * * * *
SEC. 203. DISTRICT JUDGES FOR THE DISTRICT COURTS.
(a) In General.--The President shall appoint, by and with the
advice and consent of the Senate--
(1) 1 additional district judge for the western
district of Arkansas;
(2) 2 additional district judges for the northern
district of California;
(3) 5 additional district judges for the central
district of California;
(4) 1 additional district judge for the southern
district of California;
(5) 2 additional district judges for the district of
Connecticut;
(6) 2 additional district judges for the middle
district of Florida;
(7) 1 additional district judge for the northern
district of Florida;
(8) 1 additional district judge for the southern
district of Florida;
(9) 1 additional district judge for the middle
district of Georgia;
(10) 1 additional district judge for the northern
district of Illinois;
(11) 1 additional district judge for the southern
district of Iowa;
(12) 1 additional district judge for the western
district of Louisiana;
(13) 1 additional district judge for the district of
Maine;
(14) 1 additional district judge for the district of
Massachusetts;
(15) 1 additional district judge for the southern
district of Mississippi;
(16) 1 additional district judge for the eastern
district of Missouri;
(17) 1 additional district judge for the district of
New Hampshire;
(18) 3 additional district judges for the district of
New Jersey;
(19) 1 additional district judge for the district of
New Mexico;
(20) 1 additional district judge for the southern
district of New York;
(21) 3 additional district judges for the eastern
district of New York;
(22) 1 additional district judge for the middle
district of North Carolina;
(23) 1 additional district judge for the southern
district of Ohio;
(24) 1 additional district judge for the northern
district of Oklahoma;
(25) 1 additional district judge for the western
district of Oklahoma;
(26) 1 additional district judge for the district of
Oregon;
(27) 3 additional district judges for the eastern
district of Pennsylvania;
(28) 1 additional district judge for the middle
district of Pennsylvania;
(29) 1 additional district judge for the district of
South Carolina;
(30) 1 additional district judge for the eastern
district of Tennessee;
(31) 1 additional district judge for the western
district of Tennessee;
(32) 1 additional district judge for the middle
district of Tennessee;
(33) 2 additional district judges for the northern
district of Texas;
(34) 1 additional district judge for the eastern
district of Texas;
(35) 5 additional district judges for the southern
district of Texas;
(36) 3 additional district judges for the western
district of Texas;
(37) 1 additional district judge for the district of
Utah;
(38) 1 additional district judge for the eastern
district of Washington;
(39) 1 additional district judge for the northern
district of West Virginia;
(40) 1 additional district judge for the southern
district of West Virginia; and
(41) 1 additional district judge for the district of
Wyoming.
(b) Existing Judgeships.--(1) The existing district
judgeships for the western district of Arkansas, the northern
district of Illinois, the northern district of Indiana, the
district of Massachusetts, the western district of New York,
the eastern district of North Carolina, the northern district
of Ohio, and the western district of Washington authorized by
section 202(b) of the Bankruptcy Amendments and Federal
Judgeship Act of 1984 (Public Law 98-353, 98 Stat. 347-348)
shall, as of the effective date of this title, be authorized
under section 133 of title 28, United States Code, and the
incumbents in those offices shall hold the office under section
133 of title 28, United States Code, as amended by this title.
(2)(A) The existing 2 district judgeships for the eastern and
western districts of Arkansas (provided by section 133 of title
28, United States Code, as in effect on the day before the
effective date of this title) shall be district judgeships for
the eastern district of Arkansas only, and the incumbents of
such judgeships shall hold the offices under section 133 of
title 28, United States Code, as amended by this title.
(B) The existing district judgeship for the northern and
southern districts of Iowa (provided by section 133 of title
28, United States Code, as in effect on the day before the
effective date of this title) shall be a district judgeship for
the northern district of Iowa only, and the incumbent of such
judgeship shall hold the office under section 133 of title 28,
United States Code, as amended by this title.
(C) The existing district judgeship for the northern,
eastern, and western districts of Oklahoma (provided by section
133 of title 28, United States Code, as in effect on the day
before the effective date of this title) and the occupant of
which has his or her official duty station at Oklahoma City on
the date of the enactment of this title, shall be a district
judgeship for the western district of Oklahoma only, and the
incumbent of such judgeship shall hold the office under section
133 of title 28, United States Code, as amended by this title.
(c) Temporary Judgeships.--The President shall appoint, by
and with the advice and consent of the Senate--
(1) 1 additional district judge for the eastern
district of California;
(2) 1 additional district judge for the district of
Hawaii;
(3) 1 additional district judge for the central
district of Illinois;
(4) 1 additional district judge for the southern
district of Illinois;
(5) 1 additional district judge for the district of
Kansas;
(6) 1 additional district judge for the western
district of Michigan;
(7) 1 additional district judge for the eastern
district of Missouri;
(8) 1 additional district judge for the district of
Nebraska;
(9) 1 additional district judge for the northern
district of New York;
(10) 1 additional district judge for the northern
district of Ohio;
(11) 1 additional district judge for the eastern
district of Pennsylvania; and
(12) 1 additional district judge for the eastern
district of Virginia.
Except with respect to the district of Kansas, the western
district of Michigan, the eastern district of Pennsylvania, the
district of Hawaii, and the northern district of Ohio, the
first vacancy in the office of district judge in each of the
judicial districts named in this subsection, occurring 10 years
or more after the confirmation date of the judge named to fill
the temporary judgeship created by this subsection, shall not
be filled. The first vacancy in the office of district judge in
the district of Kansas occurring [25 years and 6 months] 26
years and 6 months or more after the confirmation date of the
judge named to fill the temporary judgeship created for such
district under this subsection, shall not be filled. The first
vacancy in the office of district judge in the western district
of Michigan, occurring after December 1, 1995, shall not be
filled. The first vacancy in the office of district judge in
the eastern district of Pennsylvania, occurring 5 years or more
after the confirmation date of the judge named to fill the
temporary judgeship created for such district under this
subsection, shall not be filled. The first vacancy in the
office of district judge in the northern district of Ohio
occurring 19 years or more after the confirmation date of the
judge named to fill the temporary judgeship created under this
subsection shall not be filled. The first vacancy in the office
of the district judge in the district of Hawaii occurring 21
years and 6 months or more after the confirmation date of the
judge named to fill the temporary judgeship created under this
subsection shall not be filled. For districts named in this
subsection for which multiple judgeships are created by this
Act, the last of those judgeships filled shall be the
judgeships created under this section.
* * * * * * *
----------
TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY,
THE DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT,
2006
DIVISION A--TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT,
THE JUDICIARY, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2006
* * * * * * *
TITLE IV--THE JUDICIARY
* * * * * * *
Sec. 406. The existing judgeship for the eastern district of
Missouri authorized by section 203(c) of the Judicial
Improvements Act of 1990 (Public Law 101-650, 104 Stat. 5089)
as amended by Public Law 105-53, as of the effective date of
this Act, shall be extended. The first vacancy in the office of
district judge in this district occurring [23 years and 6
months] 24 years and 6 months or more after the confirmation
date of the judge named to fill the temporary judgeship created
by section 203(c) shall not be filled.
* * * * * * *
----------
21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS AUTHORIZATION ACT
* * * * * * *
DIVISION A--21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS
AUTHORIZATION ACT
* * * * * * *
TITLE III--MISCELLANEOUS
* * * * * * *
SEC. 312. ADDITIONAL FEDERAL JUDGESHIPS.
(a) Permanent District Judges for the District Courts.--
(1) In general.-- The President shall appoint, by and
with the advice and consent of the Senate--
(A) 5 additional district judges for the
southern district of California;
(B) 1 additional district judge for the
western district of North Carolina; and
(C) 2 additional district judges for the
western district of Texas.
(2) [Omitted--Amendatory]
(b) District Judgeships for the Central and Southern
Districts of Illinois, the Northern District of New York, and
the Eastern District of Virginia.--
(1) Conversion of temporary judgeships to permanent
judgeships.-- The existing district judgeships for the
central district and the southern district of Illinois,
the northern district of New York, and the eastern
district of Virginia authorized by section 203(c) (3),
(4), (9), and (12) of the Judicial Improvements Act of
1990 (Public Law 101-650, 28 U.S.C. 133 note) shall be
authorized under section 133 of title 28, United States
Code, and the incumbents in such offices shall hold the
offices under section 133 of title 28, United States
Code (as amended by this section).
(2) [Omitted--Amendatory]
(3) Effective date.-- With respect to the central or
southern district of Illinois, the northern district of
New York, or the eastern district of Virginia, this
subsection shall take effect on the earlier of--
(A) the date on which the first vacancy in
the office of district judge occurs in such
district; or
(B) July 15, 2003.
(c) Temporary Judgeships.--
(1) In general.-- The President shall appoint, by and
with the advice and consent of the Senate--
(A) 1 additional district judge for the
northern district of Alabama;
(B) 1 additional judge for the district of
Arizona;
(C) 1 additional judge for the central
district of California;
(D) 1 additional judge for the southern
district of Florida;
(E) 1 additional district judge for the
district of New Mexico;
(F) 1 additional district judge for the
western district of North Carolina; and
(G) 1 additional district judge for the
eastern district of Texas.
(2) Vacancies not filled.-- The first vacancy in the
office of district judge in each of the offices of
district judge authorized by this subsection, except in
the case of the central district of California and the
western district of North Carolina, occurring [14
years] 15 years or more after the confirmation date of
the judge named to fill the temporary district
judgeship created in the applicable district by this
subsection, shall not be filled. The first vacancy in
the office of district judge in the central district of
California occurring [13 years and 6 months] 14 years
and 6 months or more after the confirmation date of the
judge named to fill the temporary district judgeship
created in that district by this subsection, shall not
be filled. The first vacancy in the office of district
judge in the western district of North Carolina
occurring [12 years] 13 years or more after the
confirmation date of the judge named to fill the
temporary district judgeship created in that district
by this subsection, shall not be filled.
(3) Effective date.-- This subsection shall take
effect on July 15, 2003.
(d) Extension of Temporary Federal District Court Judgeship
for the Northern District of Ohio.--
(1) In general.-- [Omitted--Amendatory]
(2) Effective date.-- The amendments made by this
subsection shall take effect on the date of enactment
of this Act.
(e) Authorization of Appropriations.--There are authorized to
be appropriated such sums as may be necessary to carry out this
section, including such sums as may be necessary to provide
appropriate space and facilities for the judicial positions
created by this section.
* * * * * * *
----------
TITLE 28, UNITED STATES CODE
* * * * * * *
PART I--ORGANIZATION OF COURTS
* * * * * * *
CHAPTER 13--ASSIGNMENT OF JUDGES TO OTHER COURTS
Sec.
291. Circuit judges.
* * * * * * *
298. Judge for a case under subchapter V of chapter 11 of title 11.
* * * * * * *
Sec. 298. Judge for a case under subchapter V of chapter 11 of title 11
(a)(1) Notwithstanding section 295, the Chief Justice of the
United States shall designate not fewer than 10 bankruptcy
judges to be available to hear a case under subchapter V of
chapter 11 of title 11. Bankruptcy judges may request to be
considered by the Chief Justice of the United States for such
designation.
(2) Notwithstanding section 155, a case under subchapter V of
chapter 11 of title 11 shall be heard under section 157 by a
bankruptcy judge designated under paragraph (1), who shall be
randomly assigned to hear such case by the chief judge of the
court of appeals for the circuit embracing the district in
which the case is pending. To the greatest extent practicable,
the approvals required under section 155 should be obtained.
(3) If the bankruptcy judge assigned to hear a case under
paragraph (2) is not assigned to the district in which the case
is pending, the bankruptcy judge shall be temporarily assigned
to the district.
(b) A case under subchapter V of chapter 11 of title 11, and
all proceedings in the case, shall take place in the district
in which the case is pending.
(c) In this section, the term ``covered financial
corporation'' has the meaning given that term in section
101(9A) of title 11.
* * * * * * *
PART IV--JURISDICTION AND VENUE
* * * * * * *
CHAPTER 85--DISTRICT COURTS; JURISDICTION
* * * * * * *
Sec. 1334. Bankruptcy cases and proceedings
(a) Except as provided in subsection (b) of this section, the
district courts shall have original and exclusive jurisdiction
of all cases under title 11.
(b) Except as provided in subsection (e)(2), and
notwithstanding any Act of Congress that confers exclusive
jurisdiction on a court or courts other than the district
courts, the district courts shall have original but not
exclusive jurisdiction of all civil proceedings arising under
title 11, or arising in or related to cases under title 11.
(c)(1) Except with respect to a case under chapter 15 of
title 11, nothing in this section prevents a district court in
the interest of justice, or in the interest of comity with
State courts or respect for State law, from abstaining from
hearing a particular proceeding arising under title 11 or
arising in or related to a case under title 11.
(2) Upon timely motion of a party in a proceeding
based upon a State law claim or State law cause of
action, related to a case under title 11 but not
arising under title 11 or arising in a case under title
11, with respect to which an action could not have been
commenced in a court of the United States absent
jurisdiction under this section, the district court
shall abstain from hearing such proceeding if an action
is commenced, and can be timely adjudicated, in a State
forum of appropriate jurisdiction.
(d) Any decision to abstain or not to abstain made under
subsection (c) (other than a decision not to abstain in a
proceeding described in subsection (c)(2)) is not reviewable by
appeal or otherwise by the court of appeals under section
158(d), 1291, or 1292 of this title or by the Supreme Court of
the United States under section 1254 of this title. Subsection
(c) and this subsection shall not be construed to limit the
applicability of the stay provided for by section 362 of title
11, United States Code, as such section applies to an action
affecting the property of the estate in bankruptcy.
(e) The district court in which a case under title 11 is
commenced or is pending shall have exclusive jurisdiction--
(1) of all the property, wherever located, of the
debtor as of the commencement of such case, and of
property of the estate; and
(2) over all claims or causes of action that involve
construction of section 327 of title 11, United States
Code, or rules relating to disclosure requirements
under section 327.
(f) This section does not grant jurisdiction to the district
court after a transfer pursuant to an order under section 1185
of title 11 of any proceeding related to a special trustee
appointed, or to a bridge company formed, in connection with a
case under subchapter V of chapter 11 of title 11.
* * * * * * *
PART V--PROCEDURE
* * * * * * *
CHAPTER 121--JURIES; TRIAL BY JURY
* * * * * * *
Sec. 1871. Fees
(a) Grand and petit jurors in district courts appearing
pursuant to this chapter shall be paid the fees and allowances
provided by this section. The requisite fees and allowances
shall be disbursed on the certificate of the clerk of court in
accordance with the procedure established by the Director of
the Administrative Office of the United States Courts.
Attendance fees for extended service under subsection (b) of
this section shall be certified by the clerk only upon the
order of a district judge.
(b)(1) A juror shall be paid an attendance fee of [$40] $50
per day for actual attendance at the place of trial or hearing.
A juror shall also be paid the attendance fee for the time
necessarily occupied in going to and returning from such place
at the beginning and end of such service or at any time during
such service.
(2) A petit juror required to attend more than ten
days in hearing one case may be paid, in the discretion
of the trial judge, an additional fee, not exceeding
$10 more than the attendance fee, for each day in
excess of ten days on which he is required to hear such
case.
(3) A grand juror required to attend more than forty-
five days of actual service may be paid, in the
discretion of the district judge in charge of the
particular grand jury, an additional fee, not exceeding
$10 more than the attendance fee, for each day in
excess of forty-five days of actual service.
(4) A grand or petit juror required to attend more
than ten days of actual service may be paid, in the
discretion of the judge, the appropriate fees at the
end of the first ten days and at the end of every ten
days of service thereafter.
(5) Certification of additional attendance fees may
be ordered by the judge to be made effective commencing
on the first day of extended service, without reference
to the date of such certification.
(c)(1) A travel allowance not to exceed the maximum rate per
mile that the Director of the Administrative Office of the
United States Courts has prescribed pursuant to section
604(a)(7) of this title for payment to supporting court
personnel in travel status using privately owned automobiles
shall be paid to each juror, regardless of the mode of
transportation actually employed. The prescribed rate shall be
paid for the distance necessarily traveled to and from a
juror's residence by the shortest practical route in going to
and returning from the place of service. Actual mileage in full
at the prescribed rate is payable at the beginning and at the
end of a juror's term of service.
(2) The Director shall promulgate rules regulating
interim travel allowances to jurors. Distances traveled
to and from court should coincide with the shortest
practical route.
(3) Toll charges for toll roads, bridges, tunnels,
and ferries shall be paid in full to the juror
incurring such charges. In the discretion of the court,
reasonable parking fees may be paid to the juror
incurring such fees upon presentation of a valid
parking receipt. Parking fees shall not be included in
any tabulation of mileage cost allowances.
(4) Any juror who travels to district court pursuant
to summons in an area outside of the contiguous forty-
eight States of the United States shall be paid the
travel expenses provided under this section, or actual
reasonable transportation expenses subject to the
discretion of the district judge or clerk of court as
circumstances indicate, exercising due regard for the
mode of transportation, the availability of alternative
modes, and the shortest practical route between
residence and court.
(5) A grand juror who travels to district court
pursuant to a summons may be paid the travel expenses
provided under this section or, under guidelines
established by the Judicial Conference, the actual
reasonable costs of travel by aircraft when travel by
other means is not feasible and when certified by the
chief judge of the district court in which the grand
juror serves.
(d)(1) A subsistence allowance covering meals and lodging of
jurors shall be established from time to time by the Director
of the Administrative Office of the United States Courts
pursuant to section 604(a)(7) of this title, except that such
allowance shall not exceed the allowance for supporting court
personnel in travel status in the same geographical area.
Claims for such allowance shall not require itemization.
(2) A subsistence allowance shall be paid to a juror
when an overnight stay is required at the place of
holding court, and for the time necessarily spent in
traveling to and from the place of attendance if an
overnight stay is required.
(3) A subsistence allowance for jurors serving in
district courts outside of the contiguous forty-eight
States of the United States shall be allowed at a rate
not to exceed that per diem allowance which is paid to
supporting court personnel in travel status in those
areas where the Director of the Administrative Office
of the United States Courts has prescribed an increased
per diem fee pursuant to section 604(a)(7) of this
title.
(e) During any period in which a jury is ordered to be kept
together and not to separate, the actual cost of subsistence
shall be paid upon the order of the court in lieu of the
subsistence allowances payable under subsection (d) of this
section. Such allowance for the jurors ordered to be kept
separate or sequestered shall include the cost of meals,
lodging, and other expenditures ordered in the discretion of
the court for their convenience and comfort.
(f) A juror who must necessarily use public transportation in
traveling to and from court, the full cost of which is not met
by the transportation expenses allowable under subsection (c)
of this section on account of the short distance traveled in
miles, may be paid, in the discretion of the court, the actual
reasonable expense of such public transportation, pursuant to
the methods of payment provided by this section. Jurors who are
required to remain at the court beyond the normal business
closing hour for deliberation or for any other reason may be
transported to their homes, or to temporary lodgings where such
lodgings are ordered by the court, in a manner directed by the
clerk and paid from funds authorized under this section.
(g) The Director of the Administrative Office of the United
States Courts shall promulgate such regulations as may be
necessary to carry out his authority under this section.
* * * * * * *
----------
TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012
* * * * * * *
SEC. 2. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES IN CERTAIN
JUDICIAL DISTRICTS.
(a) Temporary Office of Bankruptcy Judges Authorized by
Public Law 109-8.--
(1) Extensions.-- The temporary office of bankruptcy
judges authorized for the following districts by
section 1223(b) of Public Law 109-8 (28 U.S.C. 152
note) are extended until the applicable vacancy
specified in paragraph (2) in the office of a
bankruptcy judge for the respective district occurs:
(A) The central district of California.
(B) The eastern district of California.
(C) The district of Delaware.
(D) The southern district of Florida.
(E) The southern district of Georgia.
(F) The district of Maryland.
(G) The eastern district of Michigan.
(H) The district of New Jersey.
(I) The northern district of New York.
(J) The eastern district of North Carolina.
(K) The eastern district of Pennsylvania.
(L) The middle district of Pennsylvania.
(M) The district of Puerto Rico.
(N) The district of South Carolina.
(O) The western district of Tennessee.
(P) The eastern district of Virginia.
(Q) The district of Nevada.
(2) Vacancies.--
(A) Single vacancies.-- Except as provided in
[subparagraphs (B), (C), (D), and (E)]
subparagraphs (B), (C), (D), (E), (F), (G), and
(H) , the 1st vacancy in the office of a
bankruptcy judge for each district specified in
paragraph (1)--
(i) occurring more than 5 years after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(B) Central district of california.-- The
1st, 2d, and 3d vacancies in the office of a
bankruptcy judge for the central district of
California--
(i) occurring 5 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(C) District of delaware.-- The 1st, 2d, 3d,
and 4th vacancies in the office of a bankruptcy
judge for the district of Delaware--
(i) in the case of the 1st and 2d
vacancies, occurring more than 6 years
after the date of the enactment of this
Act,
[(i)] (ii) in the case of the 3d and
4th vacancies, occurring more than 5
years after the date of the enactment
of this Act, and
[(ii)] (iii) resulting from the
death, retirement, resignation, or
removal of a bankruptcy judge,
shall not be filled.
(D) Southern district of florida.-- The 1st
and 2d vacancies in the office of a bankruptcy
judge for the southern district of Florida--
(i) occurring more than [5 years] 6
years after the date of the enactment
of this Act, and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(E) District of maryland.-- The 1st, 2d, and
3d vacancies in the office of a bankruptcy
judge for the district of Maryland--
(i) occurring more than 5 years after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(F) Eastern district of michigan.-- The 1st
vacancy in the office of a bankruptcy judge for
the eastern district of Michigan--
(i) occurring 6 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(G) District of puerto rico.-- The 1st
vacancy in the office of a bankruptcy judge for
the district of Puerto Rico--
(i) occurring 6 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(H) Eastern district of virginia.-- The 1st
vacancy in the office of a bankruptcy judge for
the eastern district of Virginia--
(i) occurring 6 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.-- Except as
provided in paragraphs (1) and (2), all other
provisions of section 1223(b) of Public Law 109-8 (28
U.S.C. 152 note) remain applicable to the temporary
office of bankruptcy judges referred to in paragraph
(1).
(b) Temporary Office of Bankruptcy Judges Extended by Public
Law 109-8.--
(1) Extensions.-- The temporary office of bankruptcy
judges authorized by section 3 of the Bankruptcy
Judgeship Act of 1992 (28 U.S.C. 152 note) and extended
by section 1223(c) of Public Law 109-8 (28 U.S.C. 152
note) for the district of Delaware, the district of
Puerto Rico, and the eastern district of Tennessee are
extended until the applicable vacancy specified in
paragraph (2) in the office of a bankruptcy judge for
the respective district occurs.
(2) Vacancies.--
(A) District of delaware.-- The 5th vacancy
in the office of a bankruptcy judge for the
district of Delaware--
(i) occurring more than 5 years after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(B) District of puerto rico.-- The 2d vacancy
in the office of a bankruptcy judge for the
district of Puerto Rico--
(i) occurring more than 5 years after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(C) Eastern district of tennessee.-- The 1st
vacancy in the office of a bankruptcy judge for
the eastern district of Tennessee--
(i) occurring more than 5 years after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.-- Except as
provided in paragraphs (1) and (2), all other
provisions of section 3 of the Bankruptcy Judgeship Act
of 1992 (28 U.S.C. 152 note) and section 1223(c) of
Public Law 109-8 (28 U.S.C. 152 note) remain applicable
to the temporary office of bankruptcy judges referred
to in paragraph (1).
(c) Temporary Office of the Bankruptcy Judge Authorized by
Public Law 102-361 for the Middle District of North Carolina.--
(1) Extension.-- The temporary office of the
bankruptcy judge authorized by section 3 of the
Bankruptcy Judgeship Act of 1992 (28 U.S.C. 152 note)
for the middle district of North Carolina is extended
until the vacancy specified in paragraph (2) occurs.
(2) Vacancy.-- The 1st vacancy in the office of a
bankruptcy judge for the middle district of North
Carolina--
(A) occurring more than 5 years after the
date of the enactment of this Act, and
(B) resulting from the death, retirement,
resignation, or removal of a bankruptcy judge,
shall not be filled.
(3) Applicability of other provisions.-- Except as
provided in paragraphs (1) and (2), all other
provisions of section 3 of the Bankruptcy Judgeship Act
of 1992 (28 U.S.C. 152 note) remain applicable to the
temporary office of the bankruptcy judge referred to in
paragraph (1).
* * * * * * *
----------
CONSUMER FINANCIAL PROTECTION ACT OF 2010
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
SEC. 1001. SHORT TITLE.
This title may be cited as the ``Consumer Financial
Protection Act of 2010''.
SEC. 1002. DEFINITIONS.
Except as otherwise provided in this title, for purposes of
this title, the following definitions shall apply:
(1) Affiliate.-- The term ``affiliate'' means any
person that controls, is controlled by, or is under
common control with another person.
(2) Bureau.-- The term ``Bureau'' means the Bureau of
Consumer Financial Protection.
(3) Business of insurance.-- The term ``business of
insurance'' means the writing of insurance or the
reinsuring of risks by an insurer, including all acts
necessary to such writing or reinsuring and the
activities relating to the writing of insurance or the
reinsuring of risks conducted by persons who act as, or
are, officers, directors, agents, or employees of
insurers or who are other persons authorized to act on
behalf of such persons.
(4) Consumer.-- The term ``consumer'' means an
individual or an agent, trustee, or representative
acting on behalf of an individual.
(5) Consumer financial product or service.-- The term
``consumer financial product or service'' means any
financial product or service that is described in one
or more categories under--
(A) paragraph (15) and is offered or provided
for use by consumers primarily for personal,
family, or household purposes; or
(B) clause (i), (iii), (ix), or (x) of
paragraph (15)(A), and is delivered, offered,
or provided in connection with a consumer
financial product or service referred to in
subparagraph (A).
(6) Covered person.-- The term ``covered person''
means--
(A) any person that engages in offering or
providing a consumer financial product or
service; and
(B) any affiliate of a person described in
subparagraph (A) if such affiliate acts as a
service provider to such person.
(7) Credit.-- The term ``credit'' means the right
granted by a person to a consumer to defer payment of a
debt, incur debt and defer its payment, or purchase
property or services and defer payment for such
purchase.
(8) Deposit-taking activity.-- The term ``deposit-
taking activity'' means--
(A) the acceptance of deposits, maintenance
of deposit accounts, or the provision of
services related to the acceptance of deposits
or the maintenance of deposit accounts;
(B) the acceptance of funds, the provision of
other services related to the acceptance of
funds, or the maintenance of member share
accounts by a credit union; or
(C) the receipt of funds or the equivalent
thereof, as the Bureau may determine by rule or
order, received or held by a covered person (or
an agent for a covered person) for the purpose
of facilitating a payment or transferring funds
or value of funds between a consumer and a
third party.
(9) Designated transfer date.-- The term ``designated
transfer date'' means the date established under
section 1062.
[(10) Director.-- The term ``Director'' means the
Director of the Bureau.]
(10) Board.-- The term ``Board'' means the Board of
Directors of the Bureau of Consumer Financial
Protection.
(11) Electronic conduit services.-- The term
``electronic conduit services''--
(A) means the provision, by a person, of
electronic data transmission, routing,
intermediate or transient storage, or
connections to a telecommunications system or
network; and
(B) does not include a person that provides
electronic conduit services if, when providing
such services, the person--
(i) selects or modifies the content
of the electronic data;
(ii) transmits, routes, stores, or
provides connections for electronic
data, including financial data, in a
manner that such financial data is
differentiated from other types of data
of the same form that such person
transmits, routes, or stores, or with
respect to which, provides connections;
or
(iii) is a payee, payor,
correspondent, or similar party to a
payment transaction with a consumer.
(12) Enumerated consumer laws.-- Except as otherwise
specifically provided in section 1029, subtitle G or
subtitle H, the term ``enumerated consumer laws''
means--
(A) the Alternative Mortgage Transaction
Parity Act of 1982 (12 U.S.C. 3801 et seq.);
(B) the Consumer Leasing Act of 1976 (15
U.S.C. 1667 et seq.);
(C) the Electronic Fund Transfer Act (15
U.S.C. 1693 et seq.), except with respect to
section 920 of that Act;
(D) the Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.);
(E) the Fair Credit Billing Act (15 U.S.C.
1666 et seq.);
(F) the Fair Credit Reporting Act (15 U.S.C.
1681 et seq.), except with respect to sections
615(e) and 628 of that Act (15 U.S.C. 1681m(e),
1681w);
(G) the Home Owners Protection Act of 1998
(12 U.S.C. 4901 et seq.);
(H) the Fair Debt Collection Practices Act
(15 U.S.C. 1692 et seq.);
(I) subsections (b) through (f) of section 43
of the Federal Deposit Insurance Act (12 U.S.C.
1831t(c)-(f));
(J) sections 502 through 509 of the Gramm-
Leach-Bliley Act (15 U.S.C. 6802-6809) except
for section 505 as it applies to section
501(b);
(K) the Home Mortgage Disclosure Act of 1975
(12 U.S.C. 2801 et seq.);
(L) the Home Ownership and Equity Protection
Act of 1994 (15 U.S.C. 1601 note);
(M) the Real Estate Settlement Procedures Act
of 1974 (12 U.S.C. 2601 et seq.);
(N) the S.A.F.E. Mortgage Licensing Act of
2008 (12 U.S.C. 5101 et seq.);
(O) the Truth in Lending Act (15 U.S.C. 1601
et seq.);
(P) the Truth in Savings Act (12 U.S.C. 4301
et seq.);
(Q) section 626 of the Omnibus Appropriations
Act, 2009 (Public Law 111-8); and
(R) the Interstate Land Sales Full Disclosure
Act (15 U.S.C. 1701).
(13) Fair lending.-- The term ``fair lending'' means
fair, equitable, and nondiscriminatory access to credit
for consumers.
(14) Federal consumer financial law.-- The term
``Federal consumer financial law'' means the provisions
of this title, the enumerated consumer laws, the laws
for which authorities are transferred under subtitles F
and H, and any rule or order prescribed by the Bureau
under this title, an enumerated consumer law, or
pursuant to the authorities transferred under subtitles
F and H. The term does not include the Federal Trade
Commission Act.
(15) Financial product or service.--
(A) In general.-- The term ``financial
product or service'' means--
(i) extending credit and servicing
loans, including acquiring, purchasing,
selling, brokering, or other extensions
of credit (other than solely extending
commercial credit to a person who
originates consumer credit
transactions);
(ii) extending or brokering leases of
personal or real property that are the
functional equivalent of purchase
finance arrangements, if--
(I) the lease is on a non-
operating basis;
(II) the initial term of the
lease is at least 90 days; and
(III) in the case of a lease
involving real property, at the
inception of the initial lease,
the transaction is intended to
result in ownership of the
leased property to be
transferred to the lessee,
subject to standards prescribed
by the Bureau;
(iii) providing real estate
settlement services, except such
services excluded under subparagraph
(C), or performing appraisals of real
estate or personal property;
(iv) engaging in deposit-taking
activities, transmitting or exchanging
funds, or otherwise acting as a
custodian of funds or any financial
instrument for use by or on behalf of a
consumer;
(v) selling, providing, or issuing
stored value or payment instruments,
except that, in the case of a sale of,
or transaction to reload, stored value,
only if the seller exercises
substantial control over the terms or
conditions of the stored value provided
to the consumer where, for purposes of
this clause--
(I) a seller shall not be
found to exercise substantial
control over the terms or
conditions of the stored value
if the seller is not a party to
the contract with the consumer
for the stored value product,
and another person is
principally responsible for
establishing the terms or
conditions of the stored value;
and
(II) advertising the
nonfinancial goods or services
of the seller on the stored
value card or device is not in
itself an exercise of
substantial control over the
terms or conditions;
(vi) providing check cashing, check
collection, or check guaranty services;
(vii) providing payments or other
financial data processing products or
services to a consumer by any
technological means, including
processing or storing financial or
banking data for any payment
instrument, or through any payments
systems or network used for processing
payments data, including payments made
through an online banking system or
mobile telecommunications network,
except that a person shall not be
deemed to be a covered person with
respect to financial data processing
solely because the person--
(I) is a merchant, retailer,
or seller of any nonfinancial
good or service who engages in
financial data processing by
transmitting or storing
payments data about a consumer
exclusively for purpose of
initiating payments
instructions by the consumer to
pay such person for the
purchase of, or to complete a
commercial transaction for,
such nonfinancial good or
service sold directly by such
person to the consumer; or
(II) provides access to a
host server to a person for
purposes of enabling that
person to establish and
maintain a website;
(viii) providing financial advisory
services (other than services relating
to securities provided by a person
regulated by the Commission or a person
regulated by a State securities
Commission, but only to the extent that
such person acts in a regulated
capacity) to consumers on individual
financial matters or relating to
proprietary financial products or
services (other than by publishing any
bona fide newspaper, news magazine, or
business or financial publication of
general and regular circulation,
including publishing market data, news,
or data analytics or investment
information or recommendations that are
not tailored to the individual needs of
a particular consumer), including--
(I) providing credit
counseling to any consumer; and
(II) providing services to
assist a consumer with debt
management or debt settlement,
modifying the terms of any
extension of credit, or
avoiding foreclosure;
(ix) collecting, analyzing,
maintaining, or providing consumer
report information or other account
information, including information
relating to the credit history of
consumers, used or expected to be used
in connection with any decision
regarding the offering or provision of
a consumer financial product or
service, except to the extent that--
(I) a person--
(aa) collects,
analyzes, or maintains
information that
relates solely to the
transactions between a
consumer and such
person;
(bb) provides the
information described
in item (aa) to an
affiliate of such
person; or
(cc) provides
information that is
used or expected to be
used solely in any
decision regarding the
offering or provision
of a product or service
that is not a consumer
financial product or
service, including a
decision for
employment, government
licensing, or a
residential lease or
tenancy involving a
consumer; and
(II) the information
described in subclause (I)(aa)
is not used by such person or
affiliate in connection with
any decision regarding the
offering or provision of a
consumer financial product or
service to the consumer, other
than credit described in
section 1027(a)(2)(A);
(x) collecting debt related to any
consumer financial product or service;
and
(xi) such other financial product or
service as may be defined by the
Bureau, by regulation, for purposes of
this title, if the Bureau finds that
such financial product or service is--
(I) entered into or conducted
as a subterfuge or with a
purpose to evade any Federal
consumer financial law; or
(II) permissible for a bank
or for a financial holding
company to offer or to provide
under any provision of a
Federal law or regulation
applicable to a bank or a
financial holding company, and
has, or likely will have, a
material impact on consumers.
(B) Rule of construction.--
(i) In general.-- For purposes of
subparagraph (A)(xi)(II), and subject
to clause (ii) of this subparagraph,
the following activities provided to a
covered person shall not, for purposes
of this title, be considered incidental
or complementary to a financial
activity permissible for a financial
holding company to engage in under any
provision of a Federal law or
regulation applicable to a financial
holding company:
(I) Providing information
products or services to a
covered person for identity
authentication.
(II) Providing information
products or services for fraud
or identify theft detection,
prevention, or investigation.
(III) Providing document
retrieval or delivery services.
(IV) Providing public records
information retrieval.
(V) Providing information
products or services for anti-
money laundering activities.
(ii) Limitation.-- Nothing in clause
(i) may be construed as modifying or
limiting the authority of the Bureau to
exercise any--
(I) examination or
enforcement powers authority
under this title with respect
to a covered person or service
provider engaging in an
activity described in
subparagraph (A)(ix); or
(II) powers authorized by
this title to prescribe rules,
issue orders, or take other
actions under any enumerated
consumer law or law for which
the authorities are transferred
under subtitle F or H.
(C) Exclusions.-- The term ``financial
product or service'' does not include--
(i) the business of insurance; or
(ii) electronic conduit services.
(16) Foreign exchange.-- The term ``foreign
exchange'' means the exchange, for compensation, of
currency of the United States or of a foreign
government for currency of another government.
(17) Insured credit union.-- The term ``insured
credit union'' has the same meaning as in section 101
of the Federal Credit Union Act (12 U.S.C. 1752).
(18) Payment instrument.-- The term ``payment
instrument'' means a check, draft, warrant, money
order, traveler's check, electronic instrument, or
other instrument, payment of funds, or monetary value
(other than currency).
(19) Person.-- The term ``person'' means an
individual, partnership, company, corporation,
association (incorporated or unincorporated), trust,
estate, cooperative organization, or other entity.
(20) Person regulated by the commodity futures
trading commission.-- The term ``person regulated by
the Commodity Futures Trading Commission'' means any
person that is registered, or required by statute or
regulation to be registered, with the Commodity Futures
Trading Commission, but only to the extent that the
activities of such person are subject to the
jurisdiction of the Commodity Futures Trading
Commission under the Commodity Exchange Act.
(21) Person regulated by the commission.-- The term
``person regulated by the Commission'' means a person
who is--
(A) a broker or dealer that is required to be
registered under the Securities Exchange Act of
1934;
(B) an investment adviser that is registered
under the Investment Advisers Act of 1940;
(C) an investment company that is required to
be registered under the Investment Company Act
of 1940, and any company that has elected to be
regulated as a business development company
under that Act;
(D) a national securities exchange that is
required to be registered under the Securities
Exchange Act of 1934;
(E) a transfer agent that is required to be
registered under the Securities Exchange Act of
1934;
(F) a clearing corporation that is required
to be registered under the Securities Exchange
Act of 1934;
(G) any self-regulatory organization that is
required to be registered with the Commission;
(H) any nationally recognized statistical
rating organization that is required to be
registered with the Commission;
(I) any securities information processor that
is required to be registered with the
Commission;
(J) any municipal securities dealer that is
required to be registered with the Commission;
(K) any other person that is required to be
registered with the Commission under the
Securities Exchange Act of 1934; and
(L) any employee, agent, or contractor acting
on behalf of, registered with, or providing
services to, any person described in any of
subparagraphs (A) through (K), but only to the
extent that any person described in any of
subparagraphs (A) through (K), or the employee,
agent, or contractor of such person, acts in a
regulated capacity.
(22) Person regulated by a state insurance
regulator.-- The term ``person regulated by a State
insurance regulator'' means any person that is engaged
in the business of insurance and subject to regulation
by any State insurance regulator, but only to the
extent that such person acts in such capacity.
(23) Person that performs income tax preparation
activities for consumers.-- The term ``person that
performs income tax preparation activities for
consumers'' means--
(A) any tax return preparer (as defined in
section 7701(a)(36) of the Internal Revenue
Code of 1986), regardless of whether
compensated, but only to the extent that the
person acts in such capacity;
(B) any person regulated by the Secretary
under section 330 of title 31, United States
Code, but only to the extent that the person
acts in such capacity; and
(C) any authorized IRS e-file Providers (as
defined for purposes of section 7216 of the
Internal Revenue Code of 1986), but only to the
extent that the person acts in such capacity.
(24) Prudential regulator.-- The term ``prudential
regulator'' means--
(A) in the case of an insured depository
institution or depository institution holding
company (as defined in section 3 of the Federal
Deposit Insurance Act), or subsidiary of such
institution or company, the appropriate Federal
banking agency, as that term is defined in
section 3 of the Federal Deposit Insurance Act;
and
(B) in the case of an insured credit union,
the National Credit Union Administration.
(25) Related person.-- The term ``related person''--
(A) shall apply only with respect to a
covered person that is not a bank holding
company (as that term is defined in section 2
of the Bank Holding Company Act of 1956),
credit union, or depository institution;
(B) shall be deemed to mean a covered person
for all purposes of any provision of Federal
consumer financial law; and
(C) means--
(i) any director, officer, or
employee charged with managerial
responsibility for, or controlling
shareholder of, or agent for, such
covered person;
(ii) any shareholder, consultant,
joint venture partner, or other person,
as determined by the Bureau (by rule or
on a case-by-case basis) who materially
participates in the conduct of the
affairs of such covered person; and
(iii) any independent contractor
(including any attorney, appraiser, or
accountant) who knowingly or recklessly
participates in any--
(I) violation of any
provision of law or regulation;
or
(II) breach of a fiduciary
duty.
(26) Service provider.--
(A) In general.-- The term ``service
provider'' means any person that provides a
material service to a covered person in
connection with the offering or provision by
such covered person of a consumer financial
product or service, including a person that--
(i) participates in designing,
operating, or maintaining the consumer
financial product or service; or
(ii) processes transactions relating
to the consumer financial product or
service (other than unknowingly or
incidentally transmitting or processing
financial data in a manner that such
data is undifferentiated from other
types of data of the same form as the
person transmits or processes).
(B) Exceptions.-- The term ``service
provider'' does not include a person solely by
virtue of such person offering or providing to
a covered person--
(i) a support service of a type
provided to businesses generally or a
similar ministerial service; or
(ii) time or space for an
advertisement for a consumer financial
product or service through print,
newspaper, or electronic media.
(C) Rule of construction.-- A person that is
a service provider shall be deemed to be a
covered person to the extent that such person
engages in the offering or provision of its own
consumer financial product or service.
(27) State.-- The term ``State'' means any State,
territory, or possession of the United States, the
District of Columbia, the Commonwealth of Puerto Rico,
the Commonwealth of the Northern Mariana Islands, Guam,
American Samoa, or the United States Virgin Islands or
any federally recognized Indian tribe, as defined by
the Secretary of the Interior under section 104(a) of
the Federally Recognized Indian Tribe List Act of 1994
(25 U.S.C. 479a-1(a)).
(28) Stored value.--
(A) In general.-- The term ``stored value''
means funds or monetary value represented in
any electronic format, whether or not specially
encrypted, and stored or capable of storage on
electronic media in such a way as to be
retrievable and transferred electronically, and
includes a prepaid debit card or product, or
any other similar product, regardless of
whether the amount of the funds or monetary
value may be increased or reloaded.
(B) Exclusion.-- Notwithstanding subparagraph
(A), the term ``stored value'' does not include
a special purpose card or certificate, which
shall be defined for purposes of this paragraph
as funds or monetary value represented in any
electronic format, whether or not specially
encrypted, that is--
(i) issued by a merchant, retailer,
or other seller of nonfinancial goods
or services;
(ii) redeemable only for transactions
with the merchant, retailer, or seller
of nonfinancial goods or services or
with an affiliate of such person, which
affiliate itself is a merchant,
retailer, or seller of nonfinancial
goods or services;
(iii) issued in a specified amount
that, except in the case of a card or
product used solely for telephone
services, may not be increased or
reloaded;
(iv) purchased on a prepaid basis in
exchange for payment; and
(v) honored upon presentation to such
merchant, retailer, or seller of
nonfinancial goods or services or an
affiliate of such person, which
affiliate itself is a merchant,
retailer, or seller of nonfinancial
goods or services, only for any
nonfinancial goods or services.
(29) Transmitting or exchanging funds.-- The term
``transmitting or exchanging funds'' means receiving
currency, monetary value, or payment instruments from a
consumer for the purpose of exchanging or transmitting
the same by any means, including transmission by wire,
facsimile, electronic transfer, courier, the Internet,
or through bill payment services or through other
businesses that facilitate third-party transfers within
the United States or to or from the United States.
(30) Chairperson.-- The term ``Chairperson'' means
the Chairperson of the Board of Directors of the Bureau
of Consumer Financial Protection.
Subtitle A--Bureau of Consumer Financial Protection
SEC. 1011. ESTABLISHMENT OF THE BUREAU OF CONSUMER FINANCIAL
PROTECTION.
(a) Bureau Established.--There is established in the Federal
Reserve System, an independent bureau to be known as the
``Bureau of Consumer Financial Protection'', which shall
regulate the offering and provision of consumer financial
products or services under the Federal consumer financial laws.
The Bureau shall be considered an Executive agency, as defined
in section 105 of title 5, United States Code. Except as
otherwise provided expressly by law, all Federal laws dealing
with public or Federal contracts, property, works, officers,
employees, budgets, or funds, including the provisions of
chapters 5 and 7 of title 5, shall apply to the exercise of the
powers of the Bureau.
[(b) Director and Deputy Director.--
[(1) In general.-- There is established the position
of the Director, who shall serve as the head of the
Bureau.
[(2) Appointment.-- Subject to paragraph (3), the
Director shall be appointed by the President, by and
with the advice and consent of the Senate.
[(3) Qualification.-- The President shall nominate
the Director from among individuals who are citizens of
the United States.
[(4) Compensation.-- The Director shall be
compensated at the rate prescribed for level II of the
Executive Schedule under section 5313 of title 5,
United States Code.
[(5) Deputy director.-- There is established the
position of Deputy Director, who shall--
[(A) be appointed by the Director; and
[(B) serve as acting Director in the absence
or unavailability of the Director.
[(c) Term.--
[(1) In general.-- The Director shall serve for a
term of 5 years.
[(2) Expiration of term.-- An individual may serve as
Director after the expiration of the term for which
appointed, until a successor has been appointed and
qualified.
[(3) Removal for cause.-- The President may remove
the Director for inefficiency, neglect of duty, or
malfeasance in office.
[(d) Service Restriction.--No Director or Deputy Director may
hold any office, position, or employment in any Federal reserve
bank, Federal home loan bank, covered person, or service
provider during the period of service of such person as
Director or Deputy Director.]
(b) Management of the Bureau.--
(1) In general.-- The management of the Bureau shall
be vested in a Board of Directors consisting of 5
members, who shall be appointed by the President, by
and with the advice and consent of the Senate, from
among individuals who--
(A) are citizens of the United States; and
(B) have developed strong competency and
understanding of, and have experience working
with, financial products and services.
(2) Terms.--
(A) In general.-- Except as provided in
subparagraph (B), each member of the Board,
including the Chairperson, shall serve for a
term of 5 years.
(B) Staggered terms.-- The members of the
Board shall serve staggered terms, which shall
initially be for terms of 1, 2, 3, 4, and 5
years, respectively, and such members shall be
appointed such that, after the appointments of
the initial 5 members of the Board, members of
different political parties are appointed
alternately.
(C) Removal.-- The President may remove any
member of the Board for inefficiency, neglect
of duty, or malfeasance in office.
(D) Vacancies.-- Any member of the Board
appointed to fill a vacancy occurring before
the expiration of the term to which the
predecessor of that member was appointed
(including the Chairperson) shall be appointed
only for the remainder of the term.
(E) Continuation of service.-- Each member of
the Board may continue to serve after the
expiration of the term of office to which that
member was appointed until a successor has been
appointed by the President and confirmed by the
Senate, except that a member may not continue
to serve more than 1 year after the date on
which the term of that member would otherwise
expire.
(F) Successive terms.-- A member of the Board
may not be reappointed to a second consecutive
term, except that an initial member of the
Board appointed for less than a 5-year term may
be reappointed to a full 5-year term and a
future member appointed to fill an unexpired
term may be reappointed for a full 5-year term.
(3) Affiliation.-- Not more than 3 members of the
Board shall be members of any 1 political party.
(4) Chairperson of the board.--
(A) Appointment.-- The President shall
appoint 1 of the 5 members of the Board to
serve as Chairperson of the Board.
(B) Authority.-- The Chairperson shall be the
principal executive officer of the Bureau, and
shall exercise all of the executive and
administrative functions of the Bureau,
including with respect to--
(i) the supervision of personnel
employed by the Bureau (other than
personnel employed regularly and full
time in the immediate offices of
members of the Board other than the
Chairperson);
(ii) the distribution of business
among personnel appointed and
supervised by the Chairperson and among
administrative units of the Bureau; and
(iii) the use and expenditure of
funds.
(C) Limitation.-- In carrying out any of the
functions of the Chairperson under this
paragraph, the Chairperson shall be governed by
general policies of the Bureau and by such
regulatory decisions, findings, and
determinations as the Bureau may by law be
authorized to make.
(D) Requests or estimates related to
appropriations.-- Any request or estimate for
regular, supplemental, or deficiency
appropriations on behalf of the Bureau,
including any request for a transfer of funds
under section 1017(a), may not be submitted by
the Chairperson without the prior approval of
the Board.
(E) Vacancy.-- The President may designate a
member of the Board to serve as Acting
Chairperson in the event of a vacancy in the
office of the Chairperson.
(5) Compensation.--
(A) Chairperson.-- The Chairperson shall
receive compensation at the rate prescribed for
level I of the Executive Schedule under section
5312 of title 5, United States Code.
(B) Other members of the board.-- The 4
members of the Board other than the Chairperson
shall each receive compensation at the rate
prescribed for level II of the Executive
Schedule under section 5313 of title 5, United
States Code.
(6) Other employment prohibited.-- A member of the
Board may not engage in any other business, vocation,
or employment.
[(e)] (c) Offices.--The principal office of the Bureau shall
be in the District of Columbia. The Director may establish
regional offices of the Bureau, including in cities in which
the Federal reserve banks, or branches of such banks, are
located, in order to carry out the responsibilities assigned to
the Bureau under the Federal consumer financial laws.
SEC. 1012. EXECUTIVE AND ADMINISTRATIVE POWERS.
(a) Powers of the Bureau.--The Bureau is authorized to
establish the general policies of the Bureau with respect to
all executive and administrative functions, including--
(1) the establishment of rules for conducting the
general business of the Bureau, in a manner not
inconsistent with this title;
(2) to bind the Bureau and enter into contracts;
(3) directing the establishment and maintenance of
divisions or other offices within the Bureau, in order
to carry out the responsibilities under the Federal
consumer financial laws, and to satisfy the
requirements of other applicable law;
(4) to coordinate and oversee the operation of all
administrative, enforcement, and research activities of
the Bureau;
(5) to adopt and use a seal;
(6) to determine the character of and the necessity
for the obligations and expenditures of the Bureau;
(7) the appointment and supervision of personnel
employed by the Bureau;
(8) the distribution of business among personnel
[appointed and supervised by the Director] appointed by
the Board and supervised by the Chairperson and among
administrative units of the Bureau;
(9) the use and expenditure of funds;
(10) implementing the Federal consumer financial laws
through rules, orders, guidance, interpretations,
statements of policy, examinations, and enforcement
actions; and
(11) performing such other functions as may be
authorized or required by law.
(b) Delegation of Authority.--The [Director] Board of the
Bureau may delegate to any duly authorized employee,
representative, or agent any power vested in the Bureau by law.
(c) Autonomy of the Bureau.--
(1) Coordination with the board of governors.--
Notwithstanding any other provision of law applicable
to the supervision or examination of persons with
respect to Federal consumer financial laws, the Board
of Governors may delegate to the Bureau the authorities
to examine persons subject to the jurisdiction of the
Board of Governors for compliance with the Federal
consumer financial laws.
(2) Autonomy.-- Notwithstanding the authorities
granted to the Board of Governors under the Federal
Reserve Act, the Board of Governors may not--
(A) intervene in any matter or proceeding
before the [Director] Board , including
examinations or enforcement actions, unless
otherwise specifically provided by law;
(B) appoint, direct, or remove any officer or
employee of the Bureau; or
(C) merge or consolidate the Bureau, or any
of the functions or responsibilities of the
Bureau, with any division or office of the
Board of Governors or the Federal reserve
banks.
(3) Rules and orders.-- No rule or order of the
Bureau shall be subject to approval or review by the
Board of Governors. The Board of Governors may not
delay or prevent the issuance of any rule or order of
the Bureau.
(4) Recommendations and testimony.-- No officer or
agency of the United States shall have any authority to
require [the Director] any member of the Board or any
other officer of the Bureau to submit legislative
recommendations, or testimony or comments on
legislation, to any officer or agency of the United
States for approval, comments, or review prior to the
submission of such recommendations, testimony, or
comments to the Congress, if such recommendations,
testimony, or comments to the Congress include a
statement indicating that the views expressed therein
are those of [the Director] any member of the Board or
such officer, and do not necessarily reflect the views
of the Board of Governors or the President.
(5) Clarification of autonomy of the bureau in legal
proceedings.-- The Bureau shall not be liable under any
provision of law for any action or inaction of the
Board of Governors, and the Board of Governors shall
not be liable under any provision of law for any action
or inaction of the Bureau.
SEC. 1013. ADMINISTRATION.
(a) Personnel.--
(1) Appointment.--
(A) In general.-- The [Director] Board may
fix the number of, and appoint and direct, all
employees of the Bureau, in accordance with the
applicable provisions of title 5, United States
Code.
(B) Employees of the bureau.-- The [Director]
Board is authorized to employ attorneys,
compliance examiners, compliance supervision
analysts, economists, statisticians, and other
employees as may be deemed necessary to conduct
the business of the Bureau. Unless otherwise
provided expressly by law, any individual
appointed under this section shall be an
employee as defined in section 2105 of title 5,
United States Code, and subject to the
provisions of such title and other laws
generally applicable to the employees of an
Executive agency.
(C) Waiver authority.--
(i) In general.-- In making any
appointment under subparagraph (A), the
[Director] Board may waive the
requirements of chapter 33 of title 5,
United States Code, and the regulations
implementing such chapter, to the
extent necessary to appoint employees
on terms and conditions that are
consistent with those set forth in
section 11(1) of the Federal Reserve
Act (12 U.S.C. 248(1)), while providing
for--
(I) fair, credible, and
transparent methods of
establishing qualification
requirements for, recruitment
for, and appointments to
positions;
(II) fair and open
competition and equitable
treatment in the consideration
and selection of individuals to
positions;
(III) fair, credible, and
transparent methods of
assigning, reassigning,
detailing, transferring, and
promoting employees.
(ii) Veterans preferences.-- In
implementing this subparagraph, the
[Director] Board shall comply with the
provisions of section 2302(b)(11),
regarding veterans' preference
requirements, in a manner consistent
with that in which such provisions are
applied under chapter 33 of title 5,
United States Code. The authority under
this subparagraph to waive the
requirements of that chapter 33 shall
expire 5 years after the date of
enactment of this Act.
(2) Compensation.-- Notwithstanding any otherwise
applicable provision of title 5, United States Code,
concerning compensation, including the provisions of
chapter 51 and chapter 53, the following provisions
shall apply with respect to employees of the Bureau:
(A) The rates of basic pay for all employees
of the Bureau may be set and adjusted by the
[Director] Board .
(B) The [Director] Board shall at all times
provide compensation (including benefits) to
each class of employees that, at a minimum, are
comparable to the compensation and benefits
then being provided by the Board of Governors
for the corresponding class of employees.
(C) All such employees shall be compensated
(including benefits) on terms and conditions
that are consistent with the terms and
conditions set forth in section 11(l) of the
Federal Reserve Act (12 U.S.C. 248(l)).
(3) Bureau participation in federal reserve system
retirement plan and federal reserve system thrift
plan.--
(A) Employee election.-- Employees appointed
to the Bureau may elect to participate in
either--
(i) both the Federal Reserve System
Retirement Plan and the Federal Reserve
System Thrift Plan, under the same
terms on which such participation is
offered to employees of the Board of
Governors who participate in such plans
and under the terms and conditions
specified under section 1064(i)(1)(C);
or
(ii) the Civil Service Retirement
System under chapter 83 of title 5,
United States Code, or the Federal
Employees Retirement System under
chapter 84 of title 5, United States
Code, if previously covered under one
of those Federal employee retirement
systems.
(B) Election period.-- Bureau employees shall
make an election under this paragraph not later
than 1 year after the date of appointment by,
or transfer under subtitle F to, the Bureau.
Participation in, and benefit accruals under,
any other retirement plan established or
maintained by the Federal Government shall end
not later than the date on which participation
in, and benefit accruals under, the Federal
Reserve System Retirement Plan and Federal
Reserve System Thrift Plan begin.
(C) Employer contribution.-- The Bureau shall
pay an employer contribution to the Federal
Reserve System Retirement Plan, in the amount
established as an employer contribution under
the Federal Employees Retirement System, as
established under chapter 84 of title 5, United
States Code, for each Bureau employee who
elects to participate in the Federal Reserve
System Retirement Plan. The Bureau shall pay an
employer contribution to the Federal Reserve
System Thrift Plan for each Bureau employee who
elects to participate in such plan, as required
under the terms of such plan.
(D) Controlled group status.-- The Bureau is
the same employer as the Federal Reserve System
(as comprised of the Board of Governors and
each of the 12 Federal reserve banks prior to
the date of enactment of this Act) for purposes
of subsections (b), (c), (m), and (o) of
section 414 of the Internal Revenue Code of
1986, (26 U.S.C. 414).
(4) Labor-management relations.-- Chapter 71 of title
5, United States Code, shall apply to the Bureau and
the employees of the Bureau.
(5) Agency ombudsman.--
(A) Establishment required.-- Not later than
180 days after the designated transfer date,
the Bureau shall appoint an ombudsman.
(B) Duties of ombudsman.-- The ombudsman
appointed in accordance with subparagraph (A)
shall--
(i) act as a liaison between the
Bureau and any affected person with
respect to any problem that such party
may have in dealing with the Bureau,
resulting from the regulatory
activities of the Bureau; and
(ii) assure that safeguards exist to
encourage complainants to come forward
and preserve confidentiality.
(b) Specific Functional Units.--
(1) Research.-- The [Director] Board shall establish
a unit whose functions shall include researching,
analyzing, and reporting on--
(A) developments in markets for consumer
financial products or services, including
market areas of alternative consumer financial
products or services with high growth rates and
areas of risk to consumers;
(B) access to fair and affordable credit for
traditionally underserved communities;
(C) consumer awareness, understanding, and
use of disclosures and communications regarding
consumer financial products or services;
(D) consumer awareness and understanding of
costs, risks, and benefits of consumer
financial products or services;
(E) consumer behavior with respect to
consumer financial products or services,
including performance on mortgage loans; and
(F) experiences of traditionally underserved
consumers, including un-banked and under-banked
consumers.
(2) Community affairs.-- The [Director] Board shall
establish a unit whose functions shall include
providing information, guidance, and technical
assistance regarding the offering and provision of
consumer financial products or services to
traditionally underserved consumers and communities.
(3) Collecting and tracking complaints.--
(A) In general.-- The [Director] Board shall
establish a unit whose functions shall include
establishing a single, toll-free telephone
number, a website, and a database or utilizing
an existing database to facilitate the
centralized collection of, monitoring of, and
response to consumer complaints regarding
consumer financial products or services. The
[Director] Board shall coordinate with the
Federal Trade Commission or other Federal
agencies to route complaints to such agencies,
where appropriate.
(B) Routing calls to states.-- To the extent
practicable, State agencies may receive
appropriate complaints from the systems
established under subparagraph (A), if--
(i) the State agency system has the
functional capacity to receive calls or
electronic reports routed by the Bureau
systems;
(ii) the State agency has satisfied
any conditions of participation in the
system that the Bureau may establish,
including treatment of personally
identifiable information and sharing of
information on complaint resolution or
related compliance procedures and
resources; and
(iii) participation by the State
agency includes measures necessary to
provide for protection of personally
identifiable information that conform
to the standards for protection of the
confidentiality of personally
identifiable information and for data
integrity and security that apply to
the Federal agencies described in
subparagraph (D).
(C) Reports to the congress.-- The [Director]
Board shall present an annual report to
Congress not later than March 31 of each year
on the complaints received by the Bureau in the
prior year regarding consumer financial
products and services. Such report shall
include information and analysis about
complaint numbers, complaint types, and, where
applicable, information about resolution of
complaints.
(D) Data sharing required.-- To facilitate
preparation of the reports required under
subparagraph (C), supervision and enforcement
activities, and monitoring of the market for
consumer financial products and services, the
Bureau shall share consumer complaint
information with prudential regulators, the
Federal Trade Commission, other Federal
agencies, and State agencies, subject to the
standards applicable to Federal agencies for
protection of the confidentiality of personally
identifiable information and for data security
and integrity. The prudential regulators, the
Federal Trade Commission, and other Federal
agencies shall share data relating to consumer
complaints regarding consumer financial
products and services with the Bureau, subject
to the standards applicable to Federal agencies
for protection of confidentiality of personally
identifiable information and for data security
and integrity.
(c) Office of Fair Lending and Equal Opportunity.--
(1) Establishment.-- The [Director] Board shall
establish within the Bureau the Office of Fair Lending
and Equal Opportunity.
(2) Functions.-- The Office of Fair Lending and Equal
Opportunity shall have such powers and duties as the
[Director] Board may delegate to the Office,
including--
(A) providing oversight and enforcement of
Federal laws intended to ensure the fair,
equitable, and nondiscriminatory access to
credit for both individuals and communities
that are enforced by the Bureau, including the
Equal Credit Opportunity Act and the Home
Mortgage Disclosure Act;
(B) coordinating fair lending efforts of the
Bureau with other Federal agencies and State
regulators, as appropriate, to promote
consistent, efficient, and effective
enforcement of Federal fair lending laws;
(C) working with private industry, fair
lending, civil rights, consumer and community
advocates on the promotion of fair lending
compliance and education; and
(D) providing annual reports to Congress on
the efforts of the Bureau to fulfill its fair
lending mandate.
(3) Administration of office.-- There is established
the position of [Assistant Director] Head of Office of
the Bureau for Fair Lending and Equal Opportunity,
who--
(A) shall be appointed by [the Director] the
Board ; and
(B) shall carry out such duties as [the
Director] the Board may delegate to such
[Assistant Director] Head of Office .
(d) Office of Financial Education.--
(1) Establishment.-- The [Director] Board shall
establish an Office of Financial Education, which shall
be responsible for developing and implementing
initiatives intended to educate and empower consumers
to make better informed financial decisions.
(2) Other duties.-- The Office of Financial Education
shall develop and implement a strategy to improve the
financial literacy of consumers that includes
measurable goals and objectives, in consultation with
the Financial Literacy and Education Commission,
consistent with the National Strategy for Financial
Literacy, through activities including providing
opportunities for consumers to access--
(A) financial counseling, including
community-based financial counseling, where
practicable;
(B) information to assist with the evaluation
of credit products and the understanding of
credit histories and scores;
(C) savings, borrowing, and other services
found at mainstream financial institutions;
(D) activities intended to--
(i) prepare the consumer for
educational expenses and the submission
of financial aid applications, and
other major purchases;
(ii) reduce debt; and
(iii) improve the financial situation
of the consumer;
(E) assistance in developing long-term
savings strategies; and
(F) wealth building and financial services
during the preparation process to claim earned
income tax credits and Federal benefits.
(3) Coordination.-- The Office of Financial Education
shall coordinate with other units within the Bureau in
carrying out its functions, including--
(A) working with the Community Affairs Office
to implement the strategy to improve financial
literacy of consumers; and
(B) working with the research unit
established by the [Director] Board to conduct
research related to consumer financial
education and counseling.
(4) Report.-- Not later than 24 months after the
designated transfer date, and annually thereafter, the
[Director] Board shall submit a report on its financial
literacy activities and strategy to improve financial
literacy of consumers to--
(A) the Committee on Banking, Housing, and
Urban Affairs of the Senate; and
(B) the Committee on Financial Services of
the House of Representatives.
(5) Membership in financial literacy and education
commission.-- Section 513(c)(1) of the Financial
Literacy and Education Improvement Act (20 U.S.C.
9702(c)(1)) is amended--
(A) in subparagraph (B), by striking ``and''
at the end;
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B) the
following new subparagraph:
``(C) the Director of the Bureau of Consumer
Financial Protection; and''.
(6) Conforming amendment.-- Section 513(d) of the
Financial Literacy and Education Improvement Act (20
U.S.C. 9702(d)) is amended by adding at the end the
following: ``The Director of the Bureau of Consumer
Financial Protection shall serve as the Vice
Chairman.''.
(7) Study and report on financial literacy program.--
(A) In general.-- The Comptroller General of
the United States shall conduct a study to
identify--
(i) the feasibility of certification
of persons providing the programs or
performing the activities described in
paragraph (2), including recognizing
outstanding programs, and developing
guidelines and resources for community-
based practitioners, including--
(I) a potential certification
process and standards for
certification;
(II) appropriate certifying
entities;
(III) resources required for
funding such a process; and
(IV) a cost-benefit analysis
of such certification;
(ii) technological resources intended
to collect, analyze, evaluate, or
promote financial literacy and
counseling programs;
(iii) effective methods, tools, and
strategies intended to educate and
empower consumers about personal
finance management; and
(iv) recommendations intended to
encourage the development of programs
that effectively improve financial
education outcomes and empower
consumers to make better informed
financial decisions based on findings.
(B) Report.-- Not later than 1 year after the
date of enactment of this Act, the Comptroller
General of the United States shall submit a
report on the results of the study conducted
under this paragraph to the Committee on
Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services
of the House of Representatives.
(e) Office of Service Member Affairs.--
(1) In general.-- The [Director] Board shall
establish an Office of Service Member Affairs, which
shall be responsible for developing and implementing
initiatives for service members and their families
intended to--
(A) educate and empower service members and
their families to make better informed
decisions regarding consumer financial products
and services;
(B) coordinate with the unit of the Bureau
established under subsection (b)(3), in order
to monitor complaints by service members and
their families and responses to those
complaints by the Bureau or other appropriate
Federal or State agency; and
(C) coordinate efforts among Federal and
State agencies, as appropriate, regarding
consumer protection measures relating to
consumer financial products and services
offered to, or used by, service members and
their families.
(2) Coordination.--
(A) Regional services.-- The [Director] Board
is authorized to assign employees of the Bureau
as may be deemed necessary to conduct the
business of the Office of Service Member
Affairs, including by establishing and
maintaining the functions of the Office in
regional offices of the Bureau located near
military bases, military treatment facilities,
or other similar military facilities.
(B) Agreements.-- The [Director] Board is
authorized to enter into memoranda of
understanding and similar agreements with the
Department of Defense, including any branch or
agency as authorized by the department, in
order to carry out the business of the Office
of Service Member Affairs.
(3) Definition.-- As used in this subsection, the
term ``service member'' means any member of the United
States Armed Forces and any member of the National
Guard or Reserves.
(f) Timing.--The Office of Fair Lending and Equal
Opportunity, the Office of Financial Education, and the Office
of Service Member Affairs shall each be established not later
than 1 year after the designated transfer date.
(g) Office of Financial Protection for Older Americans.--
(1) Establishment.--Before the end of the 180-day
period beginning on the designated transfer date, the
[Director] Board shall establish the Office of
Financial Protection for Older Americans, the functions
of which shall include activities designed to
facilitate the financial literacy of individuals who
have attained the age of 62 years or more (in this
subsection, referred to as ``seniors'') on protection
from unfair, deceptive, and abusive practices and on
current and future financial choices, including through
the dissemination of materials to seniors on such
topics.
(2) [Assistant director] Head of the office .-- The
Office of Financial Protection for Older Americans (in
this subsection referred to as the ``Office'') shall be
headed by [an assistant director] the Head of the
Office of Financial Protection for Older Americans .
(3) Duties.-- The Office shall--
(A) develop goals for programs that provide
seniors financial literacy and counseling,
including programs that--
(i) help seniors recognize warning
signs of unfair, deceptive, or abusive
practices, protect themselves from such
practices;
(ii) provide one-on-one financial
counseling on issues including long-
term savings and later-life economic
security; and
(iii) provide personal consumer
credit advocacy to respond to consumer
problems caused by unfair, deceptive,
or abusive practices;
(B) monitor certifications or designations of
financial advisors who advise seniors and alert
the Commission and State regulators of
certifications or designations that are
identified as unfair, deceptive, or abusive;
(C) not later than 18 months after the date
of the establishment of the Office, submit to
Congress and the Commission any legislative and
regulatory recommendations on the best
practices for--
(i) disseminating information
regarding the legitimacy of
certifications of financial advisers
who advise seniors;
(ii) methods in which a senior can
identify the financial advisor most
appropriate for the senior's needs; and
(iii) methods in which a senior can
verify a financial advisor's
credentials;
(D) conduct research to identify best
practices and effective methods, tools,
technology and strategies to educate and
counsel seniors about personal finance
management with a focus on--
(i) protecting themselves from
unfair, deceptive, and abusive
practices;
(ii) long-term savings; and
(iii) planning for retirement and
long-term care;
(E) coordinate consumer protection efforts of
seniors with other Federal agencies and State
regulators, as appropriate, to promote
consistent, effective, and efficient
enforcement; and
(F) work with community organizations, non-
profit organizations, and other entities that
are involved with educating or assisting
seniors (including the National Education and
Resource Center on Women and Retirement
Planning).
(h) Application of FACA.--Notwithstanding any provision of
the Federal Advisory Committee Act (5 U.S.C. App.), such Act
shall apply to each advisory committee of the Bureau and each
subcommittee of such an advisory committee.
SEC. 1014. CONSUMER ADVISORY BOARD.
(a) Establishment Required.--The [Director] Board shall
establish a Consumer Advisory Board to advise and consult with
the Bureau in the exercise of its functions under the Federal
consumer financial laws, and to provide information on emerging
practices in the consumer financial products or services
industry, including regional trends, concerns, and other
relevant information.
(b) Membership.--In appointing the members of the Consumer
Advisory Board, the [Director] Board shall seek to assemble
experts in consumer protection, financial services, community
development, fair lending and civil rights, and consumer
financial products or services and representatives of
depository institutions that primarily serve underserved
communities, and representatives of communities that have been
significantly impacted by higher-priced mortgage loans, and
seek representation of the interests of covered persons and
consumers, without regard to party affiliation. Not fewer than
6 members shall be appointed upon the recommendation of the
regional Federal Reserve Bank Presidents, on a rotating basis.
(c) Meetings.--The Consumer Advisory Board shall meet from
time to time at the call of the [Director] Board , but, at a
minimum, shall meet at least twice in each year.
(d) Compensation and Travel Expenses.--Members of the
Consumer Advisory Board who are not full-time employees of the
United States shall--
(1) be entitled to receive compensation at a rate
fixed by the [Director] Board while attending meetings
of the Consumer Advisory Board, including travel time;
and
(2) be allowed travel expenses, including
transportation and subsistence, while away from their
homes or regular places of business.
* * * * * * *
SEC. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.
(a) Appearances Before Congress.--The [Director of the
Bureau] Chairperson shall appear before the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services and the Committee on Energy and
Commerce of the House of Representatives at semi-annual
hearings regarding the reports required under subsection (b).
(b) Reports Required.--The Bureau shall, concurrent with each
semi-annual hearing referred to in subsection (a), prepare and
submit to the President and to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services and the Committee on Energy and Commerce of
the House of Representatives, a report, beginning with the
session following the designated transfer date. The Bureau may
also submit such report to the Committee on Commerce, Science,
and Transportation of the Senate.
(c) Contents.--The reports required by subsection (b) shall
include--
(1) a discussion of the significant problems faced by
consumers in shopping for or obtaining consumer
financial products or services;
(2) a justification of the budget request of the
previous year;
(3) a list of the significant rules and orders
adopted by the Bureau, as well as other significant
initiatives conducted by the Bureau, during the
preceding year and the plan of the Bureau for rules,
orders, or other initiatives to be undertaken during
the upcoming period;
(4) an analysis of complaints about consumer
financial products or services that the Bureau has
received and collected in its central database on
complaints during the preceding year;
(5) a list, with a brief statement of the issues, of
the public supervisory and enforcement actions to which
the Bureau was a party during the preceding year;
(6) the actions taken regarding rules, orders, and
supervisory actions with respect to covered persons
which are not credit unions or depository institutions;
(7) an assessment of significant actions by State
attorneys general or State regulators relating to
Federal consumer financial law;
(8) an analysis of the efforts of the Bureau to
fulfill the fair lending mission of the Bureau; and
(9) an analysis of the efforts of the Bureau to
increase workforce and contracting diversity consistent
with the procedures established by the Office of
Minority and Women Inclusion.
* * * * * * *
SEC. 1017. FUNDING; PENALTIES AND FINES.
(a) Transfer of Funds From Board Of Governors.--
(1) In general.-- Each year (or quarter of such
year), beginning on the designated transfer date, and
each quarter thereafter, the Board of Governors shall
transfer to the Bureau from the combined earnings of
the Federal Reserve System, the amount determined by
the [Director] Board to be reasonably necessary to
carry out the authorities of the Bureau under Federal
consumer financial law, taking into account such other
sums made available to the Bureau from the preceding
year (or quarter of such year).
(2) Funding cap.--
(A) In general.-- Notwithstanding paragraph
(1), and in accordance with this paragraph, the
amount that shall be transferred to the Bureau
in each fiscal year shall not exceed a fixed
percentage of the total operating expenses of
the Federal Reserve System, as reported in the
Annual Report, 2009, of the Board of Governors,
equal to--
(i) 10 percent of such expenses in
fiscal year 2011;
(ii) 11 percent of such expenses in
fiscal year 2012; and
(iii) 12 percent of such expenses in
fiscal year 2013, and in each year
thereafter.
(B) Adjustment of amount.-- The dollar amount
referred to in subparagraph (A)(iii) shall be
adjusted annually, using the percent increase,
if any, in the employment cost index for total
compensation for State and local government
workers published by the Federal Government, or
the successor index thereto, for the 12-month
period ending on September 30 of the year
preceding the transfer.
(C) Reviewability.-- Notwithstanding any
other provision in this title, the funds
derived from the Federal Reserve System
pursuant to this subsection shall not be
subject to review by the Committees on
Appropriations of the House of Representatives
and the Senate.
(3) Transition period.-- Beginning on the date of
enactment of this Act and until the designated transfer
date, the Board of Governors shall transfer to the
Bureau the amount estimated by the Secretary needed to
carry out the authorities granted to the Bureau under
Federal consumer financial law, from the date of
enactment of this Act until the designated transfer
date.
(4) Budget and financial management.--
(A) Financial operating plans and
forecasts.-- The [Director shall] Board shall
provide to the Director of the Office of
Management and Budget copies of the financial
operating plans and forecasts of the
[Director,] Board, as prepared by the [Director
in] Board in the ordinary course of the
operations of the Bureau, and copies of the
quarterly reports of the financial condition
and results of operations of the Bureau, as
prepared by the [Director in] Board in the
ordinary course of the operations of the
Bureau.
(B) Financial statements.-- The Bureau shall
prepare annually a statement of--
(i) assets and liabilities and
surplus or deficit;
(ii) income and expenses; and
(iii) sources and application of
funds.
(C) Financial management systems.-- The
Bureau shall implement and maintain financial
management systems that comply substantially
with Federal financial management systems
requirements and applicable Federal accounting
standards.
(D) Assertion of internal controls.-- The
[Director] Board shall provide to the
Comptroller General of the United States an
assertion as to the effectiveness of the
internal controls that apply to financial
reporting by the Bureau, using the standards
established in section 3512(c) of title 31,
United States Code.
(E) Rule of construction.-- This subsection
may not be construed as implying any obligation
on the part of the [Director to] Board to
consult with or obtain the consent or approval
of the Director of the Office of Management and
Budget with respect to any report, plan,
forecast, or other information referred to in
subparagraph (A) or any jurisdiction or
oversight over the affairs or operations of the
Bureau.
(F) Financial statements.-- The financial
statements of the Bureau shall not be
consolidated with the financial statements of
either the Board of Governors or the Federal
Reserve System.
(5) Audit of the bureau.--
(A) In general.-- The Comptroller General
shall annually audit the financial transactions
of the Bureau in accordance with the United
States generally accepted government auditing
standards, as may be prescribed by the
Comptroller General of the United States. The
audit shall be conducted at the place or places
where accounts of the Bureau are normally kept.
The representatives of the Government
Accountability Office shall have access to the
personnel and to all books, accounts,
documents, papers, records (including
electronic records), reports, files, and all
other papers, automated data, things, or
property belonging to or under the control of
or used or employed by the Bureau pertaining to
its financial transactions and necessary to
facilitate the audit, and such representatives
shall be afforded full facilities for verifying
transactions with the balances or securities
held by depositories, fiscal agents, and
custodians. All such books, accounts,
documents, records, reports, files, papers, and
property of the Bureau shall remain in
possession and custody of the Bureau. The
Comptroller General may obtain and duplicate
any such books, accounts, documents, records,
working papers, automated data and files, or
other information relevant to such audit
without cost to the Comptroller General, and
the right of access of the Comptroller General
to such information shall be enforceable
pursuant to section 716(c) of title 31, United
States Code.
(B) Report.-- The Comptroller General shall
submit to the Congress a report of each annual
audit conducted under this subsection. The
report to the Congress shall set forth the
scope of the audit and shall include the
statement of assets and liabilities and surplus
or deficit, the statement of income and
expenses, the statement of sources and
application of funds, and such comments and
information as may be deemed necessary to
inform Congress of the financial operations and
condition of the Bureau, together with such
recommendations with respect thereto as the
Comptroller General may deem advisable. A copy
of each report shall be furnished to the
President and to the Bureau at the time
submitted to the Congress.
(C) Assistance and costs.-- For the purpose
of conducting an audit under this subsection,
the Comptroller General may, in the discretion
of the Comptroller General, employ by contract,
without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5),
professional services of firms and
organizations of certified public accountants
for temporary periods or for special purposes.
Upon the request of the Comptroller General,
the [Director of the Bureau] Chairperson shall
transfer to the Government Accountability
Office from funds available, the amount
requested by the Comptroller General to cover
the full costs of any audit and report
conducted by the Comptroller General. The
Comptroller General shall credit funds
transferred to the account established for
salaries and expenses of the Government
Accountability Office, and such amount shall be
available upon receipt and without fiscal year
limitation to cover the full costs of the audit
and report.
(b) Consumer Financial Protection Fund.--
(1) Separate fund in federal reserve established.--
There is established in the Federal Reserve a separate
fund, to be known as the ``Bureau of Consumer Financial
Protection Fund'' (referred to in this section as the
``Bureau Fund''). The Bureau Fund shall be maintained
and established at a Federal reserve bank, in
accordance with such requirements as the Board of
Governors may impose.
(2) Fund receipts.-- All amounts transferred to the
Bureau under subsection (a) shall be deposited into the
Bureau Fund.
(3) Investment authority.--
(A) Amounts in bureau fund may be invested.--
The Bureau may request the Board of Governors
to direct the investment of the portion of the
Bureau Fund that is not, in the judgment of the
Bureau, required to meet the current needs of
the Bureau.
(B) Eligible investments.-- Investments
authorized by this paragraph shall be made in
obligations of the United States or obligations
that are guaranteed as to principal and
interest by the United States, with maturities
suitable to the needs of the Bureau Fund, as
determined by the Bureau.
(C) Interest and proceeds credited.-- The
interest on, and the proceeds from the sale or
redemption of, any obligations held in the
Bureau Fund shall be credited to the Bureau
Fund.
(c) Use of Funds.--
(1) In general.-- Funds obtained by, transferred to,
or credited to the Bureau Fund shall be immediately
available to the Bureau and under the control of the
[Director,] Board, and shall remain available until
expended, to pay the expenses of the Bureau in carrying
out its duties and responsibilities. The compensation
of the [Director and] the members of the Board and
other employees of the Bureau and all other expenses
thereof may be paid from, obtained by, transferred to,
or credited to the Bureau Fund under this section.
(2) Funds that are not government funds.-- Funds
obtained by or transferred to the Bureau Fund shall not
be construed to be Government funds or appropriated
monies.
(3) Amounts not subject to apportionment.--
Notwithstanding any other provision of law, amounts in
the Bureau Fund and in the Civil Penalty Fund
established under subsection (d) shall not be subject
to apportionment for purposes of chapter 15 of title
31, United States Code, or under any other authority.
(d) Penalties and Fines.--
(1) Establishment of victims relief fund.-- There is
established in the Federal Reserve a separate fund, to
be known as the ``Consumer Financial Civil Penalty
Fund'' (referred to in this section as the ``Civil
Penalty Fund''). The Civil Penalty Fund shall be
maintained and established at a Federal reserve bank,
in accordance with such requirements as the Board of
Governors may impose. If the Bureau obtains a civil
penalty against any person in any judicial or
administrative action under Federal consumer financial
laws, the Bureau shall deposit into the Civil Penalty
Fund, the amount of the penalty collected.
(2) Payment to victims.-- Amounts in the Civil
Penalty Fund shall be available to the Bureau, without
fiscal year limitation, for payments to the victims of
activities for which civil penalties have been imposed
under the Federal consumer financial laws. To the
extent that such victims cannot be located or such
payments are otherwise not practicable, the Bureau may
use such funds for the purpose of consumer education
and financial literacy programs.
(e) Authorization of Appropriations; Annual Report.--
(1) Determination regarding need for appropriated
funds.--
(A) In general.-- The [Director] Board is
authorized to determine that sums available to
the Bureau under this section will not be
sufficient to carry out the authorities of the
Bureau under Federal consumer financial law for
the upcoming year.
(B) Report required.-- When making a
determination under subparagraph (A), the
[Director] Board shall prepare a report
regarding the funding of the Bureau, including
the assets and liabilities of the Bureau, and
the extent to which the funding needs of the
Bureau are anticipated to exceed the level of
the amount set forth in subsection (a)(2). The
[Director] Board shall submit the report to the
President and to the Committee on
Appropriations of the Senate and the Committee
on Appropriations of the House of
Representatives.
(2) Authorization of appropriations.-- If the
[Director] Board makes the determination and submits
the report pursuant to paragraph (1), there are hereby
authorized to be appropriated to the Bureau, for the
purposes of carrying out the authorities granted in
Federal consumer financial law, $200,000,000 for each
of fiscal years 2010, 2011, 2012, 2013, and 2014.
(3) Apportionment.-- Notwithstanding any other
provision of law, the amounts in paragraph (2) shall be
subject to apportionment under section 1517 of title
31, United States Code, and restrictions that generally
apply to the use of appropriated funds in title 31,
United States Code, and other laws.
(4) Annual report.-- The [Director] Board shall
prepare and submit a report, on an annual basis, to the
Committee on Appropriations of the Senate and the
Committee on Appropriations of the House of
Representatives regarding the financial operating plans
and forecasts of the [Director] Board , the financial
condition and results of operations of the Bureau, and
the sources and application of funds of the Bureau,
including any funds appropriated in accordance with
this subsection.
* * * * * * *
Subtitle B--General Powers of the Bureau
SEC. 1021. PURPOSE, OBJECTIVES, AND FUNCTIONS.
(a) Purpose.--The Bureau shall seek to implement and, where
applicable, enforce Federal consumer financial law consistently
for the purpose of ensuring that all consumers have access to
markets for consumer financial products and services and that
markets for consumer financial products and services are fair,
transparent, and competitive.
(b) Objectives.--The Bureau is authorized to exercise its
authorities under Federal consumer financial law for the
purposes of ensuring that, with respect to consumer financial
products and services--
(1) consumers are provided with timely and
understandable information to make responsible
decisions about financial transactions;
(2) consumers are protected from unfair, deceptive,
or abusive acts and practices and from discrimination;
(3) outdated, unnecessary, or unduly burdensome
regulations are regularly identified and addressed in
order to reduce unwarranted regulatory burdens;
(4) Federal consumer financial law is enforced
consistently, without regard to the status of a person
as a depository institution, in order to promote fair
competition; and
(5) markets for consumer financial products and
services operate transparently and efficiently to
facilitate access and innovation.
(c) Functions.--The primary functions of the Bureau are--
(1) conducting financial education programs;
(2) collecting, investigating, and responding to
consumer complaints;
(3) collecting, researching, monitoring, and
publishing information relevant to the functioning of
markets for consumer financial products and services to
identify risks to consumers and the proper functioning
of such markets;
(4) subject to sections 1024 through 1026,
supervising covered persons for compliance with Federal
consumer financial law, and taking appropriate
enforcement action to address violations of Federal
consumer financial law;
(5) issuing rules, orders, and guidance implementing
Federal consumer financial law; and
(6) performing such support activities as may be
necessary or useful to facilitate the other functions
of the Bureau.
SEC. 1022. RULEMAKING AUTHORITY.
(a) In General.--The Bureau is authorized to exercise its
authorities under Federal consumer financial law to administer,
enforce, and otherwise implement the provisions of Federal
consumer financial law.
(b) Rulemaking, Orders, and Guidance.--
(1) General authority.-- The [Director] Board may
prescribe rules and issue orders and guidance, as may
be necessary or appropriate to enable the Bureau to
administer and carry out the purposes and objectives of
the Federal consumer financial laws, and to prevent
evasions thereof.
(2) Standards for rulemaking.-- In prescribing a rule
under the Federal consumer financial laws--
(A) the Bureau shall consider--
(i) the potential benefits and costs
to consumers and covered persons,
including the potential reduction of
access by consumers to consumer
financial products or services
resulting from such rule; and
(ii) the impact of proposed rules on
covered persons, as described in
section 1026, and the impact on
consumers in rural areas;
(B) the Bureau shall consult with the
appropriate prudential regulators or other
Federal agencies prior to proposing a rule and
during the comment process regarding
consistency with prudential, market, or
systemic objectives administered by such
agencies; and
(C) if, during the consultation process
described in subparagraph (B), a prudential
regulator provides the Bureau with a written
objection to the proposed rule of the Bureau or
a portion thereof, the Bureau shall include in
the adopting release a description of the
objection and the basis for the Bureau
decision, if any, regarding such objection,
except that nothing in this clause shall be
construed as altering or limiting the
procedures under section 1023 that may apply to
any rule prescribed by the Bureau.
(3) Exemptions.--
(A) In general.-- The Bureau, by rule, may
conditionally or unconditionally exempt any
class of covered persons, service providers, or
consumer financial products or services, from
any provision of this title, or from any rule
issued under this title, as the Bureau
determines necessary or appropriate to carry
out the purposes and objectives of this title,
taking into consideration the factors in
subparagraph (B).
(B) Factors.-- In issuing an exemption, as
permitted under subparagraph (A), the Bureau
shall, as appropriate, take into
consideration--
(i) the total assets of the class of
covered persons;
(ii) the volume of transactions
involving consumer financial products
or services in which the class of
covered persons engages; and
(iii) existing provisions of law
which are applicable to the consumer
financial product or service and the
extent to which such provisions provide
consumers with adequate protections.
(4) Exclusive rulemaking authority.--
(A) In general.-- Notwithstanding any other
provisions of Federal law and except as
provided in section 1061(b)(5), to the extent
that a provision of Federal consumer financial
law authorizes the Bureau and another Federal
agency to issue regulations under that
provision of law for purposes of assuring
compliance with Federal consumer financial law
and any regulations thereunder, the Bureau
shall have the exclusive authority to prescribe
rules subject to those provisions of law.
(B) Deference.-- Notwithstanding any power
granted to any Federal agency or to the Council
under this title, and subject to section
1061(b)(5)(E), the deference that a court
affords to the Bureau with respect to a
determination by the Bureau regarding the
meaning or interpretation of any provision of a
Federal consumer financial law shall be applied
as if the Bureau were the only agency
authorized to apply, enforce, interpret, or
administer the provisions of such Federal
consumer financial law.
(c) Monitoring.--
(1) In general.-- In order to support its rulemaking
and other functions, the Bureau shall monitor for risks
to consumers in the offering or provision of consumer
financial products or services, including developments
in markets for such products or services.
(2) Considerations.-- In allocating its resources to
perform the monitoring required by this section, the
Bureau may consider, among other factors--
(A) likely risks and costs to consumers
associated with buying or using a type of
consumer financial product or service;
(B) understanding by consumers of the risks
of a type of consumer financial product or
service;
(C) the legal protections applicable to the
offering or provision of a consumer financial
product or service, including the extent to
which the law is likely to adequately protect
consumers;
(D) rates of growth in the offering or
provision of a consumer financial product or
service;
(E) the extent, if any, to which the risks of
a consumer financial product or service may
disproportionately affect traditionally
underserved consumers; or
(F) the types, number, and other pertinent
characteristics of covered persons that offer
or provide the consumer financial product or
service.
(3) Significant findings.--
(A) In general.-- The Bureau shall publish
not fewer than 1 report of significant findings
of its monitoring required by this subsection
in each calendar year, beginning with the first
calendar year that begins at least 1 year after
the designated transfer date.
(B) Confidential information.-- The Bureau
may make public such information obtained by
the Bureau under this section as is in the
public interest, through aggregated reports or
other appropriate formats designed to protect
confidential information in accordance with
paragraphs (4), (6), (8), and (9).
(4) Collection of information.--
(A) In general.-- In conducting any
monitoring or assessment required by this
section, the Bureau shall have the authority to
gather information from time to time regarding
the organization, business conduct, markets,
and activities of covered persons and service
providers.
(B) Methodology.-- In order to gather
information described in subparagraph (A), the
Bureau may--
(i) gather and compile information
from a variety of sources, including
examination reports concerning covered
persons or service providers, consumer
complaints, voluntary surveys and
voluntary interviews of consumers,
surveys and interviews with covered
persons and service providers, and
review of available databases; and
(ii) require covered persons and
service providers participating in
consumer financial services markets to
file with the Bureau, under oath or
otherwise, in such form and within such
reasonable period of time as the Bureau
may prescribe by rule or order, annual
or special reports, or answers in
writing to specific questions,
furnishing information described in
paragraph (4), as necessary for the
Bureau to fulfill the monitoring,
assessment, and reporting
responsibilities imposed by Congress.
(C) Limitation.-- The Bureau may not use its
authorities under this paragraph to obtain
records from covered persons and service
providers participating in consumer financial
services markets for purposes of gathering or
analyzing the personally identifiable financial
information of consumers.
(5) Limited information gathering.-- In order to
assess whether a nondepository is a covered person, as
defined in section 1002, the Bureau may require such
nondepository to file with the Bureau, under oath or
otherwise, in such form and within such reasonable
period of time as the Bureau may prescribe by rule or
order, annual or special reports, or answers in writing
to specific questions.
(6) Confidentiality rules.--
(A) Rulemaking.-- The Bureau shall prescribe
rules regarding the confidential treatment of
information obtained from persons in connection
with the exercise of its authorities under
Federal consumer financial law.
(B) Access by the bureau to reports of other
regulators.--
(i) Examination and financial
condition reports.-- Upon providing
reasonable assurances of
confidentiality, the Bureau shall have
access to any report of examination or
financial condition made by a
prudential regulator or other Federal
agency having jurisdiction over a
covered person or service provider, and
to all revisions made to any such
report.
(ii) Provision of other reports to
the bureau.-- In addition to the
reports described in clause (i), a
prudential regulator or other Federal
agency having jurisdiction over a
covered person or service provider may,
in its discretion, furnish to the
Bureau any other report or other
confidential supervisory information
concerning any insured depository
institution, credit union, or other
entity examined by such agency under
authority of any provision of Federal
law.
(C) Access by other regulators to reports of
the bureau.--
(i) Examination reports.-- Upon
providing reasonable assurances of
confidentiality, a prudential
regulator, a State regulator, or any
other Federal agency having
jurisdiction over a covered person or
service provider shall have access to
any report of examination made by the
Bureau with respect to such person, and
to all revisions made to any such
report.
(ii) Provision of other reports to
other regulators.-- In addition to the
reports described in clause (i), the
Bureau may, in its discretion, furnish
to a prudential regulator or other
agency having jurisdiction over a
covered person or service provider any
other report or other confidential
supervisory information concerning such
person examined by the Bureau under the
authority of any other provision of
Federal law.
(7) Registration.--
(A) In general.-- The Bureau may prescribe
rules regarding registration requirements
applicable to a covered person, other than an
insured depository institution, insured credit
union, or related person.
(B) Registration information.-- Subject to
rules prescribed by the Bureau, the Bureau may
publicly disclose registration information to
facilitate the ability of consumers to identify
covered persons that are registered with the
Bureau.
(C) Consultation with state agencies.-- In
developing and implementing registration
requirements under this paragraph, the Bureau
shall consult with State agencies regarding
requirements or systems (including coordinated
or combined systems for registration), where
appropriate.
(8) Privacy considerations.-- In collecting
information from any person, publicly releasing
information held by the Bureau, or requiring covered
persons to publicly report information, the Bureau
shall take steps to ensure that proprietary, personal,
or confidential consumer information that is protected
from public disclosure under section 552(b) or 552a of
title 5, United States Code, or any other provision of
law, is not made public under this title.
(9) Consumer privacy.--
(A) In general.-- The Bureau may not obtain
from a covered person or service provider any
personally identifiable financial information
about a consumer from the financial records of
the covered person or service provider,
except--
(i) if the financial records are
reasonably described in a request by
the Bureau and the consumer provides
written permission for the disclosure
of such information by the covered
person or service provider to the
Bureau; or
(ii) as may be specifically permitted
or required under other applicable
provisions of law and in accordance
with the Right to Financial Privacy Act
of 1978 (12 U.S.C. 3401 et seq.).
(B) Treatment of covered person or service
provider.-- With respect to the application of
any provision of the Right to Financial Privacy
Act of 1978, to a disclosure by a covered
person or service provider subject to this
subsection, the covered person or service
provider shall be treated as if it were a
``financial institution'', as defined in
section 1101 of that Act (12 U.S.C. 3401).
(d) Assessment of Significant Rules.--
(1) In general.-- The Bureau shall conduct an
assessment of each significant rule or order adopted by
the Bureau under Federal consumer financial law. The
assessment shall address, among other relevant factors,
the effectiveness of the rule or order in meeting the
purposes and objectives of this title and the specific
goals stated by the Bureau. The assessment shall
reflect available evidence and any data that the Bureau
reasonably may collect.
(2) Reports.-- The Bureau shall publish a report of
its assessment under this subsection not later than 5
years after the effective date of the subject rule or
order.
(3) Public comment required.-- Before publishing a
report of its assessment, the Bureau shall invite
public comment on recommendations for modifying,
expanding, or eliminating the newly adopted significant
rule or order.
SEC. 1023. REVIEW OF BUREAU REGULATIONS.
(a) Review of Bureau Regulations.--On the petition of a
member agency of the Council, the Council may set aside a final
regulation prescribed by the Bureau, or any provision thereof,
if the Council decides, in accordance with subsection (c), that
the regulation or provision would put the safety and soundness
of the United States banking system or the stability of the
financial system of the United States at risk.
(b) Petition.--
(1) Procedure.-- An agency represented by a member of
the Council may petition the Council, in writing, and
in accordance with rules prescribed pursuant to
subsection (f), to stay the effectiveness of, or set
aside, a regulation if the member agency filing the
petition--
(A) has in good faith attempted to work with
the Bureau to resolve concerns regarding the
effect of the rule on the safety and soundness
of the United States banking system or the
stability of the financial system of the United
States; and
(B) files the petition with the Council not
later than 10 days after the date on which the
regulation has been published in the Federal
Register.
(2) Publication.-- Any petition filed with the
Council under this section shall be published in the
Federal Register and transmitted contemporaneously with
filing to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial
Services of the House of Representatives.
(c) Stays and Set Asides.--
(1) Stay.--
(A) In general.-- Upon the request of any
member agency, the Chairperson of the Council
may stay the effectiveness of a regulation for
the purpose of allowing appropriate
consideration of the petition by the Council.
(B) Expiration.-- A stay issued under this
paragraph shall expire on the earlier of--
(i) 90 days after the date of filing
of the petition under subsection (b);
or
(ii) the date on which the Council
makes a decision under paragraph (3).
(2) No adverse inference.-- After the expiration of
any stay imposed under this section, no inference shall
be drawn regarding the validity or enforceability of a
regulation which was the subject of the petition.
(3) Vote.--
(A) In general.-- The decision to issue a
stay of, or set aside, any regulation under
this section shall be made only with the
affirmative vote in accordance with
subparagraph (B) of \2/3\ of the members of the
Council then serving.
(B) Authorization to vote.-- A member of the
Council may vote to stay the effectiveness of,
or set aside, a final regulation prescribed by
the Bureau only if the agency or department
represented by that member has--
(i) considered any relevant
information provided by the agency
submitting the petition and by the
Bureau; and
(ii) made an official determination,
at a public meeting where applicable,
that the regulation which is the
subject of the petition would put the
safety and soundness of the United
States banking system or the stability
of the financial system of the United
States at risk.
(4) Decisions to set aside.--
(A) Effect of decision.-- A decision by the
Council to set aside a regulation prescribed by
the Bureau, or provision thereof, shall render
such regulation, or provision thereof,
unenforceable.
(B) Timely action required.-- The Council may
not issue a decision to set aside a regulation,
or provision thereof, which is the subject of a
petition under this section after the
expiration of the later of--
(i) 45 days following the date of
filing of the petition, unless a stay
is issued under paragraph (1); or
(ii) the expiration of a stay issued
by the Council under this section.
(C) Separate authority.-- The issuance of a
stay under this section does not affect the
authority of the Council to set aside a
regulation.
(5) Dismissal due to inaction.-- A petition under
this section shall be deemed dismissed if the Council
has not issued a decision to set aside a regulation, or
provision thereof, within the period for timely action
under paragraph (4)(B).
(6) Publication of decision.-- Any decision under
this subsection to issue a stay of, or set aside, a
regulation or provision thereof shall be published by
the Council in the Federal Register as soon as
practicable after the decision is made, with an
explanation of the reasons for the decision.
(7) Rulemaking procedures inapplicable.-- The notice
and comment procedures under section 553 of title 5,
United States Code, shall not apply to any decision
under this section of the Council to issue a stay of,
or set aside, a regulation.
(8) Judicial review of decisions by the council.-- A
decision by the Council to set aside a regulation
prescribed by the Bureau, or provision thereof, shall
be subject to review under chapter 7 of title 5, United
States Code.
(d) Application of Other Law.--Nothing in this section shall
be construed as altering, limiting, or restricting the
application of any other provision of law, except as otherwise
specifically provided in this section, including chapter 5 and
chapter 7 of title 5, United States Code, to a regulation which
is the subject of a petition filed under this section.
(e) Savings Clause.--Nothing in this section shall be
construed as limiting or restricting the Bureau from engaging
in a rulemaking in accordance with applicable law.
(f) Implementing Rules.--The Council shall prescribe
procedural rules to implement this section.
SEC. 1024. SUPERVISION OF NONDEPOSITORY COVERED PERSONS.
(a) Scope of Coverage.--
(1) Applicability.-- Notwithstanding any other
provision of this title, and except as provided in
paragraph (3), this section shall apply to any covered
person who--
(A) offers or provides origination,
brokerage, or servicing of loans secured by
real estate for use by consumers primarily for
personal, family, or household purposes, or
loan modification or foreclosure relief
services in connection with such loans;
(B) is a larger participant of a market for
other consumer financial products or services,
as defined by rule in accordance with paragraph
(2);
(C) the Bureau has reasonable cause to
determine, by order, after notice to the
covered person and a reasonable opportunity for
such covered person to respond, based on
complaints collected through the system under
section 1013(b)(3) or information from other
sources, that such covered person is engaging,
or has engaged, in conduct that poses risks to
consumers with regard to the offering or
provision of consumer financial products or
services;
(D) offers or provides to a consumer any
private education loan, as defined in section
140 of the Truth in Lending Act (15 U.S.C.
1650), notwithstanding section 1027(a)(2)(A)
and subject to section 1027(a)(2)(C); or
(E) offers or provides to a consumer a payday
loan.
(2) Rulemaking to define covered persons subject to
this section.-- The Bureau shall consult with the
Federal Trade Commission prior to issuing a rule, in
accordance with paragraph (1)(B), to define covered
persons subject to this section. The Bureau shall issue
its initial rule not later than 1 year after the
designated transfer date.
(3) Rules of construction.--
(A) Certain persons excluded.-- This section
shall not apply to persons described in section
1025(a) or 1026(a).
(B) Activity levels.-- For purposes of
computing activity levels under paragraph (1)
or rules issued thereunder, activities of
affiliated companies (other than insured
depository institutions or insured credit
unions) shall be aggregated.
(b) Supervision.--
(1) In general.-- The Bureau shall require reports
and conduct examinations on a periodic basis of persons
described in subsection (a)(1) for purposes of--
(A) assessing compliance with the
requirements of Federal consumer financial law;
(B) obtaining information about the
activities and compliance systems or procedures
of such person; and
(C) detecting and assessing risks to
consumers and to markets for consumer financial
products and services.
(2) Risk-based supervision program.-- The Bureau
shall exercise its authority under paragraph (1) in a
manner designed to ensure that such exercise, with
respect to persons described in subsection (a)(1), is
based on the assessment by the Bureau of the risks
posed to consumers in the relevant product markets and
geographic markets, and taking into consideration, as
applicable--
(A) the asset size of the covered person;
(B) the volume of transactions involving
consumer financial products or services in
which the covered person engages;
(C) the risks to consumers created by the
provision of such consumer financial products
or services;
(D) the extent to which such institutions are
subject to oversight by State authorities for
consumer protection; and
(E) any other factors that the Bureau
determines to be relevant to a class of covered
persons.
(3) Coordination.-- To minimize regulatory burden,
the Bureau shall coordinate its supervisory activities
with the supervisory activities conducted by prudential
regulators, the State bank regulatory authorities, and
the State agencies that licence, supervise, or examine
the offering of consumer financial products or
services, including establishing their respective
schedules for examining persons described in subsection
(a)(1) and requirements regarding reports to be
submitted by such persons. The sharing of information
with such regulators, authorities, and agencies shall
not be construed as waiving, destroying, or otherwise
affecting any privilege or confidentiality such person
may claim with respect to such information under
Federal or State law as to any person or entity other
than such Bureau, agency, supervisor, or authority.
(4) Use of existing reports.-- The Bureau shall, to
the fullest extent possible, use--
(A) reports pertaining to persons described
in subsection (a)(1) that have been provided or
required to have been provided to a Federal or
State agency; and
(B) information that has been reported
publicly.
(5) Preservation of authority.-- Nothing in this
title may be construed as limiting the authority of the
[Director] Board to require reports from persons
described in subsection (a)(1), as permitted under
paragraph (1), regarding information owned or under the
control of such person, regardless of whether such
information is maintained, stored, or processed by
another person.
(6) Reports of tax law noncompliance.-- The Bureau
shall provide the Commissioner of Internal Revenue with
any report of examination or related information
identifying possible tax law noncompliance.
(7) Registration, recordkeeping and other
requirements for certain persons.--
(A) In general.-- The Bureau shall prescribe
rules to facilitate supervision of persons
described in subsection (a)(1) and assessment
and detection of risks to consumers.
(B) Recordkeeping.-- The Bureau may require a
person described in subsection (a)(1), to
generate, provide, or retain records for the
purposes of facilitating supervision of such
persons and assessing and detecting risks to
consumers.
(C) Requirements concerning obligations.--
The Bureau may prescribe rules regarding a
person described in subsection (a)(1), to
ensure that such persons are legitimate
entities and are able to perform their
obligations to consumers. Such requirements may
include background checks for principals,
officers, directors, or key personnel and
bonding or other appropriate financial
requirements.
(D) Consultation with state agencies.-- In
developing and implementing requirements under
this paragraph, the Bureau shall consult with
State agencies regarding requirements or
systems (including coordinated or combined
systems for registration), where appropriate.
(c) Enforcement Authority.--
(1) The bureau to have enforcement authority.--
Except as provided in paragraph (3) and section 1061,
with respect to any person described in subsection
(a)(1), to the extent that Federal law authorizes the
Bureau and another Federal agency to enforce Federal
consumer financial law, the Bureau shall have exclusive
authority to enforce that Federal consumer financial
law.
(2) Referral.-- Any Federal agency authorized to
enforce a Federal consumer financial law described in
paragraph (1) may recommend in writing to the Bureau
that the Bureau initiate an enforcement proceeding, as
the Bureau is authorized by that Federal law or by this
title.
(3) Coordination with the federal trade commission.--
(A) In general.-- The Bureau and the Federal
Trade Commission shall negotiate an agreement
for coordinating with respect to enforcement
actions by each agency regarding the offering
or provision of consumer financial products or
services by any covered person that is
described in subsection (a)(1), or service
providers thereto. The agreement shall include
procedures for notice to the other agency,
where feasible, prior to initiating a civil
action to enforce any Federal law regarding the
offering or provision of consumer financial
products or services.
(B) Civil actions.-- Whenever a civil action
has been filed by, or on behalf of, the Bureau
or the Federal Trade Commission for any
violation of any provision of Federal law
described in subparagraph (A), or any
regulation prescribed under such provision of
law--
(i) the other agency may not, during
the pendency of that action, institute
a civil action under such provision of
law against any defendant named in the
complaint in such pending action for
any violation alleged in the complaint;
and
(ii) the Bureau or the Federal Trade
Commission may intervene as a party in
any such action brought by the other
agency, and, upon intervening--
(I) be heard on all matters
arising in such enforcement
action; and
(II) file petitions for
appeal in such actions.
(C) Agreement terms.-- The terms of any
agreement negotiated under subparagraph (A) may
modify or supersede the provisions of
subparagraph (B).
(D) Deadline.-- The agencies shall reach the
agreement required under subparagraph (A) not
later than 6 months after the designated
transfer date.
(d) Exclusive Rulemaking and Examination Authority.--
Notwithstanding any other provision of Federal law and except
as provided in section 1061, to the extent that Federal law
authorizes the Bureau and another Federal agency to issue
regulations or guidance, conduct examinations, or require
reports from a person described in subsection (a)(1) under such
law for purposes of assuring compliance with Federal consumer
financial law and any regulations thereunder, the Bureau shall
have the exclusive authority to prescribe rules, issue
guidance, conduct examinations, require reports, or issue
exemptions with regard to a person described in subsection
(a)(1), subject to those provisions of law.
(e) Service Providers.--A service provider to a person
described in subsection (a)(1) shall be subject to the
authority of the Bureau under this section, to the same extent
as if such service provider were engaged in a service
relationship with a bank, and the Bureau were an appropriate
Federal banking agency under section 7(c) of the Bank Service
Company Act (12 U.S.C. 1867(c)). In conducting any examination
or requiring any report from a service provider subject to this
subsection, the Bureau shall coordinate with the appropriate
prudential regulator, as applicable.
(f) Preservation of Farm Credit Administration Authority.--No
provision of this title may be construed as modifying,
limiting, or otherwise affecting the authority of the Farm
Credit Administration.
SEC. 1025. SUPERVISION OF VERY LARGE BANKS, SAVINGS ASSOCIATIONS, AND
CREDIT UNIONS.
(a) Scope of Coverage.--This section shall apply to any
covered person that is--
(1) an insured depository institution with total
assets of more than $10,000,000,000 and any affiliate
thereof; or
(2) an insured credit union with total assets of more
than $10,000,000,000 and any affiliate thereof.
(b) Supervision.--
(1) In general.-- The Bureau shall have exclusive
authority to require reports and conduct examinations
on a periodic basis of persons described in subsection
(a) for purposes of--
(A) assessing compliance with the
requirements of Federal consumer financial
laws;
(B) obtaining information about the
activities subject to such laws and the
associated compliance systems or procedures of
such persons; and
(C) detecting and assessing associated risks
to consumers and to markets for consumer
financial products and services.
(2) Coordination.-- To minimize regulatory burden,
the Bureau shall coordinate its supervisory activities
with the supervisory activities conducted by prudential
regulators and the State bank regulatory authorities,
including consultation regarding their respective
schedules for examining such persons described in
subsection (a) and requirements regarding reports to be
submitted by such persons.
(3) Use of existing reports.-- The Bureau shall, to
the fullest extent possible, use--
(A) reports pertaining to a person described
in subsection (a) that have been provided or
required to have been provided to a Federal or
State agency; and
(B) information that has been reported
publicly.
(4) Preservation of authority.-- Nothing in this
title may be construed as limiting the authority of the
[Director] Board to require reports from a person
described in subsection (a), as permitted under
paragraph (1), regarding information owned or under the
control of such person, regardless of whether such
information is maintained, stored, or processed by
another person.
(5) Reports of tax law noncompliance.-- The Bureau
shall provide the Commissioner of Internal Revenue with
any report of examination or related information
identifying possible tax law noncompliance.
(c) Primary Enforcement Authority.--
(1) The bureau to have primary enforcement
authority.-- To the extent that the Bureau and another
Federal agency are authorized to enforce a Federal
consumer financial law, the Bureau shall have primary
authority to enforce that Federal consumer financial
law with respect to any person described in subsection
(a).
(2) Referral.-- Any Federal agency, other than the
Federal Trade Commission, that is authorized to enforce
a Federal consumer financial law may recommend, in
writing, to the Bureau that the Bureau initiate an
enforcement proceeding with respect to a person
described in subsection (a), as the Bureau is
authorized to do by that Federal consumer financial
law.
(3) Backup enforcement authority of other federal
agency.-- If the Bureau does not, before the end of the
120-day period beginning on the date on which the
Bureau receives a recommendation under paragraph (2),
initiate an enforcement proceeding, the other agency
referred to in paragraph (2) may initiate an
enforcement proceeding, including performing follow up
supervisory and support functions incidental thereto,
to assure compliance with such proceeding.
(d) Service Providers.--A service provider to a person
described in subsection (a) shall be subject to the authority
of the Bureau under this section, to the same extent as if the
Bureau were an appropriate Federal banking agency under section
7(c) of the Bank Service Company Act 12 U.S.C. 1867(c). In
conducting any examination or requiring any report from a
service provider subject to this subsection, the Bureau shall
coordinate with the appropriate prudential regulator.
(e) Simultaneous and Coordinated Supervisory Action.--
(1) Examinations.-- A prudential regulator and the
Bureau shall, with respect to each insured depository
institution, insured credit union, or other covered
person described in subsection (a) that is supervised
by the prudential regulator and the Bureau,
respectively--
(A) coordinate the scheduling of examinations
of the insured depository institution, insured
credit union, or other covered person described
in subsection (a);
(B) conduct simultaneous examinations of each
insured depository institution or insured
credit union, unless such institution requests
examinations to be conducted separately;
(C) share each draft report of examination
with the other agency and permit the receiving
agency a reasonable opportunity (which shall
not be less than a period of 30 days after the
date of receipt) to comment on the draft report
before such report is made final; and
(D) prior to issuing a final report of
examination or taking supervisory action, take
into consideration concerns, if any, raised in
the comments made by the other agency.
(2) Coordination with state bank supervisors.-- The
Bureau shall pursue arrangements and agreements with
State bank supervisors to coordinate examinations,
consistent with paragraph (1).
(3) Avoidance of conflict in supervision.--
(A) Request.-- If the proposed supervisory
determinations of the Bureau and a prudential
regulator (in this section referred to
collectively as the ``agencies'') are
conflicting, an insured depository institution,
insured credit union, or other covered person
described in subsection (a) may request the
agencies to coordinate and present a joint
statement of coordinated supervisory action.
(B) Joint statement.-- The agencies shall
provide a joint statement under subparagraph
(A), not later than 30 days after the date of
receipt of the request of the insured
depository institution, credit union, or
covered person described in subsection (a).
(4) Appeals to governing panel.--
(A) In general.-- If the agencies do not
resolve the conflict or issue a joint statement
required by subparagraph (B), or if either of
the agencies takes or attempts to take any
supervisory action relating to the request for
the joint statement without the consent of the
other agency, an insured depository
institution, insured credit union, or other
covered person described in subsection (a) may
institute an appeal to a governing panel, as
provided in this subsection, not later than 30
days after the expiration of the period during
which a joint statement is required to be filed
under paragraph (3)(B).
(B) Composition of governing panel.-- The
governing panel for an appeal under this
paragraph shall be composed of--
(i) a representative from the Bureau
and a representative of the prudential
regulator, both of whom--
(I) have not participated in
the material supervisory
determinations under appeal;
and
(II) do not directly or
indirectly report to the person
who participated materially in
the supervisory determinations
under appeal; and
(ii) one individual representative,
to be determined on a rotating basis,
from among the Board of Governors, the
Corporation, the National Credit Union
Administration, and the Office of the
Comptroller of the Currency, other than
any agency involved in the subject
dispute.
(C) Conduct of appeal.-- In an appeal under
this paragraph--
(i) the insured depository
institution, insured credit union, or
other covered person described in
subsection (a)--
(I) shall include in its
appeal all the facts and legal
arguments pertaining to the
matter; and
(II) may, through counsel,
employees, or representatives,
appear before the governing
panel in person or by
telephone; and
(ii) the governing panel--
(I) may request the insured
depository institution, insured
credit union, or other covered
person described in subsection
(a), the Bureau, or the
prudential regulator to produce
additional information relevant
to the appeal; and
(II) by a majority vote of
its members, shall provide a
final determination, in
writing, not later than 30 days
after the date of filing of an
informationally complete
appeal, or such longer period
as the panel and the insured
depository institution, insured
credit union, or other covered
person described in subsection
(a) may jointly agree.
(D) Public availability of determinations.--
A governing panel shall publish all information
contained in a determination by the governing
panel, with appropriate redactions of
information that would be subject to an
exemption from disclosure under section 552 of
title 5, United States Code.
(E) Prohibition against retaliation.-- The
Bureau and the prudential regulators shall
prescribe rules to provide safeguards from
retaliation against the insured depository
institution, insured credit union, or other
covered person described in subsection (a)
instituting an appeal under this paragraph, as
well as their officers and employees.
(F) Limitation.-- The process provided in
this paragraph shall not apply to a
determination by a prudential regulator to
appoint a conservator or receiver for an
insured depository institution or a liquidating
agent for an insured credit union, as the case
may be, or a decision to take action pursuant
to section 38 of the Federal Deposit Insurance
Act (12 U.S.C. 1831o) or section 212 of the
Federal Credit Union Act (112 U.S.C. 1790a), as
applicable.
(G) Effect on other authority.-- Nothing in
this section shall modify or limit the
authority of the Bureau to interpret, or take
enforcement action under, any Federal consumer
financial law, or the authority of a prudential
regulator to interpret or take enforcement
action under any other provision of Federal law
for safety and soundness purposes.
SEC. 1026. OTHER BANKS, SAVINGS ASSOCIATIONS, AND CREDIT UNIONS.
(a) Scope of Coverage.--This section shall apply to any
covered person that is--
(1) an insured depository institution with total
assets of $10,000,000,000 or less; or
(2) an insured credit union with total assets of
$10,000,000,000 or less.
(b) Reports.--The [Director] Board may require reports from a
person described in subsection (a), as necessary to support the
role of the Bureau in implementing Federal consumer financial
law, to support its examination activities under subsection
(c), and to assess and detect risks to consumers and consumer
financial markets.
(1) Use of existing reports.-- The Bureau shall, to
the fullest extent possible, use--
(A) reports pertaining to a person described
in subsection (a) that have been provided or
required to have been provided to a Federal or
State agency; and
(B) information that has been reported
publicly.
(2) Preservation of authority.-- Nothing in this
subsection may be construed as limiting the authority
of the [Director] Board from requiring from a person
described in subsection (a), as permitted under
paragraph (1), information owned or under the control
of such person, regardless of whether such information
is maintained, stored, or processed by another person.
(3) Reports of tax law noncompliance.-- The Bureau
shall provide the Commissioner of Internal Revenue with
any report of examination or related information
identifying possible tax law noncompliance.
(c) Examinations.--
(1) In general.-- The Bureau may, at its discretion,
include examiners on a sampling basis of the
examinations performed by the prudential regulator to
assess compliance with the requirements of Federal
consumer financial law of persons described in
subsection (a).
(2) Agency coordination.-- The prudential regulator
shall--
(A) provide all reports, records, and
documentation related to the examination
process for any institution included in the
sample referred to in paragraph (1) to the
Bureau on a timely and continual basis;
(B) involve such Bureau examiner in the
entire examination process for such person; and
(C) consider input of the Bureau concerning
the scope of an examination, conduct of the
examination, the contents of the examination
report, the designation of matters requiring
attention, and examination ratings.
(d) Enforcement.--
(1) In general.-- Except for requiring reports under
subsection (b), the prudential regulator is authorized
to enforce the requirements of Federal consumer
financial laws and, with respect to a covered person
described in subsection (a), shall have exclusive
authority (relative to the Bureau) to enforce such
laws.
(2) Coordination with prudential regulator.--
(A) Referral.-- When the Bureau has reason to
believe that a person described in subsection
(a) has engaged in a material violation of a
Federal consumer financial law, the Bureau
shall notify the prudential regulator in
writing and recommend appropriate action to
respond.
(B) Response.-- Upon receiving a
recommendation under subparagraph (A), the
prudential regulator shall provide a written
response to the Bureau not later than 60 days
thereafter.
(e) Service Providers.--A service provider to a substantial
number of persons described in subsection (a) shall be subject
to the authority of the Bureau under section 1025 to the same
extent as if the Bureau were an appropriate Federal bank agency
under section 7(c) of the Bank Service Company Act (12 U.S.C.
1867(c)). When conducting any examination or requiring any
report from a service provider subject to this subsection, the
Bureau shall coordinate with the appropriate prudential
regulator.
SEC. 1027. LIMITATIONS ON AUTHORITIES OF THE BUREAU; PRESERVATION OF
AUTHORITIES.
(a) Exclusion for Merchants, Retailers, and Other Sellers of
Nonfinancial Goods or Services.--
(1) Sale or brokerage of nonfinancial good or
service.-- The Bureau may not exercise any rulemaking,
supervisory, enforcement or other authority under this
title with respect to a person who is a merchant,
retailer, or seller of any nonfinancial good or service
and is engaged in the sale or brokerage of such
nonfinancial good or service, except to the extent that
such person is engaged in offering or providing any
consumer financial product or service, or is otherwise
subject to any enumerated consumer law or any law for
which authorities are transferred under subtitle F or
H.
(2) Offering or provision of certain consumer
financial products or services in connection with the
sale or brokerage of nonfinancial good or service.--
(A) In general.-- Except as provided in
subparagraph (B), and subject to subparagraph
(C), the Bureau may not exercise any
rulemaking, supervisory, enforcement, or other
authority under this title with respect to a
merchant, retailer, or seller of nonfinancial
goods or services, but only to the extent that
such person--
(i) extends credit directly to a
consumer, in a case in which the good
or service being provided is not itself
a consumer financial product or service
(other than credit described in this
subparagraph), exclusively for the
purpose of enabling that consumer to
purchase such nonfinancial good or
service directly from the merchant,
retailer, or seller;
(ii) directly, or through an
agreement with another person, collects
debt arising from credit extended as
described in clause (i); or
(iii) sells or conveys debt described
in clause (i) that is delinquent or
otherwise in default.
(B) Applicability.-- Subparagraph (A) does
not apply to any credit transaction or
collection of debt, other than as described in
subparagraph (C)(i), arising from a transaction
described in subparagraph (A)--
(i) in which the merchant, retailer,
or seller of nonfinancial goods or
services assigns, sells or otherwise
conveys to another person such debt
owed by the consumer (except for a sale
of debt that is delinquent or otherwise
in default, as described in
subparagraph (A)(iii));
(ii) in which the credit extended
significantly exceeds the market value
of the nonfinancial good or service
provided, or the Bureau otherwise finds
that the sale of the nonfinancial good
or service is done as a subterfuge, so
as to evade or circumvent the
provisions of this title; or
(iii) in which the merchant,
retailer, or seller of nonfinancial
goods or services regularly extends
credit and the credit is subject to a
finance charge.
(C) Limitations.--
(i) In general.-- Notwithstanding
subparagraph (B), subparagraph (A)
shall apply with respect to a merchant,
retailer, or seller of nonfinancial
goods or services that is not engaged
significantly in offering or providing
consumer financial products or
services.
(ii) Exception.-- Subparagraph (A)
and clause (i) of this subparagraph do
not apply to any merchant, retailer, or
seller of nonfinancial goods or
services--
(I) if such merchant,
retailer, or seller of
nonfinancial goods or services
is engaged in a transaction
described in subparagraph
(B)(i) or (B)(ii); or
(II) to the extent that such
merchant, retailer, or seller
is subject to any enumerated
consumer law or any law for
which authorities are
transferred under subtitle F or
H, but the Bureau may exercise
such authority only with
respect to that law.
(D) Rules.--
(i) Authority of other agencies.-- No
provision of this title shall be
construed as modifying, limiting, or
superseding the supervisory or
enforcement authority of the Federal
Trade Commission or any other agency
(other than the Bureau) with respect to
credit extended, or the collection of
debt arising from such extension,
directly by a merchant or retailer to a
consumer exclusively for the purpose of
enabling that consumer to purchase
nonfinancial goods or services directly
from the merchant or retailer.
(ii) Small businesses.-- A merchant,
retailer, or seller of nonfinancial
goods or services that would otherwise
be subject to the authority of the
Bureau solely by virtue of the
application of subparagraph (B)(iii)
shall be deemed not to be engaged
significantly in offering or providing
consumer financial products or services
under subparagraph (C)(i), if such
person--
(I) only extends credit for
the sale of nonfinancial goods
or services, as described in
subparagraph (A)(i);
(II) retains such credit on
its own accounts (except to
sell or convey such debt that
is delinquent or otherwise in
default); and
(III) meets the relevant
industry size threshold to be a
small business concern, based
on annual receipts, pursuant to
section 3 of the Small Business
Act (15 U.S.C. 632) and the
implementing rules thereunder.
(iii) Initial year.-- A merchant,
retailer, or seller of nonfinancial
goods or services shall be deemed to
meet the relevant industry size
threshold described in clause (ii)(III)
during the first year of operations of
that business concern if, during that
year, the receipts of that business
concern reasonably are expected to meet
that size threshold.
(iv) Other standards for small
business.-- With respect to a merchant,
retailer, or seller of nonfinancial
goods or services that is a classified
on a basis other than annual receipts
for the purposes of section 3 of the
Small Business Act (15 U.S.C. 632) and
the implementing rules thereunder, such
merchant, retailer, or seller shall be
deemed to meet the relevant industry
size threshold described in clause
(ii)(III) if such merchant, retailer,
or seller meets the relevant industry
size threshold to be a small business
concern based on the number of
employees, or other such applicable
measure, established under that Act.
(E) Exception from state enforcement.-- To
the extent that the Bureau may not exercise
authority under this subsection with respect to
a merchant, retailer, or seller of nonfinancial
goods or services, no action by a State
attorney general or State regulator with
respect to a claim made under this title may be
brought under subsection 1042(a), with respect
to an activity described in any of clauses (i)
through (iii) of subparagraph (A) by such
merchant, retailer, or seller of nonfinancial
goods or services.
(b) Exclusion for Real Estate Brokerage Activities.--
(1) Real estate brokerage activities excluded.--
Without limiting subsection (a), and except as
permitted in paragraph (2), the Bureau may not exercise
any rulemaking, supervisory, enforcement, or other
authority under this title with respect to a person
that is licensed or registered as a real estate broker
or real estate agent, in accordance with State law, to
the extent that such person--
(A) acts as a real estate agent or broker for
a buyer, seller, lessor, or lessee of real
property;
(B) brings together parties interested in the
sale, purchase, lease, rental, or exchange of
real property;
(C) negotiates, on behalf of any party, any
portion of a contract relating to the sale,
purchase, lease, rental, or exchange of real
property (other than in connection with the
provision of financing with respect to any such
transaction); or
(D) offers to engage in any activity, or act
in any capacity, described in subparagraph (A),
(B), or (C).
(2) Description of activities.-- The Bureau may
exercise rulemaking, supervisory, enforcement, or other
authority under this title with respect to a person
described in paragraph (1) when such person is--
(A) engaged in an activity of offering or
providing any consumer financial product or
service, except that the Bureau may exercise
such authority only with respect to that
activity; or
(B) otherwise subject to any enumerated
consumer law or any law for which authorities
are transferred under subtitle F or H, but the
Bureau may exercise such authority only with
respect to that law.
(c) Exclusion for Manufactured Home Retailers and Modular
Home Retailers.--
(1) In general.-- The [Director] Board may not
exercise any rulemaking, supervisory, enforcement, or
other authority over a person to the extent that--
(A) such person is not described in paragraph
(2); and
(B) such person--
(i) acts as an agent or broker for a
buyer or seller of a manufactured home
or a modular home;
(ii) facilitates the purchase by a
consumer of a manufactured home or
modular home, by negotiating the
purchase price or terms of the sales
contract (other than providing
financing with respect to such
transaction); or
(iii) offers to engage in any
activity described in clause (i) or
(ii).
(2) Description of activities.-- A person is
described in this paragraph to the extent that such
person is engaged in the offering or provision of any
consumer financial product or service or is otherwise
subject to any enumerated consumer law or any law for
which authorities are transferred under subtitle F or
H.
(3) Definitions.-- For purposes of this subsection,
the following definitions shall apply:
(A) Manufactured home.-- The term
``manufactured home'' has the same meaning as
in section 603 of the National Manufactured
Housing Construction and Safety Standards Act
of 1974 (42 U.S.C. 5402).
(B) Modular home.-- The term ``modular home''
means a house built in a factory in 2 or more
modules that meet the State or local building
codes where the house will be located, and
where such modules are transported to the
building site, installed on foundations, and
completed.
(d) Exclusion for Accountants and Tax Preparers.--
(1) In general.-- Except as permitted in paragraph
(2), the Bureau may not exercise any rulemaking,
supervisory, enforcement, or other authority over--
(A) any person that is a certified public
accountant, permitted to practice as a
certified public accounting firm, or certified
or licensed for such purpose by a State, or any
individual who is employed by or holds an
ownership interest with respect to a person
described in this subparagraph, when such
person is performing or offering to perform--
(i) customary and usual accounting
activities, including the provision of
accounting, tax, advisory, or other
services that are subject to the
regulatory authority of a State board
of accountancy or a Federal authority;
or
(ii) other services that are
incidental to such customary and usual
accounting activities, to the extent
that such incidental services are not
offered or provided--
(I) by the person separate
and apart from such customary
and usual accounting
activities; or
(II) to consumers who are not
receiving such customary and
usual accounting activities; or
(B) any person, other than a person described
in subparagraph (A) that performs income tax
preparation activities for consumers.
(2) Description of activities.--
(A) In general.-- Paragraph (1) shall not
apply to any person described in paragraph
(1)(A) or (1)(B) to the extent that such person
is engaged in any activity which is not a
customary and usual accounting activity
described in paragraph (1)(A) or incidental
thereto but which is the offering or provision
of any consumer financial product or service,
except to the extent that a person described in
paragraph (1)(A) is engaged in an activity
which is a customary and usual accounting
activity described in paragraph (1)(A), or
incidental thereto.
(B) Not a customary and usual accounting
activity.-- For purposes of this subsection,
extending or brokering credit is not a
customary and usual accounting activity, or
incidental thereto.
(C) Rule of construction.-- For purposes of
subparagraphs (A) and (B), a person described
in paragraph (1)(A) shall not be deemed to be
extending credit, if such person is only
extending credit directly to a consumer,
exclusively for the purpose of enabling such
consumer to purchase services described in
clause (i) or (ii) of paragraph (1)(A) directly
from such person, and such credit is--
(i) not subject to a finance charge;
and
(ii) not payable by written agreement
in more than 4 installments.
(D) Other limitations.-- Paragraph (1) does
not apply to any person described in paragraph
(1)(A) or (1)(B) that is otherwise subject to
any enumerated consumer law or any law for
which authorities are transferred under
subtitle F or H.
(e) Exclusion for Practice of Law.--
(1) In general.-- Except as provided under paragraph
(2), the Bureau may not exercise any supervisory or
enforcement authority with respect to an activity
engaged in by an attorney as part of the practice of
law under the laws of a State in which the attorney is
licensed to practice law.
(2) Rule of construction.-- Paragraph (1) shall not
be construed so as to limit the exercise by the Bureau
of any supervisory, enforcement, or other authority
regarding the offering or provision of a consumer
financial product or service described in any
subparagraph of section 1002(5)--
(A) that is not offered or provided as part
of, or incidental to, the practice of law,
occurring exclusively within the scope of the
attorney-client relationship; or
(B) that is otherwise offered or provided by
the attorney in question with respect to any
consumer who is not receiving legal advice or
services from the attorney in connection with
such financial product or service.
(3) Existing authority.-- Paragraph (1) shall not be
construed so as to limit the authority of the Bureau
with respect to any attorney, to the extent that such
attorney is otherwise subject to any of the enumerated
consumer laws or the authorities transferred under
subtitle F or H.
(f) Exclusion for Persons Regulated by a State Insurance
Regulator.--
(1) In general.-- No provision of this title shall be
construed as altering, amending, or affecting the
authority of any State insurance regulator to adopt
rules, initiate enforcement proceedings, or take any
other action with respect to a person regulated by a
State insurance regulator. Except as provided in
paragraph (2), the Bureau shall have no authority to
exercise any power to enforce this title with respect
to a person regulated by a State insurance regulator.
(2) Description of activities.-- Paragraph (1) does
not apply to any person described in such paragraph to
the extent that such person is engaged in the offering
or provision of any consumer financial product or
service or is otherwise subject to any enumerated
consumer law or any law for which authorities are
transferred under subtitle F or H.
(3) State insurance authority under gramm-leach-
bliley.-- Notwithstanding paragraph (2), the Bureau
shall not exercise any authorities that are granted a
State insurance authority under section 505(a)(6) of
the Gramm-Leach-Bliley Act with respect to a person
regulated by a State insurance authority.
(g) Exclusion for Employee Benefit and Compensation Plans and
Certain Other Arrangements Under the Internal Revenue Code of
1986.--
(1) Preservation of authority of other agencies.-- No
provision of this title shall be construed as altering,
amending, or affecting the authority of the Secretary
of the Treasury, the Secretary of Labor, or the
Commissioner of Internal Revenue to adopt regulations,
initiate enforcement proceedings, or take any actions
with respect to any specified plan or arrangement.
(2) Activities not constituting the offering or
provision of any consumer financial product or
service.-- For purposes of this title, a person shall
not be treated as having engaged in the offering or
provision of any consumer financial product or service
solely because such person is--
(A) a specified plan or arrangement;
(B) engaged in the activity of establishing
or maintaining, for the benefit of employees of
such person (or for members of an employee
organization), any specified plan or
arrangement; or
(C) engaged in the activity of establishing
or maintaining a qualified tuition program
under section 529(b)(1) of the Internal Revenue
Code of 1986 offered by a State or other
prepaid tuition program offered by a State.
(3) Limitation on bureau authority.--
(A) In general.-- Except as provided under
subparagraphs (B) and (C), the Bureau may not
exercise any rulemaking or enforcement
authority with respect to products or services
that relate to any specified plan or
arrangement.
(B) Bureau action pursuant to agency
request.--
(i) Agency request.-- The Secretary
and the Secretary of Labor may jointly
issue a written request to the Bureau
regarding implementation of appropriate
consumer protection standards under
this title with respect to the
provision of services relating to any
specified plan or arrangement.
(ii) Agency response.-- In response
to a request by the Bureau, the
Secretary and the Secretary of Labor
shall jointly issue a written response,
not later than 90 days after receipt of
such request, to grant or deny the
request of the Bureau regarding
implementation of appropriate consumer
protection standards under this title
with respect to the provision of
services relating to any specified plan
or arrangement.
(iii) Scope of bureau action.--
Subject to a request or response
pursuant to clause (i) or clause (ii)
by the agencies made under this
subparagraph, the Bureau may exercise
rulemaking authority, and may act to
enforce a rule prescribed pursuant to
such request or response, in accordance
with the provisions of this title. A
request or response made by the
Secretary and the Secretary of Labor
under this subparagraph shall describe
the basis for, and scope of,
appropriate consumer protection
standards to be implemented under this
title with respect to the provision of
services relating to any specified plan
or arrangement.
(C) Description of products or services.-- To
the extent that a person engaged in providing
products or services relating to any specified
plan or arrangement is subject to any
enumerated consumer law or any law for which
authorities are transferred under subtitle F or
H, subparagraph (A) shall not apply with
respect to that law.
(4) Specified plan or arrangement.-- For purposes of
this subsection, the term ``specified plan or
arrangement'' means any plan, account, or arrangement
described in section 220, 223, 401(a), 403(a), 403(b),
408, 408A, 529, 529A, or 530 of the Internal Revenue
Code of 1986, or any employee benefit or compensation
plan or arrangement, including a plan that is subject
to title I of the Employee Retirement Income Security
Act of 1974, or any prepaid tuition program offered by
a State.
(h) Persons Regulated by a State Securities Commission.--
(1) In general.-- No provision of this title shall be
construed as altering, amending, or affecting the
authority of any securities commission (or any agency
or office performing like functions) of any State to
adopt rules, initiate enforcement proceedings, or take
any other action with respect to a person regulated by
any securities commission (or any agency or office
performing like functions) of any State. Except as
permitted in paragraph (2) and subsection (f), the
Bureau shall have no authority to exercise any power to
enforce this title with respect to a person regulated
by any securities commission (or any agency or office
performing like functions) of any State, but only to
the extent that the person acts in such regulated
capacity.
(2) Description of activities.-- Paragraph (1) shall
not apply to any person to the extent such person is
engaged in the offering or provision of any consumer
financial product or service, or is otherwise subject
to any enumerated consumer law or any law for which
authorities are transferred under subtitle F or H.
(i) Exclusion for Persons Regulated by the Commission.--
(1) In general.-- No provision of this title may be
construed as altering, amending, or affecting the
authority of the Commission to adopt rules, initiate
enforcement proceedings, or take any other action with
respect to a person regulated by the Commission. The
Bureau shall have no authority to exercise any power to
enforce this title with respect to a person regulated
by the Commission.
(2) Consultation and coordination.-- Notwithstanding
paragraph (1), the Commission shall consult and
coordinate, where feasible, with the Bureau with
respect to any rule (including any advance notice of
proposed rulemaking) regarding an investment product or
service that is the same type of product as, or that
competes directly with, a consumer financial product or
service that is subject to the jurisdiction of the
Bureau under this title or under any other law. In
carrying out this paragraph, the agencies shall
negotiate an agreement to establish procedures for such
coordination, including procedures for providing
advance notice to the Bureau when the Commission is
initiating a rulemaking.
(j) Exclusion for Persons Regulated by the Commodity Futures
Trading Commission.--
(1) In general.-- No provision of this title shall be
construed as altering, amending, or affecting the
authority of the Commodity Futures Trading Commission
to adopt rules, initiate enforcement proceedings, or
take any other action with respect to a person
regulated by the Commodity Futures Trading Commission.
The Bureau shall have no authority to exercise any
power to enforce this title with respect to a person
regulated by the Commodity Futures Trading Commission.
(2) Consultation and coordination.-- Notwithstanding
paragraph (1), the Commodity Futures Trading Commission
shall consult and coordinate with the Bureau with
respect to any rule (including any advance notice of
proposed rulemaking) regarding a product or service
that is the same type of product as, or that competes
directly with, a consumer financial product or service
that is subject to the jurisdiction of the Bureau under
this title or under any other law.
(k) Exclusion for Persons Regulated by the Farm Credit
Administration.--
(1) In general.-- No provision of this title shall be
construed as altering, amending, or affecting the
authority of the Farm Credit Administration to adopt
rules, initiate enforcement proceedings, or take any
other action with respect to a person regulated by the
Farm Credit Administration. The Bureau shall have no
authority to exercise any power to enforce this title
with respect to a person regulated by the Farm Credit
Administration.
(2) Definition.-- For purposes of this subsection,
the term ``person regulated by the Farm Credit
Administration'' means any Farm Credit System
institution that is chartered and subject to the
provisions of the Farm Credit Act of 1971 (12 U.S.C.
2001 et seq.).
(l) Exclusion for Activities Relating to Charitable
Contributions.--
(1) In general.-- The [Director] Board and the Bureau
may not exercise any rulemaking, supervisory,
enforcement, or other authority, including authority to
order penalties, over any activities related to the
solicitation or making of voluntary contributions to a
tax-exempt organization as recognized by the Internal
Revenue Service, by any agent, volunteer, or
representative of such organizations to the extent the
organization, agent, volunteer, or representative
thereof is soliciting or providing advice, information,
education, or instruction to any donor or potential
donor relating to a contribution to the organization.
(2) Limitation.-- The exclusion in paragraph (1) does
not apply to other activities not described in
paragraph (1) that are the offering or provision of any
consumer financial product or service, or are otherwise
subject to any enumerated consumer law or any law for
which authorities are transferred under subtitle F or
H.
(m) Insurance.--The Bureau may not define as a financial
product or service, by regulation or otherwise, engaging in the
business of insurance.
(n) Limited Authority of the Bureau.--Notwithstanding
subsections (a) through (h) and (l), a person subject to or
described in one or more of such provisions--
(1) may be a service provider; and
(2) may be subject to requests from, or requirements
imposed by, the Bureau regarding information in order
to carry out the responsibilities and functions of the
Bureau and in accordance with section 1022, 1052, or
1053.
(o) No Authority To Impose Usury Limit.--No provision of this
title shall be construed as conferring authority on the Bureau
to establish a usury limit applicable to an extension of credit
offered or made by a covered person to a consumer, unless
explicitly authorized by law.
(p) Attorney General.--No provision of this title, including
section 1024(c)(1), shall affect the authorities of the
Attorney General under otherwise applicable provisions of law.
(q) Secretary of the Treasury.--No provision of this title
shall affect the authorities of the Secretary, including with
respect to prescribing rules, initiating enforcement
proceedings, or taking other actions with respect to a person
that performs income tax preparation activities for consumers.
(r) Deposit Insurance and Share Insurance.--Nothing in this
title shall affect the authority of the Corporation under the
Federal Deposit Insurance Act or the National Credit Union
Administration Board under the Federal Credit Union Act as to
matters related to deposit insurance and share insurance,
respectively.
(s) Fair Housing Act.--No provision of this title shall be
construed as affecting any authority arising under the Fair
Housing Act.
SEC. 1028. AUTHORITY TO RESTRICT MANDATORY PRE-DISPUTE ARBITRATION.
(a) Study and Report.--The Bureau shall conduct a study of,
and shall provide a report to Congress concerning, the use of
agreements providing for arbitration of any future dispute
between covered persons and consumers in connection with the
offering or providing of consumer financial products or
services.
(b) Further Authority.--The Bureau, by regulation, may
prohibit or impose conditions or limitations on the use of an
agreement between a covered person and a consumer for a
consumer financial product or service providing for arbitration
of any future dispute between the parties, if the Bureau finds
that such a prohibition or imposition of conditions or
limitations is in the public interest and for the protection of
consumers. The findings in such rule shall be consistent with
the study conducted under subsection (a).
(c) Limitation.--The authority described in subsection (b)
may not be construed to prohibit or restrict a consumer from
entering into a voluntary arbitration agreement with a covered
person after a dispute has arisen.
(d) Effective Date.--Notwithstanding any other provision of
law, any regulation prescribed by the Bureau under subsection
(b) shall apply, consistent with the terms of the regulation,
to any agreement between a consumer and a covered person
entered into after the end of the 180-day period beginning on
the effective date of the regulation, as established by the
Bureau.
SEC. 1029. EXCLUSION FOR AUTO DEALERS.
(a) Sale, Servicing, and Leasing of Motor Vehicles
Excluded.--Except as permitted in subsection (b), the Bureau
may not exercise any rulemaking, supervisory, enforcement or
any other authority, including any authority to order
assessments, over a motor vehicle dealer that is predominantly
engaged in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.
(b) Certain Functions Excepted.--Subsection (a) shall not
apply to any person, to the extent that such person--
(1) provides consumers with any services related to
residential or commercial mortgages or self-financing
transactions involving real property;
(2) operates a line of business--
(A) that involves the extension of retail
credit or retail leases involving motor
vehicles; and
(B) in which--
(i) the extension of retail credit or
retail leases are provided directly to
consumers; and
(ii) the contract governing such
extension of retail credit or retail
leases is not routinely assigned to an
unaffiliated third party finance or
leasing source; or
(3) offers or provides a consumer financial product
or service not involving or related to the sale,
financing, leasing, rental, repair, refurbishment,
maintenance, or other servicing of motor vehicles,
motor vehicle parts, or any related or ancillary
product or service.
(c) Preservation of Authorities of Other Agencies.--Except as
provided in subsections (b) and (d), nothing in this title,
including subtitle F, shall be construed as modifying,
limiting, or superseding the operation of any provision of
Federal law, or otherwise affecting the authority of the Board
of Governors, the Federal Trade Commission, or any other
Federal agency, with respect to a person described in
subsection (a).
(d) Federal Trade Commission Authority.--Notwithstanding
section 18 of the Federal Trade Commission Act, the Federal
Trade Commission is authorized to prescribe rules under
sections 5 and 18(a)(1)(B) of the Federal Trade Commission Act.
in accordance with section 553 of title 5, United States Code,
with respect to a person described in subsection (a).
(e) Coordination With Office Of Service Member Affairs.--The
Board of Governors and the Federal Trade Commission shall
coordinate with the Office of Service Member Affairs, to ensure
that--
(1) service members and their families are educated
and empowered to make better informed decisions
regarding consumer financial products and services
offered by motor vehicle dealers, with a focus on motor
vehicle dealers in the proximity of military
installations; and
(2) complaints by service members and their families
concerning such motor vehicle dealers are effectively
monitored and responded to, and where appropriate,
enforcement action is pursued by the authorized
agencies.
(f) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Motor vehicle.-- The term ``motor vehicle''
means--
(A) any self-propelled vehicle designed for
transporting persons or property on a street,
highway, or other road;
(B) recreational boats and marine equipment;
(C) motorcycles;
(D) motor homes, recreational vehicle
trailers, and slide-in campers, as those terms
are defined in sections 571.3 and 575.103 (d)
of title 49, Code of Federal Regulations, or
any successor thereto; and
(E) other vehicles that are titled and sold
through dealers.
(2) Motor vehicle dealer.-- The term ``motor vehicle
dealer'' means any person or resident in the United
States, or any territory of the United States, who--
(A) is licensed by a State, a territory of
the United States, or the District of Columbia
to engage in the sale of motor vehicles; and
(B) takes title to, holds an ownership in, or
takes physical custody of motor vehicles.
SEC. 1029A. EFFECTIVE DATE.
This subtitle shall become effective on the designated
transfer date, except that sections 1022, 1024, and 1025(e)
shall become effective on the date of enactment of this Act.
Subtitle C--Specific Bureau Authorities
SEC. 1031. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES.
(a) In General.--The Bureau may take any action authorized
under subtitle E to prevent a covered person or service
provider from committing or engaging in an unfair, deceptive,
or abusive act or practice under Federal law in connection with
any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial
product or service.
(b) Rulemaking.--The Bureau may prescribe rules applicable to
a covered person or service provider identifying as unlawful
unfair, deceptive, or abusive acts or practices in connection
with any transaction with a consumer for a consumer financial
product or service, or the offering of a consumer financial
product or service. Rules under this section may include
requirements for the purpose of preventing such acts or
practices.
(c) Unfairness.--
(1) In general.-- The Bureau shall have no authority
under this section to declare an act or practice in
connection with a transaction with a consumer for a
consumer financial product or service, or the offering
of a consumer financial product or service, to be
unlawful on the grounds that such act or practice is
unfair, unless the Bureau has a reasonable basis to
conclude that--
(A) the act or practice causes or is likely
to cause substantial injury to consumers which
is not reasonably avoidable by consumers; and
(B) such substantial injury is not outweighed
by countervailing benefits to consumers or to
competition.
(2) Consideration of public policies.-- In
determining whether an act or practice is unfair, the
Bureau may consider established public policies as
evidence to be considered with all other evidence. Such
public policy considerations may not serve as a primary
basis for such determination.
(d) Abusive.--The Bureau shall have no authority under this
section to declare an act or practice abusive in connection
with the provision of a consumer financial product or service,
unless the act or practice--
(1) materially interferes with the ability of a
consumer to understand a term or condition of a
consumer financial product or service; or
(2) takes unreasonable advantage of--
(A) a lack of understanding on the part of
the consumer of the material risks, costs, or
conditions of the product or service;
(B) the inability of the consumer to protect
the interests of the consumer in selecting or
using a consumer financial product or service;
or
(C) the reasonable reliance by the consumer
on a covered person to act in the interests of
the consumer.
(e) Consultation.--In prescribing rules under this section,
the Bureau shall consult with the Federal banking agencies, or
other Federal agencies, as appropriate, concerning the
consistency of the proposed rule with prudential, market, or
systemic objectives administered by such agencies.
(f) Consideration of Seasonal Income.--The rules of the
Bureau under this section shall provide, with respect to an
extension of credit secured by residential real estate or a
dwelling, if documented income of the borrower, including
income from a small business, is a repayment source for an
extension of credit secured by residential real estate or a
dwelling, the creditor may consider the seasonality and
irregularity of such income in the underwriting of and
scheduling of payments for such credit.
SEC. 1032. DISCLOSURES.
(a) In General.--The Bureau may prescribe rules to ensure
that the features of any consumer financial product or service,
both initially and over the term of the product or service, are
fully, accurately, and effectively disclosed to consumers in a
manner that permits consumers to understand the costs,
benefits, and risks associated with the product or service, in
light of the facts and circumstances.
(b) Model Disclosures.--
(1) In general.-- Any final rule prescribed by the
Bureau under this section requiring disclosures may
include a model form that may be used at the option of
the covered person for provision of the required
disclosures.
(2) Format.-- A model form issued pursuant to
paragraph (1) shall contain a clear and conspicuous
disclosure that, at a minimum--
(A) uses plain language comprehensible to
consumers;
(B) contains a clear format and design, such
as an easily readable type font; and
(C) succinctly explains the information that
must be communicated to the consumer.
(3) Consumer testing.-- Any model form issued
pursuant to this subsection shall be validated through
consumer testing.
(c) Basis for Rulemaking.--In prescribing rules under this
section, the Bureau shall consider available evidence about
consumer awareness, understanding of, and responses to
disclosures or communications about the risks, costs, and
benefits of consumer financial products or services.
(d) Safe Harbor.--Any covered person that uses a model form
included with a rule issued under this section shall be deemed
to be in compliance with the disclosure requirements of this
section with respect to such model form.
(e) Trial Disclosure Programs.--
(1) In general.-- The Bureau may permit a covered
person to conduct a trial program that is limited in
time and scope, subject to specified standards and
procedures, for the purpose of providing trial
disclosures to consumers that are designed to improve
upon any model form issued pursuant to subsection
(b)(1), or any other model form issued to implement an
enumerated statute, as applicable.
(2) Safe harbor.-- The standards and procedures
issued by the Bureau shall be designed to encourage
covered persons to conduct trial disclosure programs.
For the purposes of administering this subsection, the
Bureau may establish a limited period during which a
covered person conducting a trial disclosure program
shall be deemed to be in compliance with, or may be
exempted from, a requirement of a rule or an enumerated
consumer law.
(3) Public disclosure.-- The rules of the Bureau
shall provide for public disclosure of trial disclosure
programs, which public disclosure may be limited, to
the extent necessary to encourage covered persons to
conduct effective trials.
(f) Combined Mortgage Loan Disclosure.--Not later than 1 year
after the designated transfer date, the Bureau shall propose
for public comment rules and model disclosures that combine the
disclosures required under the Truth in Lending Act and
sections 4 and 5 of the Real Estate Settlement Procedures Act
of 1974, into a single, integrated disclosure for mortgage loan
transactions covered by those laws, unless the Bureau
determines that any proposal issued by the Board of Governors
and the Secretary of Housing and Urban Development carries out
the same purpose.
SEC. 1033. CONSUMER RIGHTS TO ACCESS INFORMATION.
(a) In General.--Subject to rules prescribed by the Bureau, a
covered person shall make available to a consumer, upon
request, information in the control or possession of the
covered person concerning the consumer financial product or
service that the consumer obtained from such covered person,
including information relating to any transaction, series of
transactions, or to the account including costs, charges and
usage data. The information shall be made available in an
electronic form usable by consumers.
(b) Exceptions.--A covered person may not be required by this
section to make available to the consumer--
(1) any confidential commercial information,
including an algorithm used to derive credit scores or
other risk scores or predictors;
(2) any information collected by the covered person
for the purpose of preventing fraud or money
laundering, or detecting, or making any report
regarding other unlawful or potentially unlawful
conduct;
(3) any information required to be kept confidential
by any other provision of law; or
(4) any information that the covered person cannot
retrieve in the ordinary course of its business with
respect to that information.
(c) No Duty To Maintain Records.--Nothing in this section
shall be construed to impose any duty on a covered person to
maintain or keep any information about a consumer.
(d) Standardized Formats for Data.--The Bureau, by rule,
shall prescribe standards applicable to covered persons to
promote the development and use of standardized formats for
information, including through the use of machine readable
files, to be made available to consumers under this section.
(e) Consultation.--The Bureau shall, when prescribing any
rule under this section, consult with the Federal banking
agencies and the Federal Trade Commission to ensure, to the
extent appropriate, that the rules--
(1) impose substantively similar requirements on
covered persons;
(2) take into account conditions under which covered
persons do business both in the United States and in
other countries; and
(3) do not require or promote the use of any
particular technology in order to develop systems for
compliance.
SEC. 1034. RESPONSE TO CONSUMER COMPLAINTS AND INQUIRIES.
(a) Timely Regulator Response to Consumers.--The Bureau shall
establish, in consultation with the appropriate Federal
regulatory agencies, reasonable procedures to provide a timely
response to consumers, in writing where appropriate, to
complaints against, or inquiries concerning, a covered person,
including--
(1) steps that have been taken by the regulator in
response to the complaint or inquiry of the consumer;
(2) any responses received by the regulator from the
covered person; and
(3) any follow-up actions or planned follow-up
actions by the regulator in response to the complaint
or inquiry of the consumer.
(b) Timely Response to Regulator by Covered Person.--A
covered person subject to supervision and primary enforcement
by the Bureau pursuant to section 1025 shall provide a timely
response, in writing where appropriate, to the Bureau, the
prudential regulators, and any other agency having jurisdiction
over such covered person concerning a consumer complaint or
inquiry, including--
(1) steps that have been taken by the covered person
to respond to the complaint or inquiry of the consumer;
(2) responses received by the covered person from the
consumer; and
(3) follow-up actions or planned follow-up actions by
the covered person to respond to the complaint or
inquiry of the consumer.
(c) Provision of Information to Consumers.--
(1) In general.-- A covered person subject to
supervision and primary enforcement by the Bureau
pursuant to section 1025 shall, in a timely manner,
comply with a consumer request for information in the
control or possession of such covered person concerning
the consumer financial product or service that the
consumer obtained from such covered person, including
supporting written documentation, concerning the
account of the consumer.
(2) Exceptions.-- A covered person subject to
supervision and primary enforcement by the Bureau
pursuant to section 1025, a prudential regulator, and
any other agency having jurisdiction over a covered
person subject to supervision and primary enforcement
by the Bureau pursuant to section 1025 may not be
required by this section to make available to the
consumer--
(A) any confidential commercial information,
including an algorithm used to derive credit
scores or other risk scores or predictors;
(B) any information collected by the covered
person for the purpose of preventing fraud or
money laundering, or detecting or making any
report regarding other unlawful or potentially
unlawful conduct;
(C) any information required to be kept
confidential by any other provision of law; or
(D) any nonpublic or confidential
information, including confidential supervisory
information.
(d) Agreements With Other Agencies.--The Bureau shall enter
into a memorandum of understanding with any affected Federal
regulatory agency regarding procedures by which any covered
person, and the prudential regulators, and any other agency
having jurisdiction over a covered person, including the
Secretary of the Department of Housing and Urban Development
and the Secretary of Education, shall comply with this section.
SEC. 1035. PRIVATE EDUCATION LOAN OMBUDSMAN.
(a) Establishment.--The Secretary, in consultation with the
[Director] Board , shall designate a Private Education Loan
Ombudsman (in this section referred to as the ``Ombudsman'')
within the Bureau, to provide timely assistance to borrowers of
private education loans.
(b) Public Information.--The Secretary and the [Director]
Board shall disseminate information about the availability and
functions of the Ombudsman to borrowers and potential
borrowers, as well as institutions of higher education,
lenders, guaranty agencies, loan servicers, and other
participants in private education student loan programs.
(c) Functions of Ombudsman.--The Ombudsman designated under
this subsection shall--
(1) in accordance with regulations of the [Director]
Board , receive, review, and attempt to resolve
informally complaints from borrowers of loans described
in subsection (a), including, as appropriate, attempts
to resolve such complaints in collaboration with the
Department of Education and with institutions of higher
education, lenders, guaranty agencies, loan servicers,
and other participants in private education loan
programs;
(2) not later than 90 days after the designated
transfer date, establish a memorandum of understanding
with the student loan ombudsman established under
section 141(f) of the Higher Education Act of 1965 (20
U.S.C. 1018(f)), to ensure coordination in providing
assistance to and serving borrowers seeking to resolve
complaints related to their private education or
Federal student loans;
(3) compile and analyze data on borrower complaints
regarding private education loans; and
(4) make appropriate recommendations to the
[Director] Board , the Secretary, the Secretary of
Education, the Committee on Banking, Housing, and Urban
Affairs and the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on
Financial Services and the Committee on Education and
Labor of the House of Representatives.
(d) Annual Reports.--
(1) In general.-- The Ombudsman shall prepare an
annual report that describes the activities, and
evaluates the effectiveness of the Ombudsman during the
preceding year.
(2) Submission.-- The report required by paragraph
(1) shall be submitted on the same date annually to the
Secretary, the Secretary of Education, the Committee on
Banking, Housing, and Urban Affairs and the Committee
on Health, Education, Labor, and Pensions of the Senate
and the Committee on Financial Services and the
Committee on Education and Labor of the House of
Representatives.
(e) Definitions.--For purposes of this section, the terms
``private education loan'' and ``institution of higher
education'' have the same meanings as in section 140 of the
Truth in Lending Act (15 U.S.C. 1650).
SEC. 1036. PROHIBITED ACTS.
(a) In General.--It shall be unlawful for--
(1) any covered person or service provider--
(A) to offer or provide to a consumer any
financial product or service not in conformity
with Federal consumer financial law, or
otherwise commit any act or omission in
violation of a Federal consumer financial law;
or
(B) to engage in any unfair, deceptive, or
abusive act or practice;
(2) any covered person or service provider to fail or
refuse, as required by Federal consumer financial law,
or any rule or order issued by the Bureau thereunder--
(A) to permit access to or copying of
records;
(B) to establish or maintain records; or
(C) to make reports or provide information to
the Bureau; or
(3) any person to knowingly or recklessly provide
substantial assistance to a covered person or service
provider in violation of the provisions of section
1031, or any rule or order issued thereunder, and
notwithstanding any provision of this title, the
provider of such substantial assistance shall be deemed
to be in violation of that section to the same extent
as the person to whom such assistance is provided.
(b) Exception.--No person shall be held to have violated
subsection (a)(1) solely by virtue of providing or selling time
or space to a covered person or service provider placing an
advertisement.
SEC. 1037. EFFECTIVE DATE.
This subtitle shall take effect on the designated transfer
date.
* * * * * * *
Subtitle F--Transfer of Functions and Personnel; Transitional
Provisions
SEC. 1061. TRANSFER OF CONSUMER FINANCIAL PROTECTION FUNCTIONS.
(a) Defined Terms.--For purposes of this subtitle--
(1) the term ``consumer financial protection
functions'' means--
(A) all authority to prescribe rules or issue
orders or guidelines pursuant to any Federal
consumer financial law, including performing
appropriate functions to promulgate and review
such rules, orders, and guidelines; and
(B) the examination authority described in
subsection (c)(1), with respect to a person
described in subsection 1025(a); and
(2) the terms ``transferor agency'' and ``transferor
agencies'' mean, respectively--
(A) the Board of Governors (and any Federal
reserve bank, as the context requires), the
Federal Deposit Insurance Corporation, the
Federal Trade Commission, the National Credit
Union Administration, the Office of the
Comptroller of the Currency, the Office of
Thrift Supervision, and the Department of
Housing and Urban Development, and the heads of
those agencies; and
(B) the agencies listed in subparagraph (A),
collectively.
(b) In General.--Except as provided in subsection (c),
consumer financial protection functions are transferred as
follows:
(1) Board of governors.--
(A) Transfer of functions.-- All consumer
financial protection functions of the Board of
Governors are transferred to the Bureau.
(B) Board of governors authority.-- The
Bureau shall have all powers and duties that
were vested in the Board of Governors, relating
to consumer financial protection functions, on
the day before the designated transfer date.
(2) Comptroller of the currency.--
(A) Transfer of functions.-- All consumer
financial protection functions of the
Comptroller of the Currency are transferred to
the Bureau.
(B) Comptroller authority.-- The Bureau shall
have all powers and duties that were vested in
the Comptroller of the Currency, relating to
consumer financial protection functions, on the
day before the designated transfer date.
(3) Director of the office of thrift supervision.--
(A) Transfer of functions.-- All consumer
financial protection functions of the Director
of the Office of Thrift Supervision are
transferred to the Bureau.
(B) Director authority.-- The Bureau shall
have all powers and duties that were vested in
the Director of the Office of Thrift
Supervision, relating to consumer financial
protection functions, on the day before the
designated transfer date.
(4) Federal deposit insurance corporation.--
(A) Transfer of functions.-- All consumer
financial protection functions of the Federal
Deposit Insurance Corporation are transferred
to the Bureau.
(B) Corporation authority.-- The Bureau shall
have all powers and duties that were vested in
the Federal Deposit Insurance Corporation,
relating to consumer financial protection
functions, on the day before the designated
transfer date.
(5) Federal trade commission.--
(A) Transfer of functions.-- The authority of
the Federal Trade Commission under an
enumerated consumer law to prescribe rules,
issue guidelines, or conduct a study or issue a
report mandated under such law shall be
transferred to the Bureau on the designated
transfer date. Nothing in this title shall be
construed to require a mandatory transfer of
any employee of the Federal Trade Commission.
(B) Bureau authority.--
(i) In general.-- The Bureau shall
have all powers and duties under the
enumerated consumer laws to prescribe
rules, issue guidelines, or to conduct
studies or issue reports mandated by
such laws, that were vested in the
Federal Trade Commission on the day
before the designated transfer date.
(ii) Federal trade commission act.--
Subject to subtitle B, the Bureau may
enforce a rule prescribed under the
Federal Trade Commission Act by the
Federal Trade Commission with respect
to an unfair or deceptive act or
practice to the extent that such rule
applies to a covered person or service
provider with respect to the offering
or provision of a consumer financial
product or service as if it were a rule
prescribed under section 1031 of this
title.
(C) Authority of the federal trade
commission.--
(i) In general.-- No provision of
this title shall be construed as
modifying, limiting, or otherwise
affecting the authority of the Federal
Trade Commission (including its
authority with respect to affiliates
described in section 1025(a)(1)) under
the Federal Trade Commission Act or any
other law, other than the authority
under an enumerated consumer law to
prescribe rules, issue official
guidelines, or conduct a study or issue
a report mandated under such law.
(ii) Commission authority relating to
rules prescribed by the bureau.--
Subject to subtitle B, the Federal
Trade Commission shall have authority
to enforce under the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) a
rule prescribed by the Bureau under
this title with respect to a covered
person subject to the jurisdiction of
the Federal Trade Commission under that
Act, and a violation of such a rule by
such a person shall be treated as a
violation of a rule issued under
section 18 of that Act (15 U.S.C. 57a)
with respect to unfair or deceptive
acts or practices.
(D) Coordination.-- To avoid duplication of
or conflict between rules prescribed by the
Bureau under section 1031 of this title and the
Federal Trade Commission under section
18(a)(1)(B) of the Federal Trade Commission Act
that apply to a covered person or service
provider with respect to the offering or
provision of consumer financial products or
services, the agencies shall negotiate an
agreement with respect to rulemaking by each
agency, including consultation with the other
agency prior to proposing a rule and during the
comment period.
(E) Deference.-- No provision of this title
shall be construed as altering, limiting,
expanding, or otherwise affecting the deference
that a court affords to the--
(i) Federal Trade Commission in
making determinations regarding the
meaning or interpretation of any
provision of the Federal Trade
Commission Act, or of any other Federal
law for which the Commission has
authority to prescribe rules; or
(ii) Bureau in making determinations
regarding the meaning or interpretation
of any provision of a Federal consumer
financial law (other than any law
described in clause (i)).
(6) National credit union administration.--
(A) Transfer of functions.-- All consumer
financial protection functions of the National
Credit Union Administration are transferred to
the Bureau.
(B) National credit union administration
authority.-- The Bureau shall have all powers
and duties that were vested in the National
Credit Union Administration, relating to
consumer financial protection functions, on the
day before the designated transfer date.
(7) Department of housing and urban development.--
(A) Transfer of functions.-- All consumer
protection functions of the Secretary of the
Department of Housing and Urban Development
relating to the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2601 et
seq.), the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (12 U.S.C. 5102
et seq.), and the Interstate Land Sales Full
Disclosure Act (15 U.S.C. 1701 et seq.) are
transferred to the Bureau.
(B) Authority of the department of housing
and urban development.-- The Bureau shall have
all powers and duties that were vested in the
Secretary of the Department of Housing and
Urban Development relating to the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C.
2601 et seq.), the Secure and Fair Enforcement
for Mortgage Licensing Act of 2008 (12 U.S.C.
5101 et seq.), and the Interstate Land Sales
Full Disclosure Act (15 U.S.C. 1701 et seq.),
on the day before the designated transfer date.
(c) Authorities of the Prudential Regulators.--
(1) Examination.-- A transferor agency that is a
prudential regulator shall have--
(A) authority to require reports from and
conduct examinations for compliance with
Federal consumer financial laws with respect to
a person described in section 1025(a), that is
incidental to the backup and enforcement
procedures provided to the regulator under
section 1025(c); and
(B) exclusive authority (relative to the
Bureau) to require reports from and conduct
examinations for compliance with Federal
consumer financial laws with respect to a
person described in section 1026(a), except as
provided to the Bureau under subsections (b)
and (c) of section 1026.
(2) Enforcement.--
(A) Limitation.-- The authority of a
transferor agency that is a prudential
regulator to enforce compliance with Federal
consumer financial laws with respect to a
person described in section 1025(a), shall be
limited to the backup and enforcement
procedures in described in section 1025(c).
(B) Exclusive authority.-- A transferor
agency that is a prudential regulator shall
have exclusive authority (relative to the
Bureau) to enforce compliance with Federal
consumer financial laws with respect to a
person described in section 1026(a), except as
provided to the Bureau under subsections (b)
and (c) of section 1026.
(C) Statutory enforcement.-- For purposes of
carrying out the authorities under, and subject
to the limitations of, subtitle B, each
prudential regulator may enforce compliance
with the requirements imposed under this title,
and any rule or order prescribed by the Bureau
under this title, under--
(i) the Federal Credit Union Act (12
U.S.C. 1751 et seq.), by the National
Credit Union Administration Board with
respect to any covered person or
service provider that is an insured
credit union, or service provider
thereto, or any affiliate of an insured
credit union, who is subject to the
jurisdiction of [the Board] the
National Credit Union Administration
Board under that Act; and
(ii) section 8 of the Federal Deposit
Insurance Act (12 U.S.C. 1818), by the
appropriate Federal banking agency, as
defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C.
1813(q)), with respect to a covered
person or service provider that is a
person described in section 3(q) of
that Act and who is subject to the
jurisdiction of that agency, as set
forth in sections 3(q) and 8 of the
Federal Deposit Insurance Act; or
(iii) the Bank Service Company Act
(12 U.S.C. 1861 et seq.).
(d) Effective Date.--Subsections (b) and (c) shall become
effective on the designated transfer date.
* * * * * * *
SEC. 1066. INTERIM AUTHORITY OF THE SECRETARY.
(a) In General.--The Secretary is authorized to perform the
functions of the Bureau under this subtitle until the first
Director of the Bureau is confirmed by the Senate in accordance
with section 1011.
(b) Interim Administrative Services by the Department of the
Treasury.--The Department of the Treasury may provide
administrative services necessary to support the Bureau before
the designated transfer date.
* * * * * * *
Subtitle G--Regulatory Improvements
* * * * * * *
SEC. 1073. REMITTANCE TRANSFERS.
(a) [Omitted--Amends other Act]
(b) Automated Clearinghouse System.--
(1) Expansion of system.-- The Board of Governors
shall work with the Federal reserve banks and the
Department of the Treasury to expand the use of the
automated clearinghouse system and other payment
mechanisms for remittance transfers to foreign
countries, with a focus on countries that receive
significant remittance transfers from the United
States, based on--
(A) the number, volume, and size of such
transfers;
(B) the significance of the volume of such
transfers relative to the external financial
flows of the receiving country, including--
(i) the total amount transferred; and
(ii) the total volume of payments
made by United States Government
agencies to beneficiaries and retirees
living abroad;
(C) the feasibility of such an expansion; and
(D) the ability of the Federal Reserve System
to establish payment gateways in different
geographic regions and currency zones to
receive remittance transfers and route them
through the payments systems in the destination
countries.
(2) Report to congress.-- Not later than one calendar
year after the date of enactment of this Act, and on
April 30 biennially thereafter during the 10-year
period beginning on that date of enactment, the Board
of Governors shall submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives on the status of the automated
clearinghouse system and its progress in complying with
the requirements of this subsection. The report shall
include an analysis of adoption rates of International
ACH Transactions rules and formats, the efficacy of
increasing adoption rates, and potential
recommendations to increase adoption.
(c) Expansion of Financial Institution Provision of
Remittance Transfers.--
(1) Provision of guidelines to institutions.-- Each
of the Federal banking agencies and the National Credit
Union Administration shall provide guidelines to
financial institutions under the jurisdiction of the
agency regarding the offering of low-cost remittance
transfers and no-cost or low-cost basic consumer
accounts, as well as agency services to remittance
transfer providers.
(2) Assistance to financial literacy commission.-- As
part of its duties as members of the Financial Literacy
and Education Commission, the Bureau, the Federal
banking agencies, and the National Credit Union
Administration shall assist the Financial Literacy and
Education Commission in executing the Strategy for
Assuring Financial Empowerment (or the ``SAFE
Strategy''), as it relates to remittances.
* * * * * * *
SEC. 1076. REVERSE MORTGAGE STUDY AND REGULATIONS.
(a) Study.--Not later than 1 year after the designated
transfer date, the Bureau shall conduct a study on reverse
mortgage transactions.
(b) Regulations.--
(1) In general.-- If the Bureau determines through
the study required under subsection (a) that conditions
or limitations on reverse mortgage transactions are
necessary or appropriate for accomplishing the purposes
and objectives of this title, including protecting
borrowers with respect to the obtaining of reverse
mortgage loans for the purpose of funding investments,
annuities, and other investment products and the
suitability of a borrower in obtaining a reverse
mortgage for such purpose.
(2) Identified practices and integrated
disclosures.-- The regulations prescribed under
paragraph (1) may, as the Bureau may so determine--
(A) identify any practice as unfair,
deceptive, or abusive in connection with a
reverse mortgage transaction; and
(B) provide for an integrated disclosure
standard and model disclosures for reverse
mortgage transactions, consistent with section
4302(d), that combines the relevant disclosures
required under the Truth in Lending Act (15
U.S.C. 1601 et seq.) and the Real Estate
Settlement Procedures Act, with the disclosures
required to be provided to consumers for Home
Equity Conversion Mortgages under section 255
of the National Housing Act.
(c) Rule of Construction.--This section shall not be
construed as limiting the authority of the Bureau to issue
regulations, orders, or guidance that apply to reverse
mortgages prior to the completion of the study required under
subsection (a).
* * * * * * *
SEC. 1079. REVIEW, REPORT, AND PROGRAM WITH RESPECT TO EXCHANGE
FACILITATORS.
(a) Review.--The [Director] Board shall review all Federal
laws and regulations relating to the protection of consumers
who use exchange facilitators for transactions primarily for
personal, family, or household purposes.
(b) Report.--Not later than 1 year after the designated
transfer date, the [Director] Board shall submit to Congress a
report describing--
(1) recommendations for legislation to ensure the
appropriate protection of consumers who use exchange
facilitators for transactions primarily for personal,
family, or household purposes;
(2) recommendations for updating the regulations of
Federal departments and agencies to ensure the
appropriate protection of such consumers; and
(3) recommendations for regulations to ensure the
appropriate protection of such consumers.
(c) Program.--Not later than 2 years after the date of the
submission of the report under subsection (b), the Bureau
shall, consistent with subtitle B, propose regulations or
otherwise establish a program to protect consumers who use
exchange facilitators.
(d) Exchange Facilitator Defined.--In this section, the term
``exchange facilitator'' means a person that--
(1) facilitates, for a fee, an exchange of like kind
property by entering into an agreement with a taxpayer
by which the exchange facilitator acquires from the
taxpayer the contractual rights to sell the taxpayer's
relinquished property and transfers a replacement
property to the taxpayer as a qualified intermediary
(within the meaning of Treasury Regulations section
1.1031(k)-1(g)(4)) or enters into an agreement with the
taxpayer to take title to a property as an exchange
accommodation titleholder (within the meaning of
Revenue Procedure 2000-37) or enters into an agreement
with a taxpayer to act as a qualified trustee or
qualified escrow holder (within the meaning of Treasury
Regulations section 1.1031(k)-1(g)(3));
(2) maintains an office for the purpose of soliciting
business to perform the services described in paragraph
(1); or
(3) advertises any of the services described in
paragraph (1) or solicits clients in printed
publications, direct mail, television or radio
advertisements, telephone calls, facsimile
transmissions, or other electronic communications
directed to the general public for purposes of
providing any such services.
* * * * * * *
----------
FINANCIAL STABILITY ACT OF 2010
* * * * * * *
TITLE I--FINANCIAL STABILITY
* * * * * * *
Subtitle A--Financial Stability Oversight Council
SEC. 111. FINANCIAL STABILITY OVERSIGHT COUNCIL ESTABLISHED.
(a) Establishment.--Effective on the date of enactment of
this Act, there is established the Financial Stability
Oversight Council.
(b) Membership.--The Council shall consist of the following
members:
(1) Voting members.-- The voting members, who shall
each have 1 vote on the Council shall be--
(A) the Secretary of the Treasury, who shall
serve as Chairperson of the Council;
(B) the Chairman of the Board of Governors;
(C) the Comptroller of the Currency;
(D) the [Director of the Bureau] Chairperson
of the Board of Directors of the Bureau ;
(E) the Chairman of the Commission;
(F) the Chairperson of the Corporation;
(G) the Chairperson of the Commodity Futures
Trading Commission;
(H) the Director of the Federal Housing
Finance Agency;
(I) the Chairman of the National Credit Union
Administration Board; and
(J) an independent member appointed by the
President, by and with the advice and consent
of the Senate, having insurance expertise.
(2) Nonvoting members.-- The nonvoting members, who
shall serve in an advisory capacity as a nonvoting
member of the Council, shall be--
(A) the Director of the Office of Financial
Research;
(B) the Director of the Federal Insurance
Office;
(C) a State insurance commissioner, to be
designated by a selection process determined by
the State insurance commissioners;
(D) a State banking supervisor, to be
designated by a selection process determined by
the State banking supervisors; and
(E) a State securities commissioner (or an
officer performing like functions), to be
designated by a selection process determined by
such State securities commissioners.
(3) Nonvoting member participation.-- The nonvoting
members of the Council shall not be excluded from any
of the proceedings, meetings, discussions, or
deliberations of the Council, except that the
Chairperson may, upon an affirmative vote of the member
agencies, exclude the nonvoting members from any of the
proceedings, meetings, discussions, or deliberations of
the Council when necessary to safeguard and promote the
free exchange of confidential supervisory information.
(c) Terms; Vacancy.--
(1) Terms.-- The independent member of the Council
shall serve for a term of 6 years, and each nonvoting
member described in subparagraphs (C), (D), and (E) of
subsection (b)(2) shall serve for a term of 2 years.
(2) Vacancy.-- Any vacancy on the Council shall be
filled in the manner in which the original appointment
was made.
(3) Acting officials may serve.-- In the event of a
vacancy in the office of the head of a member agency or
department, and pending the appointment of a successor,
or during the absence or disability of the head of a
member agency or department, the acting head of the
member agency or department shall serve as a member of
the Council in the place of that agency or department
head.
(d) Technical and Professional Advisory Committees.--The
Council may appoint such special advisory, technical, or
professional committees as may be useful in carrying out the
functions of the Council, including an advisory committee
consisting of State regulators, and the members of such
committees may be members of the Council, or other persons, or
both.
(e) Meetings.--
(1) Timing.-- The Council shall meet at the call of
the Chairperson or a majority of the members then
serving, but not less frequently than quarterly.
(2) Rules for conducting business.-- The Council
shall adopt such rules as may be necessary for the
conduct of the business of the Council. Such rules
shall be rules of agency organization, procedure, or
practice for purposes of section 553 of title 5, United
States Code.
(f) Voting.--Unless otherwise specified, the Council shall
make all decisions that it is authorized or required to make by
a majority vote of the voting members then serving.
(g) Nonapplicability of FACA.--The Federal Advisory Committee
Act (5 U.S.C. App.) shall not apply to the Council, or to any
special advisory, technical, or professional committee
appointed by the Council, except that, if an advisory,
technical, or professional committee has one or more members
who are not employees of or affiliated with the United States
Government, the Council shall publish a list of the names of
the members of such committee.
(h) Assistance From Federal Agencies.--Any department or
agency of the United States may provide to the Council and any
special advisory, technical, or professional committee
appointed by the Council, such services, funds, facilities,
staff, and other support services as the Council may determine
advisable.
(i) Compensation of Members.--
(1) Federal employee members.-- All members of the
Council who are officers or employees of the United
States shall serve without compensation in addition to
that received for their services as officers or
employees of the United States.
(2) Compensation for non-federal member.-- Section
5314 of title 5, United States Code, is amended by
adding at the end the following:``Independent Member of
the Financial Stability Oversight Council (1).''.
(j) Detail of Government Employees.--Any employee of the
Federal Government may be detailed to the Council without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege. An employee of the
Federal Government detailed to the Council shall report to and
be subject to oversight by the Council during the assignment to
the Council, and shall be compensated by the department or
agency from which the employee was detailed.
* * * * * * *
----------
MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT
* * * * * * *
TITLE XIV--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT
* * * * * * *
Subtitle D--Office of Housing Counseling
* * * * * * *
SEC. 1447. DEFAULT AND FORECLOSURE DATABASE.
(a) Establishment.--The Secretary of Housing and Urban
Development and the [Director] Board of Directors of the
Bureau, in consultation with the Federal agencies responsible
for regulation of banking and financial institutions involved
in residential mortgage lending and servicing, shall establish
and maintain a database of information on foreclosures and
defaults on mortgage loans for one- to four-unit residential
properties and shall make such information publicly available,
subject to subsection (e).
(b) Census Tract Data.--Information in the database may be
collected, aggregated, and made available on a census tract
basis.
(c) Requirements.--Information collected and made available
through the database shall include--
(1) the number and percentage of such mortgage loans
that are delinquent by more than 30 days;
(2) the number and percentage of such mortgage loans
that are delinquent by more than 90 days;
(3) the number and percentage of such properties that
are real estate-owned;
(4) number and percentage of such mortgage loans that
are in the foreclosure process;
(5) the number and percentage of such mortgage loans
that have an outstanding principal obligation amount
that is greater than the value of the property for
which the loan was made; and
(6) such other information as the Secretary of
Housing and Urban Development and the [Director] Board
of Directors of the Bureau consider appropriate.
(d) Rule of Construction.--Nothing in this section shall be
construed to encourage discriminatory or unsound allocation of
credit or lending policies or practices.
(e) Privacy and Confidentiality.--In establishing and
maintaining the database described in subsection (a), the
Secretary of Housing and Urban Development and the [Director]
Board of Directors of the Bureau shall--
(1) be subject to the standards applicable to Federal
agencies for the protection of the confidentiality of
personally identifiable information and for data
security and integrity;
(2) implement the necessary measures to conform to
the standards for data integrity and security described
in paragraph (1); and
(3) collect and make available information under this
section, in accordance with paragraphs (5) and (6) of
section 1022(c) and the rules prescribed under such
paragraphs, in order to protect privacy and
confidentiality.
* * * * * * *
----------
SECTION 920 OF THE ELECTRONIC FUND TRANSFER ACT
SEC. 920. REASONABLE FEES AND RULES FOR PAYMENT CARD TRANSACTIONS.
(a) Reasonable Interchange Transaction Fees for Electronic
Debit Transactions.--
(1) Regulatory authority over interchange transaction
fees.-- The Board may prescribe regulations, pursuant
to section 553 of title 5, United States Code,
regarding any interchange transaction fee that an
issuer may receive or charge with respect to an
electronic debit transaction, to implement this
subsection (including related definitions), and to
prevent circumvention or evasion of this subsection.
(2) Reasonable interchange transaction fees.-- The
amount of any interchange transaction fee that an
issuer may receive or charge with respect to an
electronic debit transaction shall be reasonable and
proportional to the cost incurred by the issuer with
respect to the transaction.
(3) Rulemaking required.--
(A) In general.-- The Board shall prescribe
regulations in final form not later than 9
months after the date of enactment of the
Consumer Financial Protection Act of 2010, to
establish standards for assessing whether the
amount of any interchange transaction fee
described in paragraph (2) is reasonable and
proportional to the cost incurred by the issuer
with respect to the transaction.
(B) Information collection.-- The Board may
require any issuer (or agent of an issuer) or
payment card network to provide the Board with
such information as may be necessary to carry
out the provisions of this subsection and the
Board, in issuing rules under subparagraph (A)
and on at least a bi-annual basis thereafter,
shall disclose such aggregate or summary
information concerning the costs incurred, and
interchange transaction fees charged or
received, by issuers or payment card networks
in connection with the authorization, clearance
or settlement of electronic debit transactions
as the Board considers appropriate and in the
public interest.
(4) Considerations; consultation.-- In prescribing
regulations under paragraph (3)(A), the Board shall--
(A) consider the functional similarity
between--
(i) electronic debit transactions;
and
(ii) checking transactions that are
required within the Federal Reserve
bank system to clear at par;
(B) distinguish between--
(i) the incremental cost incurred by
an issuer for the role of the issuer in
the authorization, clearance, or
settlement of a particular electronic
debit transaction, which cost shall be
considered under paragraph (2); and
(ii) other costs incurred by an
issuer which are not specific to a
particular electronic debit
transaction, which costs shall not be
considered under paragraph (2); and
(C) consult, as appropriate, with the
Comptroller of the Currency, the Board of
Directors of the Federal Deposit Insurance
Corporation, the Director of the Office of
Thrift Supervision, the National Credit Union
Administration Board, the Administrator of the
Small Business Administration, and the
[Director of the Bureau] Board of Directors of
the Bureau of Consumer Financial Protection.
(5) Adjustments to interchange transaction fees for
fraud prevention costs.--
(A) Adjustments.-- The Board may allow for an
adjustment to the fee amount received or
charged by an issuer under paragraph (2), if--
(i) such adjustment is reasonably
necessary to make allowance for costs
incurred by the issuer in preventing
fraud in relation to electronic debit
transactions involving that issuer; and
(ii) the issuer complies with the
fraud-related standards established by
the Board under subparagraph (B), which
standards shall--
(I) be designed to ensure
that any fraud-related
adjustment of the issuer is
limited to the amount described
in clause (i) and takes into
account any fraud-related
reimbursements (including
amounts from charge-backs)
received from consumers,
merchants, or payment card
networks in relation to
electronic debit transactions
involving the issuer; and
(II) require issuers to take
effective steps to reduce the
occurrence of, and costs from,
fraud in relation to electronic
debit transactions, including
through the development and
implementation of cost-
effective fraud prevention
technology.
(B) Rulemaking required.--
(i) In general.-- The Board shall
prescribe regulations in final form not
later than 9 months after the date of
enactment of the Consumer Financial
Protection Act of 2010, to establish
standards for making adjustments under
this paragraph.
(ii) Factors for consideration.-- In
issuing the standards and prescribing
regulations under this paragraph, the
Board shall consider--
(I) the nature, type, and
occurrence of fraud in
electronic debit transactions;
(II) the extent to which the
occurrence of fraud depends on
whether authorization in an
electronic debit transaction is
based on signature, PIN, or
other means;
(III) the available and
economical means by which fraud
on electronic debit
transactions may be reduced;
(IV) the fraud prevention and
data security costs expended by
each party involved in
electronic debit transactions
(including consumers, persons
who accept debit cards as a
form of payment, financial
institutions, retailers and
payment card networks);
(V) the costs of fraudulent
transactions absorbed by each
party involved in such
transactions (including
consumers, persons who accept
debit cards as a form of
payment, financial
institutions, retailers and
payment card networks);
(VI) the extent to which
interchange transaction fees
have in the past reduced or
increased incentives for
parties involved in electronic
debit transactions to reduce
fraud on such transactions; and
(VII) such other factors as
the Board considers
appropriate.
(6) Exemption for small issuers.--
(A) In general.-- This subsection shall not
apply to any issuer that, together with its
affiliates, has assets of less than
$10,000,000,000, and the Board shall exempt
such issuers from regulations prescribed under
paragraph (3)(A).
(B) Definition.-- For purposes of this
paragraph, the term ``issuer'' shall be limited
to the person holding the asset account that is
debited through an electronic debit
transaction.
(7) Exemption for government-administered payment
programs and reloadable prepaid cards.--
(A) In general.-- This subsection shall not
apply to an interchange transaction fee charged
or received with respect to an electronic debit
transaction in which a person uses--
(i) a debit card or general-use
prepaid card that has been provided to
a person pursuant to a Federal, State
or local government-administered
payment program, in which the person
may only use the debit card or general-
use prepaid card to transfer or debit
funds, monetary value, or other assets
that have been provided pursuant to
such program; or
(ii) a plastic card, payment code, or
device that is--
(I) linked to funds, monetary
value, or assets which are
purchased or loaded on a
prepaid basis;
(II) not issued or approved
for use to access or debit any
account held by or for the
benefit of the card holder
(other than a subaccount or
other method of recording or
tracking funds purchased or
loaded on the card on a prepaid
basis);
(III) redeemable at multiple,
unaffiliated merchants or
service providers, or automated
teller machines;
(IV) used to transfer or
debit funds, monetary value, or
other assets; and
(V) reloadable and not
marketed or labeled as a gift
card or gift certificate.
(B) Exception.-- Notwithstanding subparagraph
(A), after the end of the 1-year period
beginning on the effective date provided in
paragraph (9), this subsection shall apply to
an interchange transaction fee charged or
received with respect to an electronic debit
transaction described in subparagraph (A)(i) in
which a person uses a general-use prepaid card,
or an electronic debit transaction described in
subparagraph (A)(ii), if any of the following
fees may be charged to a person with respect to
the card:
(i) A fee for an overdraft, including
a shortage of funds or a transaction
processed for an amount exceeding the
account balance.
(ii) A fee imposed by the issuer for
the first withdrawal per month from an
automated teller machine that is part
of the issuer's designated automated
teller machine network.
(C) Definition.-- For purposes of
subparagraph (B), the term ``designated
automated teller machine network'' means
either--
(i) all automated teller machines
identified in the name of the issuer;
or
(ii) any network of automated teller
machines identified by the issuer that
provides reasonable and convenient
access to the issuer's customers.
(D) Reporting.-- Beginning 12 months after
the date of enactment of the Consumer Financial
Protection Act of 2010, the Board shall
annually provide a report to the Congress
regarding --
(i) the prevalence of the use of
general-use prepaid cards in Federal,
State or local government-administered
payment programs; and
(ii) the interchange transaction fees
and cardholder fees charged with
respect to the use of such general-use
prepaid cards.
(8) Regulatory authority over network fees.--
(A) In general.-- The Board may prescribe
regulations, pursuant to section 553 of title
5, United States Code, regarding any network
fee.
(B) Limitation.-- The authority under
subparagraph (A) to prescribe regulations shall
be limited to regulations to ensure that--
(i) a network fee is not used to
directly or indirectly compensate an
issuer with respect to an electronic
debit transaction; and
(ii) a network fee is not used to
circumvent or evade the restrictions of
this subsection and regulations
prescribed under such subsection.
(C) Rulemaking required.-- The Board shall
prescribe regulations in final form before the
end of the 9-month period beginning on the date
of the enactment of the Consumer Financial
Protection Act of 2010, to carry out the
authorities provided under subparagraph (A).
(9) Effective date.-- This subsection shall take
effect at the end of the 12-month period beginning on
the date of the enactment of the Consumer Financial
Protection Act of 2010.
(b) Limitation on Payment Card Network Restrictions.--
(1) Prohibitions against exclusivity arrangements.--
(A) No exclusive network.-- The Board shall,
before the end of the 1-year period beginning
on the date of the enactment of the Consumer
Financial Protection Act of 2010, prescribe
regulations providing that an issuer or payment
card network shall not directly or through any
agent, processor, or licensed member of a
payment card network, by contract, requirement,
condition, penalty, or otherwise, restrict the
number of payment card networks on which an
electronic debit transaction may be processed
to--
(i) 1 such network; or
(ii) 2 or more such networks which
are owned, controlled, or otherwise
operated by --
(I) affiliated persons; or
(II) networks affiliated with
such issuer.
(B) No routing restrictions.-- The Board
shall, before the end of the 1-year period
beginning on the date of the enactment of the
Consumer Financial Protection Act of 2010,
prescribe regulations providing that an issuer
or payment card network shall not, directly or
through any agent, processor, or licensed
member of the network, by contract,
requirement, condition, penalty, or otherwise,
inhibit the ability of any person who accepts
debit cards for payments to direct the routing
of electronic debit transactions for processing
over any payment card network that may process
such transactions.
(2) Limitation on restrictions on offering discounts
for use of a form of payment.--
(A) In general.-- A payment card network
shall not, directly or through any agent,
processor, or licensed member of the network,
by contract, requirement, condition, penalty,
or otherwise, inhibit the ability of any person
to provide a discount or in-kind incentive for
payment by the use of cash, checks, debit
cards, or credit cards to the extent that--
(i) in the case of a discount or in-
kind incentive for payment by the use
of debit cards, the discount or in-kind
incentive does not differentiate on the
basis of the issuer or the payment card
network;
(ii) in the case of a discount or in-
kind incentive for payment by the use
of credit cards, the discount or in-
kind incentive does not differentiate
on the basis of the issuer or the
payment card network; and
(iii) to the extent required by
Federal law and applicable State law,
such discount or in-kind incentive is
offered to all prospective buyers and
disclosed clearly and conspicuously.
(B) Lawful discounts.-- For purposes of this
paragraph, the network may not penalize any
person for the providing of a discount that is
in compliance with Federal law and applicable
State law.
(3) Limitation on restrictions on setting transaction
minimums or maximums.--
(A) In general.-- A payment card network
shall not, directly or through any agent,
processor, or licensed member of the network,
by contract, requirement, condition, penalty,
or otherwise, inhibit the ability--
(i) of any person to set a minimum
dollar value for the acceptance by that
person of credit cards, to the extent
that --
(I) such minimum dollar value
does not differentiate between
issuers or between payment card
networks; and
(II) such minimum dollar
value does not exceed $10.00;
or
(ii) of any Federal agency or
institution of higher education to set
a maximum dollar value for the
acceptance by that Federal agency or
institution of higher education of
credit cards, to the extent that such
maximum dollar value does not
differentiate between issuers or
between payment card networks.
(B) Increase in minimum dollar amount.-- The
Board may, by regulation prescribed pursuant to
section 553 of title 5, United States Code,
increase the amount of the dollar value listed
in subparagraph (A)(i)(II).
(4) Rule of construction:.-- No provision of this
subsection shall be construed to authorize any person--
(A) to discriminate between debit cards
within a payment card network on the basis of
the issuer that issued the debit card; or
(B) to discriminate between credit cards
within a payment card network on the basis of
the issuer that issued the credit card.
(c) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Affiliate.-- The term ``affiliate'' means any
company that controls, is controlled by, or is under
common control with another company.
(2) Debit card.-- The term ``debit card''--
(A) means any card, or other payment code or
device, issued or approved for use through a
payment card network to debit an asset account
(regardless of the purpose for which the
account is established), whether authorization
is based on signature, PIN, or other means;
(B) includes a general-use prepaid card, as
that term is defined in section 915(a)(2)(A);
and
(C) does not include paper checks.
(3) Credit card.-- The term ``credit card'' has the
same meaning as in section 103 of the Truth in Lending
Act.
(4) Discount.-- The term ``discount''--
(A) means a reduction made from the price
that customers are informed is the regular
price; and
(B) does not include any means of increasing
the price that customers are informed is the
regular price.
(5) Electronic debit transaction.-- The term
``electronic debit transaction'' means a transaction in
which a person uses a debit card.
(6) Federal agency.-- The term ``Federal agency''
means--
(A) an agency (as defined in section 101 of
title 31, United States Code); and
(B) a Government corporation (as defined in
section 103 of title 5, United States Code).
(7) Institution of higher education.-- The term
``institution of higher education'' has the same
meaning as in 101 and 102 of the Higher Education Act
of 1965 (20 U.S.C. 1001, 1002).
(8) Interchange transaction fee.-- The term
``interchange transaction fee'' means any fee
established, charged or received by a payment card
network for the purpose of compensating an issuer for
its involvement in an electronic debit transaction.
(9) Issuer.-- The term ``issuer'' means any person
who issues a debit card, or credit card, or the agent
of such person with respect to such card.
(10) Network fee.-- The term ``network fee'' means
any fee charged and received by a payment card network
with respect to an electronic debit transaction, other
than an interchange transaction fee.
(11) Payment card network.-- The term ``payment card
network'' means an entity that directly, or through
licensed members, processors, or agents, provides the
proprietary services, infrastructure, and software that
route information and data to conduct debit card or
credit card transaction authorization, clearance, and
settlement, and that a person uses in order to accept
as a form of payment a brand of debit card, credit card
or other device that may be used to carry out debit or
credit transactions.
(d) Enforcement.--
(1) In general.-- Compliance with the requirements
imposed under this section shall be enforced under
section 918.
(2) Exception.-- Sections 916 and 917 shall not apply
with respect to this section or the requirements
imposed pursuant to this section.
* * * * * * *
----------
EXPEDITED FUNDS AVAILABILITY ACT
* * * * * * *
TITLE VI--EXPEDITED FUNDS AVAILABILITY
SEC. 601. SHORT TITLE.
This title may be cited as the ``Expedited Funds Availability
Act''.
* * * * * * *
SEC. 603. EXPEDITED FUNDS AVAILABILITY SCHEDULES.
(a) Next Business Day Availability For Certain Deposits.--
(1) Cash deposits; wire transfers.-- Except as
provided in subsection (e) and in section 604, in any
case in which--
(A) any cash is deposited in an account at a
receiving depository institution staffed by
individuals employed by such institution, or
(B) funds are received by a depository
institution by wire transfer for deposit in an
account at such institution,
such cash or funds shall be available for withdrawal
not later than the business day after the business day
on which such cash is deposited or such funds are
received for deposit.
(2) Government checks; certain other checks.-- Funds
deposited in an account at a depository institution by
check shall be available for withdrawal not later than
the business day after the business day on which such
funds are deposited in the case of--
(A) a check which--
(i) is drawn on the Treasury of the
United States; and
(ii) is endorsed only by the person
to whom it was issued.
(B) a check which--
(i) is drawn by a State;
(ii) is deposited in a receiving
depository institution which is located
in such State and is staffed by
individuals employed by such
institution;
(iii) is deposited with a special
deposit slip which indicates it is a
check drawn by a State; and
(iv) is endorsed only by the person
to whom it was issued;
(C) a check which--
(i) is drawn by a unit of general
local government;
(ii) is deposited in a receiving
depository institution which is located
in the same State as such unit of
general local government and is staffed
by individuals employed by such
institution;
(iii) is deposited with a special
deposit slip which indicates it is a
check drawn by a unit of general local
government; and
(iv) is endorsed only by the person
to whom it was issued;
(D) the first $200 deposited by check or
checks on any one business day;
(E) a check deposited in a branch of a
depository institution and drawn on the same or
another branch of the same depository
institution if both such branches are located
in the same State or the same check processing
region;
(F) a cashier's check, certified check,
teller's check, or depository check which--
(i) is deposited in a receiving
depository institution which is staffed
by individuals employed by such
institution;
(ii) is deposited with a special
deposit slip which indicates it is a
cashier's check, certified check,
teller's check, or depository check, as
the case may be; and
(iii) is endorsed only by the person
to whom it was issued.
(b) Permanent Schedule.--
(1) Availability of funds deposited by local
checks.-- Subject to paragraph (3) of this subsection,
subsections (a)(2), (d), and (e) of this section, and
section 604, not more than 1 business day shall
intervene between the business day on which funds are
deposited in an account at a depository institution by
a check drawn on a local originating depository
institution and the business day on which the funds
involved are available for withdrawal.
(2) Availability of funds deposited by nonlocal
checks.-- Subject to paragraph (3) of this subsection,
subsections (a)(2), (d), and (e) of this section, and
section 604, not more than 4 business days shall
intervene between the business day on which funds are
deposited in an account at a depository institution by
a check drawn on a nonlocal originating depository
institution and the business day on which such funds
are available for withdrawal.
(3) Time period adjustments for cash withdrawal of
certain checks.--
(A) In general.-- Except as provided in
subparagraph (B), funds deposited in an account
in a depository institution by check (other
than a check described in subsection (a)(2))
shall be available for cash withdrawal not
later than the business day after the business
day on which such funds otherwise are available
under paragraph (1) or (2).
(B) 5 p.m. cash availability.-- Not more
than $400 (or the maximum amount allowable in
the case of a withdrawal from an automated
teller machine but not more than $400) of funds
deposited by one or more checks to which this
paragraph applies shall be available for cash
withdrawal not later than 5 o'clock post
meridian of the business day on which such
funds are available under paragraph (1) or (2).
If funds deposited by checks described in both
paragraph (1) and paragraph (2) become
available for cash withdrawal under this
paragraph on the same business day, the
limitation contained in this subparagraph shall
apply to the aggregate amount of such funds.
(C) $200 availability.-- Any amount
available for withdrawal under this paragraph
shall be in addition to the amount available
under subsection (a)(2)(D).
(4) Applicability.-- This subsection shall apply with
respect to funds deposited by check in an account at a
depository institution on or after September 1, 1990,
except that the Board may, by regulation, make this
subsection or any part of this subsection applicable
earlier than September 1, 1990.
(c) Temporary Schedule.--
(1) Availability of local checks.--
(A) In general.-- Subject to subparagraph (B)
of this paragraph, subsections (a)(2), (d), and
(e) of this section, and section 604, not more
than 2 business days shall intervene between
the business day on which funds are deposited
in an account at a depository institution by a
check drawn on a local originating depository
institution and the business day on which such
funds are available for withdrawal.
(B) Time period adjustment for cash
withdrawal of certain checks.--
(i) In general.-- Except as provided
in clause (ii), funds deposited in an
account in a depository institution by
check drawn on a local depository
institution that is not a participant
in the same check clearinghouse
association as the receiving depository
institution (other than a check
described in subsection (a)(2)) shall
be available for cash withdrawal not
later than the business day after the
business day on which such funds
otherwise are available under
subparagraph (A).
(ii) 5 p.m. cash availability.-- Not
more than $400 (or the maximum amount
allowable in the case of a withdrawal
from an automated teller machine but
not more than $400) of funds deposited
by one or more checks to which this
subparagraph applies shall be available
for cash withdrawal not later than 5
o'clock post meridian of the business
day on which such funds are available
under subparagraph (A).
(iii) $200 availability.-- Any amount
available for withdrawal under this
subparagraph shall be in addition to the amount
available under subsection (a)(2)(D).
(2) Availability of nonlocal checks.-- Subject to
subsections (a)(2), (d), and (e) of this section and
section 604, not more than 6 business days shall
intervene between the business day on which funds are
deposited in an account at a depository institution by
a check drawn on a nonlocal originating depository
institution and the business day on which such funds
are available for withdrawal.
(3) Applicability.-- This subsection shall apply with
respect to funds deposited by check in an account at a
depository institution after August 31, 1988, and
before September 1, 1990, except as may be otherwise
provided under subsection (b)(4).
(d) Time Period Adjustments.--
(1) Reduction generally.-- Notwithstanding any other
provision of law, the Board, jointly with the [Director
of the Bureau] Board of Directors of the Bureau of
Consumer Financial Protection, shall, by regulation,
reduce the time periods established under subsections
(b), (c), and (e) to as short a time as possible and
equal to the period of time achievable under the
improved check clearing system for a receiving
depository institution to reasonably expect to learn of
the nonpayment of most items for each category of
checks.
(2) Extension for certain deposits in noncontiguous
states or territories.-- Notwithstanding any other
provision of law, any time period established under
subsection (b), (c), or (e) shall be extended by 1
business day in the case of any deposit which is both--
(A) deposited in an account at a depository
institution which is located in Alaska, Hawaii,
Puerto Rico, or the Virgin Islands; and
(B) deposited by a check drawn on an
originating depository institution which is not
located in the same State, commonwealth, or
territory as the receiving depository
institution.
(e) Deposits at an ATM.--
(1) Nonproprietary atm.--
(A) In general.-- Not more than 4 business
days shall intervene between the business day a
deposit described in subparagraph (B) is made
at a nonproprietary automated teller machine
(for deposit in an account at a depository
institution) and the business day on which
funds from such deposit are available for
withdrawal.
(B) Deposits described in this paragraph.-- A
deposit is described in this subparagraph if it
is--
(i) a cash deposit;
(ii) a deposit made by a check
described in subsection (a)(2);
(iii) a deposit made by a check drawn
on a local originating depository
institution (other than a check
described in subsection (a)(2)); or
(iv) a deposit made by a check drawn
on a nonlocal originating depository
institution (other than a check
described in subsection (a)(2)).
(2) Proprietary atm--temporary and permanent
schedules.-- The provisions of subsections (a), (b),
and (c) shall apply with respect to any funds deposited
at a proprietary auto- mated teller machine for deposit
in an account at a depository institution.
(3) Study and report on atm's.-- The Board shall,
either directly or through the Consumer Advisory
Council, establish and maintain a dialogue with
depository institutions and their suppliers on the
computer software and hardware available for use by
automated teller machines, and shall, not later than
September 1 of each of the first 3 calendar years
beginning after the date of the enactment of this
title, report to the Congress regarding such software
and hardware and regarding the potential for improving
the processing of automated teller machine deposits.
(f) Check Return; Notice of Nonpayment.--No provision of this
section shall be construed as requiring that, with respect to
all checks deposited in a receiving depository institution--
(1) such checks be physically returned to such
depository institution; or
(2) any notice of nonpayment of any such check be
given to such depository institution within the times
set forth in subsection (a), (b), (c), or (e) or in the
regulations issued under any such subsection.
SEC. 604. SAFEGUARD EXCEPTIONS.
(a) New Accounts.--Notwithstanding section 603, in the case
of any account established at a depository institution by a new
depositor, the following provisions shall apply with respect to
any deposit in such account during the 30-day period (or such
shorter period as the Board, jointly with the [Director of the
Bureau] Board of Directors of the Bureau of Consumer Financial
Protection, may establish) beginning on the date such account
is established--
(1) Next business day availability of cash and
certain items.-- Except as provided in paragraph (3),
in the case of--
(A) any cash deposited in such account;
(B) any funds received by such depository
institution by wire transfer for deposit in
such account;
(C) any funds deposited in such account by
cashier's check, certified check, teller's
check, depository check, or traveler's check;
and
(D) any funds deposited by a government check
which is described in subparagraph (A), (B), or
(C) of section 603(a)(2),
such cash or funds shall be available for withdrawal on
the business day after the business day on which such
cash or funds are deposited or, in the case of a wire
transfer, on the business day after the business day on
which such funds are received for deposit.
(2) Availability of other items.-- In the case of any
funds deposited in such account by a check (other than
a check described in subparagraph (C) or (D) of
paragraph (1)), the availability for withdrawal of such
funds shall not be subject to the provisions of section
603(b), 603(c), or paragraphs (1) of section 603(e).
(3) Limitation relating to certain checks in excess
of $5,000.-- In the case of funds deposited in such
account during such period by checks described in
subparagraph (C) or (D) of paragraph (1) the aggregate
amount of which exceeds $5,000--
(A) paragraph (1) shall apply only with
respect to the first $5,000 of such aggregate
amount; and
(B) not more than 8 business days shall
intervene between the business day on which any
such funds are deposited and the business day
on which such excess amount shall be available
for withdrawal.
(b) Large or Redeposited Checks; Repeated Overdrafts.--The
Board, jointly with the [Director of the Bureau] Board of
Directors of the Bureau of Consumer Financial Protection, may,
by regulation, establish reasonable exceptions to any time
limitation established under subsection (a)(2), (b), (c), or
(e) of section 603 for--
(1) the amount of deposits by one or more checks that
exceeds the amount of $5,000 in any one day;
(2) checks that have been returned unpaid and
redeposited; and
(3) deposit accounts which have been overdrawn
repeatedly.
(c) Reasonable Cause Exception.--
(1) In general.-- In accordance with regulations
which the Board, jointly with the [Director of the
Bureau] Board of Directors of the Bureau of Consumer
Financial Protection, shall prescribe, subsections
(a)(2), (b), (c), and (e) of section 603 shall not
apply with respect to any check deposited in an account
at a depository institution if the receiving depository
institution has reasonable cause to believe that the
check is uncollectible from the originating depository
institution. For purposes of the preceding sentence,
reasonable cause to believe requires the existence of
facts which would cause a well-grounded belief in the
mind of a reasonable person. Such reasons shall be
included in the notice required under sub- section (f).
(2) Basis for determination.-- No determination under
this subsection may be based on any class of checks or
persons.
(3) Overdraft fees.-- If the receiving depository
institution determines that a check deposited in an
account is a check described in paragraph (1), the
receiving depository institution shall not assess any
fee for any subsequent overdraft with respect to such
account, if--
(A) the depositor was not provided with the
written notice required under subsection (f)
(with respect to such determination) at the
time the deposit was made;
(B) the overdraft would not have occurred but
for the fact that the funds so deposited are
not available; and
(C) the amount of the check is collected from
the originating depository institution.
(4) Compliance.-- Each agency referred to in section
610(a) shall monitor compliance with the requirements
of this subsection in each regular examination of a
depository institution and shall describe in each
report to the Congress the extent to which this
subsection is being complied with. For the purpose of
this paragraph, each depository institution shall
retain a record of each notice provided under
subsection (f) as a result of the application of this
subsection.
(d) Emergency Conditions.--Subject to such regulations as the
Board, jointly with the [Director of the Bureau] Board of
Directors of the Bureau of Consumer Financial Protection, may
prescribe, subsections (a)(2), (b), (c), and (e) of section 603
shall not apply to funds deposited by check in any receiving
depository institution in the case of--
(1) any interruption of communication facilities;
(2) suspension of payments by another depository
institution;
(3) any war; or
(4) any emergency condition beyond the control of the
receiving depository institution,
if the receiving depository institution exercises such
diligence as the circumstances require.
(e) Prevention of Fraud Losses.--
(1) In general.-- The Board, jointly with the
[Director of the Bureau] Board of Directors of the
Bureau of Consumer Financial Protection, may, by
regulation or order, suspend the applicability of this
title, or any portion thereof, to any classification of
checks if the Board, jointly with the [Director of the
Bureau] Board of Directors of the Bureau of Consumer
Financial Protection, determines that--
(A) depository institutions are experiencing
an unacceptable level of losses due to check-
related fraud, and
(B) suspension of this title, or such portion
of this title, with regard to the
classification of checks involved in such fraud
is necessary to diminish the volume of such
fraud.
(2) Sunset provision.-- No regulation prescribed or
order issued under paragraph (1) shall remain in effect
for more than 45 days (excluding Saturdays, Sundays,
legal holidays, or any day either House of Congress is
not in session).
(3) Report to congress.--
(A) Notice of each suspension.-- Within 10
days of prescribing any regulation or issuing
any order under paragraph (1), the Board,
jointly with the [Director of the Bureau] Board
of Directors of the Bureau of Consumer
Financial Protection, shall transmit a report
of such action to the Committee on Banking,
Finance and Urban Affairs of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(B) Contents of report.-- Each report under
subparagraph (A) shall contain--
(i) the specific reason for
prescribing the regulation or issuing
the order;
(ii) evidence considered by the
Board, jointly with the [Director of
the Bureau] Board of Directors of the
Bureau of Consumer Financial
Protection, in making the determination
under paragraph (1) with respect to
such regulation or order; and
(iii) specific examples of the check-
related fraud giving rise to such
regulation or order.
(f) Notice of Exception; Availability Within Reasonable
Time.--
(1) In general.-- If any exception contained in this
section (other than subsection (a)) applies with
respect to funds deposited in an account at a
depository institution--
(A) the depository institution shall provide
notice in the manner provided in paragraph (2)
of--
(i) the time period within which the
funds shall be made available for
withdrawal; and
(ii) the reason the exception was
invoked; and
(B) except where other time periods are
specifically provided in this title, the
availability of the funds deposited shall be
governed by the policy of the receiving
depository institution, but shall not exceed a
reasonable period of time as determined by the
Board, jointly with the [Director of the
Bureau] Board of Directors of the Bureau of
Consumer Financial Protection.
(2) Time for notice.-- The notice required under
paragraph (1)(A) with respect to a deposit to which an
exception contained in this section applies shall be
made by the time provided in the following
subparagraphs:
(A) In the case of a deposit made in person
by the depositor at the receiving depository
institution, the depository institution shall
immediately provide such notice in writing to
the depositor.
(B) In the case of any other deposit (other
than a deposit described in subparagraph (C)),
the receiving depository institution shall mail
the notice to the depositor not later than the
close of the next business day following the
business day on which the deposit is received.
(C) In the case of a deposit to which
subsection (d) or (e) applies, notice shall be
provided by the depository institution in
accordance with regulations of the Board,
jointly with the [Director of the Bureau] Board
of Directors of the Bureau of Consumer
Financial Protection.
(D) In the case of a deposit to which
subsection (b)(1) or (b)(2) applies, the
depository institution may, for nonconsumer
accounts and other classes of accounts, as
defined by the Board, that generally have a
large number of such deposits, provide notice
at or before the time it first determines that
the subsection applies.
(E) In the case of a deposit to which
subsection (b)(3) applies, the depository
institution may, subject to regulations of the
Board, provide notice at the beginning of each
time period it determines that the subsection
applies. In addition to the requirements
contained in paragraph (1)(A), the notice shall
specify the time period for which the exception
will apply.
(3) Subsequent determinations.-- If the facts upon
which the determination of the applicability of an
exception contained in subsection (b) or (c) to any
deposit only become known to the receiving depository
institution after the time notice is required under
paragraph (2) with respect to such deposit, the
depository institution shall mail such notice to the
depositor as soon as practicable, but not later than
the first business day following the day such facts
become known to the depository institution.
SEC. 605. DISCLOSURE OF FUNDS AVAILABILITY POLICIES.
(a) Notice for New Accounts.--Before an account is opened at
a depository institution, the depository institution shall
provide written notice to the potential customer of the
specific policy of such depository institution with respect to
when a customer may withdraw funds deposited into the
customer's account.
(b) Preprinted Deposit Slips.--All preprinted deposit slips
that a depository institution furnishes to its customers shall
contain a summary notice, as prescribed by the Board, jointly
with the [Director of the Bureau] Board of Directors of the
Bureau of Consumer Financial Protection, in regulations, that
deposited items may not be available for immediate withdrawal.
(c) Mailing of Notice.--
(1) First mailing after enactment.-- In the first
regularly scheduled mailing to customers occurring
after the effective date of this section, but not more
than 60 days after such effective date, each depository
institution shall send a written notice containing the
specific policy of such depository institution with
respect to when a customer may withdraw funds deposited
into such customer's account, unless the depository
institution has provided a disclosure which meets the
requirements of this section before such effective
date.
(2) Subsequent changes.-- A depository institution
shall send a written notice to customers at least 30
days before implementing any change to the depository
institution's policy with respect to when customers may
withdraw funds deposited into consumer accounts, except
that any change which expedites the availability of
such funds shall be disclosed not later than 30 days
after implementation.
(3) Upon request.-- Upon the request of any person, a
depository institution shall provide or send such
person a written notice containing the specific policy
of such depository institution with respect to when a
customer may withdraw funds deposited into a customer's
account.
(d) Posting of Notice.--
(1) Specific notice at manned teller stations.-- Each
depository institution shall post, in a conspicuous
place in each location where deposits are accepted by
individuals employed by such depository institution, a
specific notice which describes the time periods
applicable to the availability of funds deposited in a
consumer account.
(2) General notice at automated teller machines.-- In
the case of any automated teller machine at which any
funds are received for deposit in an account at any
depository institution, the Board, jointly with the
[Director of the Bureau] Board of Directors of the
Bureau of Consumer Financial Protection, shall
prescribe, by regulations, that the owner or operator
of such automated teller machine shall post or provide
a general notice that funds deposited in such machine
may not be immediately available for withdrawal.
(e) Notice of Interest Payment Policy.--If a depository
institution described in section 606(b) begins the accrual of
interest or dividends at a later date than the date described
in section 606(a) with respect to all funds, including cash,
deposited in an interest-bearing account at such depository
institution, any notice required to be provided under
subsections (a) and (c) shall contain a written description of
the time at which such depository institution begins to accrue
interest or dividends on such funds.
(f) Model Disclosure Forms.--
(1) Prepared by board and bureau.-- The Board,
jointly with the [Director of the Bureau] Board of
Directors of the Bureau of Consumer Financial
Protection, shall publish model disclosure forms and
clauses for common transactions to facilitate
compliance with the disclosure requirements of this
section and to aid customers by utilizing readily
understandable language.
(2) Use of forms to achieve compliance.-- A
depository institution shall be deemed to be in
compliance with the requirements of this section if
such institution--
(A) uses any appropriate model form or clause
as published by the Board, or
(B) uses any such model form or clause and
changes such form or clause by--
(i) deleting any information which is
not required by this title; or
(ii) rearranging the format.
(3) Voluntary use.-- Nothing in this title requires
the use of any such model form or clause prescribed by
the Board, jointly with the [Director of the Bureau]
Board of Directors of the Bureau of Consumer Financial
Protection, under this subsection.
(4) Notice and comment.-- Model disclosure forms and
clauses shall be adopted by the Board, jointly with the
[Director of the Bureau] Board of Directors of the
Bureau of Consumer Financial Protection, only after
notice duly given in the Federal Register and an
opportunity for public comment in accordance with
section 553 of title 5, United States Code.
* * * * * * *
SEC. 609. REGULATIONS AND REPORTS BY BOARD.
(a) In General.--After notice and opportunity to submit
comment in accordance with section 553(c) of title 5, United
States Code, the Board, jointly with the [Director of the
Bureau] Board of Directors of the Bureau of Consumer Financial
Protection, shall prescribe regulations--
(1) to carry out the provisions of this title;
(2) to prevent the circumvention or evasion of such
provisions; and
(3) to facilitate compliance with such provisions.
(b) Regulations Relating to Improvement of Check Processing
System.--In order to improve the check processing system, the
Board shall consider (among other proposals) requiring, by
regulation, that--
(1) depository institutions be charged based upon
notification that a check or similar instrument will be
presented for payment;
(2) the Federal Reserve banks and depository
institutions provide for check truncation;
(3) depository institutions be provided incentives to
return items promptly to the depository institution of
first deposit;
(4) the Federal Reserve banks and depository
institutions take such actions as are necessary to
automate the process of returning unpaid checks,
(5) each depository institution and Federal Reserve
bank--
(A) place its endorsement, and other
notations specified in regulations of the
Board, on checks in the positions specified in
such regulations; and
(B) take such actions as are necessary to--
(i) automate the process of reading
endorsements; and
(ii) eliminate unnecessary
endorsements;
(6) within one business day after an originating
depository institution is presented a check (for more
than such minimum amount as the Board may prescribe)--
(A) such originating depository institution
determine whether it will pay such check; and
(B) if such originating depository
institution determines that it will not pay
such check, such originating depository
institution directly notify the receiving
depository institution of such determination;
(7) regardless of where a check is cleared initially,
all returned checks be eligible to be returned through
the Federal Reserve System;
(8) Federal Reserve banks and depository institutions
participate in the development and implementation of an
electronic clearinghouse process to the extent the
Board determines, pursuant to the study under
subsection (f), that such a process is feasible; and
(9) originating depository institutions be permitted
to return unpaid checks directly to, and obtain
reimbursement for such checks directly from, the
receiving depository institution.
(c) Regulatory Responsibility of Board for Payment System.--
(1) Responsibility for payment system.-- In order to
carry out the provisions of this title, the Board of
Governors of the Federal Reserve System shall have the
responsibility to regulate--
(A) any aspect of the payment system,
including the receipt, payment, collection, or
clearing of checks; and
(B) any related function of the payment
system with respect to checks.
(2) Regulations.-- The Board shall prescribe such
regulations as it may determine to be appropriate to
carry out its responsibility under paragraph (1).
(d) Reports.--
(1) Implementation progress reports.--
(A) Required reports.-- The Board shall
transmit a report to both Houses of the
Congress not later than 18, 30, and 48 months
after the date of the enactment of this title.
(B) Contents of report.-- Each such report
shall describe--
(i) the actions taken and progress
made by the Board to implement the
schedules established in section 603,
and
(ii) the impact of this title on
consumers and depository institutions.
(2) Evaluation of temporary schedule report.--
(A) Report required.-- The Board shall
transmit a report to both Houses of the
Congress not later than 2 years after the date
of the enactment of this title regarding the
effects the temporary schedule established
under section 603(c) have had on depository
institutions and the public.
(B) Contents of report.-- Such report shall
also assess the potential impact the
implementation of the schedule established in
section 603(b) will have on depository
institutions and the public, including an
estimate of the risks to and losses of
depository institutions and the benefits to
consumers. Such report shall also contain such
recommendations for legislative or
administrative action as the Board may
determine to be necessary.
(3) Comptroller general evaluation report.-- Not
later than 6 months after section 603(b) takes effect,
the Comptroller General of the United States shall
transmit a report to the Congress evaluating the
implementation and administration of this title.
(e) Consultations.--In prescribing regulations under
subsections (a) and (b), the Board and the [Director of the
Bureau] Board of Directors of the Bureau of Consumer Financial
Protection, in the case of subsection (a), and the Board, in
the case of subsection (b), shall consult with the Comptroller
of the Currency, the Board of Directors of the Federal Deposit
Insurance Corporation, and the National Credit Union
Administration Board.
(f) Electronic Clearinghouse Study.--
(1) Study required.-- The Board shall study the
feasibility of modernizing and accelerating the check
payment system through the development of an electronic
clearinghouse process utilizing existing
telecommunications technology to avoid the necessity of
actual presentment of the paper instrument to a payor
institution before such institution is charged for the
item.
(2) Consultation; factors to be studied.-- In
connection with the study required under paragraph (1),
the Board shall--
(A) consult with appropriate experts in
telecommunications technology; and
(B) consider all practical and legal
impediments to the development of an electronic
clearinghouse process.
(3) Report required.-- The Board shall report its
conclusions to the Congress within 9 months of the date
of the enactment of this title.
* * * * * * *
----------
FEDERAL DEPOSIT INSURANCE ACT
* * * * * * *
SEC. 2. MANAGEMENT.
(a) Board of Directors.--
(1) In general.-- The management of the Corporation
shall be vested in a Board of Directors consisting of 5
members--
(A) 1 of whom shall be the Comptroller of the
Currency;
(B) 1 of whom shall be the [Director of the
Consumer Financial Protection Bureau]
Chairperson of the Board of Directors of the
Bureau of Consumer Financial Protection ; and
(C) 3 of whom shall be appointed by the
President, by and with the advice and consent
of the Senate, from among individuals who are
citizens of the United States, 1 of whom shall
have State bank supervisory experience.
(2) Political affiliation.-- After February 28, 1993,
not more than 3 of the members of the Board of
Directors may be members of the same political party.
(b) Chairperson and Vice Chairperson.--
(1) Chairperson.-- 1 of the appointed members shall
be designated by the President, by and with the advice
and consent of the Senate, to serve as Chairperson of
the Board of Directors for a term of 5 years.
(2) Vice chairperson.-- 1 of the appointed members
shall be designated by the President, by and with the
advice and consent of the Senate, to serve as Vice
Chairperson of the Board of Directors.
(3) Acting chairperson.-- In the event of a vacancy
in the position of Chairperson of the Board of
Directors or during the absence or disability of the
Chairperson, the Vice Chairperson shall act as
Chairperson.
(c) Terms.--
(1) Appointed members.-- Each appointed member shall
be appointed for a term of 6 years.
(2) Interim appointments.-- Any member appointed to
fill a vacancy occurring before the expiration of the
term for which such member's predecessor was appointed
shall be appointed only for the remainder of such term.
(3) Continuation of service.-- The Chairperson, Vice
Chairperson, and each appointed member may continue to
serve after the expiration of the term of office to
which such member was appointed until a successor has
been appointed and qualified.
(d) Vacancy.--
(1) In general.-- Any vacancy on the Board of
Directors shall be filled in the manner in which the
original appointment was made.
(2) Acting officials may serve.-- In the event of a
vacancy in the office of the Comptroller of the
Currency or the office of [Director of the Consumer
Financial Protection Bureau] Chairperson of the Board
of Directors of the Bureau of Consumer Financial
Protection and pending the appointment of a successor,
or during the absence or disability of the Comptroller
of the Currency or the [Director of the Consumer
Financial Protection Bureau] Chairperson of the Board
of Directors of the Bureau of Consumer Financial
Protection , the acting Comptroller of the Currency or
the acting [Director of the Consumer Financial
Protection Bureau] Chairperson of the Board of
Directors of the Bureau of Consumer Financial
Protection , as the case may be, shall be a member of
the Board of Directors in the place of the [Comptroller
or Director] Comptroller or Chairperson .
(e) Ineligibility for Other Offices.--
(1) Postservice restriction.--
(A) In general.-- No member of the Board of
Directors may hold any office, position, or
employment in any insured depository
institution or any depository institution
holding company during--
(i) the time such member is in
office; and
(ii) the 2-year period beginning on
the date such member ceases to serve on
the Board of Directors.
(B) Exception for members who serve full
term.-- The limitation contained in
subparagraph (A)(ii) shall not apply to any
member who has ceased to serve on the Board of
Directors after serving the full term for which
such member was appointed.
(2) Restriction during service.-- No member of the
Board of Directors may--
(A) be an officer or director of any insured
depository institution, depository institution
holding company, Federal Reserve bank, or
Federal home loan bank; or
(B) hold stock in any insured depository
institution or depository institution holding
company.
(3) Certification.-- Upon taking office, each member
of the Board of Directors shall certify under oath that
such member has complied with this subsection and such
certification shall be filed with the secretary of the
Board of Directors.
(f) Status of Employees.--
(1) In general.-- A director, member, officer, or
employee of the Corporation has no liability under the
Securities Act of 1933 with respect to any claim
arising out of or resulting from any act or omission by
such person within the scope of such person's
employment in connection with any transaction involving
the disposition of assets (or any interests in any
assets or any obligations backed by any assets) by the
Corporation. This subsection shall not be construed to
limit personal liability for criminal acts or
omissions, willful or malicious misconduct, acts or
omissions for private gain, or any other acts or
omissions outside the scope of such person's
employment.
(2) Definition.-- For purposes of this subsection,
the term ``employee of the Corporation'' includes any
employee of the Office of the Comptroller of the
Currency or of the Consumer Financial Protection Bureau
who serves as a deputy or assistant to a member of the
Board of Directors of the Corporation in connection
with activities of the Corporation.
(3) Effect on other law.-- This subsection does not
affect--
(A) any other immunities and protections that
may be available to such person under
applicable law with respect to such
transactions, or
(B) any other right or remedy against the
Corporation, against the United States under
applicable law, or against any person other
than a person described in paragraph (1)
participating in such transactions.
This subsection shall not be construed to limit or
alter in any way the immunities that are available
under applicable law for Federal officials and
employees not described in this subsection.
* * * * * * *
----------
FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978
* * * * * * *
TITLE X--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
* * * * * * *
establishment of the council
Sec. 1004. (a) There is established the Financial
Institutions Examination Council which shall consist of--
(1) the Comptroller of the Currency,
(2) the Chairman of the Board of Directors of the
Federal Deposit Insurance Corporation,
(3) a Governor of the Board of Governors of the
Federal Reserve System designated by the Chairman of
the Board,
(4) the [Director of the Consumer Financial
Protection Bureau] Chairperson of the Board of
Directors of the Bureau of Consumer Financial
Protection ,
(5) the Chairman of the National Credit Union
Administration Board, and
(6) the Chairman of the State Liaison Committee.
(b) The members of the Council shall select the first
chairman of the Council. Thereafter the chairmanship shall
rotate among the members of the Council.
(c) The term of the Chairman of the Council shall be two
years.
(d) The members of the Council may, from time to time,
designate other officers or employees of their respective
agencies to carry out their duties on the Council.
(e) Each member of the Council shall serve without additional
compensation but shall be entitled to reasonable expenses
incurred in carrying out his official duties a such a member.
* * * * * * *
----------
FINANCIAL LITERACY AND EDUCATION IMPROVEMENT ACT
* * * * * * *
TITLE V--FINANCIAL LITERACY AND EDUCATION IMPROVEMENT
* * * * * * *
SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION COMMISSION.
(a) In General.--There is established a commission to be
known as the ``Financial Literacy and Education Commission''.
(b) Purpose.--The Commission shall serve to improve the
financial literacy and education of persons in the United
States through development of a national strategy to promote
financial literacy and education.
(c) Membership.--
(1) Composition.-- The Commission shall be composed
of--
(A) the Secretary of the Treasury;
(B) the respective head of each of the
Federal banking agencies (as defined in section
3 of the Federal Deposit Insurance Act), the
National Credit Union Administration, the
Securities and Exchange Commission, each of the
Departments of Education, Agriculture, Defense,
Health and Human Services, Housing and Urban
Development, Labor, and Veterans Affairs, the
Federal Trade Commission, the General Services
Administration, the Small Business
Administration, the Social Security
Administration, the Commodity Futures Trading
Commission, and the Office of Personnel
Management;
(C) the [Director] Chairperson of the Board
of Directors of the Bureau of Consumer
Financial Protection; and
(D) at the discretion of the President, not
more than 5 individuals appointed by the
President from among the administrative heads
of any other Federal agencies, departments, or
other Federal Government entities, whom the
President determines to be engaged in a serious
effort to improve financial literacy and
education.
(2) Alternates.-- Each member of the Commission may
designate an alternate if the member is unable to
attend a meeting of the Commission. Such alternate
shall be an individual who exercises significant
decisionmaking authority.
(d) Chairperson.--The Secretary of the Treasury shall serve
as the Chairperson. The [Director] Chairperson of the Board of
Directors of the Bureau of Consumer Financial Protection shall
serve as the Vice Chairman.
(e) Meetings.--The Commission shall hold, at the call of the
Chairperson, at least 1 meeting every 4 months. All such
meetings shall be open to the public. The Commission may hold,
at the call of the Chairperson, such other meetings as the
Chairperson sees fit to carry out this title.
(f) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) Initial Meeting.--The Commission shall hold its first
meeting not later than 60 days after the date of enactment of
this Act.
* * * * * * *
----------
HOME MORTGAGE DISCLOSURE ACT OF 1975
TITLE III--HOME MORTGAGE DISCLOSURE
* * * * * * *
SEC. 307. COMPLIANCE IMPROVEMENT METHODS.
(a) In General.--
(1) Consultation required.-- The [Director of the
Bureau of Consumer] Board of Directors of the Bureau of
Consumer Financial Protection, with the assistance of
the Secretary, the Director of the Bureau of the
Census, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and
such other persons as the Bureau deems appropriate,
shall develop or assist in the improvement of, methods
of matching addresses and census tracts to facilitate
compliance by depository institutions in as economical
a manner as possible with the requirements of this
title.
(2) Authorization of appropriations.-- There are
authorized to be appropriated, such sums as may be
necessary to carry out this subsection.
(3) Contracting authority.-- The [Director of the
Bureau of Consumer] Board of Directors of the Bureau of
Consumer Financial Protection is authorized to utilize,
contract with, act through, or compensate any person or
agency in order to carry out this subsection.
(b) Recommendations to Congress.--The [Director of the Bureau
of Consumer] Board of Directors of the Bureau of Consumer
Financial Protection shall recommend to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives, such additional legislation as the [Director
of the Bureau of Consumer] Board of Directors of the Bureau of
Consumer Financial Protection deems appropriate to carry out
the purpose of this title.
* * * * * * *
----------
INTERSTATE LAND SALES FULL DISCLOSURE ACT
TITLE XIV--INTERSTATE LAND SALES
short title
Sec. 1401. This title may be cited as the ``Interstate Land
Sales Full Disclosure Act.''
definitions
Sec. 1402. For the purposes of this title, the term--
(1) [``Director '' means the Director ] ``Board''
means the Board of Directors of the Bureau of Consumer
Financial Protection;
(2) ``person'' means an individual, or an
unincorporated organization, partnership, association,
corporation, trust, or estate;
(3) ``subdivision'' means any land which is located
in any State or in a foreign country and is divided or
is proposed to be divided into lots, whether contiguous
or not, for the purpose of sale or lease as part of a
common promotional plan;
(4) ``common promotional plan'' means a plan,
undertaken by a single developer or a group of
developers acting in concert, to offer lots for sale or
lease; where such land is offered for sale by such a
developer or group of developers acting in concert, and
such land is contiguous or is known, designated, or
advertised as a common unit or by a common name, such
land shall be presumed, without regard to the number of
lots covered by each individual offering, as being
offered for sale or lease as part of a common
promotional plan;
(5) ``developer'' means any person who, directly or
indirectly, sells or leases, or offers to sell or
lease, or advertises for sale or lease any lots in a
subdivision;
(6) ``agent'' means any person who represents, or
acts for or on behalf of, a developer in selling or
leasing, or offering to sell or lease, any lot or lots
in a subdivision; but shall not include an attorney at
law whose representation or another person consists
solely of rendering legal services;
(7) ``blanket encumbrance'' means a trust deed,
mortgage, judgment, or any other lien or encumbrance,
including an option or contract to sell or a trust
agreement, affecting a subdivision or affecting more
than one lot offered within a subdivision, except that
such term shall not include any lien or other
encumbrance arising as the result of the imposition of
any tax assessment by any public authority;
(8) ``interstate commerce'' means trade or commerce
among the several states or between any foreign country
and any state;
(9) ``State'' includes the several States, the
District of Columbia, the Commonwealth of Puerto Rico,
and the territories and possessions of the United
States;
(10) ``purchaser'' means an actual or prospective
purchaser or lessee of any lot in a subdivision;
(11) ``offer'' includes any inducement, solicitation,
or attempt to encourage a person to acquire a lot in a
subdivision; and
(12) ``Bureau'' means the Bureau of Consumer
Financial Protection.
exemptions
Sec. 1403. (a) Unless the method of disposition is adopted
for the purpose of evasion of this title, the provisions of
this title shall not apply to--
(1) the sale or lease of lots in a subdivision
containing less than twenty-five lots;
(2) the sale or lease of any improved land on which
there is a residential, commercial, condominium, or
industrial building, or the sale or lease of land under
a contract obligating the seller or lessor to erect
such a building thereon within a period of two years;
(3) the sale of evidences of indebtedness secured by
a mortgage or deed of trust on real estate;
(4) the sale of securities issued by a real estate
investment trust;
(5) the sale or lease of real estate by any
government or government agency;
(6) the sale or lease of cemetery lots;
(7) the sale or lease of lots to any person who
acquires such lots for the purpose of engaging in the
business of constructing residential, commercial, or
industrial buildings or for the purpose of resale or
lease of such lots to persons engaged in such business;
or
(8) the sale or lease of real estate which is zoned
by the appropriate governmental authority for
industrial or commercial development or which is
restricted to such use by a declaration of covenants,
conditions, and restrictions which has been recorded in
the official records of the city or county in which
such real estate is located, when--
(A) local authorities have approved access
from such real estate to a public street or
highway;
(B) the purchaser or lessee of such real
estate is a duly organized corporation,
partnership, trust, or business entity engaged
in commercial or industrial business;
(C) the purchaser or lessee of such real
estate is represented in the transaction of
sale or lease by a representative of its own
selection;
(D) the purchaser or lessee of such real
estate affirms in writing to the seller or
lessor that it either (i) is purchasing or
leasing such real estate substantially for its
own use, or (ii) has a binding commitment to
sell, lease, or sublease such real estate to an
entity which meets the requirements of
subparagraph (B), is engaged in commercial or
industrial business, and is not affiliated with
the seller, lessor, or agent thereof; and
(E) a policy of title insurance or a title
opinion is issued in connection with the
transaction showing that title to the real
estate purchased or leased is vested in the
seller or lessor, subject only to such
exceptions as may be approved in writing by
such purchaser or the lessee prior to
recordation of the instrument of conveyance or
execution of the lease, but (i) nothing herein
shall be construed as requiring the recordation
of a lease, and (ii) any purchaser or lessee
may waive, in writing in a separate document,
the requirement of this subparagraph that a
policy of title insurance or title opinion be
issued in connection with the transaction.
(b) Unless the method of disposition is adopted for the
purpose of evasion of this title, the provisions requiring
registration and disclosure (as specified in section 1404(a)(1)
and sections 1405 through 1408) shall not apply to--
(1) the sale or lease of lots in a subdivision
containing fewer than one hundred lots which are not
exempt under subsection (a);
(2) the sale or lease of lots in a subdivision if,
within the twelve-month period commencing on the date
of the first sale or lease of a lot in such subdivision
after the effective date of this subsection or on such
other date within that twelve-month period as the
[Director] Board may prescribe, not more than twelve
lots are sold or leased, and the sale or lease of the
first twelve lots in such subdivision in any subsequent
twelve-month period, if not more than twelve lots have
been sold or leased in any preceding twelve-month
period after the effective date of this subsection;
(3) the sale or lease of lots in a subdivision if
each noncontiguous part of such subdivision contains
not more than twenty lots, and if the purchaser or
lessee (or spouse thereof) has made a personal, on-the-
lot inspection of the lot purchased or leased, prior to
signing of the contract or agreement to purchase or
lease;
(4) the sale or lease of lots in a subdivision in
which each of the lots is at least twenty acres
(inclusive of easements for ingress and egress or
public utilities);
(5) the sale or lease of a lot which is located
within a municipality or county where a unit of local
government specifies minimum standards for the
development of subdivision lots taking place within its
boundaries, when--
(A)(i) the subdivision meets all local codes
and standards, and (ii) each lot is either
zoned for single family residences or, in the
absence of a zoning ordinance, is limited
exclusively to single family residences;
(B)(i) the lot is situated on a paved street
or highway which has been built to standards
applicable to streets and highways maintained
by the unit of local government in which the
subdivision is located and is acceptable to
such unit, or, where such street or highway is
not complete, a bond or other surety acceptable
to the municipality or county in the full
amount of the cost of completing such street or
highway has been posted to assure completion to
such standards, and (ii) the unit of local
government or a homeowners association has
accepted or is obligated to accept the
responsibility of maintaining such street or
highway, except that, in any case in which a
homeowners association has accepted or is
obligated to accept such responsibility, a good
faith written estimate of the cost of carrying
out such responsibility over the first ten
years of ownership or lease is provided to the
purchaser or lessee prior to the signing of the
contract or agreement to purchase or lease;
(C) at the time of closing, potable water,
sanitary sewage disposal, and electricity have
been extended to the lot or the unit of local
government is obligated to install such
facilities within one hundred and eighty days,
and, for subdivisions which do not have a
central water or sewage disposal system, rather
than installation of water or sewer facilities,
there must be assurances that an adequate
potable water supply is available year-round
and that the lot is approved for the
installation of a septic tank;
(D) the contract of sale requires delivery of
a warranty deed (or, where such deed is not
commonly used in the jurisdiction where the lot
is located, a deed or grant which warrants that
the grantor has not conveyed the lot to another
person and that the lot is free from
encumbrances made by the grantor or any other
person claiming by, through, or under him) to
the purchaser within one hundred and eighty
days after the signing of the sales contract;
(E) at the time of closing, a title insurance
binder or a title opinion reflecting the
condition of the title shall be in existence
and issued or presented to the purchaser or
lessee showing that, subject only to such
exceptions as may be approved in writing by the
purchaser or lessee at the time of closing,
marketable title to the lot is vested in the
seller or lessor;
(F) the purchaser or lessee (or spouse
thereof) has made a personal, on-the-lot
inspection of the lot purchased or leased,
prior to signing of the contract or agreement
to purchase or lease; and
(G) there are no offers, by direct mail or
telephone solicitation, of gifts, trips,
dinners, or other such promotional techniques
to induce prospective purchasers or lessees to
visit the subdivision or to purchase or lease a
lot;
(6) the sale or lease of a lot, if a mobile home is
to be erected or placed thereon as a residence, where
the lot is sold as a homesite by one party and the home
by another, under contracts that obligate such sellers
to perform, contingent upon the other seller carrying
out its obligations so that a completed mobile home
will be erected or placed on the completed homesite
within a period of two years, and provide for all funds
received by the sellers to be deposited in escrow
accounts (controlled by parties independent of the
sellers) until the transactions are completed, and
further provide that such funds shall be released to
the buyer on demand without prejudice if the land with
the mobile home erected or placed thereon is not
conveyed within such two-year period. Such homesite
must conform to all local codes and standards for
mobile home subdivisions, if any, must provide potable
water, sanitary sewage disposal, electricity, access by
roads, the purchaser must receive marketable title to
the lot, and where common facilities are to be
provided, they must be completed or fully funded;
(7)(A) the sale or lease of real estate by a
developer who is engaged in a sales operation which is
intrastate in nature. For purposes of this exemption, a
lot may be sold only if--
(i) the lot is free and clear of all liens,
encumberances, and adverse claims;
(ii) the purchaser or lessee (or spouse
thereof) has made a personal on-the-lot
inspection of the lot to be purchased or
leased;
(iii) each purchase or lease agreement
contains--
(I) a clear and specific statement
describing a good faith estimate of the
year of completion of, and the party
responsible for, providing and
maintaining the roads, water
facilities, sewer facilities and any
existing or promised amenities; and
(II) a nonwaivable provision
specifying that the contract or
agreement may be revoked at the option
of the purchaser or lessee until
midnight of the seventh day following
the signing of such contract or
agreement or until such later time as
may be required pursuant to applicable
State laws; and
(iv) the purchaser or lessee has, prior to
the time the contract or lease is entered into,
acknowledged in writing the receipt of a
written statement by the developer containing
good faith estimates of the cost of providing
electric, water, sewage, gas, and telephone
service to such a lot.
(B) As used in subparagraph (A)(i) of this paragraph,
the terms ``liens'', ``encumbrances'', and ``adverse
claims'' do not include United States land patents and
similar Federal grants or reservations, property
reservations which land developers commonly convey or
dedicate to local bodies or public utilities for the
purpose of bringing public services to the land being
developed, taxes and assessments imposed by a State, by
any other public body having authority to assess and
tax property, or by a property owners' association,
which, under applicable State or local law, constitute
liens on the property before they are due and payable
or beneficial property restrictions which would be
enforceable by other lot owners or lessees in the
subdivision, if--
(i) the developer, prior to the time the
contract of sale or lease is entered into, has
furnished each purchaser or lessee with a
statement setting forth in descriptive and
concise terms all such liens, reservations,
taxes, assessments and restrictions which are
applicable to the lot to be purchased or
leased; and
(ii) receipt of such statement has been
acknowledged in writing by the purchaser or
lessee.
(C) For the purpose of this paragraph, a sales
operation is ``intrastate in nature'' if the developer
is subject to the laws of the State in which the land
is located, and each lot in the subdivision, other than
those which are exempt under section 1403(a), (b)(6),
or (b)(8), is sold or leased to residents of the State
in which the land is located; or
(8) the sale or lease of a lot in a subdivision
containing fewer than three hundred lots if--
(A) the principal residence of the purchaser
or lessee is within the same standard
metropolitan statistical area, as defined by
the Office of Management and Budget, as the lot
purchased or leased;
(B) the lot is free and clear of liens (such
as mortgages, deeds of trust, tax liens,
mechanics liens, or judgments) at the time of
the signing of the contract or agreement and
until a deed is delivered to the purchaser or
the lease expires. As used in this
subparagraph, the term ``liens'' does not
include (i) United States land patents and
similar Federal grants or reservations, (ii)
property reservations which lands developers
commonly convey or dedicate to local bodies or
public utilities for the purpose of bringing
public services to the land being developed,
(iii) taxes and assessments imposed by a State,
by any other public body having authority to
assess and tax property, or by a property
owners' association, which, under applicable
State or local law, constitute liens on the
property before they are due and payable or
beneficial property restrictions which would be
enforceable by other lot owners or lessees in
the subdivision, or (iv) other interests
described in regulations prescribed by the
[Director] Board ;
(C) the purchaser or lessee (or spouse
thereof) has made a personal on-the-lot
inspection of the lot to be purchased or
leased;
(D) each purchase or lease agreement contains
(i) a clear and specific statement describing a
good faith estimate of the year of completion
of and the party responsible for providing and
maintaining the roads, water facilities sewer
facilities and any existing or promised
amenities; and (ii) a non waivable provision
specifying that the contract or agreement may
be revoked at the option of the purchaser or
lessee until midnight of the seventh day
following the signing of such contract or
agreement or until such later time as may be
required pursuant to applicable State laws;
(E) the purchaser or lessee has, prior to the
time the contract or lease is entered into,
acknowledged in writing receipt of a written
statement by the developer setting forth (i) in
descriptive and concise terms all liens,
reservations, taxes, assessments, beneficial
property restrictions which would be
enforceable by other lot owners or lessees in
the subdivision, and adverse claims which are
applicable to the lot to be purchased or
leased, and (ii) good faith estimates of the
cost of providing electric, water, sewer, gas,
and telephone service to such lot;
(F) the developer executes and supplies to
the purchaser a written instrument designating
a person within the State of residence of the
purchaser as his agent for service of process
and acknowledging that the developer submits to
the legal jurisdiction of the State in which
the purchaser or lessee resides; and
(G) the developer executes a written
affirmation to the effect that he has complied
with the provisions of this paragraph, such
affirmation to be given on a form provided by
the [Director] Board , which shall include the
following: the name and address of the
developer; the name and address of the
purchaser or lessee; a legal description of the
lot; and affirmation that the provisions of
this paragraph have been complied with; a
statement that the developer submits to the
jurisdiction of this title with regard to the
sale of lease; and the signature of the
developer.
(9) the sale or lease of a condominium unit that is
not exempt under subsection (a).
(c) The [Director] Board may from time to time, pursuant to
rules and regulations issued [by him] by the Board , exempt
from any of the provisions of this title any subdivision or any
lots in a subdivision, if [he] the Board finds that the
enforcement of this title with respect to such subdivision or
lots is not necessary in the public interest and for the
protection of purchasers by reason of the small amount involved
or the limited character of the public offering.
(d) For purposes of subsection (b), the term ``condominium
unit'' means a unit of residential or commercial property to be
designated for separate ownership pursuant to a condominium
plan or declaration provided that upon conveyance--
(1) the owner of such unit will have sole ownership
of the unit and an undivided interest in the common
elements appurtenant to the unit; and
(2) the unit will be an improved lot.
* * * * * * *
registration of subdivisions
Sec. 1405. (a) A subdivision may be registered by filing with
the [Director] Board a statement of record, meeting the
requirements of this title and such rules and regulations as
may be prescribed by the [Director] Board in furtherance of the
provisions of this title. A statement of record shall be deemed
effective only as to the lots specified therein.
(b) At the time of filing a statement of record, or any
amendment thereto, the developer shall pay to the [Director]
Board a fee, not in excess of $1,000, in accordance with a
schedule to be fixed by the regulations of the [Director] Board
, which fees may be used by the [Director] Board to cover all
or part of the cost of rendering services under this title, and
such expenses as are paid from such fees shall be considered
non-administrative.
(c) The filing with the [Director] Board of a statement of
record, or of an amendment thereto, shall be deemed to have
taken place upon the receipt thereof, accompanied by payment of
the fee required by subsection (b).
(d) The information contained in or filed with any statement
of record shall be made available to the public under such
regulations as the [Director] Board may prescribe and copies
thereof shall be furnished to every applicant at such
reasonable charge as the [Director] Board may prescribe.
information required in statement of record
Sec. 1406. The statement of record shall contain the
information and be accompanied by the documents specified
hereinafter in this section--
(1) the name and address of each person having an
interest in the lots in the subdivision to be covered
by the statement of record and the extent of such
interest;
(2) a legal description of, and a statement of the
total area included in, the subdivision and a statement
of the topography thereof, together with a map showing
the division proposed and the dimensions of the lots to
be covered by the statement of record and their
relation to existing streets and roads;
(3) a statement of the condition of the title to the
land comprising the subdivision, including all
encumbrances and deed restrictions and convenants
applicable thereto;
(4) a statement of the general terms and conditions,
including the range of selling prices or rents at which
it is proposed to dispose of the lots in the
subdivision;
(5) a statement of the present condition of access to
the subdivision, the existence of any unusual
conditions relating to noise or safety which affect the
subdivision and are known to the developer, the
availability of sewage disposal facilities and other
public utilities (including water, electricity, gas and
telephone facilities) in the subdivision, the proximity
in miles to the subdivision to nearby municipalities,
and the nature of any improvements to be installed by
the developer and his estimated schedule for
completion;
(6) in the case of any subdivision or portion thereof
against which there exists a blanket encumbrance, a
statement of the consequences for an individual
purchaser of a failure, by the person or persons bound,
to fulfill obligations under the instrument or
instruments creating such encumbrance and the steps, if
any, taken to protect the purchaser in such
eventuality;
(7)(A) copy of its articles of incorporation, with
all amendments thereto, if the developer is a
corporation; (B) copies of all instruments by which the
trust is created or declared, if the developer is a
trust; (C) copies of its articles of partnership or
association and all other papers pertaining to its
organization, if the developer is a partnership,
unincorporated association, joint stock company, or any
other form of organization; and (D) if the purported
holder of legal title is a person other than developer,
copies of the above documents for such person;
(8) copies of the deed or other instrument
establishing title to the subdivision in the developer
or other person and copies of any instrument creating a
lien or encumbrance upon the title of developer or
other person or copies of the opinion or opinions of
counsel in respect to the title to the subdivision in
the developer or other person or copies of the title
insurance policy guaranteeing such title;
(9) copies of all forms of conveyance to be used in
selling or leasing lots to purchasers;
(10) copies of instruments creating easements or
other restrictions;
(11) such certified and uncertified financial
statements of the developer as the [Director] Board may
require; and
(12) such other information and such other documents
and certifications as the [Director] Board may require
as being reasonably necessary or appropriate for the
protection of purchasers.
taking effect of statements of record and amendments thereto
Sec. 1407. (a) Except as hereinafter provided, the effective
date of a statement of record, or any amendment thereto, shall
be the thirtieth day after the filing thereof or such earlier
date as the [Director] Board may determine, having due regard
to the public interest and the protection of purchaser. If any
amendment to any such statement is filed prior to the effective
date of the statement, the statement shall be deemed to have
been filed when such amendment was filed; except that such an
amendment filed with the consent of the Secertary, or filed
pursuant to an order of the [Director] Board , shall be treated
as being filed as of the date of the filing of the statement of
record. When a developer records additional lands to be offered
for disposition, he may consolidate the subsequent statement of
record with any earlier recording offering subdivided land for
disposition under the same promotional plan. At the time of
consolidation the developer shall include in the consolidated
statement of record any material changes in the information
contained in the earlier statement.
(b) If it appears to the [Director] Board that a statement of
record, or any amendment thereto, is on its face incomplete or
inaccurate in any material respect, the [Director] Board shall
so advise the developer within a reasonable time after the
filing of the statement or the amendment, but prior to the date
the statement or amendment would otherwise be effective. Such
notification shall serve to suspend the effective date of the
statement or the amendment until thirty days after the
developer files such additional information as the [Director]
Board shall require. Any developer, upon receipt of such
notice, may request a hearing, and such hearing shall be held
within twenty days of receipt of such request by the [Director]
Board .
(c) If, at any time subsequent to the effective date of a
statement or record, a change shall occur affecting any
material fact required to be contained in the statement, the
developer shall promptly file an amendment thereto. Upon
receipt of any such amendment, the [Director] Board may, if
[he] the Board determines such action to be necessary or
appropriate in the public interest or for the protection of
purchasers, suspend the statement of record until the amendment
becomes effective.
(d) If it appears to the [Director] Board at any time that a
statement of record, which is in effect, includes any untrue
statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the
statements therein not misleading, the [Director] Board may,
after notice, and after opportunity for hearing (at a time
fixed by the [Director] Board ) within fifteen days after such
notice, issue an order suspending the statement of record. When
such statement has been amended in accordance with such order,
the [Director] Board shall so declare and thereupon the order
shall cease to be effective.
(e) The [Director] Board is hereby empowered to make an
examination in any case to determine whether an order should
issue under subsection (d). In making such examination, the
[Director] Board or anyone designated by [him] the Board shall
have access to and may demand the production of any books and
papers of, and many administer oaths and affirmations to and
examine, the developer, any agents, or any other person, in
respect of any matter relevant to the examination. If the
developer or any agents shall fail to cooperate, or shall
obstruct or refuse to permit the making of an examination, such
conduct shall be proper ground for the issuance of an order
suspending the statement of record.
(f) Any notice required under this section shall be sent to
or served on the developer or his authorized agent.
information required in property report
Sec. 1408. (a) A property report relating to the lots in a
subdivision shall contain such of the information contained in
the statement of record, and any amendments thereto, as the
[Director] Board may deem necessary, but need not include the
documents referred to in paragraphs (7) to (11), inclusive, of
section 1406. A property report shall also contain such other
information as the [Director] Board may by rules or regulations
require as being necessary or appropriate in the public
interest or for the protection of purchasers.
(b) The property report shall not be used for any promotional
purposes before the statement of record becomes effective and
then only if it is used in its entirety. No person may
advertise or represent that the [Director] Board approves or
recommends the subdivision or the sale or lease of lots
therein. No portion of the property report shall be
underscored, italicized, or printed in larger, or bolder type
than the balance of the statement unless the [Director] Board
requires or permits it.
certification of substantially equivalent state law
Sec. 1409. (a)(1) A State shall be certified if the
[Director] Board determines--
(A) that, when taken as a whole, the laws and
regulations of the State applicable to the sale or
lease of lots not exempt under section 1403 require the
seller or lessor of such lots to disclose information
which is at least substantially equivalent to the
information required to be disclosed by section 1408;
and
(B) that the State's administration of such laws and
regulations provides, to the maximum extent
practicable, that such information is accurate.
(2) In the case of any State which is not certified under
paragraph (1), such State shall be certified if the [Director]
Board determines--
(A) that when taken as a whole, the laws and
regulations of the State applicable to the sale or
lease of lots not exempt under section 1403 provide
sufficient protection for purchasers and lessees with
respect to the matters for which information is
required to be disclosed by section 1408 but which is
not required to be disclosed by such State's laws and
regulations; and
(B) that the State's administration of such laws and
regulations provides, to the maximum extent
practicable, that (i) information required to be
disclosed by such laws and regulations is accurate, and
(ii) sufficient protection for purchasers and lessees
is made available with respect to the matters for which
information is not required to be disclosed.
(3) Any State requesting certification must agree to accept a
property report covering land located in another certified
State but offered for sale or lease in the State requesting
certification if the property report has been approved by the
other certified State. Such property report shall be the only
property report required by the State with respect to the sale
or lease of such land.
(b) After the [Director] Board has certified a State under
subsection (a), the [Director] Board shall accept for filing
under sections 1405 through 1408 (and declare effective as the
Federal statement of record and property report which shall be
used in all States in which the lots are offered for sale or
lease) disclosure materials found acceptable, and any related
documentation required, by State authorities in connection with
the sale or lease of lots located within the State. The
[Director] Board may accept for such filing, and declare
effective as the Federal statement of record and property
report, such materials and documentation found acceptable by
the State in connection with the sale or lease of lots located
outside that State. Nothing in this subsection shall preclude
the [Director] Board from exercising the authority conferred by
subsections (d) and (e) of section 1407.
(c) If a State fails to meet the standards for certification
pursuant to subsection (a), the [Director] Board shall notify
the State in writing of the changes in State law, regulation,
or administration that are needed in order to obtain
certification.
(d) The [Director] Board shall periodically review the laws
and regulations, and the administration thereof, of States
certified under subsection (a), and may withdraw such
certification upon a determination that such laws, regulations,
and the administration thereof, taken as a whole, no longer
meet the requirements of subsection (a).
(e) Nothing in this title may be construed to prevent or
limit the authority of any State or local government to enact
and enforce with regard to the sale of land any law, ordinance,
or code not in conflict with this title. In administering this
title, the [Director] Board shall cooperate with State
authorities charged with the responsibility of regulating the
sale or lease of lots which are subject to this title.
* * * * * * *
court review of orders
Sec. 1411. (a) Any person, aggrieved by an order or
determination of the [Director] Board issued after a hearing,
may obtain a review of such order or determination in the court
of appeals of the United States, within any circuit wherein
such person resides or has his principal place of business, or
in the United States Court of Appeals for the District of
Columbia, by filing in such court, within sixty days after the
entry of such order or determination, a written petition
praying that the order or determination of the [Director] Board
be modified or be set aside in whole or in part. A copy of such
petition shall be forthwith transmitted by the clerk of the
court to the [Director] Board , and thereupon the [Director]
Board shall file in the court the record upon which the order
or determination complained of was entered, as provided in
section 2112 of title 28, United States Code. No objection to
an order or determination of the [Director] Board shall be
considered by the court unless such objection shall have been
urged before the [Director] Board . The finding of the
[Director] Board as to the facts, if supported by substantial
evidence, shall be conclusive. If either party shall apply to
the court for leave to adduce additional evidence, and shall
show to the satisfaction of the court that such additional
evidence is material and that there were reasonable grounds for
failure to adduce such evidence in the hearing before the
[Director] Board , the court may order such additional evidence
to be taken before the [Director] Board and to be adduced upon
a hearing in such manner and upon such terms and conditions as
to the court may seem proper. The [Director] Board may modify
[his findings] its finding as to the facts by reason of the
additional evidence so taken, and shall file such modified or
new findings, which, if supported by substantial evidence,
shall be conclusive, and [his recommendation] a recommendation
, if any, for the modification or setting aside of the original
order. Upon the filing of such petition, the jurisdiction of
the court shall be exclusive and its judgment and decree,
affirming, modifying, or setting aside, in whole or in part,
any order of the [Director] Board , shall be final, subject to
review by the Supreme Court of the United States upon
certiorari or certification as provided in section 1254 of
title 28, United States Code.
(b) The commencement of proceedings under subsection (a)
shall not, unless specifically ordered by the court, operate as
a stay of the [Secretary's order] order of the Board .
* * * * * * *
contrary stipulation void
Sec. 1413. Any condition, stipulation, or provision binding
any person acquiring any lot in a subdivision to waive
compliance with any provision of this title of the rules and
regulations of the [Director] Board shall be void.
* * * * * * *
investigations, injunctions, and prosecution of offenses
Sec. 1415. (a) Whenever it shall appear to the [Director]
Board that any person is engaged or about to engage in any acts
or practices which constitute or will constitute a violation of
the provisions of this title, or of any rule or regulation
prescribed pursuant thereto, [he may, in his discretion] the
Board may, at the discretion of the Board , bring an action in
any district court of the United States, or the United States
District Court for the District of Columbia to enjoin such acts
or practices, and, upon a proper showing, a permanent or
temporary injunction or restraining order shall be granted
without bond. The [Director] Board may transmit such evidence
as may be available concerning such acts or practices to the
Attorney General who may, [in his discretion] at the discretion
of the Board , institute the appropriate criminal proceedings
under this title.
(b) The [Director] Board may, [in his discretion] at the
discretion of the Board , make such investigations as [he] the
Board deems necessary to determine whether any person has
violated or is about to violate any provision of this title or
any rule or regulation prescribed pursuant thereto, and may
require or permit any person to file with [him] the Board a
statement in writing, under oath or otherwise as the [Director]
Board shall determine, as to all the facts and circumstances
concerning the matter to be investigated. The [Director] Board
is authorized, [in his discretion] at the discretion of the
Board , to publish information concerning any such violations,
and to investigate any facts, conditions, practices, or matters
which [he] the Board may deem necessary or proper to aid in the
enforcement of the provisions of this title, in the prescribing
of rules and regulations thereunder or in securing information
to service as a basis for recommending further legislation
concerning the matters to which this title relates.
(c) For the purpose of any such investigation, or any other
proceeding under this title, the [Director] Board , or any
officer designated by [him] the Board , is empowered to
administer oaths and affirmations, subpena witnesses, compel
their attendance, take evidence, and require the production of
any books, papers, correspondence, memorandums, or other
records which the [Director] Board deems relevant or material
to the inquiry. Such attendance of witnesses and the production
of any such records may be required from any place in the
United States or any State at any designated place of hearing.
(d) In case of contumacy by, or refusal to obey a subpena
issued to, any person, the [Director] Board may invoke the aid
of any court of the United States within the jurisdiction of
which such investigation or proceeding is carried on, or where
such person resides or carries on business, in requiring the
attendance and testimony of witnesses and the production of
books, papers, correspondence, memorandums, and other records
and documents. And such court may issue an order requiring such
person to appear before the [Director] Board or any officer
designated by the [Director] Board , there to produce records,
if so ordered, or to give testimony touching the matter under
investigation or in question; and any failure to obey such
order of the court may be punished by such court as a contempt
thereof. All process in any such case may be served in the
judicial district whereof such person is an inhabitant or
wherever he may be found.
administration
Sec. 1416. (a) The authority and responsibility for
administering this title shall be in the [Director] Board [of
the Bureau of Consumer Financial Protection] who may delegate
any of [his functions, duties, and powers] the functions,
duties, and powers of the Board to employees of the Bureau of
Consumer Financial Protection or to boards of such employees
including functions, duties, and powers with respect to
investigating, hearing, determining, ordering, or otherwise
acting as to any work, business, or matter under this title.
The persons to whom such delegations are made with respect to
hearing functions, duties, and powers shall be appointed and
shall serve in the Bureau in compliance with sections 3105,
3344, 5372, and 7521 of title 5 of the United States Code. The
[Director] Board shall by rule prescribed such rights of appeal
from the decisions of [his administrative law judges] the
administrative law judges of the Bureau of Consumer Financial
Protection to other administrative law judges or to other
officers in the Bureau, to boards of officers or to [himself]
the Board , as shall be apropriate and in accordance with law.
(b) All hearings shall be public and appropriate records
thereof shall be kept, and any order issued after such hearing
shall be based on the record made in such hearing which shall
be conducted in accordance with provisions of subchapter II of
chapter 5, and chapter 7, of title 5, United States Code.
(c) The [Director] Board shall conduct all actions with
respect to rulemaking or adjudication under this title in
accordance with the provisions of chapter 5 of title 5, United
States Code. Notice shall be given of any adverse action or
final disposition and such notice and the entry of any order
shall be accompanied by a written statement of supporting facts
and legal authority.
unlawful representations
Sec. 1417. The fact that a statement of record with respect
to a subdivision has been filed or is in effect shall not be
deemed a finding by the [Director] Board that the statement of
record is true and accurate on its face, or be held to mean the
[Director] Board has in any way passed upon the merits of, or
given approval to, such subdivision. It shall be unlawful to
make, or cause to be made, to any prospective purchaser any
representation contrary to the foregoing.
* * * * * * *
civil money penalties
Sec. 1418a. (a) In General.--
(1) Authority.-- Whenever any person knowingly and
materially violates any of the provisions of this title
or any rule, regulation, or order issued under this
title, the [Director] Board may impose a civil money
penalty on such person in accordance with the
provisions of this section. The penalty shall be in
addition to any other available civil remedy or any
available criminal penalty, and may be imposed whether
or not the [Director] Board imposes other
administrative sanctions.
(2) Amount of penalty.-- The amount of the penalty,
as determined by the [Director] Board , may not exceed
$1,000 for each violation, except that the maximum
penalty for all violations by a particular person
during any 1-year period shall not exceed $1,000,000.
Each violation of this title, or any rule, regulation,
or order issued under this title, shall constitute a
separate violation with respect to each sale or lease
or offer to sell or lease. In the case of a continuing
violation, as determined by the [Director] Board , each
day shall constitute a separate violation.
(b) Agency Procedures.--
(1) Establishment.-- The [Director] Board shall
establish standards and procedures governing the
imposition of civil money penalties under subsection
(a). The standards and procedures--
(A) shall provide for the imposition of a
penalty only after a person has been given an
opportunity for a hearing on the record; and
(B) may provide for review by the [Director]
Board of any determination or order, or
interlocutory ruling, arising from a hearing.
(2) Final orders.-- If no hearing is requested within
15 days of receipt of the notice of opportunity for
hearing, the imposition of the penalty shall constitute
a final and unappealable determination. If the
[Director] Board reviews the determination or order,
the [Director] Board may affirm, modify, or reverse
that determination or order. If the [Director] Board
does not review the determination or order within 90
days of the issuance of the determination or order, the
determination or order shall be final.
(3) Factors in determining amount of penalty.-- In
determining the amount of a penalty under subsection
(a), consideration shall be given to such factors as
the gravity of the offense, any history of prior
offenses (including offenses occurring before enactment
of this section), ability to pay the penalty, injury to
the public, benefits received, deterrence of future
violations, and such other factors as the [Director]
Board may determine in regulations to be appropriate.
(4) Reviewability of imposition of penalty.-- [The
Secretary's determination or order] A determination or
order of the Board imposing a penalty under subsection
(a) shall not be subject to review, except as provided
in subsection (c).
(c) Judicial Review of Agency Determination.--
(1) In General.-- After exhausting all administrative
remedies established by the [Director] Board under
subsection (b)(1), a person aggrieved by a final order
of the [Director] Board assessing a penalty under this
section may seek judicial review pursuant to section
1411.
(2) Order to pay penalty.-- Notwithstanding any other
provision of law, in any such review, the court shall
have the power to order payment of the penalty imposed
by the [Director] Board .
(d) Action to Collect Penalty.--If any person fails to comply
with the determination or order of the [Director] Board
imposing a civil money penalty under subsection (a), after the
determination or order is no longer subject to review as
provided by subsections (b) and (c), the [Director] Board may
request the Attorney General of the United States to bring an
action in any appropriate United States district court to
obtain a monetary judgment against the person and such other
relief as may be available. The monetary judgment may, in the
discretion of the court, include any attorneys fees and other
expenses incurred by the United States in connection with the
action. In an action under this subsection, the validity and
appropriateness of [the Secretary's determination or order] a
determination or order of the Board imposing the penalty shall
not be subject to review.
(e) Settlement by Director.--The [Director] Board may
compromise, modify, or remit any civil money penalty which may
be, or has been, imposed under this section.
(f) Definition of Knowingly.--The term ``knowingly'' means
having actual knowledge of or acting with deliberate ignorance
of or reckless disregard for the prohibitions under this
section.
(g) Regulations.--The [Director] Board shall issue such
regulations as the [Director] Board deems appropriate to
implement this section.
(h) Use of Penalties for Administration.--Civil money
penalties collected under this section shall be paid to the
[Director] Board and, upon approval in an appropriation Act,
may be used by the [Director] Board to cover all or part of the
cost of rendering services under this title.
Sec. 1419. The [Director] Board shall have authority from
time to time to make, issue, amend, and rescind such rules and
regulations and such orders as are necessary or appropriate to
the exercise of the functions and powers conferred upon [him]
the Board elsewhere in this title. For the purpose of [his
rules and regulations] the rules and regulations of the Board ,
the [Director] Board may classify persons and matters within
[his jurisdiction] the jurisdiction of the Bureau of Consumer
Financial Protection and prescribe different requirements for
different classes of persons or matters.
jurisdiction of offenses and suits
Sec. 1420. The district courts of the United States, the
United States courts of any territory, and the United States
District Court for the District of Columbia shall have
jurisdiction of offenses and violations under this title and
under the this title and under the rules and regulations
prescribed by the [Director] Board pursuant thereto, and
concurrent with State courts, of all suits in equity and
actions at law brought to enforce any liability or duty created
by this title. Any such suit or action may be brought to
enforce any liability or duty created by this title. Any such
suit or action may be brought in the district where the
defendant is found or is an inhabitant or transacts business,
or in the district where the offer or sale took place, if the
defendant participated therein, and process in such cases may
be served in any other district of which the defendant is an
inhabitant or wherever the defendant may be found. Judgments
and decrees so rendered shall be subject to review as provided
in sections 1254 and 1291 of title 28, United State Code. No
case arising under this title and brought in any State court of
competent jurisdiction shall be removed to any court of the
United States, except where the United States or any officer or
employee of the United States in his official capacity is a
party. No costs shall be assessed for or against the [Director]
Board or any member of the Board in any proceeding under this
title brought by or against [him] the Board or any member of
the Board in the Supreme Court or such other courts.
* * * * * * *
----------
REAL ESTATE SETTLEMENT PROCEDURES ACT OF 1974
* * * * * * *
home buying information booklets
Sec. 5. (a) Preparation and Distribution.--The [Director of]
Board of Directors of the Bureau of Consumer Financial
Protection (hereafter in this section referred to as the
``[Director] Board '') shall prepare, at least once every 5
years, a booklet to help consumers applying for federally
related mortgage loans to understand the nature and costs of
real estate settlement services. The [Director] Board shall
prepare the booklet in various languages and cultural styles,
as the [Director] Board determines to be appropriate, so that
the booklet is understandable and accessible to homebuyers of
different ethnic and cultural backgrounds. The [Director] Board
shall distribute such booklets to all lenders that make
federally related mortgage loans. The [Director] Board shall
also distribute to such lenders lists, organized by location,
of homeownership counselors certified under section 106(e) of
the Housing and Urban Development Act of 1968 (12 U.S.C.
1701x(e)) for use in complying with the requirement under
subsection (c) of this section.
(b) Contents.--Each booklet shall be in such form and detail
as the [Director] Board shall prescribe and, in addition to
such other information as the [Director] Board may provide,
shall include in plain and understandable language the
following information:
(1) A description and explanation of the nature and
purpose of the costs incident to a real estate
settlement or a federally related mortgage loan. The
description and explanation shall provide general
information about the mortgage process as well as
specific information concerning, at a minimum--
(A) balloon payments;
(B) prepayment penalties;
(C) the advantages of prepayment; and
(D) the trade-off between closing costs and
the interest rate over the life of the loan.
(2) An explanation and sample of the uniform
settlement statement required by section 4.
(3) A list and explanation of lending practices,
including those prohibited by the Truth in Lending Act
or other applicable Federal law, and of other unfair
practices and unreasonable or unnecessary charges to be
avoided by the prospective buyer with respect to a real
estate settlement.
(4) A list and explanation of questions a consumer
obtaining a federally related mortgage loan should ask
regarding the loan, including whether the consumer will
have the ability to repay the loan, whether the
consumer sufficiently shopped for the loan, whether the
loan terms include prepayment penalties or balloon
payments, and whether the loan will benefit the
borrower.
(5) An explanation of the right of rescission as to
certain transactions provided by sections 125 and 129
of the Truth in Lending Act.
(6) A brief explanation of the nature of a variable
rate mortgage and a reference to the booklet entitled
``Consumer Handbook on Adjustable Rate Mortgages'',
published by the [Director] Board , or to any suitable
substitute of such booklet that the [Director] Board
may subsequently adopt pursuant to such section.
(7) A brief explanation of the nature of a home
equity line of credit and a reference to the pamphlet
required to be provided under section 127A of the Truth
in Lending Act.
(8) Information about homeownership counseling
services made available pursuant to section 106(a)(4)
of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701x(a)(4)), a recommendation that the consumer
use such services, and notification that a list of
certified providers of homeownership counseling in the
area, and their contact information, is available.
(9) An explanation of the nature and purpose of
escrow accounts when used in connection with loans
secured by residential real estate and the requirements
under section 10 of this Act regarding such accounts.
(10) An explanation of the choices available to
buyers of residential real estate in selecting persons
to provide necessary services incidental to a real
estate settlement.
(11) An explanation of a consumer's responsibilities,
liabilities, and obligations in a mortgage transaction.
(12) An explanation of the nature and purpose of real
estate appraisals, including the difference between an
appraisal and a home inspection.
(13) Notice that the Office of Housing of the Bureau
of Consumer Financial Protection has made publicly
available a brochure regarding loan fraud and a World
Wide Web address and toll-free telephone number for
obtaining the brochure.
(14) An explanation of flood insurance and the
availability of flood insurance under the National
Flood Insurance Program or from a private insurance
company, whether or not the real estate is located in
an area having special flood hazards, and the following
statement: ``Although you may not be required to
maintain flood insurance on all structures, you may
still wish to do so, and your mortgage lender may still
require you to do so to protect the collateral securing
the mortgage. If you choose to not maintain flood
insurance on a structure, and it floods, you are
responsible for all flood losses relating to that
structure.''.
The booklet prepared pursuant to this section shall take into
consideration differences in real estate settlement procedures
that may exist among the several States and territories of the
United States and among separate political subdivisions within
the same State and territory.
(c) Each lender shall include with the booklet a good faith
estimate of the amount or range of charges for specific
settlement services the borrower is likely to incur in
connection with the settlement as prescribed by the Bureau.
Each lender shall also include with the booklet a reasonably
complete or updated list of homeownership counselors who are
certified pursuant to section 106(e) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(e)) and located in the
area of the lender.
(d) Each lender referred to in subsection (a) shall provide
the booklet described in such subsection to each person from
whom it receives or for whom it prepares a written application
to borrow money to finance the purchase of residential real
estate. The lender shall provide the booklet in the version
that is most appropriate for the person receiving it. Such
booklet shall be provided by delivering it or placing it in the
mail not later than 3 business days after the lender receives
the application, but no booklet need be provided if the lender
denies the application for credit before the end of the 3-day
period.
(e) Booklets may be printed and distributed by lenders if
their form and content are approved by the Bureau as meeting
the requirements of subsection (b) of this section.
* * * * * * *
----------
S.A.F.E. MORTGAGE LICENSING ACT OF 2008
* * * * * * *
DIVISION A--HOUSING FINANCE REFORM
* * * * * * *
TITLE V--S.A.F.E. MORTGAGE LICENSING ACT
SEC. 1501. SHORT TITLE.
This title may be cited as the ``Secure and Fair Enforcement
for Mortgage Licensing Act of 2008'' or ``S.A.F.E. Mortgage
Licensing Act of 2008''.
SEC. 1502. PURPOSES AND METHODS FOR ESTABLISHING A MORTGAGE LICENSING
SYSTEM AND REGISTRY.
In order to increase uniformity, reduce regulatory burden,
enhance consumer protection, and reduce fraud, the States,
through the Conference of State Bank Supervisors and the
American Association of Residential Mortgage Regulators, are
hereby encouraged to establish a Nationwide Mortgage Licensing
System and Registry for the residential mortgage industry that
accomplishes all of the following objectives:
(1) Provides uniform license applications and
reporting requirements for State-licensed loan
originators.
(2) Provides a comprehensive licensing and
supervisory database.
(3) Aggregates and improves the flow of information
to and between regulators.
(4) Provides increased accountability and tracking of
loan originators.
(5) Streamlines the licensing process and reduces the
regulatory burden.
(6) Enhances consumer protections and supports anti-
fraud measures.
(7) Provides consumers with easily accessible
information, offered at no charge, utilizing electronic
media, including the Internet, regarding the employment
history of, and publicly adjudicated disciplinary and
enforcement actions against, loan originators.
(8) Establishes a means by which residential mortgage
loan originators would, to the greatest extent
possible, be required to act in the best interests of
the consumer.
(9) Facilitates responsible behavior in the subprime
mortgage market place and provides comprehensive
training and examination requirements related to
subprime mortgage lending.
(10) Facilitates the collection and disbursement of
consumer complaints on behalf of State and Federal
mortgage regulators.
SEC. 1503. DEFINITIONS.
For purposes of this title, the following definitions shall
apply:
(1) Bureau.-- The term ``Bureau'' means the Bureau of
Consumer Financial Protection.
(2) Federal banking agency.-- The term ``Federal
banking agency'' means the Board of Governors of the
Federal Reserve System, the Office of the Comptroller
of the Currency, the National Credit Union
Administration, and the Federal Deposit Insurance
Corporation.
(3) Depository institution.-- The term ``depository
institution'' has the same meaning as in section 3 of
the Federal Deposit Insurance Act, and includes any
credit union.
(4) Loan originator.--
(A) In general.-- The term ``loan
originator''--
(i) means an individual who--
(I) takes a residential
mortgage loan application; and
(II) offers or negotiates
terms of a residential mortgage
loan for compensation or gain;
(ii) does not include any individual
who is not otherwise described in
clause (i) and who performs purely
administrative or clerical tasks on
behalf of a person who is described in
any such clause;
(iii) does not include a person or
entity that only performs real estate
brokerage activities and is licensed or
registered in accordance with
applicable State law, unless the person
or entity is compensated by a lender, a
mortgage broker, or other loan
originator or by any agent of such
lender, mortgage broker, or other loan
originator; and
(iv) does not include a person or
entity solely involved in extensions of
credit relating to timeshare plans, as
that term is defined in section
101(53D) of title 11, United States
Code.
(B) Other definitions relating to loan
originator.-- For purposes of this subsection,
an individual ``assists a consumer in obtaining
or applying to obtain a residential mortgage
loan'' by, among other things, advising on loan
terms (including rates, fees, other costs),
preparing loan packages, or collecting
information on behalf of the consumer with
regard to a residential mortgage loan.
(C) Administrative or clerical tasks.-- The
term ``administrative or clerical tasks'' means
the receipt, collection, and distribution of
information common for the processing or
underwriting of a loan in the mortgage industry
and communication with a consumer to obtain
information necessary for the processing or
underwriting of a residential mortgage loan.
(D) Real estate brokerage activity defined.--
The term ``real estate brokerage activity''
means any activity that involves offering or
providing real estate brokerage services to the
public, including--
(i) acting as a real estate agent or
real estate broker for a buyer, seller,
lessor, or lessee of real property;
(ii) bringing together parties
interested in the sale, purchase,
lease, rental, or exchange of real
property;
(iii) negotiating, on behalf of any
party, any portion of a contract
relating to the sale, purchase, lease,
rental, or exchange of real property
(other than in connection with
providing financing with respect to any
such transaction);
(iv) engaging in any activity for
which a person engaged in the activity
is required to be registered or
licensed as a real estate agent or real
estate broker under any applicable law;
and
(v) offering to engage in any
activity, or act in any capacity,
described in clause (i), (ii), (iii),
or (iv).
(5) Loan processor or underwriter.--
(A) In general.-- The term ``loan processor
or underwriter'' means an individual who
performs clerical or support duties at the
direction of and subject to the supervision and
instruction of--
(i) a State-licensed loan originator;
or
(ii) a registered loan originator.
(B) Clerical or support duties.-- For
purposes of subparagraph (A), the term
``clerical or support duties'' may include--
(i) the receipt, collection,
distribution, and analysis of
information common for the processing
or underwriting of a residential
mortgage loan; and
(ii) communicating with a consumer to
obtain the information necessary for
the processing or underwriting of a
loan, to the extent that such
communication does not include offering
or negotiating loan rates or terms, or
counseling consumers about residential
mortgage loan rates or terms.
(6) Nationwide mortgage licensing system and
registry.-- The term ``Nationwide Mortgage Licensing
System and Registry'' means a mortgage licensing system
developed and maintained by the Conference of State
Bank Supervisors and the American Association of
Residential Mortgage Regulators for the State licensing
and registration of State-licensed loan originators and
the registration of registered loan originators or any
system established by the [Director] Board under
section 1509.
(7) Nontraditional mortgage product.-- The term
``nontraditional mortgage product'' means any mortgage
product other than a 30-year fixed rate mortgage.
(8) Registered loan originator.-- The term
``registered loan originator'' means any individual
who--
(A) meets the definition of loan originator
and is an employee of--
(i) a depository institution;
(ii) a subsidiary that is--
(I) owned and controlled by a
depository institution; and
(II) regulated by a Federal
banking agency; or
(iii) an institution regulated by the
Farm Credit Administration; and
(B) is registered with, and maintains a
unique identifier through, the Nationwide
Mortgage Licensing System and Registry.
(9) Residential mortgage loan.-- The term
``residential mortgage loan'' means any loan primarily
for personal, family, or household use that is secured
by a mortgage, deed of trust, or other equivalent
consensual security interest on a dwelling (as defined
in section 103(v) of the Truth in Lending Act) or
residential real estate upon which is constructed or
intended to be constructed a dwelling (as so defined).
(10) [Director] Board .-- The term [``Director''
means the Director] ``Board'' means the Board of
Directors of the Bureau of Consumer Financial
Protection.
(11) State.-- The term ``State'' means any State of
the United States, the District of Columbia, any
territory of the United States, Puerto Rico, Guam,
American Samoa, the Trust Territory of the Pacific
Islands, the Virgin Islands, and the Northern Mariana
Islands.
(12) State-licensed loan originator.-- The term
``State-licensed loan originator'' means any individual
who--
(A) is a loan originator;
(B) is not an employee of--
(i) a depository institution;
(ii) a subsidiary that is--
(I) owned and controlled by a
depository institution; and
(II) regulated by a Federal
banking agency; or
(iii) an institution regulated by the
Farm Credit Administration; and
(C) is licensed by a State or by the
[Director] Board under section 1508 and
registered as a loan originator with, and
maintains a unique identifier through, the
Nationwide Mortgage Licensing System and
Registry.
(13) Unique identifier.--
(A) In general.-- The term ``unique
identifier'' means a number or other identifier
that--
(i) permanently identifies a loan
originator;
(ii) is assigned by protocols
established by the Nationwide Mortgage
Licensing System and Registry and the
Bureau to facilitate electronic
tracking of loan originators and
uniform identification of, and public
access to, the employment history of
and the publicly adjudicated
disciplinary and enforcement actions
against loan originators; and
(iii) shall not be used for purposes
other than those set forth under this
title.
(B) Responsibility of states.-- To the
greatest extent possible and to accomplish the
purpose of this title, States shall use unique
identifiers in lieu of social security numbers.
* * * * * * *
SEC. 1508. BUREAU OF CONSUMER FINANCIAL PROTECTION BACKUP AUTHORITY TO
ESTABLISH LOAN ORIGINATOR LICENSING SYSTEM.
(a) Backup Licensing System.--If, by the end of the 1-year
period, or the 2-year period in the case of a State whose
legislature meets only biennially, beginning on the date of the
enactment of this title or at any time thereafter, the
[Director] Board determines that a State does not have in place
by law or regulation a system for licensing and registering
loan originators that meets the requirements of sections 1505
and 1506 and subsection (d) of this section, or does not
participate in the Nationwide Mortgage Licensing System and
Registry, the [Director] Board shall provide for the
establishment and maintenance of a system for the licensing and
registration by the [Director] Board of loan originators
operating in such State as State-licensed loan originators.
(b) Licensing and Registration Requirements.--The system
established by the [Director] Board under subsection (a) for
any State shall meet the requirements of sections 1505 and 1506
for State-licensed loan originators.
(c) Unique Identifier.--The [Director] Board shall coordinate
with the Nationwide Mortgage Licensing System and Registry to
establish protocols for assigning a unique identifier to each
loan originator licensed by the [Director] Board as a State-
licensed loan originator that will facilitate electronic
tracking and uniform identification of, and public access to,
the employment history of and the publicly adjudicated
disciplinary and enforcement actions against loan originators.
(d) State Licensing Law Requirements.--For purposes of this
section, the law in effect in a State meets the requirements of
this subsection if the [Director] Board determines the law
satisfies the following minimum requirements:
(1) A State loan originator supervisory authority is
maintained to provide effective supervision and
enforcement of such law, including the suspension,
termination, or nonrenewal of a license for a violation
of State or Federal law.
(2) The State loan originator supervisory authority
ensures that all State-licensed loan originators
operating in the State are registered with Nationwide
Mortgage Licensing System and Registry.
(3) The State loan originator supervisory authority
is required to regularly report violations of such law,
as well as enforcement actions and other relevant
information, to the Nationwide Mortgage Licensing
System and Registry.
(4) The State loan originator supervisory authority
has a process in place for challenging information
contained in the Nationwide Mortgage Licensing System
and Registry.
(5) The State loan originator supervisory authority
has established a mechanism to assess civil money
penalties for individuals acting as mortgage
originators in their State without a valid license or
registration.
(6) The State loan originator supervisory authority
has established minimum net worth or surety bonding
requirements that reflect the dollar amount of loans
originated by a residential mortgage loan originator,
or has established a recovery fund paid into by the
loan originators.
(e) Temporary Extension of Period.--The [Director] Board may
extend, by not more than 24 months, the 1-year or 2-year
period, as the case may be, referred to in subsection (a) for
the licensing of loan originators in any State under a State
licensing law that meets the requirements of sections 1505 and
1506 and subsection (d) if the [Director] Board determines that
such State is making a good faith effort to establish a State
licensing law that meets such requirements, license mortgage
originators under such law, and register such originators with
the Nationwide Mortgage Licensing System and Registry.
(f) Regulation Authority.--
(1) In general.-- The Bureau is authorized to
promulgate regulations setting minimum net worth or
surety bond requirements for residential mortgage loan
originators and minimum requirements for recovery funds
paid into by loan originators.
(2) Considerations.-- In issuing regulations under
paragraph (1), the Bureau shall take into account the
need to provide originators adequate incentives to
originate affordable and sustainable mortgage loans, as
well as the need to ensure a competitive origination
market that maximizes consumer access to affordable and
sustainable mortgage loans.
SEC. 1509. BACKUP AUTHORITY TO ESTABLISH A NATIONWIDE MORTGAGE
LICENSING AND REGISTRY SYSTEM.
If at any time the [Director] Board determines that the
Nationwide Mortgage Licensing System and Registry is failing to
meet the requirements and purposes of this title for a
comprehensive licensing, supervisory, and tracking system for
loan originators, the [Director] Board shall establish and
maintain such a system to carry out the purposes of this title
and the effective registration and regulation of loan
originators.
* * * * * * *
SEC. 1512. CONFIDENTIALITY OF INFORMATION.
(a) System Confidentiality.--Except as otherwise provided in
this section, any requirement under Federal or State law
regarding the privacy or confidentiality of any information or
material provided to the Nationwide Mortgage Licensing System
and Registry or a system established by the [Director] Board
under section 1509, and any privilege arising under Federal or
State law (including the rules of any Federal or State court)
with respect to such information or material, shall continue to
apply to such information or material after the information or
material has been disclosed to the system. Such information and
material may be shared with all State and Federal regulatory
officials with mortgage or financial services industry
oversight authority without the loss of privilege or the loss
of confidentiality protections provided by Federal and State
laws.
(b) Nonapplicability of Certain Requirements.--Information or
material that is subject to a privilege or confidentiality
under subsection (a) shall not be subject to--
(1) disclosure under any Federal or State law
governing the disclosure to the public of information
held by an officer or an agency of the Federal
Government or the respective State; or
(2) subpoena or discovery, or admission into
evidence, in any private civil action or administrative
process, unless with respect to any privilege held by
the Nationwide Mortgage Licensing System and Registry
or the [Director] Board with respect to such
information or material, the person to whom such
information or material pertains waives, in whole or in
part, in the discretion of such person, that privilege.
(c) Coordination With Other Law.--Any State law, including
any State open record law, relating to the disclosure of
confidential supervisory information or any information or
material described in subsection (a) that is inconsistent with
subsection (a) shall be superseded by the requirements of such
provision to the extent State law provides less confidentiality
or a weaker privilege.
(d) Public Access to Information.--This section shall not
apply with respect to the information or material relating to
the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, loan originators
that is included in Nationwide Mortgage Licensing System and
Registry for access by the public.
SEC. 1513. LIABILITY PROVISIONS.
The Bureau, any State official or agency, or any organization
serving as the administrator of the Nationwide Mortgage
Licensing System and Registry or a system established by the
[Director] Board under section 1509, or any officer or employee
of any such entity, shall not be subject to any civil action or
proceeding for monetary damages by reason of the good faith
action or omission of any officer or employee of any such
entity, while acting within the scope of office or employment,
relating to the collection, furnishing, or dissemination of
information concerning persons who are loan originators or are
applying for licensing or registration as loan originators.
SEC. 1514. ENFORCEMENT BY THE BUREAU.
(a) Summons Authority.--The [Director] Board may--
(1) examine any books, papers, records, or other data
of any loan originator operating in any State which is
subject to a licensing system established by the
[Director] Board under section 1508; and
(2) summon any loan originator referred to in
paragraph (1) or any person having possession, custody,
or care of the reports and records relating to such
loan originator, to appear before the [Director] Board
or any delegate of the [Director] Board at a time and
place named in the summons and to produce such books,
papers, records, or other data, and to give testimony,
under oath, as may be relevant or material to an
investigation of such loan originator for compliance
with the requirements of this title.
(b) Examination Authority.--
(1) In general.-- If the [Director] Board establishes
a licensing system under section 1508 for any State,
the [Director] Board shall appoint examiners for the
purposes of administering such section.
(2) Power to examine.-- Any examiner appointed under
paragraph (1) shall have power, on behalf of the
[Director] Board , to make any examination of any loan
originator operating in any State which is subject to a
licensing system established by the [Director] Board
under section 1508 whenever the [Director] Board
determines an examination of any loan originator is
necessary to determine the compliance by the originator
with this title.
(3) Report of examination.-- Each examiner appointed
under paragraph (1) shall make a full and detailed
report of examination of any loan originator examined
to the [Director] Board .
(4) Administration of oaths and affirmations;
evidence.-- In connection with examinations of loan
originators operating in any State which is subject to
a licensing system established by the [Director] Board
under section 1508, or with other types of
investigations to determine compliance with applicable
law and regulations, the [Director] Board and examiners
appointed by the [Director] Board may administer oaths
and affirmations and examine and take and preserve
testimony under oath as to any matter in respect to the
affairs of any such loan originator.
(5) Assessments.-- The cost of conducting any
examination of any loan originator operating in any
State which is subject to a licensing system
established by the [Director] Board under section 1508
shall be assessed by the [Director] Board against the
loan originator to meet the [Secretary's expenses]
expenses of the Board in carrying out such examination.
(c) Cease and Desist Proceeding.--
(1) Authority of [director] board .-- If the
[Director] Board finds, after notice and opportunity
for hearing, that any person is violating, has
violated, or is about to violate any provision of this
title, or any regulation thereunder, with respect to a
State which is subject to a licensing system
established by the [Director] Board under section 1508,
the [Director] Board may publish such findings and
enter an order requiring such person, and any other
person that is, was, or would be a cause of the
violation, due to an act or omission the person knew or
should have known would contribute to such violation,
to cease and desist from committing or causing such
violation and any future violation of the same
provision, rule, or regulation. Such order may, in
addition to requiring a person to cease and desist from
committing or causing a violation, require such person
to comply, or to take steps to effect compliance, with
such provision or regulation, upon such terms and
conditions and within such time as the [Director] Board
may specify in such order. Any such order may, as the
[Director] Board deems appropriate, require future
compliance or steps to effect future compliance, either
permanently or for such period of time as the
[Director] Board may specify, with such provision or
regulation with respect to any loan originator.
(2) Hearing.-- The notice instituting proceedings
pursuant to paragraph (1) shall fix a hearing date not
earlier than 30 days nor later than 60 days after
service of the notice unless an earlier or a later date
is set by the [Director] Board with the consent of any
respondent so served.
(3) Temporary order.-- Whenever the [Director] Board
determines that the alleged violation or threatened
violation specified in the notice instituting
proceedings pursuant to paragraph (1), or the
continuation thereof, is likely to result in
significant dissipation or conversion of assets,
significant harm to consumers, or substantial harm to
the public interest prior to the completion of the
proceedings, the [Director] Board may enter a temporary
order requiring the respondent to cease and desist from
the violation or threatened violation and to take such
action to prevent the violation or threatened violation
and to prevent dissipation or conversion of assets,
significant harm to consumers, or substantial harm to
the public interest as the [Director] Board deems
appropriate pending completion of such proceedings.
Such an order shall be entered only after notice and
opportunity for a hearing, unless the [Director] Board
determines that notice and hearing prior to entry would
be impracticable or contrary to the public interest. A
temporary order shall become effective upon service
upon the respondent and, unless set aside, limited, or
suspended by the [Director] Board or a court of
competent jurisdiction, shall remain effective and
enforceable pending the completion of the proceedings.
(4) Review of temporary orders.--
(A) Review by [director] board .-- At any
time after the respondent has been served with
a temporary cease and desist order pursuant to
paragraph (3), the respondent may apply to the
[Director] Board to have the order set aside,
limited, or suspended. If the respondent has
been served with a temporary cease and desist
order entered without a prior hearing before
the [Director] Board , the respondent may,
within 10 days after the date on which the
order was served, request a hearing on such
application and the [Director] Board shall hold
a hearing and render a decision on such
application at the earliest possible time.
(B) Judicial review.-- Within--
(i) 10 days after the date the
respondent was served with a temporary
cease and desist order entered with a
prior hearing before the [Director]
Board ; or
(ii) 10 days after the [Director]
Board renders a decision on an
application and hearing under paragraph
(1), with respect to any temporary
cease and desist order entered without
a prior hearing before the [Director]
Board ,
the respondent may apply to the United States
district court for the district in which the
respondent resides or has its principal place
of business, or for the District of Columbia,
for an order setting aside, limiting, or
suspending the effectiveness or enforcement of
the order, and the court shall have
jurisdiction to enter such an order. A
respondent served with a temporary cease and
desist order entered without a prior hearing
before the [Director] Board may not apply to
the court except after hearing and decision by
the [Director] Board on the respondent's
application under subparagraph (A).
(C) No automatic stay of temporary order.--
The commencement of proceedings under
subparagraph (B) shall not, unless specifically
ordered by the court, operate as a stay of the
[Secretary's] Board's order.
(5) Authority of the [director] board to prohibit
persons from serving as loan originators.-- In any
cease and desist proceeding under paragraph (1), the
[Director] Board may issue an order to prohibit,
conditionally or unconditionally, and permanently or
for such period of time as the [Director] Board shall
determine, any person who has violated this title or
regulations thereunder, from acting as a loan
originator if the conduct of that person demonstrates
unfitness to serve as a loan originator.
(d) Authority of the [Director] Board To Assess Money
Penalties.--
(1) In general.-- The [Director] Board may impose a
civil penalty on a loan originator operating in any
State which is subject to a licensing system
established by the [Director] Board under section 1508,
if the [Director] Board finds, on the record after
notice and opportunity for hearing, that such loan
originator has violated or failed to comply with any
requirement of this title or any regulation prescribed
by the [Director] Board under this title or order
issued under subsection (c).
(2) Maximum amount of penalty.-- The maximum amount
of penalty for each act or omission described in
paragraph (1) shall be $25,000.
* * * * * * *
SEC. 1516. REPORTS AND RECOMMENDATIONS TO CONGRESS.
(a) Annual Reports.--Not later than 1 year after the date of
enactment of this title, and annually thereafter, the
[Director] Board shall submit a report to Congress on the
effectiveness of the provisions of this title, including
legislative recommendations, if any, for strengthening consumer
protections, enhancing examination standards, streamlining
communication between all stakeholders involved in residential
mortgage loan origination and processing, and establishing
performance based bonding requirements for mortgage originators
or institutions that employ such brokers.
(b) Legislative Recommendations.--Not later than 6 months
after the date of enactment of this title, the [Director] Board
shall make recommendations to Congress on legislative reforms
to the Real Estate Settlement Procedures Act of 1974, that the
[Director] Board deems appropriate to promote more transparent
disclosures, allowing consumers to better shop and compare
mortgage loan terms and settlement costs.
SEC. 1517. STUDY AND REPORTS ON DEFAULTS AND FORECLOSURES.
(a) Study Required.--The [Director] Board shall conduct an
extensive study of the root causes of default and foreclosure
of home loans, using as much empirical data as is available.
(b) Preliminary Report to Congress.--Not later than 6 months
after the date of enactment of this title, the [Director] Board
shall submit to Congress a preliminary report regarding the
study required by this section.
(c) Final Report to Congress.--Not later than 12 months after
the date of enactment of this title, the [Director] Board shall
submit to Congress a final report regarding the results of the
study required by this section, which shall include any
recommended legislation relating to the study, and
recommendations for best practices and for a process to provide
targeted assistance to populations with the highest risk of
potential default or foreclosure.
* * * * * * *
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TITLE 44, UNITED STATES CODE
* * * * * * *
CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY
SUBCHAPTER I--FEDERAL INFORMATION POLICY
* * * * * * *
Sec. 3513. Director review of agency activities; reporting; agency
response
(a) In consultation with the Administrator of General
Services, the Archivist of the United States, the Director of
the National Institute of Standards and Technology, and the
Director of the Office of Personnel Management, the Director
shall periodically review selected agency information resources
management activities to ascertain the efficiency and
effectiveness of such activities to improve agency performance
and the accomplishment of agency missions.
(b) Each agency having an activity reviewed under subsection
(a) shall, within 60 days after receipt of a report on the
review, provide a written plan to the Director describing steps
(including milestones) to--
(1) be taken to address information resources
management problems identified in the report; and
(2) improve agency performance and the accomplishment
of agency missions.
(c) Comparable Treatment.--Notwithstanding any other
provision of law, the Director shall treat or review a rule or
order prescribed or proposed by the [Director of the Bureau]
Board of Directors of the Bureau of Consumer Financial
Protection on the same terms and conditions as apply to any
rule or order prescribed or proposed by the Board of Governors
of the Federal Reserve System.
* * * * * * *
----------
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE II--THE BUDGET PROCESS
* * * * * * *
CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION
* * * * * * *
Sec. 1105. Budget contents and submission to Congress
(a) On or after the first Monday in January but not later
than the first Monday in February of each year, the President
shall submit a budget of the United States Government for the
following fiscal year. Each budget shall include a budget
message and summary and supporting information. The President
shall include in each budget the following:
(1) information on activities and functions of the
Government.
(2) when practicable, information on costs and
achievements of Government programs.
(3) other desirable classifications of information.
(4) a reconciliation of the summary information on
expenditures with proposed appropriations.
(5) except as provided in subsection (b) of this
section, estimated expenditures and proposed
appropriations the President decides are necessary to
support the Government in the fiscal year for which the
budget is submitted and the 4 fiscal years after that
year.
(6) estimated receipts of the Government in the
fiscal year for which the budget is submitted and the 4
fiscal years after that year under--
(A) laws in effect when the budget is
submitted; and
(B) proposals in the budget to increase
revenues.
(7) appropriations, expenditures, and receipts of the
Government in the prior fiscal year.
(8) estimated expenditures and receipts, and
appropriations and proposed appropriations, of the
Government for the current fiscal year.
(9) balanced statements of the--
(A) condition of the Treasury at the end of
the prior fiscal year;
(B) estimated condition of the Treasury at
the end of the current fiscal year; and
(C) estimated condition of the Treasury at
the end of the fiscal year for which the budget
is submitted if financial proposals in the
budget are adopted.
(10) essential information about the debt of the
Government.
(11) other financial information the President
decides is desirable to explain in practicable detail
the financial condition of the Government.
(12) for each proposal in the budget for legislation
that would establish or expand a Government activity or
function, a table showing--
(A) the amount proposed in the budget for
appropriation and for expenditure because of
the proposal in the fiscal year for which the
budget is submitted; and
(B) the estimated appropriation required
because of the proposal for each of the 4
fiscal years after that year that the proposal
will be in effect.
(13) an allowance for additional estimated
expenditures and proposed appropriations for the fiscal
year for which the budget is submitted.
(14) an allowance for unanticipated uncontrollable
expenditures for that year.
(15) a separate statement on each of the items
referred to in section 301(a)(1)-(5) of the
Congressional Budget Act of 1974 (2 U.S.C. 632(a)(1)-
(5)).
(16) the level of tax expenditures under existing law
in the tax expenditures budget (as defined in section
3(a)(3) of the Congressional Budget Act of 1974 (2
U.S.C. 622(a)(3)) for the fiscal year for which the
budget is submitted, considering projected economic
factors and changes in the existing levels based on
proposals in the budget.
(17) information on estimates of appropriations for
the fiscal year following the fiscal year for which the
budget is submitted for grants, contracts, and other
payments under each program for which there is an
authorization of appropriations for that following
fiscal year when the appropriations are authorized to
be included in an appropriation law for the fiscal year
before the fiscal year in which the appropriation is to
be available for obligation.
(18) a comparison of the total amount of budget
outlays for the prior fiscal year, estimated in the
budget submitted for that year, for each major program
having relatively uncontrollable outlays with the total
amount of outlays for that program in that year.
(19) a comparison of the total amount of receipts for
the prior fiscal year, estimated in the budget
submitted for that year, with receipts received in that
year, and for each major source of receipts, a
comparison of the amount of receipts estimated in that
budget with the amount of receipts from that source in
that year.
(20) an analysis and explanation of the differences
between each amount compared under clauses (18) and
(19) of this subsection.
(21) a horizontal budget showing--
(A) the programs for meteorology and of the
National Climate Program established under
section 5 of the National Climate Program Act
(15 U.S.C. 2904);
(B) specific aspects of the program of, and
appropriations for, each agency; and
(C) estimated goals and financial
requirements.
(22) a statement of budget authority, proposed budget
authority, budget outlays, and proposed budget outlays,
and descriptive information in terms of--
(A) a detailed structure of national needs
that refers to the missions and programs of
agencies (as defined in section 101 of this
title); and
(B) the missions and basic programs.
(23) separate appropriation accounts for
appropriations under the Occupational Safety and Health
Act of 1970(29 U.S.C. 651 et seq.) and the Federal Mine
Safety and Health Act of 1977 (30 U.S.C. 801 et seq.).
(24) recommendations on the return of Government
capital to the Treasury by a mixed-ownership
corporation (as defined in section 9101(2) of this
title) that the President decides are desirable.
(25) a separate appropriation account for
appropriations for each Office of Inspector General of
an establishment defined under section 11(2) of the
Inspector General Act of 1978.
(26) a separate statement of the amount of
appropriations requested for the Office of National
Drug Control Policy and each program of the National
Drug Control Program.
(27) a separate statement of the amount of
appropriations requested for the Office of Federal
Financial Management.
(28) beginning with fiscal year 1999, a Federal
Government performance plan for the overall budget as
provided for under section 1115.
(29) information about the Violent Crime Reduction
Trust Fund, including a separate statement of amounts
in that Trust Fund.
(30) an analysis displaying, by agency, proposed
reductions in full-time equivalent positions compared
to the current year's level in order to comply with
section 5 of the Federal Workforce Restructuring Act of
1994.
(31) a separate statement of the amount of
appropriations requested for the Chief Financial
Officer in the Executive Office of the President.
(32) a statement of the levels of budget authority
and outlays for each program assumed to be extended in
the baseline as provided in section 257(b)(2)(A) and
for excise taxes assumed to be extended under section
257(b)(2)(C) of the Balanced Budget and Emergency
Deficit Control Act of 1985.
(33) a separate appropriation account for
appropriations for the Council of the Inspectors
General on Integrity and Efficiency, and, included in
that account, a separate statement of the aggregate
amount of appropriations requested for each academy
maintained by the Council of the Inspectors General on
Integrity and Efficiency.
(34) with respect to the amount of appropriations
requested for use by the Export-Import Bank of the
United States, a separate statement of the amount
requested for its program budget, the amount requested
for its administrative expenses, and of the amount
requested for its administrative expenses, the amount
requested for technology expenses.
(35)(A)(i) a detailed, separate analysis, by budget
function, by agency, and by initiative area (as
determined by the administration) for the prior fiscal
year, the current fiscal year, the fiscal years for
which the budget is submitted, and the ensuing fiscal
year identifying the amounts of gross and net
appropriations or obligational authority and outlays
that contribute to [homeland security] cybersecurity ,
with separate displays for mandatory and discretionary
amounts, including--
(I) summaries of the total amount of such
appropriations or new obligational authority
and outlays requested for [homeland security]
cybersecurity ;
(II) an estimate of the current service
levels of [homeland security] cybersecurity
spending;
(III) the most recent risk assessment and
summary of [homeland security] cybersecurity
needs in each initiative area (as determined by
the administration); and
(IV) an estimate of user fees collected by
the Federal Government on behalf of [homeland
security] cybersecurity activities;
(ii) with respect to subclauses (I) through (IV) of
clause (i), amounts shall be provided by account for
each program, project and activity; and
(iii) an estimate of expenditures for [homeland
security] cybersecurity activities by State and local
governments and the private sector for the prior fiscal
year and the current fiscal year.
[(B) In this paragraph, consistent with the Office of
Management and Budget's June 2002 ``Annual Report to
Congress on Combatting Terrorism'', the term ``homeland
security'' refers to those activities that detect,
deter, protect against, and respond to terrorist
attacks occurring within the United States and its
territories.
[(C) In implementing this paragraph, including
determining what Federal activities or accounts
constitute homeland security for purposes of budgetary
classification, the Office of Management and Budget is
directed to consult periodically, but at least
annually, with the House and Senate Budget Committees,
the House and Senate Appropriations Committees, and the
Congressional Budget Office.]
(B) Prior to implementing this paragraph, including
determining what Federal activities or accounts
constitute cybersecurity for purposes of budgetary
classification, the Office of Management and Budget
shall consult with the Committees on Appropriations and
the Committees on the Budget of the House of
Representatives and the Senate, the Committee on
Homeland Security of the House of Representatives, and
the Committee on Homeland Security and Government
Affairs of the Senate.
(36) as supplementary materials, a separate analysis
of the budgetary effects for all prior fiscal years,
the current fiscal year, the fiscal year for which the
budget is submitted, and ensuing fiscal years of the
actions the Secretary of the Treasury has taken or
plans to take using any authority provided in the
Emergency Economic Stabilization Act of 2008,
including--
(A) an estimate of the current value of all
assets purchased, sold, and guaranteed under
the authority provided in the Emergency
Economic Stabilization Act of 2008 using
methodology required by the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.) and
section 123 of the Emergency Economic
Stabilization Act of 2008;
(B) an estimate of the deficit, the debt held
by the public, and the gross Federal debt using
methodology required by the Federal Credit
Reform Act of 1990 and section 123 of the
Emergency Economic Stabilization Act of 2008;
(C) an estimate of the current value of all
assets purchased, sold, and guaranteed under
the authority provided in the Emergency
Economic Stabilization Act of 2008 calculated
on a cash basis;
(D) a revised estimate of the deficit, the
debt held by the public, and the gross Federal
debt, substituting the cash-based estimates in
subparagraph (C) for the estimates calculated
under subparagraph (A) pursuant to the Federal
Credit Reform Act of 1990 and section 123 of
the Emergency Economic Stabilization Act of
2008; and
(E) the portion of the deficit which can be
attributed to any action taken by the Secretary
using authority provided by the Emergency
Economic Stabilization Act of 2008 and the
extent to which the change in the deficit since
the most recent estimate is due to a reestimate
using the methodology required by the Federal
Credit Reform Act of 1990 and section 123 of
the Emergency Economic Stabilization Act of
2008.
(37) information on estimates of appropriations for
the fiscal year following the fiscal year for which the
budget is submitted for the following accounts of the
Department of Veterans Affairs:
(A) Veterans Benefits Administration,
Compensation and Pensions.
(B) Veterans Benefits Administration,
Readjustment Benefits.
(C) Veterans Benefits Administration,
Veterans Insurance and Indemnities.
(D) Veterans Health Administration, Medical
Services.
(E) Veterans Health Administration, Medical
Support and Compliance.
(F) Veterans Health Administration, Medical
Facilities.
(38) a separate statement for the Crow Settlement
Fund established under section 411 of the Crow Tribe
Water Rights Settlement Act of 2010, which shall
include the estimated amount of deposits into the Fund,
obligations, and outlays from the Fund.
(39) the list of plans and reports, as provided for
under section 1125, that agencies identified for
elimination or consolidation because the plans and
reports are determined outdated or duplicative of other
required plans and reports.
(b) Estimated expenditures and proposed appropriations for
the legislative branch and the judicial branch to be included
in each budget under subsection (a)(5) of this section shall be
submitted to the President before October 16 of each year and
included in the budget by the President without change.
(c) The President shall recommend in the budget appropriate
action to meet an estimated deficiency when the estimated
receipts for the fiscal year for which the budget is submitted
(under laws in effect when the budget is submitted) and the
estimated amounts in the Treasury at the end of the current
fiscal year available for expenditure in the fiscal year for
which the budget is submitted, are less than the estimated
expenditures for that year. The President shall make
recommendations required by the public interest when the
estimated receipts and estimated amounts in the Treasury are
more than the estimated expenditures.
(d) When the President submits a budget or supporting
information about a budget, the President shall include a
statement on all changes about the current fiscal year that
were made before the budget or information was submitted.
(e)(1) The President shall submit with materials related to
each budget transmitted under subsection (a) on or after
January 1, 1985, an analysis for the ensuing fiscal year that
shall identify requested appropriations or new obligational
authority and outlays for each major program that may be
classified as a public civilian capital investment program and
for each major program that may be classified as a military
capital investment program, and shall contain summaries of the
total amount of such appropriations or new obligational
authority and outlays for public civilian capital investment
programs and summaries of the total amount of such
appropriations or new obligational authority and outlays for
military capital investment programs. In addition, the analysis
under this paragraph shall contain--
(A) an estimate of the current service levels of
public civilian capital investment and of military
capital investment and alternative high and low levels
of such investments over a period of ten years in
current dollars and over a period of five years in
constant dollars;
(B) the most recent assessment analysis and summary,
in a standard format, of public civilian capital
investment needs in each major program area over a
period of ten years;
(C) an identification and analysis of the principal
policy issues that affect estimated public civilian
capital investment needs for each major program; and
(D) an identification and analysis of factors that
affect estimated public civilian capital investment
needs for each major program, including but not limited
to the following factors:
(i) economic assumptions;
(ii) engineering standards;
(iii) estimates of spending for operation and
maintenance;
(iv) estimates of expenditures for similar
investments by State and local governments; and
(v) estimates of demand for public services
derived from such capital investments and
estimates of the service capacity of such
investments.
To the extent that any analysis required by this paragraph
relates to any program for which Federal financial assistance
is distributed under a formula prescribed by law, such analysis
shall be organized by State and within each State by major
metropolitan area if data are available.
(2) For purposes of this subsection, any appropriation, new
obligational authority, or outlay shall be classified as a
public civilian capital investment to the extent that such
appropriation, authority, or outlay will be used for the
construction, acquisition, or rehabilitation of any physical
asset that is capable of being used to produce services or
other benefits for a number of years and is not classified as a
military capital investment under paragraph (3). Such assets
shall include (but not be limited to)--
(A) roadways or bridges,
(B) airports or airway facilities,
(C) mass transportation systems,
(D) wastewater treatment or related facilities,
(E) water resources projects,
(F) hospitals,
(G) resource recovery facilities,
(H) public buildings,
(I) space or communications facilities,
(J) railroads, and
(K) federally assisted housing.
(3) For purposes of this subsection, any appropriation, new
obligational authority, or outlay shall be classified as a
military capital investment to the extent that such
appropriation, authority, or outlay will be used for the
construction, acquisition, or rehabilitation of any physical
asset that is capable of being used to produce services or
other benefits for purposes of national defense and security
for a number of years. Such assets shall include military
bases, posts, installations, and facilities.
(4) Criteria and guidelines for use in the identification of
public civilian and military capital investments, for
distinguishing between public civilian and military capital
investments, and for distinguishing between major and nonmajor
capital investment programs shall be issued by the Director of
the Office of Management and Budget after consultation with the
Comptroller General and the Congressional Budget Office. The
analysis submitted under this subsection shall be accompanied
by an explanation of such criteria and guidelines.
(5) For purposes of this subsection--
(A) the term ``construction'' includes the design,
planning, and erection of new structures and
facilities, the expansion of existing structures and
facilities, the reconstruction of a project at an
existing site or adjacent to an existing site, and the
installation of initial and replacement equipment for
such structures and facilities;
(B) the term ``acquisition'' includes the addition of
land, sites, equipment, structures, facilities, or
rolling stock by purchase, lease-purchase, trade, or
donation; and
(C) the term ``rehabilitation'' includes the
alteration of or correction of deficiencies in an
existing structure or facility so as to extend the
useful life or improve the effectiveness of the
structure or facility, the modernization or replacement
of equipment at an existing structure or facility, and
the modernization of, or replacement of parts for,
rolling stock.
(f) The budget transmitted pursuant to subsection (a) for a
fiscal year shall be prepared in a manner consistent with the
requirements of the Balanced Budget and Emergency Deficit
Control Act of 1985 that apply to that and subsequent fiscal
years.
(g)(1) The Director of the Office of Management and Budget
shall establish the funding for advisory and assistance
services for each department and agency as a separate object
class in each budget annually submitted to the Congress under
this section.
(2)(A) In paragraph (1), except as provided in subparagraph
(B), the term ``advisory and assistance services'' means the
following services when provided by nongovernmental sources:
(i) Management and professional support services.
(ii) Studies, analyses, and evaluations.
(iii) Engineering and technical services.
(B) In paragraph (1), the term ``advisory and assistance
services'' does not include the following services:
(i) Routine automated data processing and
telecommunications services unless such services are an
integral part of a contract for the procurement of
advisory and assistance services.
(ii) Architectural and engineering services, as
defined in section 1102 of title 40.
(iii) Research on basic mathematics or medical,
biological, physical, social, psychological, or other
phenomena.
(h)(1) If there is a medicare funding warning under section
801(a)(2) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 made in a year, the President shall
submit to Congress, within the 15-day period beginning on the
date of the budget submission to Congress under subsection (a)
for the succeeding year, proposed legislation to respond to
such warning.
(2) Paragraph (1) does not apply if, during the year in which
the warning is made, legislation is enacted which eliminates
excess general revenue medicare funding (as defined in section
801(c) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003) for the 7-fiscal-year reporting
period, as certified by the Board of Trustees of each medicare
trust fund (as defined in section 801(c)(5) of such Act) not
later than 30 days after the date of the enactment of such
legislation.
* * * * * * *
----------
PUBLIC LAW 102-281
AN ACT To require the Secretary of the Treasury to mint coins in
commemoration of the 200th anniversary of the White House, and for
other purposes.
* * * * * * *
TITLE IV--CHRISTOPHER COLUMBUS QUINCENTENARY COINS AND FELLOWSHIP
FOUNDATION
* * * * * * *
[Subtitle B--Christopher Columbus Fellowship Foundation
[SEC. 421. SHORT TITLE.
[This subtitle may be cited as the ``Christopher Columbus
Fellowship Act''.
[SEC. 422. PURPOSE.
[The purpose of this subtitle is to establish the Christopher
Columbus Fellowship Program to encourage and support research,
study, and labor designed to produce new discoveries in all
fields of endeavor for the benefit of mankind.
[SEC. 423. CHRISTOPHER COLUMBUS FELLOWSHIP FOUNDATION.
[(a) Establishment and Purposes.--There is established, as an
independent establishment of the executive branch, the
Christopher Columbus Fellowship Foundation (hereinafter in this
subtitle referred to as the Foundation").
[(b) Membership.--The Foundation shall be subject to the
supervision and direction of the Board of Trustees. The Board
shall be composed of 13 members as follows:
[(1) 2 members appointed by the President in
consultation with the President pro tempore of the
Senate.
[(2) 2 members appointed by the President in
consultation with the Minority Leader of the Senate.
[(3) 2 members appointed by the President in
consultation with the Speaker of the House of
Representatives.
[(4) 2 members appointed by the President in
consultation with the Minority Leader of the House of
Representatives.
[(5) 5 members appointed by the President.
[(c) Chairman and Vice Chairman of the Foundation.--The
President shall designate a Chairman and a Vice Chairman from
among the members appointed by the President.
[(d) Terms of Office; Vacancies.--Each member of the Board of
Trustees appointed under subsection (b) shall serve for a term
of 6 years from the expiration of the term of such member's
predecessor, except that--
[(1) any member appointed to fill a vacancy occurring
prior to the expiration of the term for which such
member's predecessor was appointed shall be appointed
for the remainder of such term; and
[(2) of the members first appointed--
[(A) 4 shall be appointed for a term of 2
years;
[(B) 5 shall be appointed for a term of 4
years; and
[(C) 4 shall be appointed for a term of 6
years, as designated by the President.
[(e) Expenses; No Additional Compensation.--Members of the
Board shall serve without pay, but shall be entitled to
reimbursementfor travel, subsistence, and other necessary
expenses incurredin the performance of their duties as members
of the Board.
[SEC. 424. FELLOWSHIP RECIPIENTS.
[(a) Award.--The Foundation is authorized to award
fellowships to outstanding individuals to encourage new
discoveries in all fields of endeavor for the benefit of
mankind. Recipients shall be known as ``Columbus Scholars''.
[(b) Term.--Fellowships shall be granted for such periods as
the Foundation may prescribe but not to exceed 2 years.
[(c) Selection.--The Foundation may provide, directly or by
contract, for the conduct of a nationwide competition for the
selection of fellowship recipients.
[SEC. 425. STIPENDS.
[Each person awarded a fellowship under this subtitle shall
receive a stipend as determined by the Foundation.
[SEC. 426. CHRISTOPHER COLUMBUS FELLOWSHIP FUND.
[(a) In General.--The is established in the Treasury a fund
to be known as the Christopher Columbus Scholarship Fund
(hereafter in this subtitle referred to as the ``fund''), which
shall consist of--
[(1) amounts deposited under subsection (d);
[(2) obligations obtained under subsection (c);
[(3) amounts contributed to the Foundation;
[(4) amounts appropriated to the Foundation, as
authorized under section 430; and
[(5) all surcharges received by the Secretary of the
Treasury from the sale of coins minted under the
Christopher Columbus Quincentenary Coin Act.
[(b) Investments.--
[(1) Duty of secretary to invest.-- The Secretary of
the Treasury shall invest in full any amount
appropriated or contributed to the fund.
[(2) Authorized investments.-- Invests pursuant to
paragraph (1) may be made only in interest-bearing
obligations of the United States or in obligations
guaranteed as to both principal and interest by the
United States. For such purpose, such obligations may
be acquired--
[(A) on original issue at the issue price; or
[(B) by purchase of outstanding obligations
at the market price.
[(3) Special obligations.-- The purposes for which
obligations of the United States may be issued under
chapter 31 of title 31, United States Code, are hereby
extended to authorize the issuance at par of special
obligations exclusively to the fund. Such special
obligations shall bear interest at a rate equal to the
average rate of interest, computed as to the end of the
calendar month preceding the date of such issue, borne
by all marketable interest-bearing obligations of the
United States then forming a part of the public debt;
except that, if such average rate is not a multiple of
l/s of 1 percent, the rate of interest of such special
obligations shall be the multiple of 3% of 1 percent
next lower than such average rate. Such special
obligations shall be issued only if the Secretary
determines that the purchase of other obligations of
the United States, or of obligations guaranteed as to
both principal and interest by the United States or
original issue at the market price, is not in the
public interest.
[(c) Sale of Obligations.--Any obligations acquired by the
fund (except special obligations issued exclusively to the fund
in accordance with subsection (bX3)) may be sold by the
Secretary at the market price, and such special obligations may
be redeemed at par plus accrued interest.
[(d) Interest.--The interest on, and the proceeds from, the
sale or redemption of an obligations held in the fund shall be
credited to and form a part of the fund.
[(e) Availability of Fund.--
[(1) Stipends.-- The fund shall be available to the
Foundation for payment of stipends awarded under
section 425.
[(2) Expenses.-- The Secretary of the Treasury is
authorized to pay to the Foundation from the interest
and earnings of the funds such sums as the Board
determines are necessary and appropriate to enable the
Foundation to carry out the provisions of this
subtitle.
[(f) Disbursements.--Disbursements from the fund shall be
made on vouchers approved by the Foundation and signed by the
Chairman.
[SEC. 427. AUDITS.
[The activities of the Foundation under this subtitle may be
audited by the Comptroller General of the United States. The
Comptroller General shall have access to all books, accounts,
records, reports, and files and all other papers, things, or
property belonging to or in use by the Foundation, pertaining
to such activities and necessary to facilitate the audit.
[SEC. 428. EXECUTIVE SECRETARY OF FOUNDATION.
[(a) Duties.--There shall be an Executive Secretary of the
Foundation who shall be appointed by the Board. The Executive
Secretary shall be the chief executive officer of the
Foundation and shall carry out the functions of the Foundation
subject to the supervision and direction of the Board.
[(b) Compensation.--The Executive Secretary of the Foundation
shall be compensated at an annual rate of basic pay not in
excess of the amount payable for Executive Level V.
[SEC. 429. ADMINISTRATIVE PROVISIONS.
[(a) The foundation may--
[(1) appoint and fix the compensation of such
personnel as may be necessary to carry out the
provisions of this subtitle, except that in no case
shall employees (other than the Executive Secretary) be
compensated at a rate in excess of the rate of basic
pay payable for GS-15 of the General Schedule;
[(2) procure temporary and intermittent services of
such experts and consultants as are necessary to the
extent authorized by section 3109 of title 5, but at
rates not in excess of the rate of basic pay payable
for Executive Level V;
[(3) prescribe such regulations as the Foundation may
determine to be necessary governing the manner in which
its functions shall be carried out;
[(4) receive money and other property donated,
bequeathed, or devised, without condition or
restriction other than it be used for the purposes of
the Foundation; and to use, sell, or otherwise dispose
of such property for the purpose of carrying out its
functions;
[(5) accept and utilize the services of voluntary and
uncompensated personnel and reimburse them for travel
expenses, including per diem, as authorized by section
5703 of title 5, United States Code;
[(6) enter into contracts, grants, or other
arrangements, or modifications thereof, to carry out
the provisions of this chapter, and such contracts or
modifications thereof may, with the concurrence of two-
thirds of the members of the Board, be entered into
without performance or other bonds, and without regard
to section 3709 of the Revised Statutes;
[(7) make advances, progress, and other payments
which the Board deems necessary under this chapter
without regard to the provisions of section 529 of
title 31, United States Code;
[(8) rent office space;
[(9) conduct programs in addition to or in
conjunction with the Fellowship program which shall
further the Foundation's purpose of encouraging new
discoveries in all fields of endeavor for the benefit
of mankind; and
[(10) to make other necessary expenditures.
[(b) Annual Report.--The Foundation shall submit to the
President and to the Congress an annual report of its
operations under this subtitle.
[SEC. 430. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to the Foundation,
such sums as may be necessary to carry out this subtitle.]
----------
LOCAL BUDGET AUTONOMY AMENDMENT ACT OF 2012
AN ACT To amend the District of Columbia Home Rule Act to provide for
local budget autonomy.
----------
DISTRICT OF COLUMBIA HOME RULE ACT
* * * * * * *
TITLE IV--THE DISTRICT CHARTER
* * * * * * *
Part D--District Budget and Financial Management
Subpart 1--Budget and Financial Management
* * * * * * *
general and special funds
Sec. 450. [The General Fund] (a) In General._The General Fund
of the District shall be composed of those District revenues
which on the effective date of this title are paid into the
Treasury of the United States and credited either to the
General Fund of the District or its miscellaneous receipts, but
shall not include any revenues which are applied by law to any
special fund existing on the date of enactment of this title.
The Council may from time to time establish such additional
special funds as may be necessary for the efficient operation
of the government of the District. All money received by any
agency, officer, or employee of the District in its or his
official capacity shall belong to the District government and
shall be paid promptly to the Mayor for deposit in the
appropriate fund, except that all money received by the
District of Columbia Courts shall be deposited in the Treasury
of the United States or the Crime Victims Fund.
(b) Application of Federal Appropriations Process.--Nothing
in this Act shall be construed as creating a continuing
appropriation of the General Fund described in subsection (a).
All funds provided for the District of Columbia shall be
appropriated on an annual fiscal year basis through the Federal
appropriations process. For each fiscal year, the District
shall be subject to all applicable requirements of subchapter
III of chapter 13 and subchapter II of chapter 15 of title 31,
United States Code (commonly known as the ``Anti-Deficiency
Act''), the Budget and Accounting Act of 1921, and all other
requirements and restrictions applicable to appropriations for
such fiscal year.
* * * * * * *
TITLE VI--RESERVATION OF CONGRESSIONAL AUTHORITY
* * * * * * *
budget process; limitations on borrowing and spending
Sec. 603. (a) Nothing in this Act shall be construed as
making any change in [existing] law, regulation, or basic
procedure and practice relating to the respective roles of the
Congress, the President, the Federal Office of Management and
Budget, and the Comptroller General of the United States in the
preparation, review, submission, examination, authorization,
and appropriation of the total budget of the District of
Columbia government[.], or as authorizing the District of
Columbia to make any such change.
(b)(1) No general obligation bonds (other than bonds to
refund outstanding indebtedness) or Treasury capital project
loans shall be issued during any fiscal year in an amount which
would cause the amount of principal and interest required to be
paid both serially and into a sinking fund in any fiscal year
on the aggregate amounts of all outstanding general obligation
bonds and such Treasury loans, to exceed 17 percent of the
District revenues (less any fees or revenues directed to
servicing revenue bonds, any revenues, charges, or fees
dedicated for the purposes of water and sewer facilities
described in section 490(a) (including fees or revenues
directed to servicing or securing revenue bonds issued for such
purposes), retirement contributions, revenues from retirement
systems, and revenues derived from such Treasury loans and the
sale or general obligation or revenue bonds) which the Mayor
estimates, and the District of Columbia Auditor certifies, will
be credited to the District during the fiscal year in which the
bonds will be issued. Treasury capital project loans include
all borrowing from the United States Treasury, except those
funds advanced to the District by the Secretary of the Treasury
under the provisions of title VI of the District of Columbia
Revenue Act of 1939.
(2) Obligations incurred pursuant to the authority contained
in the District of Columbia Stadium Act of 1957 (71 Stat. 619;
D.C. Code title 2, chapter 17, subchapter II), obligations
incurred by the agencies transferred or established by sections
201 and 202, whether incurred before or after such transfer or
establishment, and obligations incurred pursuant to general
obligation bonds of the District of Columbia issued prior to
October 1, 1996, for the financing of Department of Public
Works, Water and Sewer Utility Administration capital projects,
shall not be included in determining the aggregate amount of
all outstanding obligations subject to the limitation specified
in the preceding subsection.
(3) The 17 percent limitation specified in paragraph (1)
shall be calculated in the following manner:
(A) Determine the dollar amount equivalent to 14
percent of the District revenues (less any fees or
revenues directed to servicing revenue bonds, any
revenues, charges, or fees dedicated for the purposes
of water and sewer facilities described in section
490(a) (including fees or revenues directed to
servicing or securing revenue bonds issued for such
purposes), retirement, contributions, revenues from
retirement systems, and revenues derived from such
Treasury loans and the sale of general obligation or
revenue bonds) which the Mayor estimates, and the
District of Columbia Auditor certifies, will be
credited to the District during the fiscal year for
which the bonds will be issued.
(B) Determine the actual total amount of principal
and interest to be paid in each fiscal year for all
outstanding general obligation bonds (less the
allocable portion of principal and interest to be paid
during the year on general obligation bonds of the
District of Columbia issued prior to October 1, 1996,
for the financing of Department of Public Works, Water
and Sewer Utility Administration capital projects) and
such Treasury loans.
(C) Determine the amount of principal and interest to
be paid during each fiscal year over the term of the
proposed general obligation bond or such Treasury loan
to be issued.
(D) If in any one fiscal year the sum arrived at by
adding subparagraphs (B) and (C) exceeds the amount
determined under subparagraph (A), then the proposed
general obligation bond or such Treasury loan in
subparagraph (C) cannot be issued.
(c) Except as provided in subsection (f), the Council shall
not approve any budget which would result in expenditures being
made by the District Government, during any fiscal year, in
excess of all resources which the Mayor estimates will be
available from all funds available to the District for such
fiscal year. The budget shall identify any tax increases which
shall be required in order to balance the budget as submitted.
The Council shall be required to adopt such tax increases to
the extent its budget is approved.
(d) Except as provided in subsection (f), the Mayor shall not
forward to the President for submission to Congress a budget
which is not balanced according to the provision of subsection
603(c).
(e) Nothing in this Act shall be construed as affecting the
applicability to the District government of the provisions of
section 3679 of the Revised Statutes of the United States (31
U.S.C. 665), the so-called Anti-Deficiency Act.
(f) In the case of a fiscal year which is a control year (as
defined in section 305(4) of the District of Columbia Financial
Responsibility and Management Assistance Act of 1995), the
Council may not approve, and the Mayor may not forward to the
President, any budget which is not consistent with the
financial plan and budget established for the fiscal year under
subtitle A of title II of such Act.
* * * * * * *
----------
CONSOLIDATED APPROPRIATIONS ACT, 2016
* * * * * * *
DIVISION E--FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS
ACT, 2016
* * * * * * *
TITLE VIII
GENERAL PROVISIONS--DISTRICT OF COLUMBIA
(INCLUDING TRANSFERS OF FUNDS)
* * * * * * *
[Sec. 817. (a) This section may be cited as the ``D.C.
Opportunity Scholarship Program School Certification
Requirements Act''.
[(b) Section 3007(a) of the Scholarships for Opportunity and
Results Act (Public Law 112-10; 125 Stat. 203) is amended--
[(1) in paragraph (4)--
[(A) in subparagraph (E), by striking ``and''
after the semicolon;
[(B) in subparagraph (F), by striking the
period at the end and inserting a semicolon;
and
[(C) by adding at the end the following:
[``(G)(i) is provisionally or fully
accredited by a national or regional
accrediting agency that is recognized in the
District of Columbia School Reform Act of 1995
(sec. 38-1802.02(16)(A)-(G), D.C. Official
Code) or any other accrediting body deemed
appropriate by the Office of the State
Superintendent for Schools for the purposes of
accrediting an elementary or secondary school;
or
[``(ii) in the case of a school that
is a participating school as of the day
before the date of enactment of the
D.C. Opportunity Scholarship Program
School Certification Requirements Act
and, as of such day, does not meet the
requirements of clause (i)--
[``(I) by not later than 1
year after such date of
enactment, is pursuing
accreditation by a national or
regional accrediting agency
recognized in the District of
Columbia School Reform Act of
1995 (sec. 38-1802.02(16)(A)-
(G), D.C. Official Code) or any
other accrediting body deemed
appropriate by the Office of
the State Superintendent for
Schools for the purposes of
accrediting an elementary or
secondary school; and
[``(II) by not later than 5
years after such date of
enactment, is provisionally or
fully accredited by such
accrediting agency, except that
an eligible entity may grant
not more than one 1-year
extension to meet this
requirement for each
participating school that
provides evidence to the
eligible entity from such
accrediting agency that the
school's application for
accreditation is in process and
the school will be awarded
accreditation before the end of
the 1-year extension period;
[``(H) conducts criminal background checks on
school employees who have direct and
unsupervised interaction with students; and
[``(I) complies with all requests for data
and information regarding the reporting
requirements described in section 3010.''; and
[(2) by adding at the end the following:
[``(5) New participating schools.-- If a school is
not a participating school as of the date of enactment
of the D.C. Opportunity Scholarship Program School
Certification Requirements Act, the school shall not
become a participating school and none of the funds
provided under this division for opportunity
scholarships may be used by an eligible student to
enroll in that school unless the school--
[``(A) is actively pursuing provisional or
full accreditation by a national or regional
accrediting agency that is recognized in the
District of Columbia School Reform Act of 1995
(sec. 38-1802.02(16)(A)-(G), D.C. Official
Code) or any other accrediting body deemed
appropriate by the Office of the State
Superintendent for Schools for the purposes of
accrediting an elementary or secondary school;
and
[``(B) meets all of the other requirements
for participating schools under this Act.
[``(6) Enrolling in another school.-- An eligible
entity shall assist the parents of a participating
eligible student in identifying, applying to, and
enrolling in an another participating school for which
opportunity scholarship funds may be used, if--
[``(A) such student is enrolled in a
participating private school and may no longer
use opportunity scholarship funds for
enrollment in that participating private school
because such school fails to meet a requirement
under paragraph 4, or any other requirement of
this Act; or
[``(B) a participating eligible student is
enrolled in a school that ceases to be a
participating school.''.
[(c) Report to Eligible Entities.--Section 3010 of the
Scholarships for Opportunity and Results Act (Public Law 112-
10; 125 Stat. 203) is further amended--
[(1) by redesignating subsection (d) as subsection
(e); and
[(2) by inserting after subsection (c) the following:
[``(d) Reports to Eligible Entities.--The eligible entity
receiving funds under section 3004(a) shall ensure that each
participating school under this division submits to the
eligible entity beginning not later than 5 years after the date
of the enactment of the D.C. Opportunity Scholarship Program
School Certification Requirements Act, a certification that the
school has been awarded provisional or full accreditation, or
has been granted an extension by the eligible entity in
accordance with section 3007(a)(4)(G).''.
[(d) Unless specifically provided otherwise, this section,
and the amendments made by this section, shall take effect 1
year after the date of enactment of this Act.]
* * * * * * *
----------
SCHOLARSHIPS FOR OPPORTUNITY AND RESULTS ACT
* * * * * * *
DIVISION C--SCHOLARSHIPS FOR OPPORTUNITY AND RESULTS ACT
* * * * * * *
SEC. 3003. PURPOSE.
The purpose of this division is to provide low-income parents
residing in the District of Columbia, [particularly parents of
students who attend elementary schools or secondary schools
implementing comprehensive support and improvement activities
or targeted support and improvement activities under section
1111(d) of the Elementary and Secondary Education Act of 1965,
with] particularly parents of students who attend an elementary
school or secondary school identified as one of the lowest-
performing schools under the District of Columbia's
accountability system, with expanded opportunities for
enrolling their children in other schools in the District of
Columbia, at least until the public schools in the District of
Columbia have adequately addressed shortfalls in health,
safety, and security, and the students in the District of
Columbia public schools are testing in mathematics and reading
at or above the national average.
SEC. 3004. GENERAL AUTHORITY.
(a) Opportunity Scholarships.--
(1) In general.-- From funds appropriated under
section 3014(a)(1), the Secretary shall award grants on
a competitive basis to eligible entities with approved
applications under section 3005 to carry out a program
to provide eligible students with expanded school
choice opportunities. The Secretary may award a single
grant or multiple grants, depending on the quality of
applications submitted and the priorities of this
division.
(2) Duration of grants.-- The Secretary may make
grants under this subsection for a period of not more
than 5 years.
(3) Prohibiting imposition of limits on eligible
students participating in the program.--
(A) In general.-- In carrying out the program
under this division, the Secretary may not
limit the number of eligible students receiving
scholarships under section 3007(a), and may not
prevent otherwise eligible students from
participating in the program under this
division, based on any of the following:
(i) The type of school the student
previously attended.
(ii) Whether or not the student
previously received a scholarship or
participated in the program, including
whether an eligible student was awarded
a scholarship in any previous year but
has not used the scholarship,
regardless of the number of years of
nonuse.
(iii) Whether or not the student was
a member of the control group used by
the Institute of Education Sciences to
carry out previous evaluations of the
program under section 3009.
(B) Rule of construction.-- Nothing in
subparagraph (A) may be construed to waive the
requirement under section 3005(b)(1)(B) that
the eligible entity carrying out the program
under this Act must carry out a random
selection process, which gives weight to the
priorities described in section 3006, if more
eligible students seek admission in the program
than the program can accommodate.
(b) DC Public Schools and Charter Schools.--From funds
appropriated under paragraphs (2) and (3) of section 3014(a),
the Secretary shall provide funds to the Mayor of the District
of Columbia, if the Mayor agrees to the requirements described
in section 3011(a), for--
(1) the District of Columbia public schools to
improve public education in the District of Columbia;
and
(2) the District of Columbia public charter schools
to improve and expand quality public charter schools in
the District of Columbia.
SEC. 3005. APPLICATIONS.
(a) In General.--In order to receive a grant under section
3004(a), an eligible entity shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require.
(b) Contents.--The Secretary may not approve the request of
an eligible entity for a grant under section 3004(a) unless the
entity's application includes--
(1) a detailed description of--
(A) how the entity will address the
priorities described in section 3006;
(B) how the entity will ensure that if more
eligible students seek admission in the program
of the entity than the program can accommodate,
eligible students are selected for admission
through a random selection process which gives
weight to the priorities described in section
3006;
(C) how the entity will ensure that if more
participating eligible students seek admission
to a participating school than the school can
accommodate, participating eligible students
are selected for admission through a random
selection process;
(D) how the entity will notify parents of
eligible students of the expanded choice
opportunities in order to allow the parents to
make informed decisions;
(E) the activities that the entity will carry
out to provide parents of eligible students
with expanded choice opportunities through the
awarding of scholarships under section 3007(a);
(F) how the entity will determine the amount
that will be provided to parents under section
3007(a)(2) for the payment of tuition, fees,
and transportation expenses, if any;
(G) how the entity will seek out private
elementary schools and secondary schools in the
District of Columbia to participate in the
program;
(H) how the entity will ensure that each
participating school will meet the reporting
and other program requirements under this
division;
(I) how the entity will ensure that
participating schools submit to site visits by
the entity as determined to be necessary by the
entity[, except that a participating school may
not be required to submit to more than 1 site
visit per school year];
(J) how the entity will ensure that
participating schools are financially
responsible and will use the funds received
under section 3007 effectively;
(K) how the entity will ensure the financial
viability of participating schools in which 85
percent or more of the total number of students
enrolled at the school are participating
eligible students that receive and use an
opportunity scholarship;
[(K)] (L) how the entity will address the
renewal of scholarships to participating
eligible students, including continued
eligibility; [and]
[(L)] (M) how the entity will ensure that a
majority of its voting board members or
governing organization are residents of the
District of Columbia; and
(N) how the eligible entity will ensure that
it--
(i) utilizes internal fiscal and
quality controls; and
(ii) complies with applicable
financial reporting requirements and
the requirements of this division; and
(2) an assurance that the entity will comply with all
requests regarding any evaluation carried out under
section 3009(a).
SEC. 3006. PRIORITIES.
In awarding grants under section 3004(a), the Secretary shall
give priority to applications from eligible entities that will
most effectively--
(1) in awarding scholarships under section 3007(a),
give priority to--
(A) eligible students who, in the school year
preceding the school year for which the
eligible students are seeking a scholarship,
[attended an elementary school or secondary
school implementing comprehensive support and
improvement activities or targeted support and
improvement activities under section 1111(d) of
the Elementary and Secondary Education Act of
1965;] attended an elementary school or
secondary school identified as one of the
lowest-performing schools under the District of
Columbia's accountability system; and
[(B) students who have been awarded a
scholarship in a preceding year under this
division or the DC School Choice Incentive Act
of 2003 (sec. 38-1851.01 et seq., D.C. Official
Code), as such Act was in effect on the day
before the date of the enactment of this
division, but who have not used the
scholarship, including eligible students who
were provided notification of selection for a
scholarship for school year 2009-2010, which
was later rescinded in accordance with
direction from the Secretary of Education; and]
[(C)] (B) students whose household includes a
sibling or other child who is already
participating in the program of the eligible
entity under this division, regardless of
whether such students have, in the past, been
assigned as members of a control study group
for the purposes of an evaluation under section
3009(a)[;] or whether such students have, in
the past, attended a private school;
(2) target resources to students and families that
lack the financial resources to take advantage of
available educational options; and
(3) provide students and families with the widest
range of educational options.
SEC. 3007. USE OF FUNDS.
(a) Opportunity Scholarships.--
(1) In general.-- Subject to [paragraphs (2) and (3)]
paragraphs (2), (3), and (5) , an eligible entity
receiving a grant under section 3004(a) shall use the
grant funds to provide eligible students with
scholarships to pay the tuition, fees, and
transportation expenses, if any, to enable the eligible
students to attend the District of Columbia private
elementary school or secondary school of their choice
beginning in school year 2011-2012. Each such eligible
entity shall ensure that the amount of any tuition or
fees charged by a school participating in such entity's
program under this division to an eligible student
participating in the program does not exceed the amount
of tuition or fees that the school charges to students
who do not participate in the program.
(2) Payments to parents.-- An eligible entity
receiving a grant under section 3004(a) shall make
scholarship payments under the entity's program under
this division to the parent of the eligible student
participating in the program, in a manner which ensures
that such payments will be used for the payment of
tuition, fees, and transportation expenses (if any), in
accordance with this division.
(3) Amount of assistance.--
(A) Varying amounts permitted.-- Subject to
the other requirements of this section, an
eligible entity receiving a grant under section
3004(a) may award scholarships in larger
amounts to those eligible students with the
greatest need.
(B) Annual limit on amount.--
(i) Limit for school year 2011-
2012.-- The amount of assistance
provided to any eligible student by an
eligible entity under the entity's
program under this division for school
year 2011-2012 may not exceed--
(I) $8,000 for attendance in
kindergarten through grade 8;
and
(II) $12,000 for attendance
in grades 9 through 12.
(ii) Cumulative inflation
adjustment.-- Beginning with school
year 2012-2013, the Secretary shall
adjust the maximum amounts of
assistance described in clause (i) for
inflation, as measured by the
percentage increase, if any, from the
preceding fiscal year in the Consumer
Price Index for All Urban Consumers,
published by the Bureau of Labor
Statistics of the Department of Labor.
(4) Participating school requirements.-- None of the
funds provided under this division for opportunity
scholarships may be used by an eligible student to
enroll in a participating private school unless the
participating school--
(A) has and maintains a valid certificate of
occupancy issued by the District of Columbia;
(B) makes readily available to all
prospective students information on its school
accreditation;
(C) in the case of a school that has been
operating for 5 years or less, submits to the
eligible entity administering the program proof
of adequate financial resources reflecting the
financial sustainability of the school and the
school's ability to be in operation through the
school year;
(D) agrees to submit to site visits as
determined to be necessary by the eligible
entity pursuant to section 3005(b)(1)(I);
(E) has financial systems, controls,
policies, and procedures to ensure that funds
are used according to this division; [and]
[(F) ensures that, with respect to core
academic subjects (as such term was defined in
section 9101(11) of the Elementary and
Secondary Act of 1965 (20 U.S.C. 7801(11)) on
the day before the date of enactment of the
Every Student Succeeds Act), participating
students are taught by a teacher who has a
baccalaureate degree or equivalent degree,
whether such degree was awarded in or outside
of the United States.]
(F) ensures that, with respect to core
subject matter, participating students are
taught by a teacher who has a baccalaureate
degree or equivalent degree, whether such
degree was awarded in or outside of the United
States;
(G) conducts criminal background checks on
school employees who have direct and
unsupervised interaction with students; and
(H) complies with all requests for data and
information regarding the reporting
requirements described in section 3010.
(5) Accreditation requirements.--
(A) In general.-- None of the funds provided
under this division for opportunity
scholarships may be used by a participating
eligible student to enroll in a participating
private school unless the school--
(i) in the case of a school that is a
participating school as of the date of
enactment of the SOAR Reauthorization
Act--
(I) is fully accredited by an
accrediting body described in
any of subparagraphs (A)
through (G) of section 2202(16)
of the District of Columbia
School Reform Act of 1995
(Public Law 104-134; sec. 38-
1802.02(16)(A)-(G), D.C.
Official Code); or
(II) if such participating
school does not meet the
requirements of subclause (I)--
(aa) not later than 1
year after the date of
enactment of the
Consolidated
Appropriations Act,
2016 (Public Law 114-
113), the school is
pursuing full
accreditation by an
accrediting body
described in subclause
(I); and
(bb) is fully
accredited by such an
accrediting body not
later than 5 years
after the date on which
that school began the
process of pursuing
full accreditation in
accordance with item
(aa); and
(ii) in the case of a school that is
not a participating school as of the
date of enactment of the SOAR
Reauthorization Act, is fully
accredited by an accrediting body
described in clause (i)(I) before
becoming a participating school under
this division.
(B) Reports to eligible entity.-- Not later
than 5 years after the date of enactment of the
SOAR Reauthorization Act, each participating
school shall submit to the eligible entity a
certification that the school has been fully
accredited in accordance with subparagraph (A).
(C) Assisting students in enrolling in other
schools.-- If a participating school fails to
meet the requirements of this paragraph, the
eligible entity shall assist the parents of the
participating eligible students who attend the
school in identifying, applying to, and
enrolling in another participating school under
this division.
(6) Treatment of students awarded a scholarship in a
previous year.-- An eligible entity shall treat a
participating eligible student who was awarded an
opportunity scholarship in any previous year and who
has not used the scholarship as a renewal student and
not as a new applicant, without regard as to--
(A) whether the eligible student has used the
scholarship; and
(B) the year in which the scholarship was
previously awarded.
[(b) Administrative Expenses.--An eligible entity receiving a
grant under section 3004(a) may use not more than 3 percent of
the amount provided under the grant each year for the
administrative expenses of carrying out its program under this
division during the year, including--
[(1) determining the eligibility of students to
participate;
[(2) selecting eligible students to receive
scholarships;
[(3) determining the amount of scholarships and
issuing the scholarships to eligible students;
[(4) compiling and maintaining financial and
programmatic records; and
[(5) conducting site visits as described in section
3005(b)(1)(I).
[(c) Parental Assistance.--An eligible entity receiving a
grant under section 3004(a) may use not more than 2 percent of
the amount provided under the grant each year for the expenses
of educating parents about the entity's program under this
division, and assisting parents through the application
process, under this division, including--
[(1) providing information about the program and the
participating schools to parents of eligible students;
[(2) providing funds to assist parents of students in
meeting expenses that might otherwise preclude the
participation of eligible students in the program; and
[(3) streamlining the application process for
parents.]
(b) Administrative Expenses and Parental Assistance.--The
Secretary shall make $2,000,000 of the amount made available
under section 3014(a)(1) for each fiscal year available to
eligible entities receiving a grant under section 3004(a) to
cover the following expenses:
(1) The administrative expenses of carrying out its
program under this division during the year,
including--
(A) determining the eligibility of students
to participate;
(B) selecting the eligible students to
receive scholarships;
(C) determining the amount of the
scholarships and issuing the scholarships to
eligible students;
(D) compiling and maintaining financial and
programmatic records;
(E) conducting site visits as described in
section 3005(b)(1)(I); and
(F)(i) conducting a study, including a survey
of participating parents, on any barriers for
participating eligible students in gaining
admission to, or attending, the participating
school that is their first choice; and
(ii) not later than the end of the first full
fiscal year after the date of enactment of the
SOAR Reauthorization Act, submitting a report
to Congress that contains the results of such
study.
(2) The expenses of educating parents about the
eligible entity's program under this division, and
assisting parents through the application process under
this division, including--
(A) providing information about the program
and the participating schools to parents of
eligible students, including information on
supplemental financial aid that may be
available at participating schools;
(B) providing funds to assist parents of
students in meeting expenses that might
otherwise preclude the participation of
eligible students in the program; and
(C) streamlining the application process for
parents.
[(d)] (c) Student Academic Assistance.--An eligible entity
receiving a grant under section 3004(a) may use not more than 1
percent of the amount provided under the grant each year for
expenses to provide tutoring services to participating eligible
students that need additional academic assistance. If there are
insufficient funds to provide tutoring services to all such
students in a year, the eligible entity shall give priority in
such year to students who [previously attended an elementary
school or secondary school that was implementing comprehensive
support and improvement activities or targeted support and
improvement activities under section 1111(d) of the Elementary
and Secondary Education Act of 1965.] previously attended an
elementary school or secondary school identified as one of the
lowest-performing schools under the District of Columbia's
accountability system.
(d) Requiring Use of Funds Remaining Unobligated From
Previous Fiscal Years.--
(1) In general.-- To the extent that any funds
appropriated for the opportunity scholarship program
under this division for any fiscal year remain
available for subsequent fiscal years under section
3014(c), the Secretary shall make such funds available
to eligible entities receiving grants under section
3004(a) for the uses described in paragraph (2)--
(A) in the case of any remaining funds that
were appropriated before the date of enactment
of the SOAR Reauthorization Act, beginning on
the date of enactment of such Act; and
(B) in the case of any remaining funds
appropriated on or after the date of enactment
of such Act, by the first day of the first
subsequent fiscal year.
(2) Use of funds.-- If an eligible entity to which
the Secretary provided additional funds under paragraph
(1) elects to use such funds during a fiscal year, the
eligible entity shall use--
(A) not less than 95 percent of such
additional funds to provide additional
scholarships for eligible students under
section 3007(a), or to increase the amount of
the scholarships, during such year; and
(B) not more than a total of 5 percent of
such additional funds for administrative
expenses, parental assistance, or tutoring, as
described in subsections (b) and (c), during
such year.
(3) Special rule.-- Any amounts made available for
administrative expenses, parental assistance, or
tutoring under paragraph (2)(B) shall be in addition to
any other amounts made available for such purposes in
accordance with subsections (b) and (c).
* * * * * * *
SEC. 3009. EVALUATIONS.
[(a) In General.--
[(1) Duties of the secretary and the mayor.-- The
Secretary and the Mayor of the District of Columbia
shall--
[(A) jointly enter into an agreement with the
Institute of Education Sciences of the
Department of Education to evaluate annually
the performance of students who received
scholarships under the 5-year program under
this division;
[(B) jointly enter into an agreement to
monitor and evaluate the use of funds
authorized and appropriated for the District of
Columbia public schools and the District of
Columbia public charter schools under this
division; and
[(C) make the evaluations described in
subparagraphs (A) and (B) public in accordance
with subsection (c).
[(2) Duties of the secretary.-- The Secretary,
through a grant, contract, or cooperative agreement,
shall--
[(A) ensure that the evaluation under
paragraph (1)(A)--
[(i) is conducted using the strongest
possible research design for
determining the effectiveness of the
opportunity scholarship program under
this division; and
[(ii) addresses the issues described
in paragraph (4); and
[(B) disseminate information on the impact of
the program--
[(i) in increasing the academic
growth and achievement of participating
eligible students; and
[(ii) on students and schools in the
District of Columbia.
[(3) Duties of the institute of education sciences.--
The Institute of Education Sciences of the Department
of Education shall--
[(A) use a grade appropriate, nationally
norm-referenced standardized test each school
year to assess participating eligible students
in a manner consistent with section 3008(h);
[(B) measure the academic achievement of all
participating eligible students; and
[(C) work with the eligible entities to
ensure that the parents of each student who
applies for a scholarship under this division
(regardless of whether the student receives the
scholarship) and the parents of each student
participating in the scholarship program under
this division, agree that the student will
participate, if requested by the Institute of
Education Sciences, in the measurements given
annually by the Institute of Educational
Sciences for the period for which the student
applied for or received the scholarship,
respectively, except that nothing in this
subparagraph shall affect a student's priority
for an opportunity scholarship as provided
under section 3006.
[(4) Issues to be evaluated.-- The issues to be
evaluated under paragraph (1)(A) shall include the
following:
[(A) A comparison of the academic growth and
achievement of participating eligible students
in the measurements described in paragraph (3)
to the academic growth and achievement of the
eligible students in the same grades who sought
to participate in the scholarship program under
this division but were not selected.
[(B) The success of the program in expanding
choice options for parents of participating
eligible students, improving parental and
student satisfaction of such parents and
students, respectively, and increasing parental
involvement of such parents in the education of
their children.
[(C) The reasons parents of participating
eligible students choose for their children to
participate in the program, including important
characteristics for selecting schools.
[(D) A comparison of the retention rates,
high school graduation rates, and college
admission rates of participating eligible
students with the retention rates, high school
graduation rates, and college admission rates
of students of similar backgrounds who do not
participate in such program.
[(E) A comparison of the safety of the
schools attended by participating eligible
students and the schools in the District of
Columbia attended by students who do not
participate in the program, based on the
perceptions of the students and parents.
[(F) Such other issues with respect to
participating eligible students as the
Secretary considers appropriate for inclusion
in the evaluation, such as the impact of the
program on public elementary schools and
secondary schools in the District of Columbia.
[(G) An analysis of the issues described in
subparagraphs (A) through (F) by applying such
subparagraphs by substituting ``the subgroup of
participating eligible students who have used
each opportunity scholarship awarded to such
students under this division to attend a
participating school'' for ``participating
eligible students'' each place such term
appears.
[(5) Prohibition.-- Personally identifiable
information regarding the results of the measurements
used for the evaluations may not be disclosed, except
to the parents of the student to whom the information
relates.]
(a) In General.--
(1) Duties of the secretary and the mayor.-- The
Secretary and the Mayor of the District of Columbia
shall--
(A) jointly enter into an agreement with the
Institute of Education Sciences of the
Department of Education to evaluate annually
the opportunity scholarship program under this
division;
(B) jointly enter into an agreement to
monitor and evaluate the use of funds
authorized and appropriated for the District of
Columbia public schools and the District of
Columbia public charter schools under this
division; and
(C) make the evaluations described in
subparagraphs (A) and (B) public in accordance
with subsection (c).
(2) Duties of the secretary.-- The Secretary, through
a grant, contract, or cooperative agreement, shall--
(A) ensure that the evaluation under
paragraph (1)(A)--
(i) is conducted using an acceptable
quasi-experimental research design for
determining the effectiveness of the
opportunity scholarship program under
this division that does not use a
control study group consisting of
students who applied for but did not
receive opportunity scholarships; and
(ii) addresses the issues described
in paragraph (4); and
(B) disseminate information on the impact of
the program--
(i) in increasing academic
achievement and educational attainment
of participating eligible students who
use an opportunity scholarship; and
(ii) on students and schools in the
District of Columbia.
(3) Duties of the institute of education sciences.--
The Institute of Education Sciences of the Department
of Education shall--
(A) assess participating eligible students
who use an opportunity scholarship in each of
grades 3 through 8, as well as one of the
grades at the high school level, by supervising
the administration of the same reading and
mathematics assessment used by the District of
Columbia public schools to comply with section
1111(b) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(b));
(B) measure the academic achievement of all
participating eligible students who use an
opportunity scholarship in the grades described
in subparagraph (A); and
(C) work with eligible entities receiving a
grant under this division to ensure that the
parents of each student who is a participating
eligible student that uses an opportunity
scholarship agrees to permit their child to
participate in the evaluations and assessments
carried out by the Institute of Education
Sciences under this subsection.
(4) Issues to be evaluated.-- The issues to be
evaluated under paragraph (1)(A) shall include the
following:
(A) A comparison of the academic achievement
of participating eligible students who use an
opportunity scholarship on the measurements
described in paragraph (3)(B) to the academic
achievement of a comparison group of students
with similar backgrounds in the District of
Columbia public schools.
(B) The success of the program under this
division in expanding choice options for
parents of participating eligible students and
increasing the satisfaction of such parents and
students with their choice.
(C) The reasons parents of participating
eligible students choose for their children to
participate in the program, including important
characteristics for selecting schools.
(D) A comparison of the retention rates, high
school graduation rates, college enrollment
rates, college persistence rates, and college
graduation rates of participating eligible
students who use an opportunity scholarship
with the rates of students in the comparison
group described in subparagraph (A).
(E) A comparison of the college enrollment
rates, college persistence rates, and college
graduation rates of students who participated
in the program in 2004, 2005, 2011, 2012, 2013,
2014, and 2015 as the result of winning the
Opportunity Scholarship Program lottery with
such enrollment, persistence, and graduation
rates for students who entered but did not win
such lottery in those years and who, as a
result, served as the control group for
previous evaluations of the program under this
division. Nothing in this subparagraph may be
construed to waive section 3004(a)(3)(A)(iii)
with respect to any such student.
(F) A comparison of the safety of the schools
attended by participating eligible students who
use an opportunity scholarship and the schools
in the District of Columbia attended by
students in the comparison group described in
subparagraph (A), based on the perceptions of
the students and parents.
(G) An assessment of student academic
achievement at participating schools in which
85 percent of the total number of students
enrolled at the school are participating
eligible students who receive and use an
opportunity scholarship.
(H) Such other issues with respect to
participating eligible students who use an
opportunity scholarship as the Secretary
considers appropriate for inclusion in the
evaluation, such as the impact of the program
on public elementary schools and secondary
schools in the District of Columbia.
(5) Prohibiting disclosure of personal information.--
(A) In general.-- Any disclosure of
personally identifiable information obtained
under this division shall be in compliance with
section 444 of the General Education Provisions
Act (commonly known as the ``Family Educational
Rights and Privacy Act of 1974'') (20 U.S.C.
1232g).
(B) Students not attending public schools.--
With respect to any student who is not
attending a public elementary school or
secondary school, personally identifiable
information obtained under this division shall
only be disclosed to--
(i) individuals carrying out the
evaluation described in paragraph
(1)(A) for such student;
(ii) the group of individuals
providing information for carrying out
the evaluation of such student; and
(iii) the parents of such student.
(b) Reports.--The Secretary shall submit to the Committees on
Appropriations, Education and the Workforce, and Oversight and
Government Reform of the House of Representatives and the
Committees on Appropriations, Health, Education, Labor, and
Pensions, and Homeland Security and Governmental Affairs of the
Senate--
(1) annual interim reports, not later than April 1 of
the year following the year of the date of enactment of
this division, and each subsequent year through the
year in which the final report is submitted under
paragraph (2), on the progress and preliminary results
of the evaluation of the opportunity scholarship
program funded under this division; and
(2) a final report, not later than 1 year after the
final year for which a grant is made under section
3004(a), on the results of the evaluation of the
program.
(c) Public Availability.--All reports and underlying data
gathered pursuant to this section shall be made available to
the public upon request, in a timely manner following
submission of the applicable report under subsection (b),
except that personally identifiable information shall not be
disclosed or made available to the public.
(d) Limit on Amount Expended.--The amount expended by the
Secretary to carry out this section for any fiscal year may not
exceed 5 percent of the total amount appropriated under section
3014(a)(1) for the fiscal year.
* * * * * * *
SEC. 3011. DC PUBLIC SCHOOLS AND DC PUBLIC CHARTER SCHOOLS.
(a) Condition of Receipt of Funds.--As a condition of
receiving funds under this division on behalf of the District
of Columbia public schools and the District of Columbia public
charter schools, the Mayor shall agree to carry out the
following:
[(1) Information requests.-- Ensure that all the
District of Columbia public schools and the District of
Columbia public charter schools comply with all
reasonable requests for information for purposes of the
evaluation under section 3009(a).]
(1) Information necessary to carry out evaluations.--
Ensure that all District of Columbia public schools and
District of Columbia public charter schools make
available to the Institute of Education Sciences of the
Department of Education all of the information the
Institute requires to carry out the assessments and
perform the evaluations required under section 3009(a).
(2) Agreement with the secretary.-- Enter into the
agreement described in section 3009(a)(1)(B) to monitor
and evaluate the use of funds authorized and
appropriated for the District of Columbia public
schools and the District of Columbia public charter
schools under this division.
(3) Submission of report.-- Not later than 6 months
after the first appropriation of funds under section
3014, and each succeeding year thereafter, submit to
the Committee on Appropriations, the Committee on
Education and the Workforce, and the Committee on
Oversight and Government Reform of the House of
Representatives, and the Committee on Appropriations,
the Committee on Health, Education, Labor, and
Pensions, and the Committee on Homeland Security and
Governmental Affairs of the Senate, information on--
(A) how the funds authorized and appropriated
under this division for the District of
Columbia public schools and the District of
Columbia public charter schools were used in
the preceding school year; and
(B) how such funds are contributing to
student achievement.
[(b) Enforcement.--If, after reasonable notice and an
opportunity for a hearing for the Mayor, the Secretary
determines that the Mayor has not been in compliance with 1 or
more of the requirements described in subsection (a), the
Secretary may withhold from the Mayor, in whole or in part,
further funds under this division for the District of Columbia
public schools and the District of Columbia public charter
schools.]
(b) Enforcement.--If, after reasonable notice and an
opportunity for a hearing, the Secretary determines that the
Mayor has failed to comply with any of the requirements of
subsection (a), the Secretary may withhold from the Mayor, in
whole or in part--
(1) the funds otherwise authorized to be appropriated
under section 3014(a)(2), if the failure to comply
relates to the District of Columbia public schools;
(2) the funds otherwise authorized to be appropriated
under section 3014(a)(3), if the failure to comply
relates to the District of Columbia public charter
schools; or
(3) the funds otherwise authorized to be appropriated
under both paragraphs (2) and (3) of section 3014(a),
if the failure relates to both the District of Columbia
public schools and the District of Columbia public
charter schools.
(c) Specific Rules Regarding Funds Provided for Support of
Public Charter Schools.--The following rules shall apply with
respect to the funds provided under this division for the
support of District of Columbia public charter schools:
(1) The Secretary may direct the funds provided for
any fiscal year, or any portion thereof, to the Office
of the State Superintendent of Education of the
District of Columbia.
(2) The Office of the State Superintendent of
Education of the District of Columbia may transfer the
funds to subgrantees that are--
(A) specific District of Columbia public
charter schools or networks of such schools; or
(B) District of Columbia-based nonprofit
organizations with experience in successfully
providing support or assistance to District of
Columbia public charter schools or networks of
such schools.
(3) The funds provided under this division for the
support of District of Columbia public charter schools
shall be available to any District of Columbia public
charter school in good standing with the District of
Columbia Charter School Board, and the Office of the
State Superintendent of Education of the District of
Columbia and the District of Columbia Charter School
Board may not restrict the availability of such funds
to certain types of schools on the basis of the
school's location, governing body, or the school's
facilities.
[(c)] (d) Rule of Construction.--Nothing in this section
shall be construed to reduce, or otherwise affect, funding
provided under this division for the opportunity scholarship
program under this division.
* * * * * * *
SEC. 3013. DEFINITIONS.
As used in this division:
(1) Core subject matter.-- The term ``core subject
matter'' means--
(A) mathematics;
(B) science; and
(C) English, reading, or language arts.
[(1)] (2) Elementary school.-- The term ``elementary
school'' means an institutional day or residential
school, including a public elementary charter school,
that provides elementary education, as determined under
District of Columbia law.
[(2) ] (3) Eligible entity.-- The term ``eligible
entity'' means any of the following:
(A) A nonprofit organization.
(B) A consortium of nonprofit organizations.
[(3)] (4) Eligible student.-- The term ``eligible
student'' means a student who is a resident of the
District of Columbia and comes from a household--
(A) receiving assistance under the
supplemental nutrition assistance program
established under the Food and Nutrition Act of
2008 (7 U.S.C. 2011 et seq.); or
(B) whose income does not exceed--
(i) 185 percent of the poverty line;
or
(ii) in the case of a household with
a student participating in the
opportunity scholarship program in the
preceding year under this division or
the DC School Choice Incentive Act of
2003 (sec. 38-1851.01 et seq., D.C.
Official Code), as such Act was in
effect on the day before the date of
enactment of this division, 300 percent
of the poverty line.
[(4)] (5) Mayor.-- The term ``Mayor'' means the Mayor
of the District of Columbia.
[(5)] (6) Parent.-- The term ``parent'' has the
meaning given that term in section 8101 of the
Elementary and Secondary Education Act of 1965.
[(6)] (7) Participating eligible student.-- The term
``participating eligible student'' means an eligible
student awarded an opportunity scholarship under this
division, without regard to whether the student uses
the scholarship to attend a participating school.
[(7)] (8) Participating school.-- The term
``participating school'' means a private elementary
school or secondary school participating in the
opportunity scholarship program of an eligible entity
under this division.
[(8)] (9) Poverty line.-- The term ``poverty line''
has the meaning given that term in section 8101 of the
Elementary and Secondary Education Act of 1965.
[(9)] (10) Secondary school.-- The term ``secondary
school'' means an institutional day or residential
school, including a public secondary charter school,
that provides secondary education, as determined under
District of Columbia law, except that the term does not
include any education beyond grade 12.
[(10)] (11) Secretary.-- The term ``Secretary'' means
the Secretary of Education.
SEC. 3014. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated
$60,000,000 for fiscal year 2012 [and for each of the 4
succeeding fiscal years] and for each fiscal year through
fiscal year 2021 , of which--
(1) one-third shall be made available to carry out
the opportunity scholarship program under this division
for each fiscal year;
(2) one-third shall be made available to carry out
section 3004(b)(1) for each fiscal year; and
(3) one-third shall be made available to carry out
section 3004(b)(2) for each fiscal year.
(b) Apportionment.--If the total amount of funds appropriated
under subsection (a) for a fiscal year does not equal
$60,000,000, the funds shall be apportioned in the manner
described in subsection (a) for such fiscal year.
(c) Availability.--Amounts appropriated under subsection
(a)(1), including amounts appropriated and available under such
subsection before the date of enactment of the SOAR
Reauthorization Act, shall remain available until expended.
----------
SECURITIES EXCHANGE ACT OF 1934
TITLE I--REGULATION OF SECURITIES EXCHANGES
* * * * * * *
securities and exchange commission
Sec. 4. (a) There is hereby established a Securities and
Exchange Commission (hereinafter referred to as the
``Commission'') to be composed of five commissioners to be
appointed by the President by and with the advice and consent
of the Senate. Not more than three of such commissioners shall
be members of the same political party, and in making
appointments members of different political parties shall be
appointed alternately as nearly as may be practicable. No
commissioner shall engage in any other business, vocation, or
employment than that of serving as commissioner, nor shall any
commissioner participate, directly or indirectly, in any stock-
market operations or transactions of a character subject to
regulation by the Commission pursuant to this title. Each
commissioner shall hold office for a term of five years and
until his successor is appointed and has qualified, except that
he shall not so continue to serve beyond the expiration of the
next session of Congress subsequent to the expiration of said
fixed term of office, and except (1) any commissioner appointed
to fill a vacancy occurring prior to the expiration of the term
for which his predecessor was appointed shall be appointed for
the remainder of such term, and (2) the terms of office of the
commissioners first taking office after the enactment of this
title shall expire as designated by the President at the time
of nomination, one at the end of one year, one at the end of
two years, one at the end of three years, one at the end of
four years, and one at the end of five years, after the date of
the enactment of this title.
(b) Appointment and Compensation of Staff and Leasing
Authority.--
(1) Appointment and compensation.-- The Commission
shall appoint and compensate officers, attorneys,
economists, examiners, and other employees in
accordance with section 4802 of title 5, United States
Code.
(2) Reporting of information.-- In establishing and
adjusting schedules of compensation and benefits for
officers, attorneys, economists, examiners, and other
employees of the Commission under applicable provisions
of law, the Commission shall inform the heads of the
agencies referred to under section 1206 of the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1833b) and Congress
of such compensation and benefits and shall seek to
maintain comparability with such agencies regarding
compensation and benefits.
(3) Leasing authority.-- Nothwithstanding any other
provision of law, the Commission is authorized to enter
directly into leases for real property for office,
meeting, storage, and such other space as is necessary
to carry out its functions, and shall be exempt from
any General Services Administration space management
regulations or directives.
(c) Notwithstanding any other provision of law, in accordance
with regulations which the Commission shall prescribe to
prevent conflicts of interest, the Commission may accept
payment and reimbursement, in cash or in kind, from non-Federal
agencies, organizations, and individuals for travel,
subsistence, and other necessary expenses incurred by
Commission members and employees in attending meetings and
conferences concerning the functions or activities of the
Commission. Any payment or reimbursement accepted shall be
credited to the appropriated funds of the Commission. The
amount of travel, subsistence, and other necessary expenses for
members and employees paid or reimbursed under this subsection
may exceed per diem amounts established in official travel
regulations, but the Commission may include in its regulations
under this subsection a limitation on such amounts.
(d) Notwithstanding any other provision of law, former
employers of participants in the Commission's professional
fellows programs may pay such participants their actual
expenses for relocation to Washington, District of Columbia, to
facilitate their participation in such programs, and program
participants may accept such payments.
(e) Notwithstanding any other provision of law, whenever any
fee is required to be paid to the Commission pursuant to any
provision of the securities laws or any other law, the
Commission may provide by rule that such fee shall be paid in a
manner other than in cash and the Commission may also specify
the time that such fee shall be determined and paid relative to
the filing of any statement or document with the Commission.
(f) Reimbursement of Expenses for Assisting Foreign
Securities Authorities.--Notwithstanding any other provision of
law, the Commission may accept payment and reimbursement, in
cash or in kind, from a foreign securities authority, or made
on behalf of such authority, for necessary expenses incurred by
the Commission, its members, and employees in carrying out any
investigation pursuant to section 21(a)(2) of this title or in
providing any other assistance to a foreign securities
authority. Any payment or reimbursement accepted shall be
considered a reimbursement to the appropriated funds of the
Commission.
(g) Office of the Investor Advocate.--
(1) Office established.-- There is established within
the Commission the Office of the Investor Advocate (in
this subsection referred to as the ``Office'').
(2) Investor advocate.--
(A) In general.-- The head of the Office
shall be the Investor Advocate, who shall--
(i) report directly to the Chairman;
and
(ii) be appointed by the Chairman, in
consultation with the Commission, from
among individuals having experience in
advocating for the interests of
investors in securities and investor
protection issues, from the perspective
of investors.
(B) Compensation.-- The annual rate of pay
for the Investor Advocate shall be equal to the
highest rate of annual pay for other senior
executives who report to the Chairman of the
Commission.
(C) Limitation on service.-- An individual
who serves as the Investor Advocate may not be
employed by the Commission--
(i) during the 2-year period ending
on the date of appointment as Investor
Advocate; or
(ii) during the 5-year period
beginning on the date on which the
person ceases to serve as the Investor
Advocate.
(3) Staff of office.-- The Investor Advocate, after
consultation with the Chairman of the Commission, may
retain or employ independent counsel, research staff,
and service staff, as the Investor Advocate deems
necessary to carry out the functions, powers, and
duties of the Office.
(4) Functions of the investor advocate.-- The
Investor Advocate shall--
(A) assist retail investors in resolving
significant problems such investors may have
with the Commission or with self-regulatory
organizations;
(B) identify areas in which investors would
benefit from changes in the regulations of the
Commission or the rules of self-regulatory
organizations;
(C) identify problems that investors have
with financial service providers and investment
products;
(D) analyze the potential impact on investors
of--
(i) proposed regulations of the
Commission; and
(ii) proposed rules of self-
regulatory organizations registered
under this title; and
(E) to the extent practicable, propose to the
Commission changes in the regulations or orders
of the Commission and to Congress any
legislative, administrative, or personnel
changes that may be appropriate to mitigate
problems identified under this paragraph and to
promote the interests of investors.
(5) Access to documents.-- The Commission shall
ensure that the Investor Advocate has full access to
the documents of the Commission and any self-regulatory
organization, as necessary to carry out the functions
of the Office.
(6) Annual reports.--
(A) Report on objectives.--
(i) In general.-- Not later than June
30 of each year after 2010, the
Investor Advocate shall submit to the
Committee on Banking, Housing, and
Urban Affairs of the Senate and the
Committee on Financial Services of the
House of Representatives a report on
the objectives of the Investor Advocate
for the following fiscal year.
(ii) Contents.-- Each report required
under clause (i) shall contain full and
substantive analysis and explanation.
(B) Report on activities.--
(i) In general.-- Not later than
December 31 of each year after 2010,
the Investor Advocate shall submit to
the Committee on Banking, Housing, and
Urban Affairs of the Senate and the
Committee on Financial Services of the
House of Representatives a report on
the activities of the Investor Advocate
during the immediately preceding fiscal
year.
(ii) Contents.-- Each report required
under clause (i) shall include--
(I) appropriate statistical
information and full and
substantive analysis;
(II) information on steps
that the Investor Advocate has
taken during the reporting
period to improve investor
services and the responsiveness
of the Commission and self-
regulatory organizations to
investor concerns;
(III) a summary of the most
serious problems encountered by
investors during the reporting
period;
(IV) an inventory of the
items described in subclause
(III) that includes--
(aa) identification
of any action taken by
the Commission or the
self-regulatory
organization and the
result of such action;
(bb) the length of
time that each item has
remained on such
inventory; and
(cc) for items on
which no action has
been taken, the reasons
for inaction, and an
identification of any
official who is
responsible for such
action;
(V) recommendations for such
administrative and legislative
actions as may be appropriate
to resolve problems encountered
by investors; and
(VI) any other information,
as determined appropriate by
the Investor Advocate.
(iii) Independence.-- Each report
required under this paragraph shall be
provided directly to the Committees
listed in clause (i) without any prior
review or comment from the Commission,
any commissioner, any other officer or
employee of the Commission, or the
Office of Management and Budget.
(iv) Confidentiality.-- No report
required under clause (i) may contain
confidential information.
(7) Regulations.-- The Commission shall, by
regulation, establish procedures requiring a formal
response to all recommendations submitted to the
Commission by the Investor Advocate, not later than 3
months after the date of such submission.
(8) Ombudsman.--
(A) Appointment.-- Not later than 180 days
after the date on which the first Investor
Advocate is appointed under paragraph
(2)(A)(i), the Investor Advocate shall appoint
an Ombudsman, who shall report directly to the
Investor Advocate.
(B) Duties.-- The Ombudsman appointed under
subparagraph (A) shall--
(i) act as a liaison between the
Commission and any retail investor in
resolving problems that retail
investors may have with the Commission
or with self-regulatory organizations;
(ii) review and make recommendations
regarding policies and procedures to
encourage persons to present questions
to the Investor Advocate regarding
compliance with the securities laws;
and
(iii) establish safeguards to
maintain the confidentiality of
communications between the persons
described in clause (ii) and the
Ombudsman.
(C) Limitation.-- In carrying out the duties
of the Ombudsman under subparagraph (B), the
Ombudsman shall utilize personnel of the
Commission to the extent practicable. Nothing
in this paragraph shall be construed as
replacing, altering, or diminishing the
activities of any ombudsman or similar office
of any other agency.
(D) Report.-- The Ombudsman shall submit a
semiannual report to the Investor Advocate that
describes the activities and evaluates the
effectiveness of the Ombudsman during the
preceding year. The Investor Advocate shall
include the reports required under this section
in the reports required to be submitted by the
Inspector Advocate under paragraph (6).
(h) Examiners.--
(1) Division of trading and markets.-- The Division
of Trading and Markets of the Commission, or any
successor organizational unit, shall have a staff of
examiners who shall--
(A) perform compliance inspections and
examinations of entities under the jurisdiction
of that Division; and
(B) report to the Director of that Division.
(2) Division of investment management.-- The Division
of Investment Management of the Commission, or any
successor organizational unit, shall have a staff of
examiners who shall--
(A) perform compliance inspections and
examinations of entities under the jurisdiction
of that Division; and
(B) report to the Director of that Division.
(i) Securities and Exchange Commission Reserve Fund.--
(1) Reserve fund established.-- There is established
in the Treasury of the United States a separate fund,
to be known as the ``Securities and Exchange Commission
Reserve Fund'' (referred to in this subsection as the
``Reserve Fund'').
(2) Reserve fund amounts.--
(A) In general.-- Except as provided in
subparagraph (B), any registration fees
collected by the Commission under section 6(b)
of the Securities Act of 1933 (15 U.S.C.
77f(b)) or section 24(f) of the Investment
Company Act of 1940 (15 U.S.C. 80a-24(f)) shall
be deposited into the Reserve Fund.
(B) Limitations.-- For any 1 fiscal year--
(i) the amount deposited in the Fund
may not exceed $50,000,000; and
(ii) the balance in the Fund may not
exceed $100,000,000.
(C) Excess fees.-- Any amounts in excess of
the limitations described in subparagraph (B)
that the Commission collects from registration
fees under section 6(b) of the Securities Act
of 1933 (15 U.S.C. 77f(b)) or section 24(f) of
the Investment Company Act of 1940 (15 U.S.C.
80a-24(f)) shall be deposited in the General
Fund of the Treasury of the United States and
shall not be available for obligation by the
Commission.
(3) Use of amounts in reserve fund.-- The Commission
may obligate amounts in the Reserve Fund, not to exceed
a total of $100,000,000 in any 1 fiscal year, as the
Commission determines is necessary to carry out the
functions of the Commission. Any amounts in the reserve
fund shall remain available until expended. Not later
than 10 days after the date on which the Commission
obligates amounts under this paragraph, the Commission
shall notify Congress of the date, amount, and purpose
of the obligation.
(4) Rule of construction.-- Amounts collected and
deposited in the Reserve Fund shall not be construed to
be Government funds or appropriated monies and shall
not be subject to apportionment for the purpose of
chapter 15 of title 31, United States Code, or under
any other authority.
(j) Office of the Advocate for Small Business Capital
Formation.--
(1) Office established.-- There is established within
the Commission the Office of the Advocate for Small
Business Capital Formation (hereafter in this
subsection referred to as the ``Office'').
(2) Advocate for small business capital formation.--
(A) In general.-- The head of the Office
shall be the Advocate for Small Business
Capital Formation, who shall--
(i) report directly to the
Commission; and
(ii) be appointed by the Commission,
from among individuals having
experience in advocating for the
interests of small businesses and
encouraging small business capital
formation.
(B) Compensation.-- The annual rate of pay
for the Advocate for Small Business Capital
Formation shall be equal to the highest rate of
annual pay for other senior executives who
report directly to the Commission.
(C) No current employee of the commission.--
An individual may not be appointed as the
Advocate for Small Business Capital Formation
if the individual is currently employed by the
Commission.
(3) Staff of office.-- The Advocate for Small
Business Capital Formation, after consultation with the
Commission, may retain or employ independent counsel,
research staff, and service staff, as the Advocate for
Small Business Capital Formation determines to be
necessary to carry out the functions of the Office.
(4) Functions of the advocate for small business
capital formation.-- The Advocate for Small Business
Capital Formation shall--
(A) assist small businesses and small
business investors in resolving significant
problems such businesses and investors may have
with the Commission or with self-regulatory
organizations;
(B) identify areas in which small businesses
and small business investors would benefit from
changes in the regulations of the Commission or
the rules of self-regulatory organizations;
(C) identify problems that small businesses
have with securing access to capital, including
any unique challenges to minority-owned and
women-owned small businesses;
(D) analyze the potential impact on small
businesses and small business investors of--
(i) proposed regulations of the
Commission that are likely to have a
significant economic impact on small
businesses and small business capital
formation; and
(ii) proposed rules that are likely
to have a significant economic impact
on small businesses and small business
capital formation of self-regulatory
organizations registered under this
title;
(E) conduct outreach to small businesses and
small business investors, including through
regional roundtables, in order to solicit views
on relevant capital formation issues;
(F) to the extent practicable, propose to the
Commission changes in the regulations or orders
of the Commission and to Congress any
legislative, administrative, or personnel
changes that may be appropriate to mitigate
problems identified under this paragraph and to
promote the interests of small businesses and
small business investors;
(G) consult with the Investor Advocate on
proposed recommendations made under
subparagraph (F); and
(H) advise the Investor Advocate on issues
related to small businesses and small business
investors.
(5) Access to documents.-- The Commission shall
ensure that the Advocate for Small Business Capital
Formation has full access to the documents and
information of the Commission and any self-regulatory
organization, as necessary to carry out the functions
of the Office.
(6) Annual report on activities.--
(A) In general.-- Not later than December 31
of each year after 2015, the Advocate for Small
Business Capital Formation shall submit to the
Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on
Financial Services of the House of
Representatives a report on the activities of
the Advocate for Small Business Capital
Formation during the immediately preceding
fiscal year.
(B) Contents.-- Each report required under
subparagraph (A) shall include--
(i) appropriate statistical
information and full and substantive
analysis;
(ii) information on steps that the
Advocate for Small Business Capital
Formation has taken during the
reporting period to improve small
business services and the
responsiveness of the Commission and
self-regulatory organizations to small
business and small business investor
concerns;
(iii) a summary of the most serious
issues encountered by small businesses
and small business investors, including
any unique issues encountered by
minority-owned and women-owned small
businesses and their investors, during
the reporting period;
(iv) an inventory of the items
summarized under clause (iii)
(including items summarized under such
clause for any prior reporting period
on which no action has been taken or
that have not been resolved to the
satisfaction of the Advocate for Small
Business Capital Formation as of the
beginning of the reporting period
covered by the report) that includes--
(I) identification of any
action taken by the Commission
or the self-regulatory
organization and the result of
such action;
(II) the length of time that
each item has remained on such
inventory; and
(III) for items on which no
action has been taken, the
reasons for inaction, and an
identification of any official
who is responsible for such
action;
(v) recommendations for such changes
to the regulations, guidance and orders
of the Commission and such legislative
actions as may be appropriate to
resolve problems with the Commission
and self-regulatory organizations
encountered by small businesses and
small business investors and to
encourage small business capital
formation; and
(vi) any other information, as
determined appropriate by the Advocate
for Small Business Capital Formation.
(C) Confidentiality.-- No report required by
subparagraph (A) may contain confidential
information.
(D) Independence.-- Each report required
under subparagraph (A) shall be provided
directly to the committees of Congress listed
in such subparagraph without any prior review
or comment from the Commission, any
commissioner, any other officer or employee of
the Commission, or the Office of Management and
Budget.
(7) Regulations.-- The Commission shall establish
procedures requiring a formal response to all
recommendations submitted to the Commission by the
Advocate for Small Business Capital Formation, not
later than 3 months after the date of such submission.
(8) Government-business forum on small business
capital formation.-- The Advocate for Small Business
Capital Formation shall be responsible for planning,
organizing, and executing the annual Government-
Business Forum on Small Business Capital Formation
described in section 503 of the Small Business
Investment Incentive Act of 1980 (15 U.S.C. 80c-1).
(9) Rule of construction.-- Nothing in this
subsection may be construed as replacing or reducing
the responsibilities of the Investor Advocate with
respect to small business investors.
* * * * * * *
SEC. 40. SMALL BUSINESS CAPITAL FORMATION ADVISORY COMMITTEE.
(a) Establishment and Purpose.--
(1) Establishment.-- There is established within the
Commission the Small Business Capital Formation
Advisory Committee (hereafter in this section referred
to as the ``Committee'').
(2) Functions.--
(A) In general.-- The Committee shall provide
the Commission with advice on the Commission's
rules, regulations, and policies with regard to
the Commission's mission of protecting
investors, maintaining fair, orderly, and
efficient markets, and facilitating capital
formation, as such rules, regulations, and
policies relate to--
(i) capital raising by emerging,
privately held small businesses
(``emerging companies'') and publicly
traded companies with less than
$250,000,000 in public market
capitalization (``smaller public
companies'') through securities
offerings, including private and
limited offerings and initial and other
public offerings;
(ii) trading in the securities of
emerging companies and smaller public
companies; and
(iii) public reporting and corporate
governance requirements of emerging
companies and smaller public companies.
(B) Limitation.-- The Committee shall not
provide any advice with respect to any
policies, practices, actions, or decisions
concerning the Commission's enforcement
program.
(b) Membership.--
(1) In general.-- The members of the Committee shall
be--
(A) the Advocate for Small Business Capital
Formation;
(B) not fewer than 10, and not more than 20,
members appointed by the Commission, from among
individuals--
(i) who represent--
(I) emerging companies
engaging in private and limited
securities offerings or
considering initial public
offerings (``IPO'') (including
the companies' officers and
directors);
(II) the professional
advisors of such companies
(including attorneys,
accountants, investment
bankers, and financial
advisors); and
(III) the investors in such
companies (including angel
investors, venture capital
funds, and family offices);
(ii) who are officers or directors of
minority-owned small businesses or
women-owned small businesses;
(iii) who represent--
(I) smaller public companies
(including the companies'
officers and directors);
(II) the professional
advisors of such companies
(including attorneys, auditors,
underwriters, and financial
advisors); and
(III) the pre-IPO and post-
IPO investors in such companies
(both institutional, such as
venture capital funds, and
individual, such as angel
investors); and
(iv) who represent participants in
the marketplace for the securities of
emerging companies and smaller public
companies, such as securities
exchanges, alternative trading systems,
analysts, information processors, and
transfer agents; and
(C) three non-voting members--
(i) one of whom shall be appointed by
the Investor Advocate;
(ii) one of whom shall be appointed
by the North American Securities
Administrators Association; and
(iii) one of whom shall be appointed
by the Administrator of the Small
Business Administration.
(2) Term.-- Each member of the Committee appointed
under subparagraph (B), (C)(ii), or (C)(iii) of
paragraph (1) shall serve for a term of 4 years.
(3) Members not commission employees.-- Members
appointed under subparagraph (B), (C)(ii), or (C)(iii)
of paragraph (1) shall not be treated as employees or
agents of the Commission solely because of membership
on the Committee.
(c) Chairman; Vice Chairman; Secretary; Assistant
Secretary.--
(1) In general.-- The members of the Committee shall
elect, from among the members of the Committee--
(A) a chairman;
(B) a vice chairman;
(C) a secretary; and
(D) an assistant secretary.
(2) Term.-- Each member elected under paragraph (1)
shall serve for a term of 3 years in the capacity for
which the member was elected under paragraph (1).
(d) Meetings.--
(1) Frequency of meetings.-- The Committee shall
meet--
(A) not less frequently than four times
annually, at the call of the chairman of the
Committee; and
(B) from time to time, at the call of the
Commission.
(2) Notice.-- The chairman of the Committee shall
give the members of the Committee written notice of
each meeting, not later than 2 weeks before the date of
the meeting.
(e) Compensation and Travel Expenses.--Each member of the
Committee who is not a full-time employee of the United States
shall--
(1) be entitled to receive compensation at a rate not
to exceed the daily equivalent of the annual rate of
basic pay in effect for a position at level V of the
Executive Schedule under section 5316 of title 5,
United States Code, for each day during which the
member is engaged in the actual performance of the
duties of the Committee; and
(2) while away from the home or regular place of
business of the member in the performance of services
for the Committee, be allowed travel expenses,
including per diem in lieu of subsistence, in the same
manner as persons employed intermittently in the
Government service are allowed expenses under section
5703 of title 5, United States Code.
(f) Staff.--The Commission shall make available to the
Committee such staff as the chairman of the Committee
determines are necessary to carry out this section.
(g) Review by Commission.--The Commission shall--
(1) review the findings and recommendations of the
Committee; and
(2) each time the Committee submits a finding or
recommendation to the Commission, promptly issue a
public statement--
(A) assessing the finding or recommendation
of the Committee; and
(B) disclosing the action, if any, the
Commission intends to take with respect to the
finding or recommendation.
(h) Federal Advisory Committee Act.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply with respect to
the Committee and its activities.
* * * * * * *
----------
SMALL BUSINESS INVESTMENT INCENTIVE ACT OF 1980
* * * * * * *
TITLE V--CAPITAL FORMATION
* * * * * * *
ANNUAL GOVERNMENT-BUSINESS FORUM ON CAPITAL FORMATION
Sec. 503. (a) Pursuant to the consultation called for in
section 502, the Securities and Exchange Commission (acting
through the Office of the Advocate for Small Business Capital
Formation and in consultation with the Small Business Capital
Formation Advisory Committee) shall conduct an annual
Government-business forum to review the current status of
problems and programs relating to small business capital
formation.
(b) The Commission shall invite other Federal agencies, such
as the Department of the Treasury, the Board of Governors of
the Federal Reserve System, the Small Business Administration,
organizations representing State securities commissioners, and
leading small business and professional organizations concerned
with capital formation, to participate in the planning for such
forums.
(c) The Commission may request any of the Federal
departments, agencies, or organizations such as those specified
in subsection (b), or other groups or individuals, to prepare
statements and reports to be delivered at such forums. Such
departments and agencies shall cooperate in this effort.
(d) A summary of the proceedings of such forums and any
findings r recommendations thereof shall be prepared and
transmitted to the participants, appropriate committees of the
Congress, and others who may be interested in the subject
matter.
* * * * * * *
----------
TITLE 11, UNITED STATES CODE
* * * * * * *
CHAPTER 1--GENERAL PROVISIONS
* * * * * * *
Sec. 101. Definitions
In this title the following definitions shall apply:
(1) The term ``accountant'' means accountant
authorized under applicable law to practice public
accounting, and includes professional accounting
association, corporation, or partnership, if so
authorized.
(2) The term ``affiliate'' means--
(A) entity that directly or indirectly owns,
controls, or holds with power to vote, 20
percent or more of the outstanding voting
securities of the debtor, other than an entity
that holds such securities--
(i) in a fiduciary or agency capacity
without sole discretionary power to
vote such securities; or
(ii) solely to secure a debt, if such
entity has not in fact exercised such
power to vote;
(B) corporation 20 percent or more of whose
outstanding voting securities are directly or
indirectly owned, controlled, or held with
power to vote, by the debtor, or by an entity
that directly or indirectly owns, controls, or
holds with power to vote, 20 percent or more of
the outstanding voting securities of the
debtor, other than an entity that holds such
securities--
(i) in a fiduciary or agency capacity
without sole discretionary power to
vote such securities; or
(ii) solely to secure a debt, if such
entity has not in fact exercised such
power to vote;
(C) person whose business is operated under a
lease or operating agreement by a debtor, or
person substantially all of whose property is
operated under an operating agreement with the
debtor; or
(D) entity that operates the business or
substantially all of the property of the debtor
under a lease or operating agreement.
(3) The term ``assisted person'' means any person
whose debts consist primarily of consumer debts and the
value of whose nonexempt property is less than
$150,000.
(4) The term ``attorney'' means attorney,
professional law association, corporation, or
partnership, authorized under applicable law to
practice law.
(4A) The term ``bankruptcy assistance'' means any goods or
services sold or otherwise provided to an assisted person with
the express or implied purpose of providing information,
advice, counsel, document preparation, or filing, or attendance
at a creditors' meeting or appearing in a case or proceeding on
behalf of another or providing legal representation with
respect to a case or proceeding under this title.
(5) The term ``claim'' means--
(A) right to payment, whether or not such
right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal,
equitable, secured, or unsecured; or
(B) right to an equitable remedy for breach
of performance if such breach gives rise to a
right to payment, whether or not such right to
an equitable remedy is reduced to judgment,
fixed, contingent, matured, unmatured,
disputed, undisputed, secured, or unsecured.
(6) The term ``commodity broker'' means futures
commission merchant, foreign futures commission
merchant, clearing organization, leverage transaction
merchant, or commodity options dealer, as defined in
section 761 of this title, with respect to which there
is a customer, as defined in section 761 of this title.
(7) The term ``community claim'' means claim that
arose before the commencement of the case concerning
the debtor for which property of the kind specified in
section 541(a)(2) of this title is liable, whether or
not there is any such property at the time of the
commencement of the case.
(7A) The term ``commercial fishing operation'' means--
(A) the catching or harvesting of fish,
shrimp, lobsters, urchins, seaweed, shellfish,
or other aquatic species or products of such
species; or
(B) for purposes of section 109 and chapter
12, aquaculture activities consisting of
raising for market any species or product
described in subparagraph (A).
(7B) The term ``commercial fishing vessel'' means a vessel
used by a family fisherman to carry out a commercial fishing
operation.
(8) The term ``consumer debt'' means debt incurred by
an individual primarily for a personal, family, or
household purpose.
(9) The term ``corporation''--
(A) includes--
(i) association having a power or
privilege that a private corporation,
but not an individual or a partnership,
possesses;
(ii) partnership association
organized under a law that makes only
the capital subscribed responsible for
the debts of such association;
(iii) joint-stock company;
(iv) unincorporated company or
association; or
(v) business trust; but
(B) does not include limited partnership.
(9A) The term ``covered financial corporation'' means
any corporation incorporated or organized under any
Federal or State law, other than a stockbroker, a
commodity broker, or an entity of the kind specified in
paragraph (2) or (3) of section 109(b), that is--
(A) a bank holding company, as defined in
section 2(a) of the Bank Holding Company Act of
1956; or
(B) a corporation that exists for the primary
purpose of owning, controlling and financing
its subsidiaries, that has total consolidated
assets of $50,000,000,000 or greater, and for
which, in its most recently completed fiscal
year--
(i) annual gross revenues derived by
the corporation and all of its
subsidiaries from activities that are
financial in nature (as defined in
section 4(k) of the Bank Holding
Company Act of 1956) and, if
applicable, from the ownership or
control of one or more insured
depository institutions, represents 85
percent or more of the consolidated
annual gross revenues of the
corporation; or
(ii) the consolidated assets of the
corporation and all of its subsidiaries
related to activities that are
financial in nature (as defined in
section 4(k) of the Bank Holding
Company Act of 1956) and, if
applicable, related to the ownership or
control of one or more insured
depository institutions, represents 85
percent or more of the consolidated
assets of the corporation.
(10) The term ``creditor'' means--
(A) entity that has a claim against the
debtor that arose at the time of or before the
order for relief concerning the debtor;
(B) entity that has a claim against the
estate of a kind specified in section 348(d),
502(f), 502(g), 502(h) or 502(i) of this title;
or
(C) entity that has a community claim.
(10A) The term ``current monthly income''--
(A) means the average monthly income from all
sources that the debtor receives (or in a joint
case the debtor and the debtor's spouse
receive) without regard to whether such income
is taxable income, derived during the 6-month
period ending on--
(i) the last day of the calendar
month immediately preceding the date of
the commencement of the case if the
debtor files the schedule of current
income required by section
521(a)(1)(B)(ii); or
(ii) the date on which current income
is determined by the court for purposes
of this title if the debtor does not
file the schedule of current income
required by section 521(a)(1)(B)(ii);
and
(B) includes any amount paid by any entity
other than the debtor (or in a joint case the
debtor and the debtor's spouse), on a regular
basis for the household expenses of the debtor
or the debtor's dependents (and in a joint case
the debtor's spouse if not otherwise a
dependent), but excludes benefits received
under the Social Security Act, payments to
victims of war crimes or crimes against
humanity on account of their status as victims
of such crimes, and payments to victims of
international terrorism (as defined in section
2331 of title 18) or domestic terrorism (as
defined in section 2331 of title 18) on account
of their status as victims of such terrorism.
(11) The term ``custodian'' means--
(A) receiver or trustee of any of the
property of the debtor, appointed in a case or
proceeding not under this title;
(B) assignee under a general assignment for
the benefit of the debtor's creditors; or
(C) trustee, receiver, or agent under
applicable law, or under a contract, that is
appointed or authorized to take charge of
property of the debtor for the purpose of
enforcing a lien against such property, or for
the purpose of general administration of such
property for the benefit of the debtor's
creditors.
(12) The term ``debt'' means liability on a claim.
(12A) The term ``debt relief agency'' means any person who
provides any bankruptcy assistance to an assisted person in
return for the payment of money or other valuable
consideration, or who is a bankruptcy petition preparer under
section 110, but does not include--
(A) any person who is an officer, director,
employee, or agent of a person who provides
such assistance or of the bankruptcy petition
preparer;
(B) a nonprofit organization that is exempt
from taxation under section 501(c)(3) of the
Internal Revenue Code of 1986;
(C) a creditor of such assisted person, to
the extent that the creditor is assisting such
assisted person to restructure any debt owed by
such assisted person to the creditor;
(D) a depository institution (as defined in
section 3 of the Federal Deposit Insurance Act)
or any Federal credit union or State credit
union (as those terms are defined in section
101 of the Federal Credit Union Act), or any
affiliate or subsidiary of such depository
institution or credit union; or
(E) an author, publisher, distributor, or
seller of works subject to copyright protection
under title 17, when acting in such capacity.
(13) The term ``debtor'' means person or municipality
concerning which a case under this title has been
commenced.
(13A) The term ``debtor's principal residence''--
(A) means a residential structure if used as
the principal residence by the debtor,
including incidental property, without regard
to whether that structure is attached to real
property; and
(B) includes an individual condominium or
cooperative unit, a mobile or manufactured
home, or trailer if used as the principal
residence by the debtor.
(14) The term ``disinterested person'' means a person
that--
(A) is not a creditor, an equity security
holder, or an insider;
(B) is not and was not, within 2 years before
the date of the filing of the petition, a
director, officer, or employee of the debtor;
and
(C) does not have an interest materially
adverse to the interest of the estate or of any
class of creditors or equity security holders,
by reason of any direct or indirect
relationship to, connection with, or interest
in, the debtor, or for any other reason.
(14A) The term ``domestic support obligation'' means a debt
that accrues before, on, or after the date of the order for
relief in a case under this title, including interest that
accrues on that debt as provided under applicable nonbankruptcy
law notwithstanding any other provision of this title, that
is--
(A) owed to or recoverable by--
(i) a spouse, former spouse, or child
of the debtor or such child's parent,
legal guardian, or responsible
relative; or
(ii) a governmental unit;
(B) in the nature of alimony, maintenance, or
support (including assistance provided by a
governmental unit) of such spouse, former
spouse, or child of the debtor or such child's
parent, without regard to whether such debt is
expressly so designated;
(C) established or subject to establishment
before, on, or after the date of the order for
relief in a case under this title, by reason of
applicable provisions of--
(i) a separation agreement, divorce
decree, or property settlement
agreement;
(ii) an order of a court of record;
or
(iii) a determination made in
accordance with applicable
nonbankruptcy law by a governmental
unit; and
(D) not assigned to a nongovernmental entity,
unless that obligation is assigned voluntarily
by the spouse, former spouse, child of the
debtor, or such child's parent, legal guardian,
or responsible relative for the purpose of
collecting the debt.
(15) The term ``entity'' includes person, estate,
trust, governmental unit, and United States trustee.
(16) The term ``equity security'' means--
(A) share in a corporation, whether or not
transferable or denominated ``stock'', or
similar security;
(B) interest of a limited partner in a
limited partnership; or
(C) warrant or right, other than a right to
convert, to purchase, sell, or subscribe to a
share, security, or interest of a kind
specified in subparagraph (A) or (B) of this
paragraph.
(17) The term ``equity security holder'' means holder
of an equity security of the debtor.
(18) The term ``family farmer'' means--
(A) individual or individual and spouse
engaged in a farming operation whose aggregate
debts do not exceed $3,237,000 and not less
than 50 percent of whose aggregate
noncontingent, liquidated debts (excluding a
debt for the principal residence of such
individual or such individual and spouse unless
such debt arises out of a farming operation),
on the date the case is filed, arise out of a
farming operation owned or operated by such
individual or such individual and spouse, and
such individual or such individual and spouse
receive from such farming operation more than
50 percent of such individual's or such
individual and spouse's gross income for--
(i) the taxable year preceding; or
(ii) each of the 2d and 3d taxable
years preceding;
the taxable year in which the case concerning
such individual or such individual and spouse
was filed; or
(B) corporation or partnership in which more
than 50 percent of the outstanding stock or
equity is held by one family, or by one family
and the relatives of the members of such
family, and such family or such relatives
conduct the farming operation, and
(i) more than 80 percent of the value
of its assets consists of assets
related to the farming operation;
(ii) its aggregate debts do not
exceed $3,237,000 and not less than 50
percent of its aggregate noncontingent,
liquidated debts (excluding a debt for
one dwelling which is owned by such
corporation or partnership and which a
shareholder or partner maintains as a
principal residence, unless such debt
arises out of a farming operation), on
the date the case is filed, arise out
of the farming operation owned or
operated by such corporation or such
partnership; and
(iii) if such corporation issues
stock, such stock is not publicly
traded.
(19) The term ``family farmer with regular annual
income'' means family farmer whose annual income is
sufficiently stable and regular to enable such family
farmer to make payments under a plan under chapter 12
of this title.
(19A) The term ``family fisherman'' means--
(A) an individual or individual and spouse
engaged in a commercial fishing operation--
(i) whose aggregate debts do not
exceed $1,500,000 and not less than 80
percent of whose aggregate
noncontingent, liquidated debts
(excluding a debt for the principal
residence of such individual or such
individual and spouse, unless such debt
arises out of a commercial fishing
operation), on the date the case is
filed, arise out of a commercial
fishing operation owned or operated by
such individual or such individual and
spouse; and
(ii) who receive from such commercial
fishing operation more than 50 percent
of such individual's or such
individual's and spouse's gross income
for the taxable year preceding the
taxable year in which the case
concerning such individual or such
individual and spouse was filed; or
(B) a corporation or partnership--
(i) in which more than 50 percent of
the outstanding stock or equity is held
by--
(I) 1 family that conducts
the commercial fishing
operation; or
(II) 1 family and the
relatives of the members of
such family, and such family or
such relatives conduct the
commercial fishing operation;
and
(ii)(I) more than 80 percent of the
value of its assets consists of assets
related to the commercial fishing
operation;
(II) its aggregate debts do
not exceed $1,500,000 and not
less than 80 percent of its
aggregate noncontingent,
liquidated debts (excluding a
debt for 1 dwelling which is
owned by such corporation or
partnership and which a
shareholder or partner
maintains as a principal
residence, unless such debt
arises out of a commercial
fishing operation), on the date
the case is filed, arise out of
a commercial fishing operation
owned or operated by such
corporation or such
partnership; and
(III) if such corporation
issues stock, such stock is not
publicly traded.
(19B) The term ``family fisherman with regular annual
income'' means a family fisherman whose annual income is
sufficiently stable and regular to enable such family fisherman
to make payments under a plan under chapter 12 of this title.
(20) The term ``farmer'' means (except when such term
appears in the term ``family farmer'') person that
received more than 80 percent of such person's gross
income during the taxable year of such person
immediately preceding the taxable year of such person
during which the case under this title concerning such
person was commenced from a farming operation owned or
operated by such person.
(21) The term ``farming operation'' includes farming,
tillage of the soil, dairy farming, ranching,
production or raising of crops, poultry, or livestock,
and production of poultry or livestock products in an
unmanufactured state.
(21A) The term ``farmout agreement'' means a written
agreement in which--
(A) the owner of a right to drill, produce,
or operate liquid or gaseous hydrocarbons on
property agrees or has agreed to transfer or
assign all or a part of such right to another
entity; and
(B) such other entity (either directly or
through its agents or its assigns), as
consideration, agrees to perform drilling,
reworking, recompleting, testing, or similar or
related operations, to develop or produce
liquid or gaseous hydrocarbons on the property.
(21B) The term ``Federal depository institutions regulatory
agency'' means--
(A) with respect to an insured depository
institution (as defined in section 3(c)(2) of
the Federal Deposit Insurance Act) for which no
conservator or receiver has been appointed, the
appropriate Federal banking agency (as defined
in section 3(q) of such Act);
(B) with respect to an insured credit union
(including an insured credit union for which
the National Credit Union Administration has
been appointed conservator or liquidating
agent), the National Credit Union
Administration;
(C) with respect to any insured depository
institution for which the Resolution Trust
Corporation has been appointed conservator or
receiver, the Resolution Trust Corporation; and
(D) with respect to any insured depository
institution for which the Federal Deposit
Insurance Corporation has been appointed
conservator or receiver, the Federal Deposit
Insurance Corporation.
(22) The term ``financial institution'' means--
(A) a Federal reserve bank, or an entity that
is a commercial or savings bank, industrial
savings bank, savings and loan association,
trust company, federally-insured credit union,
or receiver, liquidating agent, or conservator
for such entity and, when any such Federal
reserve bank, receiver, liquidating agent,
conservator or entity is acting as agent or
custodian for a customer (whether or not a
``customer'', as defined in section 741) in
connection with a securities contract (as
defined in section 741) such customer; or
(B) in connection with a securities contract
(as defined in section 741) an investment
company registered under the Investment Company
Act of 1940.
(22A) The term ``financial participant'' means--
(A) an entity that, at the time it enters
into a securities contract, commodity contract,
swap agreement, repurchase agreement, or
forward contract, or at the time of the date of
the filing of the petition, has one or more
agreements or transactions described in
paragraph (1), (2), (3), (4), (5), or (6) of
section 561(a) with the debtor or any other
entity (other than an affiliate) of a total
gross dollar value of not less than
$1,000,000,000 in notional or actual principal
amount outstanding (aggregated across
counterparties) at such time or on any day
during the 15-month period preceding the date
of the filing of the petition, or has gross
mark-to-market positions of not less than
$100,000,000 (aggregated across counterparties)
in one or more such agreements or transactions
with the debtor or any other entity (other than
an affiliate) at such time or on any day during
the 15-month period preceding the date of the
filing of the petition; or
(B) a clearing organization (as defined in
section 402 of the Federal Deposit Insurance
Corporation Improvement Act of 1991).
(23) The term ``foreign proceeding'' means a
collective judicial or administrative proceeding in a
foreign country, including an interim proceeding, under
a law relating to insolvency or adjustment of debt in
which proceeding the assets and affairs of the debtor
are subject to control or supervision by a foreign
court, for the purpose of reorganization or
liquidation.
(24) The term ``foreign representative'' means a
person or body, including a person or body appointed on
an interim basis, authorized in a foreign proceeding to
administer the reorganization or the liquidation of the
debtor's assets or affairs or to act as a
representative of such foreign proceeding.
(25) The term ``forward contract'' means--
(A) a contract (other than a commodity
contract, as defined in section 761) for the
purchase, sale, or transfer of a commodity, as
defined in section 761(8) of this title, or any
similar good, article, service, right, or
interest which is presently or in the future
becomes the subject of dealing in the forward
contract trade, or product or byproduct
thereof, with a maturity date more than two
days after the date the contract is entered
into, including, but not limited to, a
repurchase or reverse repurchase transaction
(whether or not such repurchase or reverse
repurchase transaction is a ``repurchase
agreement'', as defined in this section)
consignment, lease, swap, hedge transaction,
deposit, loan, option, allocated transaction,
unallocated transaction, or any other similar
agreement;
(B) any combination of agreements or
transactions referred to in subparagraphs (A)
and (C);
(C) any option to enter into an agreement or
transaction referred to in subparagraph (A) or
(B);
(D) a master agreement that provides for an
agreement or transaction referred to in
subparagraph (A), (B), or (C), together with
all supplements to any such master agreement,
without regard to whether such master agreement
provides for an agreement or transaction that
is not a forward contract under this paragraph,
except that such master agreement shall be
considered to be a forward contract under this
paragraph only with respect to each agreement
or transaction under such master agreement that
is referred to in subparagraph (A), (B), or
(C); or
(E) any security agreement or arrangement, or
other credit enhancement related to any
agreement or transaction referred to in
subparagraph (A), (B), (C), or (D), including
any guarantee or reimbursement obligation by or
to a forward contract merchant or financial
participant in connection with any agreement or
transaction referred to in any such
subparagraph, but not to exceed the damages in
connection with any such agreement or
transaction, measured in accordance with
section 562.
(26) The term ``forward contract merchant'' means a
Federal reserve bank, or an entity the business of
which consists in whole or in part of entering into
forward contracts as or with merchants in a commodity
(as defined in section 761) or any similar good,
article, service, right, or interest which is presently
or in the future becomes the subject of dealing in the
forward contract trade.
(27) The term ``governmental unit'' means United
States; State; Commonwealth; District; Territory;
municipality; foreign state; department, agency, or
instrumentality of the United States (but not a United
States trustee while serving as a trustee in a case
under this title), a State, a Commonwealth, a District,
a Territory, a municipality, or a foreign state; or
other foreign or domestic government.
(27A) The term ``health care business''--
(A) means any public or private entity
(without regard to whether that entity is
organized for profit or not for profit) that is
primarily engaged in offering to the general
public facilities and services for--
(i) the diagnosis or treatment of
injury, deformity, or disease; and
(ii) surgical, drug treatment,
psychiatric, or obstetric care; and
(B) includes--
(i) any--
(I) general or specialized
hospital;
(II) ancillary ambulatory,
emergency, or surgical
treatment facility;
(III) hospice;
(IV) home health agency; and
(V) other health care
institution that is similar to
an entity referred to in
subclause (I), (II), (III), or
(IV); and
(ii) any long-term care facility,
including any--
(I) skilled nursing facility;
(II) intermediate care
facility;
(III) assisted living
facility;
(IV) home for the aged;
(V) domiciliary care
facility; and
(VI) health care institution
that is related to a facility
referred to in subclause (I),
(II), (III), (IV), or (V), if
that institution is primarily
engaged in offering room,
board, laundry, or personal
assistance with activities of
daily living and incidentals to
activities of daily living.
(27B) The term ``incidental property'' means, with respect to
a debtor's principal residence--
(A) property commonly conveyed with a
principal residence in the area where the real
property is located;
(B) all easements, rights, appurtenances,
fixtures, rents, royalties, mineral rights, oil
or gas rights or profits, water rights, escrow
funds, or insurance proceeds; and
(C) all replacements or additions.
(28) The term ``indenture'' means mortgage, deed of
trust, or indenture, under which there is outstanding a
security, other than a voting-trust certificate,
constituting a claim against the debtor, a claim
secured by a lien on any of the debtor's property, or
an equity security of the debtor.
(29) The term ``indenture trustee'' means trustee
under an indenture.
(30) The term ``individual with regular income''
means individual whose income is sufficiently stable
and regular to enable such individual to make payments
under a plan under chapter 13 of this title, other than
a stockbroker or a commodity broker.
(31) The term ``insider'' includes--
(A) if the debtor is an individual--
(i) relative of the debtor or of a
general partner of the debtor;
(ii) partnership in which the debtor
is a general partner;
(iii) general partner of the debtor;
or
(iv) corporation of which the debtor
is a director, officer, or person in
control;
(B) if the debtor is a corporation--
(i) director of the debtor;
(ii) officer of the debtor;
(iii) person in control of the
debtor;
(iv) partnership in which the debtor
is a general partner;
(v) general partner of the debtor; or
(vi) relative of a general partner,
director, officer, or person in control
of the debtor;
(C) if the debtor is a partnership--
(i) general partner in the debtor;
(ii) relative of a general partner
in, general partner of, or person in
control of the debtor;
(iii) partnership in which the debtor
is a general partner;
(iv) general partner of the debtor;
or
(v) person in control of the debtor;
(D) if the debtor is a municipality, elected
official of the debtor or relative of an
elected official of the debtor;
(E) affiliate, or insider of an affiliate as
if such affiliate were the debtor; and
(F) managing agent of the debtor.
(32) The term ``insolvent'' means--
(A) with reference to an entity other than a
partnership and a municipality, financial
condition such that the sum of such entity's
debts is greater than all of such entity's
property, at a fair valuation, exclusive of--
(i) property transferred, concealed,
or removed with intent to hinder,
delay, or defraud such entity's
creditors; and
(ii) property that may be exempted
from property of the estate under
section 522 of this title;
(B) with reference to a partnership,
financial condition such that the sum of such
partnership's debts is greater than the
aggregate of, at a fair valuation--
(i) all of such partnership's
property, exclusive of property of the
kind specified in subparagraph (A)(i)
of this paragraph; and
(ii) the sum of the excess of the
value of each general partner's
nonpartnership property, exclusive of
property of the kind specified in
subparagraph (A) of this paragraph,
over such partner's nonpartnership
debts; and
(C) with reference to a municipality,
financial condition such that the municipality
is--
(i) generally not paying its debts as
they become due unless such debts are
the subject of a bona fide dispute; or
(ii) unable to pay its debts as they
become due.
(33) The term ``institution-affiliated party''--
(A) with respect to an insured depository
institution (as defined in section 3(c)(2) of
the Federal Deposit Insurance Act), has the
meaning given it in section 3(u) of the Federal
Deposit Insurance Act; and
(B) with respect to an insured credit union,
has the meaning given it in section 206(r) of
the Federal Credit Union Act.
(34) The term ``insured credit union'' has the
meaning given it in section 101(7) of the Federal
Credit Union Act.
(35) The term ``insured depository institution''--
(A) has the meaning given it in section
3(c)(2) of the Federal Deposit Insurance Act;
and
(B) includes an insured credit union (except
in the case of paragraphs (21B) and (33)(A) of
this subsection).
(35A) The term ``intellectual property'' means--
(A) trade secret;
(B) invention, process, design, or plant
protected under title 35;
(C) patent application;
(D) plant variety;
(E) work of authorship protected under title
17; or
(F) mask work protected under chapter 9 of
title 17;
to the extent protected by applicable nonbankruptcy
law.
(36) The term ``judicial lien'' means lien obtained
by judgment, levy, sequestration, or other legal or
equitable process or proceeding.
(37) The term ``lien'' means charge against or
interest in property to secure payment of a debt or
performance of an obligation.
(38) The term ``margin payment'' means, for purposes
of the forward contract provisions of this title,
payment or deposit of cash, a security or other
property, that is commonly known in the forward
contract trade as original margin, initial margin,
maintenance margin, or variation margin, including
mark-to-market payments, or variation payments.
(38A) The term ``master netting agreement''--
(A) means an agreement providing for the
exercise of rights, including rights of
netting, setoff, liquidation, termination,
acceleration, or close out, under or in
connection with one or more contracts that are
described in any one or more of paragraphs (1)
through (5) of section 561(a), or any security
agreement or arrangement or other credit
enhancement related to one or more of the
foregoing, including any guarantee or
reimbursement obligation related to 1 or more
of the foregoing; and
(B) if the agreement contains provisions
relating to agreements or transactions that are
not contracts described in paragraphs (1)
through (5) of section 561(a), shall be deemed
to be a master netting agreement only with
respect to those agreements or transactions
that are described in any one or more of
paragraphs (1) through (5) of section 561(a).
(38B) The term ``master netting agreement participant'' means
an entity that, at any time before the date of the filing of
the petition, is a party to an outstanding master netting
agreement with the debtor.
(39) The term ``mask work'' has the meaning given it
in section 901(a)(2) of title 17.
(39A) The term ``median family income'' means for any year--
(A) the median family income both calculated
and reported by the Bureau of the Census in the
then most recent year; and
(B) if not so calculated and reported in the
then current year, adjusted annually after such
most recent year until the next year in which
median family income is both calculated and
reported by the Bureau of the Census, to
reflect the percentage change in the Consumer
Price Index for All Urban Consumers during the
period of years occurring after such most
recent year and before such current year.
(40) The term ``municipality'' means political
subdivision or public agency or instrumentality of a
State.
(40A) The term ``patient'' means any individual who obtains
or receives services from a health care business.
(40B) The term ``patient records'' means any record relating
to a patient, including a written document or a record recorded
in a magnetic, optical, or other form of electronic medium.
(41) The term ``person'' includes individual,
partnership, and corporation, but does not include
governmental unit, except that a governmental unit
that--
(A) acquires an asset from a person--
(i) as a result of the operation of a
loan guarantee agreement; or
(ii) as receiver or liquidating agent
of a person;
(B) is a guarantor of a pension benefit
payable by or on behalf of the debtor or an
affiliate of the debtor; or
(C) is the legal or beneficial owner of an
asset of--
(i) an employee pension benefit plan
that is a governmental plan, as defined
in section 414(d) of the Internal
Revenue Code of 1986; or
(ii) an eligible deferred
compensation plan, as defined in
section 457(b) of the Internal Revenue
Code of 1986;
shall be considered, for purposes of section 1102 of
this title, to be a person with respect to such asset
or such benefit.
(41A) The term ``personally identifiable information''
means--
(A) if provided by an individual to the
debtor in connection with obtaining a product
or a service from the debtor primarily for
personal, family, or household purposes--
(i) the first name (or initial) and
last name of such individual, whether
given at birth or time of adoption, or
resulting from a lawful change of name;
(ii) the geographical address of a
physical place of residence of such
individual;
(iii) an electronic address
(including an e-mail address) of such
individual;
(iv) a telephone number dedicated to
contacting such individual at such
physical place of residence;
(v) a social security account number
issued to such individual; or
(vi) the account number of a credit
card issued to such individual; or
(B) if identified in connection with 1 or
more of the items of information specified in
subparagraph (A)--
(i) a birth date, the number of a
certificate of birth or adoption, or a
place of birth; or
(ii) any other information concerning
an identified individual that, if
disclosed, will result in contacting or
identifying such individual physically
or electronically.
(42) The term ``petition'' means petition filed under
section 301, 302, 303 and 1504 of this title, as the
case may be, commencing a case under this title.
(42A) The term ``production payment'' means a term overriding
royalty satisfiable in cash or in kind--
(A) contingent on the production of a liquid
or gaseous hydrocarbon from particular real
property; and
(B) from a specified volume, or a specified
value, from the liquid or gaseous hydrocarbon
produced from such property, and determined
without regard to production costs.
(43) The term ``purchaser'' means transferee of a
voluntary transfer, and includes immediate or mediate
transferee of such a transferee.
(44) The term ``railroad'' means common carrier by
railroad engaged in the transportation of individuals
or property or owner of trackage facilities leased by
such a common carrier.
(45) The term ``relative'' means individual related
by affinity or consanguinity within the third degree as
determined by the common law, or individual in a step
or adoptive relationship within such third degree.
(46) The term ``repo participant'' means an entity
that, at any time before the filing of the petition,
has an outstanding repurchase agreement with the
debtor.
(47) The term ``repurchase agreement'' (which
definition also applies to a reverse repurchase
agreement)--
(A) means--
(i) an agreement, including related
terms, which provides for the transfer
of one or more certificates of deposit,
mortgage related securities (as defined
in section 3 of the Securities Exchange
Act of 1934), mortgage loans, interests
in mortgage related securities or
mortgage loans, eligible bankers'
acceptances, qualified foreign
government securities (defined as a
security that is a direct obligation
of, or that is fully guaranteed by, the
central government of a member of the
Organization for Economic Cooperation
and Development), or securities that
are direct obligations of, or that are
fully guaranteed by, the United States
or any agency of the United States
against the transfer of funds by the
transferee of such certificates of
deposit, eligible bankers' acceptances,
securities, mortgage loans, or
interests, with a simultaneous
agreement by such transferee to
transfer to the transferor thereof
certificates of deposit, eligible
bankers' acceptance, securities,
mortgage loans, or interests of the
kind described in this clause, at a
date certain not later than 1 year
after such transfer or on demand,
against the transfer of funds;
(ii) any combination of agreements or
transactions referred to in clauses (i)
and (iii);
(iii) an option to enter into an
agreement or transaction referred to in
clause (i) or (ii);
(iv) a master agreement that provides
for an agreement or transaction
referred to in clause (i), (ii), or
(iii), together with all supplements to
any such master agreement, without
regard to whether such master agreement
provides for an agreement or
transaction that is not a repurchase
agreement under this paragraph, except
that such master agreement shall be
considered to be a repurchase agreement
under this paragraph only with respect
to each agreement or transaction under
the master agreement that is referred
to in clause (i), (ii), or (iii); or
(v) any security agreement or
arrangement or other credit enhancement
related to any agreement or transaction
referred to in clause (i), (ii), (iii),
or (iv), including any guarantee or
reimbursement obligation by or to a
repo participant or financial
participant in connection with any
agreement or transaction referred to in
any such clause, but not to exceed the
damages in connection with any such
agreement or transaction, measured in
accordance with section 562 of this
title; and
(B) does not include a repurchase obligation
under a participation in a commercial mortgage
loan.
(48) The term ``securities clearing agency'' means
person that is registered as a clearing agency under
section 17A of the Securities Exchange Act of 1934, or
exempt from such registration under such section
pursuant to an order of the Securities and Exchange
Commission, or whose business is confined to the
performance of functions of a clearing agency with
respect to exempted securities, as defined in section
3(a)(12) of such Act for the purposes of such section
17A.
(48A) The term ``securities self regulatory organization''
means either a securities association registered with the
Securities and Exchange Commission under section 15A of the
Securities Exchange Act of 1934 or a national securities
exchange registered with the Securities and Exchange Commission
under section 6 of the Securities Exchange Act of 1934.
(49) The term ``security''--
(A) includes--
(i) note;
(ii) stock;
(iii) treasury stock;
(iv) bond;
(v) debenture;
(vi) collateral trust certificate;
(vii) pre-organization certificate or
subscription;
(viii) transferable share;
(ix) voting-trust certificate;
(x) certificate of deposit;
(xi) certificate of deposit for
security;
(xii) investment contract or
certificate of interest or
participation in a profit-sharing
agreement or in an oil, gas, or mineral
royalty or lease, if such contract or
interest is required to be the subject
of a registration statement filed with
the Securities and Exchange Commission
under the provisions of the Securities
Act of 1933, or is exempt under section
3(b) of such Act from the requirement
to file such a statement;
(xiii) interest of a limited partner
in a limited partnership;
(xiv) other claim or interest
commonly known as ``security''; and
(xv) certificate of interest or
participation in, temporary or interim
certificate for, receipt for, or
warrant or right to subscribe to or
purchase or sell, a security; but
(B) does not include--
(i) currency, check, draft, bill of
exchange, or bank letter of credit;
(ii) leverage transaction, as defined
in section 761 of this title;
(iii) commodity futures contract or
forward contract;
(iv) option, warrant, or right to
subscribe to or purchase or sell a
commodity futures contract;
(v) option to purchase or sell a
commodity;
(vi) contract or certificate of a
kind specified in subparagraph (A)(xii)
of this paragraph that is not required
to be the subject of a registration
statement filed with the Securities and
Exchange Commission and is not exempt
under section 3(b) of the Securities
Act of 1933 from the requirement to
file such a statement; or
(vii) debt or evidence of
indebtedness for goods sold and
delivered or services rendered.
(50) The term ``security agreement'' means agreement
that creates or provides for a security interest.
(51) The term ``security interest'' means lien
created by an agreement.
(51A) The term ``settlement payment'' means, for purposes of
the forward contract provisions of this title, a preliminary
settlement payment, a partial settlement payment, an interim
settlement payment, a settlement payment on account, a final
settlement payment, a net settlement payment, or any other
similar payment commonly used in the forward contract trade.
(51B) The term ``single asset real estate'' means real
property constituting a single property or project, other than
residential real property with fewer than 4 residential units,
which generates substantially all of the gross income of a
debtor who is not a family farmer and on which no substantial
business is being conducted by a debtor other than the business
of operating the real property and activities incidental
thereto.
(51C) The term ``small business case'' means a case filed
under chapter 11 of this title in which the debtor is a small
business debtor.
(51D) The term ``small business debtor''--
(A) subject to subparagraph (B), means a
person engaged in commercial or business
activities (including any affiliate of such
person that is also a debtor under this title
and excluding a person whose primary activity
is the business of owning or operating real
property or activities incidental thereto) that
has aggregate noncontingent liquidated secured
and unsecured debts as of the date of the
filing of the petition or the date of the order
for relief in an amount not more than
$2,000,000 (excluding debts owed to 1 or more
affiliates or insiders) for a case in which the
United States trustee has not appointed under
section 1102(a)(1) a committee of unsecured
creditors or where the court has determined
that the committee of unsecured creditors is
not sufficiently active and representative to
provide effective oversight of the debtor; and
(B) does not include any member of a group of
affiliated debtors that has aggregate
noncontingent liquidated secured and unsecured
debts in an amount greater than $2,000,000
(excluding debt owed to 1 or more affiliates or
insiders).
(52) The term ``State'' includes the District of
Columbia and Puerto Rico, except for the purpose of
defining who may be a debtor under chapter 9 of this
title.
(53) The term ``statutory lien'' means lien arising
solely by force of a statute on specified circumstances
or conditions, or lien of distress for rent, whether or
not statutory, but does not include security interest
or judicial lien, whether or not such interest or lien
is provided by or is dependent on a statute and whether
or not such interest or lien is made fully effective by
statute.
(53A) The term ``stockbroker'' means person--
(A) with respect to which there is a
customer, as defined in section 741 of this
title; and
(B) that is engaged in the business of
effecting transactions in securities--
(i) for the account of others; or
(ii) with members of the general
public, from or for such person's own
account.
(53B) The term ``swap agreement''--
(A) means--
(i) any agreement, including the
terms and conditions incorporated by
reference in such agreement, which is--
(I) an interest rate swap,
option, future, or forward
agreement, including a rate
floor, rate cap, rate collar,
cross-currency rate swap, and
basis swap;
(II) a spot, same day-
tomorrow, tomorrow-next,
forward, or other foreign
exchange, precious metals, or
other commodity agreement;
(III) a currency swap,
option, future, or forward
agreement;
(IV) an equity index or
equity swap, option, future, or
forward agreement;
(V) a debt index or debt
swap, option, future, or
forward agreement;
(VI) a total return, credit
spread or credit swap, option,
future, or forward agreement;
(VII) a commodity index or a
commodity swap, option, future,
or forward agreement;
(VIII) a weather swap,
option, future, or forward
agreement;
(IX) an emissions swap,
option, future, or forward
agreement; or
(X) an inflation swap,
option, future, or forward
agreement;
(ii) any agreement or transaction
that is similar to any other agreement
or transaction referred to in this
paragraph and that--
(I) is of a type that has
been, is presently, or in the
future becomes, the subject of
recurrent dealings in the swap
or other derivatives markets
(including terms and conditions
incorporated by reference
therein); and
(II) is a forward, swap,
future, option, or spot
transaction on one or more
rates, currencies, commodities,
equity securities, or other
equity instruments, debt
securities or other debt
instruments, quantitative
measures associated with an
occurrence, extent of an
occurrence, or contingency
associated with a financial,
commercial, or economic
consequence, or economic or
financial indices or measures
of economic or financial risk
or value;
(iii) any combination of agreements
or transactions referred to in this
subparagraph;
(iv) any option to enter into an
agreement or transaction referred to in
this subparagraph;
(v) a master agreement that provides
for an agreement or transaction
referred to in clause (i), (ii), (iii),
or (iv), together with all supplements
to any such master agreement, and
without regard to whether the master
agreement contains an agreement or
transaction that is not a swap
agreement under this paragraph, except
that the master agreement shall be
considered to be a swap agreement under
this paragraph only with respect to
each agreement or transaction under the
master agreement that is referred to in
clause (i), (ii), (iii), or (iv); or
(vi) any security agreement or
arrangement or other credit enhancement
related to any agreements or
transactions referred to in clause (i)
through (v), including any guarantee or
reimbursement obligation by or to a
swap participant or financial
participant in connection with any
agreement or transaction referred to in
any such clause, but not to exceed the
damages in connection with any such
agreement or transaction, measured in
accordance with section 562; and
(B) is applicable for purposes of this title
only, and shall not be construed or applied so
as to challenge or affect the characterization,
definition, or treatment of any swap agreement
under any other statute, regulation, or rule,
including the Gramm-Leach-Bliley Act, the Legal
Certainty for Bank Products Act of 2000, the
securities laws (as such term is defined in
section 3(a)(47) of the Securities Exchange Act
of 1934) and the Commodity Exchange Act.
(53C) The term ``swap participant'' means an entity that, at
any time before the filing of the petition, has an outstanding
swap agreement with the debtor.
(56A) The term ``term overriding royalty'' means an interest
in liquid or gaseous hydrocarbons in place or to be produced
from particular real property that entitles the owner thereof
to a share of production, or the value thereof, for a term
limited by time, quantity, or value realized.
(53D) The term ``timeshare plan'' means and shall include
that interest purchased in any arrangement, plan, scheme, or
similar device, but not including exchange programs, whether by
membership, agreement, tenancy in common, sale, lease, deed,
rental agreement, license, right to use agreement, or by any
other means, whereby a purchaser, in exchange for
consideration, receives a right to use accommodations,
facilities, or recreational sites, whether improved or
unimproved, for a specific period of time less than a full year
during any given year, but not necessarily for consecutive
years, and which extends for a period of more than three years.
A ``timeshare interest'' is that interest purchased in a
timeshare plan which grants the purchaser the right to use and
occupy accommodations, facilities, or recreational sites,
whether improved or unimproved, pursuant to a timeshare plan.
(54) The term ``transfer'' means--
(A) the creation of a lien;
(B) the retention of title as a security
interest;
(C) the foreclosure of a debtor's equity of
redemption; or
(D) each mode, direct or indirect, absolute
or conditional, voluntary or involuntary, of
disposing of or parting with--
(i) property; or
(ii) an interest in property.
(54A) The term ``uninsured State member bank'' means a State
member bank (as defined in section 3 of the Federal Deposit
Insurance Act) the deposits of which are not insured by the
Federal Deposit Insurance Corporation.
(55) The term ``United States'', when used in a
geographical sense, includes all locations where the
judicial jurisdiction of the United States extends,
including territories and possessions of the United
States.
* * * * * * *
Sec. 103. Applicability of chapters
(a) Except as provided in section 1161 of this title,
chapters 1, 3, and 5 of this title apply in a case under
chapter 7, 11, 12, or 13 of this title, and this chapter,
sections 307, 362(o), 555 through 557, and 559 through 562
apply in a case under chapter 15.
(b) Subchapters I and II of chapter 7 of this title apply
only in a case under such chapter.
(c) Subchapter III of chapter 7 of this title applies only in
a case under such chapter concerning a stockbroker.
(d) Subchapter IV of chapter 7 of this title applies only in
a case under such chapter concerning a commodity broker.
(e) Scope of Application.--Subchapter V of chapter 7 of this
title shall apply only in a case under such chapter concerning
the liquidation of an uninsured State member bank, or a
corporation organized under section 25A of the Federal Reserve
Act, which operates, or operates as, a multilateral clearing
organization pursuant to section 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991.
(f) Except as provided in section 901 of this title, only
chapters 1 and 9 of this title apply in a case under such
chapter 9.
(g) Except as provided in section 901 of this title,
subchapters I, II, and III of chapter 11 of this title apply
only in a case under such chapter.
(h) Subchapter IV of chapter 11 of this title applies only in
a case under such chapter concerning a railroad.
(i) Chapter 13 of this title applies only in a case under
such chapter.
(j) Chapter 12 of this title applies only in a case under
such chapter.
(k) Chapter 15 applies only in a case under such chapter,
except that--
(1) sections 1505, 1513, and 1514 apply in all cases
under this title; and
(2) section 1509 applies whether or not a case under
this title is pending.
(l) Subchapter V of chapter 11 of this title applies only in
a case under chapter 11 concerning a covered financial
corporation.
* * * * * * *
Sec. 109. Who may be a debtor
(a) Notwithstanding any other provision of this section, only
a person that resides or has a domicile, a place of business,
or property in the United States, or a municipality, may be a
debtor under this title.
(b) A person may be a debtor under chapter 7 of this title
only if such person is not--
(1) a railroad;
(2) a domestic insurance company, bank, savings bank,
cooperative bank, savings and loan association,
building and loan association, homestead association, a
New Markets Venture Capital company as defined in
section 351 of the Small Business Investment Act of
1958, a small business investment company licensed by
the Small Business Administration under section 301 of
the Small Business Investment Act of 1958, credit
union, or industrial bank or similar institution which
is an insured bank as defined in section 3(h) of the
Federal Deposit Insurance Act, except that an uninsured
State member bank, or a corporation organized under
section 25A of the Federal Reserve Act, which operates,
or operates as, a multilateral clearing organization
pursuant to section 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991 may be a
debtor if a petition is filed at the direction of the
Board of Governors of the Federal Reserve System; [or]
(3)(A) a foreign insurance company, engaged in such
business in the United States; or
(B) a foreign bank, savings bank, cooperative bank,
savings and loan association, building and loan
association, or credit union, that has a branch or
agency (as defined in section 1(b) of the International
Banking Act of 1978) in the United States[.]; or
(4) a covered financial corporation.
(c) An entity may be a debtor under chapter 9 of this title
if and only if such entity--
(1) is a municipality;
(2) is specifically authorized, in its capacity as a
municipality or by name, to be a debtor under such
chapter by State law, or by a governmental officer or
organization empowered by State law to authorize such
entity to be a debtor under such chapter;
(3) is insolvent;
(4) desires to effect a plan to adjust such debts;
and
(5)(A) has obtained the agreement of creditors
holding at least a majority in amount of the claims of
each class that such entity intends to impair under a
plan in a case under such chapter;
(B) has negotiated in good faith with
creditors and has failed to obtain the
agreement of creditors holding at least a
majority in amount of the claims of each class
that such entity intends to impair under a plan
in a case under such chapter;
(C) is unable to negotiate with creditors
because such negotiation is impracticable; or
(D) reasonably believes that a creditor may
attempt to obtain a transfer that is avoidable
under section 547 of this title.
(d) Only a railroad, a person that may be a debtor under
chapter 7 of this title (except a stockbroker or a commodity
broker), [and] an uninsured State member bank, [or] a
corporation organized under section 25A of the Federal Reserve
Act, which operates, or operates as, a multilateral clearing
organization pursuant to section 409 of the Federal Deposit
Insurance Corporation Improvement Act of 1991, or a covered
financial corporation may be a debtor under chapter 11 of this
title.
(e) Only an individual with regular income that owes, on the
date of the filing of the petition, noncontingent, liquidated,
unsecured debts of less than $250,000 and noncontingent,
liquidated, secured debts of less than $750,000, or an
individual with regular income and such individual's spouse,
except a stockbroker or a commodity broker, that owe, on the
date of the filing of the petition, noncontingent, liquidated,
unsecured debts that aggregate less than $250,000 and
noncontingent, liquidated, secured debts of less than $750,000
may be a debtor under chapter 13 of this title.
(f) Only a family farmer or family fisherman with regular
annual income may be a debtor under chapter 12 of this title.
(g) Notwithstanding any other provision of this section, no
individual or family farmer may be a debtor under this title
who has been a debtor in a case pending under this title at any
time in the preceding 180 days if--
(1) the case was dismissed by the court for willful
failure of the debtor to abide by orders of the court,
or to appear before the court in proper prosecution of
the case; or
(2) the debtor requested and obtained the voluntary
dismissal of the case following the filing of a request
for relief from the automatic stay provided by section
362 of this title.
(h)(1) Subject to paragraphs (2) and (3), and notwithstanding
any other provision of this section other than paragraph (4) of
this subsection, an individual may not be a debtor under this
title unless such individual has, during the 180-day period
ending on the date of filing of the petition by such
individual, received from an approved nonprofit budget and
credit counseling agency described in section 111(a) an
individual or group briefing (including a briefing conducted by
telephone or on the Internet) that outlined the opportunities
for available credit counseling and assisted such individual in
performing a related budget analysis.
(2)(A) Paragraph (1) shall not apply with respect to
a debtor who resides in a district for which the United
States trustee (or the bankruptcy administrator, if
any) determines that the approved nonprofit budget and
credit counseling agencies for such district are not
reasonably able to provide adequate services to the
additional individuals who would otherwise seek credit
counseling from such agencies by reason of the
requirements of paragraph (1).
(B) The United States trustee (or the
bankruptcy administrator, if any) who makes a
determination described in subparagraph (A)
shall review such determination not later than
1 year after the date of such determination,
and not less frequently than annually
thereafter. Notwithstanding the preceding
sentence, a nonprofit budget and credit
counseling agency may be disapproved by the
United States trustee (or the bankruptcy
administrator, if any) at any time.
(3)(A) Subject to subparagraph (B), the requirements
of paragraph (1) shall not apply with respect to a
debtor who submits to the court a certification that--
(i) describes exigent circumstances
that merit a waiver of the requirements
of paragraph (1);
(ii) states that the debtor requested
credit counseling services from an
approved nonprofit budget and credit
counseling agency, but was unable to
obtain the services referred to in
paragraph (1) during the 7-day period
beginning on the date on which the
debtor made that request; and
(iii) is satisfactory to the court.
(B) With respect to a debtor, an exemption
under subparagraph (A) shall cease to apply to
that debtor on the date on which the debtor
meets the requirements of paragraph (1), but in
no case may the exemption apply to that debtor
after the date that is 30 days after the debtor
files a petition, except that the court, for
cause, may order an additional 15 days.
(4) The requirements of paragraph (1) shall not apply
with respect to a debtor whom the court determines,
after notice and hearing, is unable to complete those
requirements because of incapacity, disability, or
active military duty in a military combat zone. For the
purposes of this paragraph, incapacity means that the
debtor is impaired by reason of mental illness or
mental deficiency so that he is incapable of realizing
and making rational decisions with respect to his
financial responsibilities; and ``disability'' means
that the debtor is so physically impaired as to be
unable, after reasonable effort, to participate in an
in person, telephone, or Internet briefing required
under paragraph (1).
* * * * * * *
CHAPTER 3--CASE ADMINISTRATION
* * * * * * *
SUBCHAPTER II--OFFICERS
* * * * * * *
Sec. 322. Qualification of trustee
(a) Except as provided in subsection (b)(1), a person
selected under section 701, 702, 703, 1104, 1163, 1202, or 1302
of this title to serve as trustee in a case under this title
qualifies if before seven days after such selection, and before
beginning official duties, such person has filed with the court
a bond in favor of the United States conditioned on the
faithful performance of such official duties.
(b)(1) The United States trustee qualifies wherever such
trustee serves as trustee in a case under this title.
(2) [The] In cases under subchapter V, the United States
trustee shall recommend to the court, and in all other cases,
the United States trustee shall determine--
(A) the amount of a bond required to be filed under
subsection (a) of this section; and
(B) the sufficiency of the surety on such bond.
(c) A trustee is not liable personally or on such trustee's
bond in favor of the United States for any penalty or
forfeiture incurred by the debtor.
(d) A proceeding on a trustee's bond may not be commenced
after two years after the date on which such trustee was
discharged.
* * * * * * *
CHAPTER 7--LIQUIDATION
* * * * * * *
SUBCHAPTER II--COLLECTION, LIQUIDATION, AND DISTRIBUTION OF THE ESTATE
* * * * * * *
Sec. 726. Distribution of property of the estate
(a) Except as provided in section 510 of this title, property
of the estate shall be distributed--
(1) first, in payment of any unpaid fees, costs, and
expenses of a special trustee appointed under section
1186, and then in payment of claims of the kind
specified in, and in the order specified in, section
507 of this title, proof of which is timely filed under
section 501 of this title or tardily filed on or before
the earlier of--
(A) the date that is 10 days after the
mailing to creditors of the summary of the
trustee's final report; or
(B) the date on which the trustee commences
final distribution under this section;
(2) second, in payment of any allowed unsecured
claim, other than a claim of a kind specified in
paragraph (1), (3), or (4) of this subsection, proof of
which is--
(A) timely filed under section 501(a) of this
title;
(B) timely filed under section 501(b) or
501(c) of this title; or
(C) tardily filed under section 501(a) of
this title, if--
(i) the creditor that holds such
claim did not have notice or actual
knowledge of the case in time for
timely filing of a proof of such claim
under section 501(a) of this title; and
(ii) proof of such claim is filed in
time to permit payment of such claim;
(3) third, in payment of any allowed unsecured claim
proof of which is tardily filed under section 501(a) of
this title, other than a claim of the kind specified in
paragraph (2)(C) of this subsection;
(4) fourth, in payment of any allowed claim, whether
secured or unsecured, for any fine, penalty, or
forfeiture, or for multiple, exemplary, or punitive
damages, arising before the earlier of the order for
relief or the appointment of a trustee, to the extent
that such fine, penalty, forfeiture, or damages are not
compensation for actual pecuniary loss suffered by the
holder of such claim;
(5) fifth, in payment of interest at the legal rate
from the date of the filing of the petition, on any
claim paid under paragraph (1), (2), (3), or (4) of
this subsection; and
(6) sixth, to the debtor.
(b) Payment on claims of a kind specified in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), (9), or (10) of section
507(a) of this title, or in paragraph (2), (3), (4), or (5) of
subsection (a) of this section, shall be made pro rata among
claims of the kind specified in each such particular paragraph,
except that in a case that has been converted to this chapter
under section 1112, 1208, or 1307 of this title, a claim
allowed under section 503(b) of this title incurred under this
chapter after such conversion has priority over a claim allowed
under section 503(b) of this title incurred under any other
chapter of this title or under this chapter before such
conversion and over any expenses of a custodian superseded
under section 543 of this title.
(c) Notwithstanding subsections (a) and (b) of this section,
if there is property of the kind specified in section 541(a)(2)
of this title, or proceeds of such property, in the estate,
such property or proceeds shall be segregated from other
property of the estate, and such property or proceeds and other
property of the estate shall be distributed as follows:
(1) Claims allowed under section 503 of this title
shall be paid either from property of the kind
specified in section 541(a)(2) of this title, or from
other property of the estate, as the interest of
justice requires.
(2) Allowed claims, other than claims allowed under
section 503 of this title, shall be paid in the order
specified in subsection (a) of this section, and, with
respect to claims of a kind specified in a particular
paragraph of section 507 of this title or subsection
(a) of this section, in the following order and manner:
(A) First, community claims against the
debtor or the debtor's spouse shall be paid
from property of the kind specified in section
541(a)(2) of this title, except to the extent
that such property is solely liable for debts
of the debtor.
(B) Second, to the extent that community
claims against the debtor are not paid under
subparagraph (A) of this paragraph, such
community claims shall be paid from property of
the kind specified in section 541(a)(2) of this
title that is solely liable for debts of the
debtor.
(C) Third, to the extent that all claims
against the debtor including community claims
against the debtor are not paid under
subparagraph (A) or (B) of this paragraph such
claims shall be paid from property of the
estate other than property of the kind
specified in section 541(a)(2) of this title.
(D) Fourth, to the extent that community
claims against the debtor or the debtor's
spouse are not paid under subparagraph (A),
(B), or (C) of this paragraph, such claims
shall be paid from all remaining property of
the estate.
* * * * * * *
CHAPTER 11--REORGANIZATION
SUBCHAPTER I--OFFICERS AND ADMINISTRATION
Sec.
1101. Definitions for this chapter.
* * * * * * *
SUBCHAPTER V--LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A
COVERED FINANCIAL CORPORATION
1181. Inapplicability of other sections.
1182. Definitions for this subchapter.
1183. Commencement of a case concerning a covered financial corporation.
1184. Regulators.
1185. Special transfer of property of the estate.
1186. Special trustee.
1187. Temporary and supplemental automatic stay; assumed debt.
1188. Treatment of qualified financial contracts and affiliate
contracts.
1189. Licenses, permits, and registrations.
1190. Exemption from securities laws.
1191. Inapplicability of certain avoiding powers.
1192. Consideration of financial stability.
SUBCHAPTER I--OFFICERS AND ADMINISTRATION
* * * * * * *
Sec. 1112. Conversion or dismissal
(a) The debtor may convert a case under this chapter to a
case under chapter 7 of this title unless--
(1) the debtor is not a debtor in possession;
(2) the case originally was commenced as an
involuntary case under this chapter; or
(3) the case was converted to a case under this
chapter other than on the debtor's request.
(b)(1) Except as provided in paragraph (2) and subsection
(c), on request of a party in interest, and after notice and a
hearing, the court shall convert a case under this chapter to a
case under chapter 7 or dismiss a case under this chapter,
whichever is in the best interests of creditors and the estate,
for cause unless the court determines that the appointment
under section 1104(a) of a trustee or an examiner is in the
best interests of creditors and the estate.
(2) The court may not convert a case under this chapter to a
case under chapter 7 or dismiss a case under this chapter if
the court finds and specifically identifies unusual
circumstances establishing that converting or dismissing the
case is not in the best interests of creditors and the estate,
and the debtor or any other party in interest establishes
that--
(A) there is a reasonable likelihood that a plan will
be confirmed within the timeframes established in
sections 1121(e) and 1129(e) of this title, or if such
sections do not apply, within a reasonable period of
time; and
(B) the grounds for converting or dismissing the case
include an act or omission of the debtor other than
under paragraph (4)(A)--
(i) for which there exists a reasonable
justification for the act or omission; and
(ii) that will be cured within a reasonable
period of time fixed by the court.
(3) The court shall commence the hearing on a motion under
this subsection not later than 30 days after filing of the
motion, and shall decide the motion not later than 15 days
after commencement of such hearing, unless the movant expressly
consents to a continuance for a specific period of time or
compelling circumstances prevent the court from meeting the
time limits established by this paragraph.
(4) For purposes of this subsection, the term ``cause''
includes--
(A) substantial or continuing loss to or diminution
of the estate and the absence of a reasonable
likelihood of rehabilitation;
(B) gross mismanagement of the estate;
(C) failure to maintain appropriate insurance that
poses a risk to the estate or to the public;
(D) unauthorized use of cash collateral substantially
harmful to 1 or more creditors;
(E) failure to comply with an order of the court;
(F) unexcused failure to satisfy timely any filing or
reporting requirement established by this title or by
any rule applicable to a case under this chapter;
(G) failure to attend the meeting of creditors
convened under section 341(a) or an examination ordered
under rule 2004 of the Federal Rules of Bankruptcy
Procedure without good cause shown by the debtor;
(H) failure timely to provide information or attend
meetings reasonably requested by the United States
trustee (or the bankruptcy administrator, if any);
(I) failure timely to pay taxes owed after the date
of the order for relief or to file tax returns due
after the date of the order for relief;
(J) failure to file a disclosure statement, or to
file or confirm a plan, within the time fixed by this
title or by order of the court;
(K) failure to pay any fees or charges required under
chapter 123 of title 28;
(L) revocation of an order of confirmation under
section 1144;
(M) inability to effectuate substantial consummation
of a confirmed plan;
(N) material default by the debtor with respect to a
confirmed plan;
(O) termination of a confirmed plan by reason of the
occurrence of a condition specified in the plan; and
(P) failure of the debtor to pay any domestic support
obligation that first becomes payable after the date of
the filing of the petition.
(c) The court may not convert a case under this chapter to a
case under chapter 7 of this title if the debtor is a farmer or
a corporation that is not a moneyed, business, or commercial
corporation, unless the debtor requests such conversion.
(d) The court may convert a case under this chapter to a case
under chapter 12 or 13 of this title only if--
(1) the debtor requests such conversion;
(2) the debtor has not been discharged under section
1141(d) of this title; and
(3) if the debtor requests conversion to chapter 12
of this title, such conversion is equitable.
(e) Except as provided in subsections (c) and (f), the court,
on request of the United States trustee, may convert a case
under this chapter to a case under chapter 7 of this title or
may dismiss a case under this chapter, whichever is in the best
interest of creditors and the estate if the debtor in a
voluntary case fails to file, within fifteen days after the
filing of the petition commencing such case or such additional
time as the court may allow, the information required by
paragraph (1) of section 521(a), including a list containing
the names and addresses of the holders of the twenty largest
unsecured claims (or of all unsecured claims if there are fewer
than twenty unsecured claims), and the approximate dollar
amounts of each of such claims.
(f) Notwithstanding any other provision of this section, a
case may not be converted to a case under another chapter of
this title unless the debtor may be a debtor under such
chapter.
(g) Notwithstanding section 109(b), the court may convert a
case under subchapter V to a case under chapter 7 if--
(1) a transfer approved under section 1185 has been
consummated;
(2) the court has ordered the appointment of a
special trustee under section 1186; and
(3) the court finds, after notice and a hearing, that
conversion is in the best interest of the creditors and
the estate.
* * * * * * *
SUBCHAPTER II--THE PLAN
* * * * * * *
Sec. 1129. Confirmation of plan
(a) The court shall confirm a plan only if all of the
following requirements are met:
(1) The plan complies with the applicable provisions
of this title.
(2) The proponent of the plan complies with the
applicable provisions of this title.
(3) The plan has been proposed in good faith and not
by any means forbidden by law.
(4) Any payment made or to be made by the proponent,
by the debtor, or by a person issuing securities or
acquiring property under the plan, for services or for
costs and expenses in or in connection with the case,
or in connection with the plan and incident to the
case, has been approved by, or is subject to the
approval of, the court as reasonable.
(5)(A)(i) The proponent of the plan has disclosed the
identity and affiliations of any individual proposed to
serve, after confirmation of the plan, as a director,
officer, or voting trustee of the debtor, an affiliate
of the debtor participating in a joint plan with the
debtor, or a successor to the debtor under the plan;
and
(ii) the appointment to, or
continuance in, such office of such
individual, is consistent with the
interests of creditors and equity
security holders and with public
policy; and
(B) the proponent of the plan has disclosed
the identity of any insider that will be
employed or retained by the reorganized debtor,
and the nature of any compensation for such
insider.
(6) Any governmental regulatory commission with
jurisdiction, after confirmation of the plan, over the
rates of the debtor has approved any rate change
provided for in the plan, or such rate change is
expressly conditioned on such approval.
(7) With respect to each impaired class of claims or
interests--
(A) each holder of a claim or interest of
such class--
(i) has accepted the plan; or
(ii) will receive or retain under the
plan on account of such claim or
interest property of a value, as of the
effective date of the plan, that is not
less than the amount that such holder
would so receive or retain if the
debtor were liquidated under chapter 7
of this title on such date; or
(B) if section 1111(b)(2) of this title
applies to the claims of such class, each
holder of a claim of such class will receive or
retain under the plan on account of such claim
property of a value, as of the effective date
of the plan, that is not less than the value of
such holder's interest in the estate's interest
in the property that secures such claims.
(8) With respect to each class of claims or
interests--
(A) such class has accepted the plan; or
(B) such class is not impaired under the
plan.
(9) Except to the extent that the holder of a
particular claim has agreed to a different treatment of
such claim, the plan provides that--
(A) with respect to a claim of a kind
specified in section 507(a)(2) or 507(a)(3) of
this title, on the effective date of the plan,
the holder of such claim will receive on
account of such claim cash equal to the allowed
amount of such claim;
(B) with respect to a class of claims of a
kind specified in section 507(a)(1), 507(a)(4),
507(a)(5), 507(a)(6), or 507(a)(7) of this
title, each holder of a claim of such class
will receive--
(i) if such class has accepted the
plan, deferred cash payments of a
value, as of the effective date of the
plan, equal to the allowed amount of
such claim; or
(ii) if such class has not accepted
the plan, cash on the effective date of
the plan equal to the allowed amount of
such claim;
(C) with respect to a claim of a kind
specified in section 507(a)(8) of this title,
the holder of such claim will receive on
account of such claim regular installment
payments in cash--
(i) of a total value, as of the
effective date of the plan, equal to
the allowed amount of such claim;
(ii) over a period ending not later
than 5 years after the date of the
order for relief under section 301,
302, or 303; and
(iii) in a manner not less favorable
than the most favored nonpriority
unsecured claim provided for by the
plan (other than cash payments made to
a class of creditors under section
1122(b)); and
(D) with respect to a secured claim which
would otherwise meet the description of an
unsecured claim of a governmental unit under
section 507(a)(8), but for the secured status
of that claim, the holder of that claim will
receive on account of that claim, cash
payments, in the same manner and over the same
period, as prescribed in subparagraph (C).
(10) If a class of claims is impaired under the plan,
at least one class of claims that is impaired under the
plan has accepted the plan, determined without
including any acceptance of the plan by any insider.
(11) Confirmation of the plan is not likely to be
followed by the liquidation, or the need for further
financial reorganization, of the debtor or any
successor to the debtor under the plan, unless such
liquidation or reorganization is proposed in the plan.
(12) All fees payable under section 1930 of title 28,
as determined by the court at the hearing on
confirmation of the plan, have been paid or the plan
provides for the payment of all such fees on the
effective date of the plan.
(13) The plan provides for the continuation after its
effective date of payment of all retiree benefits, as
that term is defined in section 1114 of this title, at
the level established pursuant to subsection (e)(1)(B)
or (g) of section 1114 of this title, at any time prior
to confirmation of the plan, for the duration of the
period the debtor has obligated itself to provide such
benefits.
(14) If the debtor is required by a judicial or
administrative order, or by statute, to pay a domestic
support obligation, the debtor has paid all amounts
payable under such order or such statute for such
obligation that first become payable after the date of
the filing of the petition.
(15) In a case in which the debtor is an individual
and in which the holder of an allowed unsecured claim
objects to the confirmation of the plan--
(A) the value, as of the effective date of
the plan, of the property to be distributed
under the plan on account of such claim is not
less than the amount of such claim; or
(B) the value of the property to be
distributed under the plan is not less than the
projected disposable income of the debtor (as
defined in section 1325(b)(2)) to be received
during the 5-year period beginning on the date
that the first payment is due under the plan,
or during the period for which the plan
provides payments, whichever is longer.
(16) All transfers of property under the plan shall
be made in accordance with any applicable provisions of
nonbankruptcy law that govern the transfer of property
by a corporation or trust that is not a moneyed,
business, or commercial corporation or trust.
(17) In a case under subchapter V, all payable fees,
costs, and expenses of the special trustee have been
paid or the plan provides for the payment of all such
fees, costs, and expenses on the effective date of the
plan.
(18) In a case under subchapter V, confirmation of
the plan is not likely to cause serious adverse effects
on financial stability in the United States.
(b)(1) Notwithstanding section 510(a) of this title, if all
of the applicable requirements of subsection (a) of this
section other than paragraph (8) are met with respect to a
plan, the court, on request of the proponent of the plan, shall
confirm the plan notwithstanding the requirements of such
paragraph if the plan does not discriminate unfairly, and is
fair and equitable, with respect to each class of claims or
interests that is impaired under, and has not accepted, the
plan.
(2) For the purpose of this subsection, the condition
that a plan be fair and equitable with respect to a
class includes the following requirements:
(A) With respect to a class of secured
claims, the plan provides--
(i)(I) that the holders of such
claims retain the liens securing such
claims, whether the property subject to
such liens is retained by the debtor or
transferred to another entity, to the
extent of the allowed amount of such
claims; and
(II) that each holder of a
claim of such class receive on
account of such claim deferred
cash payments totaling at least
the allowed amount of such
claim, of a value, as of the
effective date of the plan, of
at least the value of such
holder's interest in the
estate's interest in such
property;
(ii) for the sale, subject to section
363(k) of this title, of any property
that is subject to the liens securing
such claims, free and clear of such
liens, with such liens to attach to the
proceeds of such sale, and the
treatment of such liens on proceeds
under clause (i) or (iii) of this
subparagraph; or
(iii) for the realization by such
holders of the indubitable equivalent
of such claims.
(B) With respect to a class of unsecured
claims--
(i) the plan provides that each
holder of a claim of such class receive
or retain on account of such claim
property of a value, as of the
effective date of the plan, equal to
the allowed amount of such claim; or
(ii) the holder of any claim or
interest that is junior to the claims
of such class will not receive or
retain under the plan on account of
such junior claim or interest any
property, except that in a case in
which the debtor is an individual, the
debtor may retain property included in
the estate under section 1115, subject
to the requirements of subsection
(a)(14) of this section.
(C) With respect to a class of interests--
(i) the plan provides that each
holder of an interest of such class
receive or retain on account of such
interest property of a value, as of the
effective date of the plan, equal to
the greatest of the allowed amount of
any fixed liquidation preference to
which such holder is entitled, any
fixed redemption price to which such
holder is entitled, or the value of
such interest; or
(ii) the holder of any interest that
is junior to the interests of such
class will not receive or retain under
the plan on account of such junior
interest any property.
(c) Notwithstanding subsections (a) and (b) of this section
and except as provided in section 1127(b) of this title, the
court may confirm only one plan, unless the order of
confirmation in the case has been revoked under section 1144 of
this title. If the requirements of subsections (a) and (b) of
this section are met with respect to more than one plan, the
court shall consider the preferences of creditors and equity
security holders in determining which plan to confirm.
(d) Notwithstanding any other provision of this section, on
request of a party in interest that is a governmental unit, the
court may not confirm a plan if the principal purpose of the
plan is the avoidance of taxes or the avoidance of the
application of section 5 of the Securities Act of 1933. In any
hearing under this subsection, the governmental unit has the
burden of proof on the issue of avoidance.
(e) In a small business case, the court shall confirm a plan
that complies with the applicable provisions of this title and
that is filed in accordance with section 1121(e) not later than
45 days after the plan is filed unless the time for
confirmation is extended in accordance with section 1121(e)(3).
* * * * * * *
SUBCHAPTER V--LIQUIDATION, REORGANIZATION, OR RECAPITALIZATION OF A
COVERED FINANCIAL CORPORATION
Sec. 1181. Inapplicability of other sections
Sections 303 and 321(c) do not apply in a case under this
subchapter concerning a covered financial corporation. Section
365 does not apply to a transfer under section 1185, 1187, or
1188.
Sec. 1182. Definitions for this subchapter
In this subchapter, the following definitions shall apply:
(1) The term ``Board'' means the Board of Governors
of the Federal Reserve System.
(2) The term ``bridge company'' means a newly formed
corporation to which property of the estate may be
transferred under section 1185(a) and the equity
securities of which may be transferred to a special
trustee under section 1186(a).
(3) The term ``capital structure debt'' means all
unsecured debt of the debtor for borrowed money for
which the debtor is the primary obligor, other than a
qualified financial contract and other than debt
secured by a lien on property of the estate that is to
be transferred to a bridge company pursuant to an order
of the court under section 1185(a).
(4) The term ``contractual right'' means a
contractual right of a kind defined in section 555,
556, 559, 560, or 561.
(5) The term ``qualified financial contract'' means
any contract of a kind defined in paragraph (25),
(38A), (47), or (53B) of section 101, section 741(7),
or paragraph (4), (5), (11), or (13) of section 761.
(6) The term ``special trustee'' means the trustee of
a trust formed under section 1186(a)(1).
Sec. 1183. Commencement of a case concerning a covered financial
corporation
(a) A case under this subchapter concerning a covered
financial corporation may be commenced by the filing of a
petition with the court by the debtor under section 301 only if
the debtor states to the best of its knowledge under penalty of
perjury in the petition that it is a covered financial
corporation.
(b) The commencement of a case under subsection (a)
constitutes an order for relief under this subchapter.
(c) The members of the board of directors (or body performing
similar functions) of a covered financial company shall have no
liability to shareholders, creditors, or other parties in
interest for a good faith filing of a petition to commence a
case under this subchapter, or for any reasonable action taken
in good faith in contemplation of or in connection with such a
petition or a transfer under section 1185 or section 1186,
whether prior to or after commencement of the case.
(d) Counsel to the debtor shall provide, to the greatest
extent practicable without disclosing the identity of the
potential debtor, sufficient confidential notice to the chief
judge of the court of appeals for the circuit embracing the
district in which such counsel intends to file a petition to
commence a case under this subchapter regarding the potential
commencement of such case. The chief judge of such court shall
randomly assign to preside over such case a bankruptcy judge
selected from among the bankruptcy judges designated by the
Chief Justice of the United States under section 298 of title
28.
Sec. 1184. Regulators
The Board, the Securities Exchange Commission, the Office of
the Comptroller of the Currency of the Department of the
Treasury, the Commodity Futures Trading Commission, and the
Federal Deposit Insurance Corporation may raise and may appear
and be heard on any issue in any case or proceeding under this
subchapter.
Sec. 1185. Special transfer of property of the estate
(a) On request of the trustee, and after notice and a hearing
that shall occur not less than 24 hours after the order for
relief, the court may order a transfer under this section of
property of the estate, and the assignment of executory
contracts, unexpired leases, and qualified financial contracts
of the debtor, to a bridge company. Upon the entry of an order
approving such transfer, any property transferred, and any
executory contracts, unexpired leases, and qualified financial
contracts assigned under such order shall no longer be property
of the estate. Except as provided under this section, the
provisions of section 363 shall apply to a transfer and
assignment under this section.
(b) Unless the court orders otherwise, notice of a request
for an order under subsection (a) shall consist of electronic
or telephonic notice of not less than 24 hours to--
(1) the debtor;
(2) the holders of the 20 largest secured claims
against the debtor;
(3) the holders of the 20 largest unsecured claims
against the debtor;
(4) counterparties to any debt, executory contract,
unexpired lease, and qualified financial contract
requested to be transferred under this section;
(5) the Board;
(6) the Federal Deposit Insurance Corporation;
(7) the Secretary of the Treasury and the Office of
the Comptroller of the Currency of the Treasury;
(8) the Commodity Futures Trading Commission;
(9) the Securities and Exchange Commission;
(10) the United States trustee or bankruptcy
administrator; and
(11) each primary financial regulatory agency, as
defined in section 2(12) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, with respect to any
affiliate the equity securities of which are proposed
to be transferred under this section.
(c) The court may not order a transfer under this section
unless the court determines, based upon a preponderance of the
evidence, that--
(1) the transfer under this section is necessary to
prevent serious adverse effects on financial stability
in the United States;
(2) the transfer does not provide for the assumption
of any capital structure debt by the bridge company;
(3) the transfer does not provide for the transfer to
the bridge company of any property of the estate that
is subject to a lien securing a debt, executory
contract, unexpired lease or agreement (including a
qualified financial contract) of the debtor unless--
(A)(i) the bridge company assumes such debt,
executory contract, unexpired lease or
agreement (including a qualified financial
contract), including any claims arising in
respect thereof that would not be allowed
secured claims under section 506(a)(1) and
after giving effect to such transfer, such
property remains subject to the lien securing
such debt, executory contract, unexpired lease
or agreement (including a qualified financial
contract); and
(ii) the court has determined that assumption
of such debt, executory contract, unexpired
lease or agreement (including a qualified
financial contract) by the bridge company is in
the best interests of the estate; or
(B) such property is being transferred to the
bridge company in accordance with the
provisions of section 363;
(4) the transfer does not provide for the assumption
by the bridge company of any debt, executory contract,
unexpired lease or agreement (including a qualified
financial contract) of the debtor secured by a lien on
property of the estate unless the transfer provides for
such property to be transferred to the bridge company
in accordance with paragraph (3)(A) of this subsection;
(5) the transfer does not provide for the transfer of
the equity of the debtor;
(6) the trustee has demonstrated that the bridge
company is not likely to fail to meet the obligations
of any debt, executory contract, qualified financial
contract, or unexpired lease assumed and assigned to
the bridge company;
(7) the transfer provides for the transfer to a
special trustee all of the equity securities in the
bridge company and appointment of a special trustee in
accordance with section 1186;
(8) after giving effect to the transfer, adequate
provision has been made for the fees, costs, and
expenses of the estate and special trustee; and
(9) the bridge company will have governing documents,
and initial directors and senior officers, that are in
the best interest of creditors and the estate.
(d) Immediately before a transfer under this section, the
bridge company that is the recipient of the transfer shall--
(1) not have any property, executory contracts,
unexpired leases, qualified financial contracts, or
debts, other than any property acquired or executory
contracts, unexpired leases, or debts assumed when
acting as a transferee of a transfer under this
section; and
(2) have equity securities that are property of the
estate, which may be sold or distributed in accordance
with this title.
Sec. 1186. Special trustee
(a)(1) An order approving a transfer under section 1185 shall
require the trustee to transfer to a qualified and independent
special trustee, who is appointed by the court, all of the
equity securities in the bridge company that is the recipient
of a transfer under section 1185 to hold in trust for the sole
benefit of the estate, subject to satisfaction of the special
trustee's fees, costs, and expenses. The trust of which the
special trustee is the trustee shall be a newly formed trust
governed by a trust agreement approved by the court as in the
best interests of the estate, and shall exist for the sole
purpose of holding and administering, and shall be permitted to
dispose of, the equity securities of the bridge company in
accordance with the trust agreement.
(2) In connection with the hearing to approve a transfer
under section 1185, the trustee shall confirm to the court that
the Board has been consulted regarding the identity of the
proposed special trustee and advise the court of the results of
such consultation.
(b) The trust agreement governing the trust shall provide--
(1) for the payment of the fees, costs, expenses, and
indemnities of the special trustee from the assets of
the debtor's estate;
(2) that the special trustee provide--
(A) quarterly reporting to the estate, which
shall be filed with the court; and
(B) information about the bridge company
reasonably requested by a party in interest to
prepare a disclosure statement for a plan
providing for distribution of any securities of
the bridge company if such information is
necessary to prepare such disclosure statement;
(3) that for as long as the equity securities of the
bridge company are held by the trust, the special
trustee shall file a notice with the court in
connection with--
(A) any change in a director or senior
officer of the bridge company;
(B) any modification to the governing
documents of the bridge company; and
(C) any material corporate action of the
bridge company, including--
(i) recapitalization;
(ii) a material borrowing;
(iii) termination of an intercompany
debt or guarantee;
(iv) a transfer of a substantial
portion of the assets of the bridge
company; or
(v) the issuance or sale of any
securities of the bridge company;
(4) that any sale of any equity securities of the
bridge company shall not be consummated until the
special trustee consults with the Federal Deposit
Insurance Corporation and the Board regarding such sale
and discloses the results of such consultation with the
court;
(5) that, subject to reserves for payments permitted
under paragraph (1) provided for in the trust
agreement, the proceeds of the sale of any equity
securities of the bridge company by the special trustee
be held in trust for the benefit of or transferred to
the estate;
(6) the process and guidelines for the replacement of
the special trustee; and
(7) that the property held in trust by the special
trustee is subject to distribution in accordance with
subsection (c).
(c)(1) The special trustee shall distribute the assets held
in trust--
(A) if the court confirms a plan in the case, in
accordance with the plan on the effective date of the
plan; or
(B) if the case is converted to a case under chapter
7, as ordered by the court.
(2) As soon as practicable after a final distribution under
paragraph (1), the office of the special trustee shall
terminate, except as may be necessary to wind up and conclude
the business and financial affairs of the trust.
(d) After a transfer to the special trustee under this
section, the special trustee shall be subject only to
applicable nonbankruptcy law, and the actions and conduct of
the special trustee shall no longer be subject to approval by
the court in the case under this subchapter.
Sec. 1187. Temporary and supplemental automatic stay; assumed debt
(a)(1) A petition filed under section 1183 operates as a
stay, applicable to all entities, of the termination,
acceleration, or modification of any debt, contract, lease, or
agreement of the kind described in paragraph (2), or of any
right or obligation under any such debt, contract, lease, or
agreement, solely because of--
(A) a default by the debtor under any such debt,
contract, lease, or agreement; or
(B) a provision in such debt, contract, lease, or
agreement, or in applicable nonbankruptcy law, that is
conditioned on--
(i) the insolvency or financial condition of
the debtor at any time before the closing of
the case;
(ii) the commencement of a case under this
title concerning the debtor;
(iii) the appointment of or taking possession
by a trustee in a case under this title
concerning the debtor or by a custodian before
the commencement of the case; or
(iv) a credit rating agency rating, or
absence or withdrawal of a credit rating agency
rating--
(I) of the debtor at any time after
the commencement of the case;
(II) of an affiliate during the
period from the commencement of the
case until 48 hours after such order is
entered;
(III) of the bridge company while the
trustee or the special trustee is a
direct or indirect beneficial holder of
more than 50 percent of the equity
securities of--
(aa) the bridge company; or
(bb) the affiliate, if all of
the direct or indirect
interests in the affiliate that
are property of the estate are
transferred under section 1185;
or
(IV) of an affiliate while the
trustee or the special trustee is a
direct or indirect beneficial holder of
more than 50 percent of the equity
securities of--
(aa) the bridge company; or
(bb) the affiliate, if all of
the direct or indirect
interests in the affiliate that
are property of the estate are
transferred under section 1185.
(2) A debt, contract, lease, or agreement described in this
paragraph is--
(A) any debt (other than capital structure debt),
executory contract, or unexpired lease of the debtor
(other than a qualified financial contract);
(B) any agreement under which the debtor issued or is
obligated for debt (other than capital structure debt);
(C) any debt, executory contract, or unexpired lease
of an affiliate (other than a qualified financial
contract); or
(D) any agreement under which an affiliate issued or
is obligated for debt.
(3) The stay under this subsection terminates--
(A) for the benefit of the debtor, upon the earliest
of--
(i) 48 hours after the commencement of the
case;
(ii) assumption of the debt, contract, lease,
or agreement by the bridge company under an
order authorizing a transfer under section
1185;
(iii) a final order of the court denying the
request for a transfer under section 1185; or
(iv) the time the case is dismissed; and
(B) for the benefit of an affiliate, upon the
earliest of--
(i) the entry of an order authorizing a
transfer under section 1185 in which the direct
or indirect interests in the affiliate that are
property of the estate are not transferred
under section 1185;
(ii) a final order by the court denying the
request for a transfer under section 1185;
(iii) 48 hours after the commencement of the
case if the court has not ordered a transfer
under section 1185; or
(iv) the time the case is dismissed.
(4) Subsections (d), (e), (f), and (g) of section 362 apply
to a stay under this subsection.
(b) A debt, executory contract (other than a qualified
financial contract), or unexpired lease of the debtor, or an
agreement under which the debtor has issued or is obligated for
any debt, may be assumed by a bridge company in a transfer
under section 1185 notwithstanding any provision in an
agreement or in applicable nonbankruptcy law that--
(1) prohibits, restricts, or conditions the
assignment of the debt, contract, lease, or agreement;
or
(2) accelerates, terminates, or modifies, or permits
a party other than the debtor to terminate or modify,
the debt, contract, lease, or agreement on account of--
(A) the assignment of the debt, contract,
lease, or agreement; or
(B) a change in control of any party to the
debt, contract, lease, or agreement.
(c)(1) A debt, contract, lease, or agreement of the kind
described in subparagraph (A) or (B) of subsection (a)(2) may
not be accelerated, terminated, or modified, and any right or
obligation under such debt, contract, lease, or agreement may
not be accelerated, terminated, or modified, as to the bridge
company solely because of a provision in the debt, contract,
lease, or agreement or in applicable nonbankruptcy law--
(A) of the kind described in subsection (a)(1)(B) as
applied to the debtor;
(B) that prohibits, restricts, or conditions the
assignment of the debt, contract, lease, or agreement;
or
(C) that accelerates, terminates, or modifies, or
permits a party other than the debtor to terminate or
modify, the debt, contract, lease or agreement on
account of--
(i) the assignment of the debt, contract,
lease, or agreement; or
(ii) a change in control of any party to the
debt, contract, lease, or agreement.
(2) If there is a default by the debtor under a provision
other than the kind described in paragraph (1) in a debt,
contract, lease or agreement of the kind described in
subparagraph (A) or (B) of subsection (a)(2), the bridge
company may assume such debt, contract, lease, or agreement
only if the bridge company--
(A) shall cure the default;
(B) compensates, or provides adequate assurance in
connection with a transfer under section 1185 that the
bridge company will promptly compensate, a party other
than the debtor to the debt, contract, lease, or
agreement, for any actual pecuniary loss to the party
resulting from the default; and
(C) provides adequate assurance in connection with a
transfer under section 1185 of future performance under
the debt, contract, lease, or agreement, as determined
by the court under section 1185(c)(4).
Sec. 1188. Treatment of qualified financial contracts and affiliate
contracts
(a) Notwithstanding sections 362(b)(6), 362(b)(7),
362(b)(17), 362(b)(27), 362(o), 555, 556, 559, 560, and 561, a
petition filed under section 1183 operates as a stay, during
the period specified in section 1187(a)(3)(A), applicable to
all entities, of the exercise of a contractual right--
(1) to cause the modification, liquidation,
termination, or acceleration of a qualified financial
contract of the debtor or an affiliate;
(2) to offset or net out any termination value,
payment amount, or other transfer obligation arising
under or in connection with a qualified financial
contract of the debtor or an affiliate; or
(3) under any security agreement or arrangement or
other credit enhancement forming a part of or related
to a qualified financial contract of the debtor or an
affiliate.
(b)(1) During the period specified in section 1187(a)(3)(A),
the trustee or the affiliate shall perform all payment and
delivery obligations under such qualified financial contract of
the debtor or the affiliate, as the case may be, that become
due after the commencement of the case. The stay provided under
subsection (a) terminates as to a qualified financial contract
of the debtor or an affiliate immediately upon the failure of
the trustee or the affiliate, as the case may be, to perform
any such obligation during such period.
(2) Any failure by a counterparty to any qualified financial
contract of the debtor or any affiliate to perform any payment
or delivery obligation under such qualified financial contract,
including during the pendency of the stay provided under
subsection (a), shall constitute a breach of such qualified
financial contract by the counterparty.
(c) Subject to the court's approval, a qualified financial
contract between an entity and the debtor may be assigned to or
assumed by the bridge company in a transfer under, and in
accordance with, section 1185 if and only if--
(1) all qualified financial contracts between the
entity and the debtor are assigned to and assumed by
the bridge company in the transfer under section 1185;
(2) all claims of the entity against the debtor in
respect of any qualified financial contract between the
entity and the debtor (other than any claim that, under
the terms of the qualified financial contract, is
subordinated to the claims of general unsecured
creditors) are assigned to and assumed by the bridge
company;
(3) all claims of the debtor against the entity under
any qualified financial contract between the entity and
the debtor are assigned to and assumed by the bridge
company; and
(4) all property securing or any other credit
enhancement furnished by the debtor for any qualified
financial contract described in paragraph (1) or any
claim described in paragraph (2) or (3) under any
qualified financial contract between the entity and the
debtor is assigned to and assumed by the bridge
company.
(d) Notwithstanding any provision of a qualified financial
contract or of applicable nonbankruptcy law, a qualified
financial contract of the debtor that is assumed or assigned in
a transfer under section 1185 may not be accelerated,
terminated, or modified, after the entry of the order approving
a transfer under section 1185, and any right or obligation
under the qualified financial contract may not be accelerated,
terminated, or modified, after the entry of the order approving
a transfer under section 1185 solely because of a condition
described in section 1187(c)(1), other than a condition of the
kind specified in section 1187(b) that occurs after property of
the estate no longer includes a direct beneficial interest or
an indirect beneficial interest through the special trustee, in
more than 50 percent of the equity securities of the bridge
company.
(e) Notwithstanding any provision of any agreement or in
applicable nonbankruptcy law, an agreement of an affiliate
(including an executory contract, an unexpired lease, qualified
financial contract, or an agreement under which the affiliate
issued or is obligated for debt) and any right or obligation
under such agreement may not be accelerated, terminated, or
modified, solely because of a condition described in section
1187(c)(1), other than a condition of the kind specified in
section 1187(b) that occurs after the bridge company is no
longer a direct or indirect beneficial holder of more than 50
percent of the equity securities of the affiliate, at any time
after the commencement of the case if--
(1) all direct or indirect interests in the affiliate
that are property of the estate are transferred under
section 1185 to the bridge company within the period
specified in subsection (a);
(2) the bridge company assumes--
(A) any guarantee or other credit enhancement
issued by the debtor relating to the agreement
of the affiliate; and
(B) any obligations in respect of rights of
setoff, netting arrangement, or debt of the
debtor that directly arises out of or directly
relates to the guarantee or credit enhancement;
and
(3) any property of the estate that directly serves
as collateral for the guarantee or credit enhancement
is transferred to the bridge company.
Sec. 1189. Licenses, permits, and registrations
(a) Notwithstanding any otherwise applicable nonbankruptcy
law, if a request is made under section 1185 for a transfer of
property of the estate, any Federal, State, or local license,
permit, or registration that the debtor or an affiliate had
immediately before the commencement of the case and that is
proposed to be transferred under section 1185 may not be
accelerated, terminated, or modified at any time after the
request solely on account of--
(1) the insolvency or financial condition of the
debtor at any time before the closing of the case;
(2) the commencement of a case under this title
concerning the debtor;
(3) the appointment of or taking possession by a
trustee in a case under this title concerning the
debtor or by a custodian before the commencement of the
case; or
(4) a transfer under section 1185.
(b) Notwithstanding any otherwise applicable nonbankruptcy
law, any Federal, State, or local license, permit, or
registration that the debtor had immediately before the
commencement of the case that is included in a transfer under
section 1185 shall be valid and all rights and obligations
thereunder shall vest in the bridge company.
Sec. 1190. Exemption from securities laws
For purposes of section 1145, a security of the bridge
company shall be deemed to be a security of a successor to the
debtor under a plan if the court approves the disclosure
statement for the plan as providing adequate information (as
defined in section 1125(a)) about the bridge company and the
security.
Sec. 1191. Inapplicability of certain avoiding powers
A transfer made or an obligation incurred by the debtor to an
affiliate prior to or after the commencement of the case,
including any obligation released by the debtor or the estate
to or for the benefit of an affiliate, in contemplation of or
in connection with a transfer under section 1185 is not
avoidable under section 544, 547, 548(a)(1)(B), or 549, or
under any similar nonbankruptcy law.
Sec. 1192. Consideration of financial stability
The court may consider the effect that any decision in
connection with this subchapter may have on financial stability
in the United States.
Changes in the Application of Existing Law
Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of
the House of Representatives, the following statements are
submitted describing the effect of provisions proposed in the
accompanying bill which may be considered, under certain
circumstances, to change the application of existing law,
either directly or indirectly. The bill provides that
appropriations shall remain available for more than one year
for a number of programs for which the basic authorizing
legislation does not explicitly authorize such extended
availability. In addition, the bill carries language, in some
instances, permitting activities not authorized by law, or
exempting agencies from certain provisions of law, but which
has been carried in appropriations acts for many years.
The bill includes several limitations on official
entertainment, reception and representation expenses. Similar
provisions have appeared in many previous appropriations Acts.
The bill includes a number of limitations on the purchase of
automobiles or office furnishings that also have appeared in
many previous appropriations Acts. Language is included in
several instances permitting certain funds to be credited to
the appropriations recommended. Language is also included in
several instances permitting funding for services authorized by
5 U.S.C. 3109 and for the hire of passenger motor vehicles.
Title I--Department of the Treasury
Language is included for Departmental Offices, ``Salaries
and Expenses'', that provides funds for operation and
maintenance of the Treasury Building Annex; hire of passenger
motor vehicles; maintenance, repairs, and improvements of, and
purchase of commercial insurance policies for real properties
leased or owned overseas.
Language is also included designating funds for official
reception and representation expenses; unforeseen emergencies
of a confidential nature; and extending the period of
availability for certain funds.
Language is included for the Office of Terrorism and
Financial Intelligence, ``Salaries and Expenses'' that provides
funds combating threats to national security.
Language is included for the Office of Inspector General,
``Salaries and Expenses'', that provides funds to carry out the
provisions of the Inspector General Act of 1978, including
official reception and representation expenses, the hire of
vehicles, and provides funds for unforeseen emergencies of a
confidential nature.
Language is included for the Treasury Inspector General for
Tax Administration, Salaries and Expenses, that provides funds
to carry out the provisions of the Inspector General Act of
1978, including consulting services, official reception and
representation expenses, the purchase and hire of motor
vehicles, unforeseen emergencies of a confidential nature, and
specifies the period of availability for certain funds.
Language is included for the Special Inspector General for
the Troubled Asset Relief Program, ``Salaries and Expenses'',
that provides funds for the necessary expenses of the SIGTARP
in carrying out the provisions of the Emergency Economic
Stabilization Act of 2008 (P.L. 110-343).
Language is included for the Financial Crimes Enforcement
Network, ``Salaries and Expenses'', that provides funds for the
hire of motor vehicles; travel and training of non-federal and
foreign government personnel attending meetings involving
domestic or foreign financial law enforcement, intelligence,
and regulation; official reception and representation expenses;
and assistance to Federal law enforcement agencies with or
without reimbursement. Language is also included that extends
the availability of certain amounts.
Language is included under the heading ``Treasury
Forfeiture Fund'' rescinding certain funds.
Language is included for the Bureau of the Fiscal Service,
``Salaries and Expenses'', that provides a certain amount for
official reception and representation expenses, and extends the
availability for systems modernization funds. Language is also
included specifying an amount to be derived from the Oil Spill
Liability Trust Fund.
Language is included for the Alcohol and Tobacco Tax and
Trade Bureau, ``Salaries and Expenses'', that provides funds
for the hire of passenger motor vehicles, laboratory assistance
to State and local agencies with or without reimbursement.
Language is included that specifies the amounts for official
reception and representation expenses and cooperative research
and development. Language is also included to increase label
and formula processing times and for enforcement of trade
practice violations.
Language is included for the U.S. Mint, ``United States
Mint Public Enterprise Fund'', which identifies the source of
funding for the operations and activities of the U.S. Mint and
specifies the level of funding for circulating coinage and
protective service capital investments.
Language is included for the Community Development
Financial Institutions Fund Program Account that provides
specific amounts for: financial and technical assistance;
Native American initiatives; administrative expenses for the
program and cost of direct loans; New Markets Tax Credit
Program; Bank Enterprise Award program; and integrating the
needs of the disability community.
Language is included with award specifications to serve
populations living in persistent poverty counties. Language is
included clarifying the cost of direct loans and the cost of
modifying direct loans, and specifying the limitation on gross
obligations for the principal amount of direct loans.
Language is included under Internal Revenue Service,
Taxpayer Services, that provides funds for pre-filing
assistance and education, filing and account services, and
taxpayer advocacy services, and dedicating funding for the Tax
Counseling for the Elderly Program, low-income taxpayer clinic
grants, and Community Volunteer Income Tax Assistance grants.
Language is included for Internal Revenue Service,
Enforcement, that provides funds to determine and collect owed
taxes, provide legal and litigation support, conduct criminal
investigations, enforce criminal statutes, purchase and hire of
vehicles; and designates funding for the Interagency Crime and
Drug Enforcement program. Language is included specifying the
period of availability for certain funds.
Language is included for the Internal Revenue Service,
Operations Support, that provides funds for operating and
supporting taxpayer services and tax law enforcement programs;
rent; facilities services; printing; postage; physical
security; headquarters and other IRS-wide administration
activities; research and statistics of income;
telecommunications; information technology development,
enhancement, operations, maintenance, and security; hire of
passenger motor vehicles; and official reception and
representation expenses. Language is included specifying the
period of availability for certain funds and requiring reports
on information technology.
Language is included for Internal Revenue Service, Business
Systems Modernization, that provides for the business systems
modernization program, including capital asset acquisition of
information technology, including management and related
contractual costs and IRS labor costs of said acquisitions,
contractual costs associated with operations, an extended
availability of the funds and requires quarterly reports.
In addition, the bill provides the following administrative
provisions:
Section 101. Language is included that allows for the
transfer of five percent of any appropriation made available to
the IRS to any other IRS appropriation, upon the advance
approval of the Committees on Appropriations.
Section 102. Language is included that requires the IRS to
maintain a training program in taxpayers' rights, dealing
courteously with taxpayers, cross-cultural relations, and the
impartial application of tax law.
Section 103. Language is included that requires the IRS to
institute and enforce policies and procedures that will
safeguard the confidentiality of taxpayer information and
protect taxpayers against identity theft.
Section 104. Language is included that makes funds
available for improved facilities and increased staffing to
provide efficient and effective 1-800 number help line service
for taxpayers.
Section 105. Language is included requiring videos produced
by the IRS to be approved in advance by the Service-Wide Video
Editorial Board.
Section 106. Language is included to require the IRS to
issue notices to employers of any address change request and to
give special consideration to offers in compromise for
taxpayers who have been victims of payroll tax preparer fraud.
Section 107. Language is included to prohibit the IRS from
targeting U.S. citizens for exercising their First Amendment
rights.
Section 108. Language is included to prohibit the use of
funds by the IRS to target groups based on their ideological
beliefs.
Section 109. Language is included to prohibit the use of
funds by the IRS on conferences that do not adhere to
recommendations made by the Treasury Inspector General for Tax
Administration.
Section 110. Language is included prohibiting funds made
available in the healthcare reform act from being transferred
to the IRS for implementing the healthcare reform act.
Section 111. Language is included prohibiting funds from
being used to implement the individual mandate of the
Affordable Care Act.
Section 112. Language is included prohibiting funds for IRS
employee awards or hiring programs that do not consider
employee conduct and Federal tax compliance.
Section 113. Language included to prohibit the use of funds
in contravention of section 6103 of the Internal Revenue Code
of 1986 (relating to confidentiality and disclosure of returns
and return information).
Section 114. Language is included to prohibit funds for
pre-populated returns.
Section 115. Language is included to provide $290,000,000
to be used solely for measurable improvement in the customer
service representative level of service rate, to improve the
identification and prevention of refund fraud and identity
theft, and to enhance cybersecurity to safeguard taxpayer data.
None of the funds are to implement the Affordable Care Act and
the Commissioner is required to submit a spend plan.
Section 116. Language is included that authorizes the
Department to purchase uniforms, insurance for motor vehicles
that are overseas, and motor vehicles that are overseas without
regard to the general purchase price limitations; to enter into
contracts with the State Department for health and medical
services for Treasury employees that are overseas; and to hire
experts or consultants.
Section 117. Language is included that authorizes
transfers, up to two percent, between ``Departmental Offices--
Salaries and Expenses'', ``Office of Inspector General'',
``Special Inspector General for the Troubled Asset Relief
Program'', ``Financial Crimes Enforcement Network'', ``Bureau
of the Fiscal Service'', ``Alcohol and Tobacco Tax and Trade
Bureau'', and ``Community Development Financial Institutions
Fund Program Account'' appropriations under certain
circumstances.
Section 118. Language is included that authorizes
transfers, up to two percent, between the Internal Revenue
Service and the Treasury Inspector General for Tax
Administration under certain circumstances.
Section 119. Language is included prohibiting the
Department of the Treasury from undertaking a redesign of the
one dollar Federal Reserve note.
Section 120. Language is included providing for transfers
from and reimbursements to ``Bureau of the Fiscal Service,
Salaries and Expenses'' for the purposes of debt collection.
Section 121. Language is included requiring congressional
approval for the construction and operation of a museum by the
United States Mint.
Section 122. Language is included prohibiting funds in this
or any other Act from being used to merge the U.S. Mint and the
Bureau of Engraving and Printing without the approval of the
House and Senate committees of jurisdiction.
Section 123. Language is included deeming that funds for
the Department of the Treasury's intelligence-related
activities are specifically authorized in fiscal year 2016
until enactment of the Intelligence Authorization Act for
fiscal year 2016.
Section 124. Language is included permitting the Bureau of
Engraving and Printing to use $5,000 from the Industrial
Revolving Fund for reception and representation expenses.
Section 125. Language is included requiring the Department
of the Treasury to submit a capital investment plan.
Section 126. Language is included requiring the Department
of the Treasury to submit a report on its Franchise Fund.
Section 127. Language is included prohibiting the
Department of the Treasury from finalizing any regulation
related to the standards used to determine the tax-exempt
status of a 501(c)(4) organization.
Section 128. Language is included requiring a quarterly
report from both the Office of Financial Research and Office of
Financial Stability Oversight.
Section 129. Language is included requiring the Office of
Financial Research to provide public notice of not less than 90
days before issuing a rule, report, or regulation.
Section 130. Language is included limiting the fees
available for obligation by the Office of Financial Research.
Section 131. Language is included prohibit the Department
from enforcing guidance for U.S. positions on multilateral
development banks engaging with developing countries on coal-
fired power generation.
Section 132. Language is included with respect to the
people-to-people category of travel to Cuba.
Section 133. Language is included prohibiting funds to
approve, license, facilitate, authorize, or otherwise allow the
importation of property confiscated by the Cuban Government.
Section 134. Language is included prohibiting funds to
approve, license, facilitate, authorize, or otherwise allow any
financial transactions with the Cuban military or intelligence
service.
Section 135. Language is included prohibiting funds to
approve or otherwise allow the licensing of a mark, trade name,
or commercial name that is substantially similar to one that
was used in connection with a business or assets that were
confiscated unless expressly consented.
Section 136. Language is included to prohibit funds for the
Internal Revenue Service (IRS) to determine that a church is
not exempt from taxation for participating in, or intervening
in, any political campaign on behalf of (or in opposition to)
any candidates for public office unless the IRS Commissioner
consents to such determination, the Commissioner notifies the
tax committees of Congress, and the determination is effective
90 days after such notification.
Title II--Executive Office of the President
Language under The White House, ``Salaries and Expenses'',
provides funds for services authorized by 5 U.S.C. 3109 and 3
U.S.C. 103, 105 and 107, hire of vehicles, and official
reception and representation expenses; and the Office of Policy
Development.
Language under the Executive Residence at the White House,
``Operating Expenses'', provides funds for necessary expenses
as authorized by 3 U.S.C. 105, 109, 110, and 112-114.
Language under the Executive Residence at the White House,
``Reimbursable Expenses'', specifies the authorized use of
funds; specifies that reimbursable expenses are the exclusive
authority of the Executive Residence to incur obligations and
receive offsetting collections; requires the sponsors of
political events to make advance payments; requires the
national committee of the political party of the President to
maintain $25,000 on deposit; requires the Executive Residence
to ensure that amounts owed are billed within 60 days of a
reimbursable event and collected within 30 days of the bill
notice; authorizes the Executive Residence to charge and assess
interest and penalties on late payments; authorizes all
reimbursements to be deposited into the Treasury as a
miscellaneous receipt; requires a report to the Committee on
the reimbursable expenses within 90 days of the end of the
fiscal year; requires the Executive Residence to maintain a
system for tracking and classifying reimbursable events; and
specifies that the Executive Residence is not exempt from the
requirements of subchapter I or II of chapter 37 of title 31,
United States Code.
Language under ``White House Repair and Restoration''
provides funds for the repair, alteration and improvement of
the Executive Residence at the White House; and allows funds to
remain available until expended.
Language under Council of Economic Advisors, ``Salaries and
Expenses'', is provided for necessary expenses in carrying out
the Employment Act of 1946.
Language under National Security Council and Homeland
Security Council, ``Salaries and Expenses'', provides for
services authorized by 5 U.S.C. 3109.
Language under Office of Administration, ``Salaries and
Expenses'', provides funds for continued modernization of the
information resources within the Executive Office of the
President, to remain available until expended, and provides for
services authorized by 5 U.S.C. 3109 and 3 U.S.C. 107, and for
the hire of vehicles.
Language under ``Presidential Transition Administrative
Support'' provides for services to carry out the Presidential
Transition Act of 1963, as amended. Language is included
permitting the transfer of funds for offices within the
Executive Office of the President and the Office of the Vice
President.
Language under Office of Management and Budget, ``Salaries
and Expenses'', provides funds for expenses, services
authorized by 5 U.S.C. 3109, the hire of vehicles; carrying out
provisions of chapter 35 of title 44 United States Code and to
prepare the budget request; specifies funds for official
representation expenses; prohibits the review of agricultural
marketing orders; prohibits the use of funds for the purpose of
altering the transcript of testimony except for OMB officials;
prohibits the use of funds for evaluating or determining if
water resource project or study reports submitted by the Chief
of Engineers are in compliance with all applicable laws,
regulations, and requirements; and specifies the amount of time
to perform budgetary policy reviews of water resource matters
on which the Chief of Engineers has reported before the report
is considered approved, and specifies notification
requirements.
Language under the Office of National Drug Control Policy,
``Salaries and Expenses'', provides funds for expenses,
research, official reception and representation expenses,
participation in joint projects, and allows for the acceptance
of gifts.
Language under Federal Drug Control Programs, ``High
Intensity Drug Trafficking Areas Program'', provides for the
transfer of funds to State, local and Federal entities.
Language is also included regarding the availability of funds,
specifying the amount of funds for auditing and associated
activities, providing for the reprogramming of certain balances
requiring, each designated High Intensity Drug Trafficking Area
to receive not less than the fiscal year 2016 base allocation
unless the Director of the Office of National Drug Control
Policy determines otherwise and submits a report to the
Committees on Appropriations, and requiring reports regarding
initial allocations and discretionary funding.
Language under Federal Drug Control Programs, ``Other
Federal Drug Control Programs'' provides funds for drug-free
communities (with an amount specified to be made available as
directed by section 4 of Public Law 107-82, as amended by
Public Law 109-469), anti-doping activities, the U.S.
membership dues to the World Anti-Doping Agency, drug courts
and a competitive grant program. Language also allows for
transfers and makes funds available until expended.
Language under ``Information Technology Oversight and
Reform'' provides funds for the furtherance of integrated,
efficient, secure, and effective uses of information
technology, to remain available until expended; allows funding
to be transferred to agencies to carry out projects.
Language under Special Assistance to the President,
``Salaries and Expenses'', enables the Vice President to
provide assistance to the President, services authorized by 5
U.S.C. 3109 and 3 U.S.C. 106, and the hire of vehicles.
Language under Official Residence of the Vice President,
``Operating Expenses'', provides funds for operation and
maintenance of the official residence of the Vice President,
the hire of vehicles, expenses authorized by 3 U.S.C. 106(b)(2)
and provides for the transfer of funds as necessary.
In addition, the bill provides the following administrative
provisions:
Section 201. Language is included permitting the transfer
of not to exceed ten percent of funds between various accounts
within the Executive Office of the President, with advance
approval of the Committees on Appropriations. The amount of an
appropriation shall not be increased by more than 50 percent.
Section 202. Language is included requiring the Director of
the Office of Management and Budget to report on the costs of
implementing the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Public Law 111-203).
Section 203. Language is included requiring the Director of
the Office of Management and Budget to include a statement of
budgetary impact with any Executive Order or Presidential
Memorandum issued or rescinded during fiscal year 2017.
Section 204. Language is included prohibiting funds to
prepare, sign or approve statements abrogating legislation
passed by the House of Representatives and the Senate and
signed by the President.
Section 205. Language is included prohibiting funding to
prepare or implement Executive Orders in contravention of
existing law.
Title III--The Judiciary
Language is included under Supreme Court, ``Salaries and
Expenses'', providing for certain funds to remain available
until expended; the hire of passenger motor vehicles, official
reception and representation, and miscellaneous expenses.
Language is included providing funds for salaries of judges as
authorized by law.
Language is included under Supreme Court, ``Care of the
Building and Grounds'', permitting funds to remain available
until expended.
Language is included under United States Court of Appeals
for the Federal Circuit, ``Salaries and Expenses'', for
necessary expenses of the court. Language is included providing
funds for salaries of judges as authorized by law.
Language is included under United States Court of
International Trade, ``Salaries and Expenses'', for necessary
expenses of the court. Language is included providing funds for
salaries of judges as authorized by law.
Language is included under Courts of Appeals, District
Courts, and Other Judicial Services, ``Salaries and Expenses'',
providing funds for the salaries of certain judges, and all
other employees not otherwise provided for; necessary expenses;
the purchase, rental, repair and cleaning of uniforms for
Probation and Pretrial Services Office staff; firearms and
ammunition; and specifies certain funds remain available for
certain periods for specific purposes. Language is included
providing funds for salaries of judges as authorized by law.
Language is also included providing funding from the Vaccine
Injury Compensation Trust Fund for certain purposes.
Language is included under Defender Services, providing for
the compensation and reimbursement of expenses for attorneys,
investigative, expert and other services, the operation of
Federal Defender organizations, travel, training, general
administrative expenses and permitting funds to remain
available until expended.
Language is included under Fees of Jurors and
Commissioners, permitting funds to remain available until
expended and specifying limitations for the compensation of
land commissioners.
Language is included under Court Security, providing for
protective guard services and procurement, installation and
maintenance of security systems and equipment, building
ingress-egress control, inspection of mail and packages,
directed security patrols, perimeter security and services
provided by the Federal Protective Services. Language is
included permitting certain funds to remain available until
expended, which may be transferred to the United States
Marshals Service.
Language is included under Administrative Office of the
United States Courts, ``Salaries and Expenses'', providing for
travel, the hire of passenger motor vehicles, advertising and
rent in the District of Columbia. Language is included
specifying certain amounts for official reception and
representation expenses. Language is included that provides
funds for the Virginia Graeme Baker Pool and Spa Safety Act
grant program.
Language is included under Federal Judicial Center,
``Salaries and Expenses'', extending the availability of
certain funds for education and training, and specifying
certain amounts for official reception and representation
expenses.
Language is included under United States Sentencing
Commission, ``Salaries and Expenses'', specifying certain
amounts for official reception and representation expenses.
In addition, the bill provides the following administrative
provisions:
Section 301. Language is included permitting funds for
salaries and expenses to be available for the employment of
experts and consultant services as authorized by 5 U.S.C. 3109.
Section 302. Language is included permitting up to five
percent of any appropriation made available for fiscal year
2017 to be transferred between Judiciary appropriations
provided that no appropriation shall be decreased by more than
five percent or increased by more than ten percent by any such
transfer except in certain circumstances. In addition, the
language provides that any such transfer shall be treated as a
reprogramming of funds under sections 604 and 608 of the
accompanying bill and shall not be available for obligation or
expenditure except in compliance with the procedures set forth
in those sections.
Section 303. Language is included allowing not to exceed
$11,000 to be used for official reception and representation
expenses incurred by the Judicial Conference of the United
States.
Section 304. Language is included allowing the delegation
of authority to the Judiciary for contracts for repairs of less
than $100,000 through fiscal year 2017.
Section 305. Language is included allowing a court security
pilot program.
Section 306. Language is included requested by the Judicial
Conference of the United States extending temporary judgeships
in Alabama, Arizona, California, Florida, Kansas, Missouri, New
Mexico, North Carolina and Texas.
Section 307. Language is included authorizing an increase
of the daily juror attendance fee by $10.
Section 308. Language is included requested by the Judicial
Conference of the United States extending temporary bankruptcy
judgeships in Virginia, Michigan, Puerto Rico, Delaware, and
Florida.
Title IV--District of Columbia
Language is included under ``Federal Payment for Resident
Tuition Support'', permitting the amount appropriated to remain
available until expended; specifying conditions for the use,
award, and financial accounting of funds; and requiring
quarterly reports.
Language is included under ``Federal Payment for Emergency
Planning and Security Costs in the District of Columbia'',
providing that the amount appropriated shall remain available
until expended for providing public safety at events, including
support of the United States Secret Service, and to respond to
terrorist threats or attacks.
Language is included under ``Federal Payment to the
District of Columbia Courts'', authorizing official reception
and representation expenses; specifying certain amounts for
specific purposes; providing all amounts under this heading
shall be apportioned quarterly by the Office of Management and
Budget and obligated and expended in the same manner as funds
appropriated for salaries and expenses of other Federal
agencies; allowing funds made available for capital
improvements to remain available until September 30, 2018;
providing for the reallocation of funds and providing for
certain payments.
Language is included under ``Defender Services in the
District of Columbia Courts'', providing that the amount
appropriated shall remain available until expended; specifying
who shall administer these funds; and providing that all
amounts under this heading shall be apportioned quarterly by
the Office of Management and Budget and obligated and expended
in the same manner as funds appropriated for salaries and
expenses of other Federal agencies.
Language is included under ``Federal Payment to the Court
Services and Offender Supervision Agency for the District of
Columbia'', allowing the transfer and hire of motor vehicles;
authorizing official reception and representation expenses;
specifying certain amounts for specific purposes and programs;
providing that all amounts under this heading shall be
apportioned quarterly by the Office of Management and Budget
and obligated and expended in the same manner as funds
appropriated for salaries and expenses of other Federal
agencies; and allowing the use of programmatic incentives for
defendants who successfully meet the terms of their supervision
Language is included under ``Federal Payment to District of
Columbia Public Defender Service'', allowing the transfer and
hire of motor vehicles; providing that all amounts under this
heading shall be apportioned quarterly by the Office of
Management and Budget and obligated and expended in the same
manner as funds appropriated for salaries and expenses of other
Federal agencies; and authorizing the acceptance and use of
voluntary and uncompensated services to facilitate the work of
the District of Columbia Public Defender Service.
Language is included under ``Federal Payment to the
Criminal Justice Coordinating Council'', specifying that the
amount appropriated shall remain available until expended to
support initiatives related to the coordination of Federal and
local criminal justice resources.
Language is included under ``Federal Payment for Judicial
Commissions'', specifying certain amounts for certain
commissions and allowing for appropriations to remain available
until September 30, 2018.
Language is included under ``Federal Payment for School
Improvement'', allowing for appropriations to remain available
until expended for payments authorized under the Scholarships
for Opportunity and Results Act and specifying conditions and
uses for the funds.
Language is included under ``Federal Payment for the
District of Columbia National Guard'', providing funds for the
National Guard Retention and College Access Program to remain
available until expended.
Language is included under ``Federal Payment for Testing
and Treatment of HIV/AIDS'' for testing and treatment.
Language is included under ``District of Columbia Funds'':
(1) providing funds as proposed in the Fiscal Year 2017 Local
Request Act as amended; (2) limits the amount provided in this
Act for the District of Columbia to the amount of the proposed
budget or the sum of total revenues; (3) providing conditions
for increasing the amount provided; directing the Chief
Financial Officer to ensure the District of Columbia meets all
requirements, but prohibits the reprogramming of capital
projects; (5) repeals the Fiscal Year 2017 Local Request Act.
Title V--Independent Agencies
Language is included for the Administrative Conference of
the United States, ``Salaries and Expenses'', providing for
expenses, including official reception and representation and
allowing funds to be available until September 30, 2018.
The bill includes the following administrative provisions
under the Bureau of Consumer Financial Protection (CFPB):
Section 501. Language is included repealing the prohibition
against the Committees on Appropriations reviewing transfers
from the Federal Reserve System to the CFPB.
Section 502. Language is included changing CFPB's source of
funding from transfers from the Federal Reserve System to
annual appropriations beginning in fiscal year 2017.
Section 503. Language is included requiring CFPB to make
transfer requests to the Federal Reserve System and the
response from Federal Reserve System available on the Bureau's
public website, in addition to requiring CFPB to notify
Congress of when it makes such a request and to describe how
the funds will be used in the course of protecting consumers.
Section 504. Language is included requiring CFPB to submit
quarterly reports on its activities and to testify on its
activities when requested.
Section 505. Language is included changing the management
of the CFPB to a five-member commission.
Section 506. Language in included prohibiting the CFPB from
implementing a rule related to arbitration until the CFPB
addresses certain requirements.
Language is included for the Consumer Product Safety
Commission, ``Salaries and Expenses'', that provides funds for
expenses, the hire of motor vehicles, services as authorized by
5 U.S.C. 3109 (with a limitation on rates for individuals), and
official reception and representation expenses. Language is
included that provides funds for the Virginia Graeme Baker Pool
and Spa Safety Act grant program.
The bill includes the following administrative provision
under the Consumer Product Safety Commission:
Section 510. Language is included prohibiting funds to
finalize, implement, or enforce the proposed rule on
recreational off-highway vehicles until a study is completed by
the National Academy of Sciences.
Language is included for the Election Assistance
Commission, ``Salaries and Expenses'', that provides necessary
funds to carry out the Help America Vote Act of 2002.
Language is included under the Federal Communications
Commission, ``Salaries and Expenses'', permitting funds for
uniforms and allowances therefor, official reception and
representation expenses, purchase and hire of motor vehicles,
special counsel fees, and services as authorized by 5 U.S.C.
3109. Language provides for the assessment and collection of
offsetting collections, authorizes retention of such
collections, and provides that they remain available until
expended. Language prohibits the availability for obligation of
excess collections. Language limits the use of proceeds from
the use of a competitive bidding system. Language provides
funding for the Office of Inspector General.
Language is included for the Federal Deposit Insurance
Corporation, ``Office of Inspector General'', that provides for
the funds to be derived from the Deposit Insurance Fund, and
the FSLIC Resolution Fund.
Language is included for the Federal Election Commission,
``Salaries and Expenses'', providing for expenses including
official reception and representation; and allowing $8,000,000
to remain available until September 30, 2018.
Language is included for the Federal Labor Relations
Authority, ``Salaries and Expenses'', that provides funds for
services authorized by 5 U.S.C. 3109, the hire of experts and
consultants, hire of motor vehicles, reception and
representation expenses and the rental of conference rooms;
authorizes travel payments to public members of the Federal
Service Impasses Panel; and allows for fees collected to be
transferred to and merged with the appropriation.
Language is included for the Federal Trade Commission,
``Salaries and Expenses'', permitting funds for uniforms and
allowances therefor, services authorized by 5 U.S.C. 3109,
official reception and representation expenses, hire of motor
vehicles, and contract for collection services. Language
provides for the crediting and retention of certain fees.
Language also prohibits funds from being used to implement
subsection (e)(2)(B) of section 43 of the Federal Deposit
Insurance Act.
Language is included for the General Services
Administration, ``Federal Buildings Fund'' that allows for
revenues and collections to be spent from the Fund; specifies
the conditions under which funds made available can be used;
limits the availability of funds for certain purposes;
specifies funding for construction and acquisition projects;
specifies funding for special emphasis programs; provides for
certain transfers of funds; requires spending plans; and
prohibits excess funds from being available.
Language is included for the General Services
Administration, ``Government-wide Policy'', that provides funds
for policy and evaluation activities associated with the
management of real and personal property assets and certain
administrative services; support responsibilities relating to
acquisition, telecommunications, motor vehicles, information
technology management, and related technology activities; and
services authorized by 5 U.S.C. 3109.
Language is included for the General Services
Administration, ``Operating Expenses'' that provides funds for
Government-wide activities associated with personal and real
property disposal, and services authorized by 5 U.S.C. 3109;
for expenses for activities associated with agency-wide policy
direction and management; for official reception and
representation; and designates funds for certain purposes.
Language is included for the General Services
Administration, ``Civilian Board of Contract Appeals'' that
provides funds for necessary expenses of the Civilian Board of
Contract Appeals and services authorized by 5 U.S.C. 3109.
Language is included for the General Services
Administration, ``Office of Inspector General'' that makes
certain funds available until expended and provides for awards
in recognition of efforts that enhance the office. Language is
included for services authorized by 5 U.S.C. 3109 and
designates funds for information and detection of fraud.
Language is included for the General Services
Administration, ``Allowances and Office Staff for Former
Presidents'', for carrying out the provisions of 3 U.S.C. 102
note and Public Law 95-138.
Language is included for the General Services
Administration, ``Expenses, Presidential Transition'' for
activities in accordance with the Presidential Transition Act
of 1963. Language is included certain transfers to the
Acquisition Services Fund or Federal Buildings Fund to
reimburse obligations.
Language is included for the General Services
Administration, ``Federal Citizen Services Fund'', that
provides funds for the Office of Citizen Services and other
information technology costs. Language is included allowing for
certain transfers to the Federal Citizen Services Fund.
Language is also included for the ``Federal Citizen Services
Fund'' that authorizes funds to be deposited in the Fund and
limits the availability of funds in the Fund.
In addition, the bill includes the following administrative
provisions under the General Services Administration (GSA):
Section 520. Language is included providing authority for
the use of funds for the hire of motor vehicles.
Section 521. Language is included providing that funds made
available for activities of the Federal Buildings Fund may be
transferred between appropriations with advance approval of the
Congress to apply to funds provided in prior appropriations
Acts.
Section 522. Language is included requiring funds proposed
for developing courthouse construction requests to meet
appropriate standards and the priorities of the Judicial
Conference.
Section 523. Language is included providing that no funds
may be used to increase the amount of occupiable square feet,
provide cleaning services, security enhancements, or any other
service usually provided, to any agency which does not pay the
assessed rent.
Section 524. Language is included permitting GSA to pay
small claims (up to $250,000) made against the Federal
Government.
Section 525. Language is included requiring the
Administrator to ensure that the delineated area of procurement
for all lease agreements is identical to the delineated area
included in the prospectus unless prior notice is given to the
Committees.
Section 526. Language is included requiring a spend plan
for certain accounts and programs.
Section 527. Language is included preventing GSA from
transferring amounts that are about to lapse into the Working
Capital Fund for spending on major equipment acquisitions.
Language is included for the Merit Systems Protection
Board, ``Salaries and Expenses'', that provides funds for
services authorized by 5 U.S.C. 3109, rental of conference
rooms, hire of passenger motor vehicles, direct procurement of
survey printing, official reception and representation
expenses, specifies the period of availability for certain
funds, provides for administration expenses to adjudicate
retirement appeals, and provides for the transfer of some
funds.
Language is included for the National Archives and Records
Administration, ``Operating Expenses'', that provides funds for
uniforms or allowances therefor, as authorized by 5 U.S.C. 5901
et seq., including maintenance, repairs, and cleaning, the hire
of passenger motor vehicles, activities of the Public Interest
Declassification Board, the review and declassification of
documents, and the operations and maintenance of the electronic
records archive.
Language is included for the National Archives and Records
Administration, ``Office of Inspector General'', that provides
funds for the hire of motor vehicles.
Language is included for the National Archives and Records
Administration, ``Repairs and Restoration'', that provides
funds for the repair, alteration, improvement, and provision of
adequate storage; and provides that funds remain available
until expended.
Language is included under the National Archives and
Records Administration, ``National Historical Publications and
Records Commission Grants Program'', that provides funds for
allocations and grants for historical publications and records;
and provides that funds remain available until expended.
Language is included under the National Credit Union
Administration, ``Community Development Credit Union Revolving
Loan Fund'', that provides funds for technical assistance and
extends the availability of funds.
Language is included under the Office of Government Ethics,
Salaries and Expenses, that provides funds for services
authorized by 5 U.S.C. 3109, rental of conference rooms, hire
of passenger motor vehicles, and official reception and
representation expenses.
Language is included under the Office of Personnel
Management, Salaries and Expenses, that provides funds for
services authorized by 5 U.S.C. 3109, medical examinations for
veterans, rental of conference rooms, hire of passenger motor
vehicles, official reception and representation expenses,
advances for reimbursements, payment of per diem and/or
subsistence allowances, and the transfer of administrative
expenses; directs that provisions shall not affect other
authorities; prohibits funds for the Legal Examining Unit; and
authorizes the acceptance of donations under certain
conditions. Language is also included specifying the period of
availability for certain funds and requiring a report on
information technology.
Language is included for the Office of Personnel
Management, Office of Inspector General, Salaries and Expenses,
that provides funds for services authorized by 5 U.S.C. 3109,
hire of passenger motor vehicles, rental of conference rooms,
and a transfer for administrative expenses.
Language is included for the Office of Special Counsel,
Salaries and Expenses, that provides funds for services
authorized by 5 U.S.C. 3109, payment of fees and expenses for
witnesses, rental of conference rooms, and the hire of
passenger motor vehicles.
Language is included for the Postal Regulatory Commission,
``Salaries and Expenses'', that provides for transfer of funds
from the Postal Service Fund.
Language is included for the Privacy and Civil Liberties
Oversight Board, ``Salaries and Expenses'', that provides funds
authorized by section 1061 of 42 U.S.C. 2000ee.
Language is included for the Securities and Exchange
Commission, ``Salaries and Expenses'', that provides for rental
of space, services, reception and representation expenses, a
permanent secretariat for the International Organization of
Securities Commissions, and consultations and meetings hosted
by the Commission. Language is included designating funds for
information technology initiatives and the economics division.
Language is included that provides for the crediting of
offsetting collections. Language provides for the assessment
and collection of offsetting collections, authorizes retention
of such collections, and provides that they remain available
until expended.
Language is included for the Selective Service System,
``Salaries and Expenses'', that provides funds for attendance
of meetings, training, hire of passenger motor vehicles,
services authorized by 5 U.S.C. 3109, and official reception
and representation expenses; authorizes certain exemptions
under certain conditions; and prohibits funds used in
connection with the induction of any person into the Armed
Forces of the United States.
Language is included for the Small Business Administration,
``Salaries and Expenses'', that provides for hire of motor
vehicles and official reception and representation expenses.
Language is also included to provide authority to charge fees
and credit such fees to the account without further
appropriation. Language is also included designating funds for
lender oversight. Language is also included for the Loan
Modernization and Accounting System and co-sponsor activities.
Language is included for the Small Business Administration,
``Entrepreneurial Development Programs'', that provides for
supporting entrepreneurial and small business development grant
programs. Language is included extending the availability of
funds.
Language is included for the Small Business Administration,
``Office of Inspector General'', that provides funds to carry
out the provisions of the Inspector General Act of 1978.
Language is included for the Small Business Administration,
``Office of Advocacy'', that provides funds to carry out the
provisions of the Independent Office of Advocacy Act of 2003
and the Regulatory Flexibility Act of 1980 and allows funds to
remain available until expended.
Language is included for the Small Business Administration,
``Business Loans Program Account'', limiting commitments for
certain guaranteed loan programs and for providing for the cost
of direct loans and guaranteed loans. Language is also included
authorizing the transfer of funds to ``Salaries and Expenses''
for administrative expenses.
Language is included for the Small Business Administration
``Disaster Loan Program Account'', that provides for
administrative expenses, the transfer of funds to the ``Office
of Inspector General'' and to ``Salaries and Expenses'' and
allows funds to remain available until expended.
Section 530 allows for the transfer of funds between Small
Business Administration appropriations.
Section 531 prohibits the Small Business Administration
from charging fees on loans to veterans or their spouses.
Section 532 rescinds prior year unobligated balances
related to business loan subsidy for programs that are now zero
subsidy.
Language is included for the United States Postal Service,
``Payment to the Postal Service Fund'', that provides funds for
revenue foregone; stipulates that mail for overseas voting and
mail for the blind is free; provides that 6-day delivery shall
continue at not less than the 1983 level; prohibits funds in
this Act from being used to charge a fee to a child support
enforcement agency seeking the address of a postal customer;
prohibits funds from being used to consolidate or close small
rural and other small post offices; and requires the Postal
Service to maintain and comply with service standards for First
Class Mail and periodicals effective on July 1, 2012.
Language is included for the United States Postal Service,
``Office of Inspector General'', that provides for transfer
from the Postal Service Fund.
Language is included for the United States Tax Court,
Salaries and Expenses, that provides funds for contract
reporting and services authorized by 5 U.S.C. 3109, and that
travel expenses of the judges shall be paid upon the written
certificate of the judge.
Title VI--General Provisions--This Act
In addition, the bill provides the following provisions
under this title:
Section 601. Language is included prohibiting pay and other
expenses for non-Federal parties in regulatory or adjudicatory
proceedings funded in this Act.
Section 602. Language is included prohibiting obligations
beyond the current fiscal year and prohibits transfers of funds
unless expressly so provided herein.
Section 603. Language is included limiting procurement
contracts for consulting service expenditures to contracts that
are matters of public record and available for public
inspection.
Section 604. Language is included prohibiting transfer of
funds in this Act without express authority.
Section 605. Language is included prohibiting the use of
funds to engage in activities that would prohibit the
enforcement of section 307 of the 1930 Tariff Act.
Section 606. Language is included concerning compliance
with the Buy American Act.
Section 607. Language is included prohibiting the use of
funds by any person or entity convicted of violating the Buy
American Act.
Section 608. Language is included specifying reprogramming
procedures. The provision requires that agencies or entities
funded by the Act notify the Committee and obtain prior
approval from the Committee for any reprogramming of funds
that: (1) creates a new program; (2) eliminates a program,
project, or activity; (3) increases funds or personnel for any
program, project, or activity for which funds have been denied
or restricted by the Congress; (4) proposes to use funds
directed for a specific activity by either the House or Senate
Committees on Appropriations for a different purpose; (5)
augments existing programs, projects, or activities in excess
of $5,000,000 or 10 percent, whichever is less; (6) reduces
existing programs, projects, or activities by $5,000,000 or 10
percent, whichever is less; or (7) reorganizes offices,
programs, or activities. The provision also directs the
agencies funded by this Act to submit operating plans for the
Committee's review within 60 days of the bill's enactment.
Section 609. Language is included providing that fifty
percent of unobligated balances may remain available for
certain purposes.
Section 610. Language is included prohibiting funding for
the Executive Office of the President to request either a
Federal Bureau of Investigation background investigation or
Internal Revenue Service determination with respect to section
501(a) of the Internal Revenue Code of 1986, except with the
express consent of the individual involved in an investigation
or in extraordinary circumstances involving national security.
Section 611. Language is included regarding cost accounting
standards for contracts under the Federal Employee Health
Benefits Program.
Section 612. Language is included regarding non-foreign
area cost of living allowances.
Section 613. Language is included prohibiting the
expenditure of funds for abortion under the Federal Employees
Health Benefits program.
Section 614. Language is included making exceptions to the
preceding provision where the life of the mother is in danger
or the pregnancy is a result of an act of rape or incest.
Section 615. Language is included waiving restrictions on
the purchase of non-domestic articles, materials, and supplies
in the case of acquisition of information technology by the
Federal Government.
Section 616. Language is included prohibiting officers or
employees of any regulatory agency or commission funded by this
Act from accepting travel payments or reimbursements from a
person or entity regulated by such agency or commission.
Section 617. Language is included permitting the Securities
and Exchange Commission and Commodities Futures Trading
Commission to fund a joint advisory committee to advise on
emerging regulatory issues, notwithstanding Section 708 of this
Act.
Section 618. Language is included requiring certain
agencies in this Act to consult with the General Services
Administration before seeking new office space or making
alterations to existing office space.
Section 619. Language is included providing for several
appropriated mandatory accounts. These are accounts where
authorizing language requires the payment of funds. The
Congressional Budget Office estimates the cost for the
following programs addressed in this provision: $450,000 for
Compensation of the President including $50,000 for expenses,
$161,000,000 for the Judicial Retirement Funds (Judicial
Officers' Retirement Fund, Judicial Survivors' Annuities Fund,
and the United States Court of Federal Claims Judges'
Retirement Fund), $12,699,000,000 for the Government Payment
for Annuitants, Employee Health Benefits, $47,000,000 for the
Government Payment for Annuitants, Employee Life Insurance, and
$8,469,000,000 for the Payment to the Civil Service Retirement
and Disability Fund.
Section 620. Language is included prohibiting funds for the
Federal Trade Commission to complete the draft report entitled
``Interagency Working Group on Food Marketed to Children:
Preliminary Proposed Nutrition Principles to Guide Industry
Self-Regulatory Efforts'' unless the Interagency Working Group
on Food Marketed to Children complies with Executive Order
13563, including the requirement to provide quantified present
and future benefits and costs.
Section 621. Language is included prohibiting funding for
certain czars including the Director of the White House Office
of Health Reform, the Assistant to the President for Energy and
Climate Change, the Senior Advisor to the Secretary of the
Treasury assigned to the Presidential Task Force on the Auto
Industry and Senior Counselor for Manufacturing Policy, and the
White House Director of Urban Affairs, or any substantially
similar positions.
Section 622. Language is included prohibiting funds in
contravention of the Federal Records Act.
Section 623. Language is included requiring certain
regulatory agencies to provide a report on increasing public
participation in rulemaking, improving coordination among
Federal agencies, and identifying ineffective or excessively
burdensome regulations.
Section 624. Language is included permanently rescinding
funds in fiscal year 2017 from the Securities and Exchange
Commission Reserve Fund established by the Dodd-Frank Wall
Street Reform and Consumer Protection Act.
Section 625. Language is included prohibiting funds for the
Securities and Exchange Commission to require the disclosure of
political contributions, contributions to tax exempt
organizations, or dues paid to trade associations.
Section 626. Language is included prohibiting the Financial
Stability Oversight Council from designating nonbanks as
systemically important financial institutions until it
identifies the risks to financial stability presented by the
nonbank and allows the nonbank to present a plan to modify its
business, structure, or operation to mitigate the identified
risk prior to final designation.
Section 627. Language is included prohibiting agencies from
requiring Internet Service Providers (ISPs) to disclose
electronic communications information in a manner that violates
the Fourth Amendment.
Section 628. Language is included clarifying language
related to joint sales agreements included in P.L. 114-113.
Section 629. Language is included prohibiting any
modification of Universal Service Fund rules related to
Mobility Fund Phase II.
Section 630. Language is included prohibiting the Federal
Communications Commission (FCC) from implementing,
administering, or enforcing any rule unless the FCC publishes
the text of the rule 21 days before a vote on the rule.
Section 631. Language is included prohibiting the Federal
Communications Commission from regulating rates for either
broadband or wireless internet providers.
Section 632. Language is included prohibiting the Federal
Communications Commission from implementing FCC Order 15-24
regarding open internet until specific court challenges have
been resolved.
Section 633. Language is included requiring the Office of
Management and Budget to submit a report on cybersecurity
spending.
Section 634. Language is included to dissolve the
Christopher Columbus Fellowship Foundation (CCFF) as a Federal
agency within one year of enactment of this Act. The CCFF, if
it so chooses, may reconstitute itself as a private, non-profit
organization and apply for tax exempt status.
Section 635. Language is included prohibiting any funds
made available in this Act from being used to establish a
computer network unless such network blocks the viewing,
downloading, and exchanging of pornography.
Section 636. Language is included requiring a study and
public comment before any proposed rules under section 629 of
the Communications Act of 1934 (47 U.S.C. 549) go into effect.
Section 637. Language is included revising the definition
of a mortgage originator as the term applies to manufactured
housing.
Section 638. Language is included revising the definition
of a high-cost mortgage as the term applies to manufactured
housing.
Section 639. Language is included prohibiting funding for
the Consumer Financial Protection Bureau to issue or enforce
any rule with respect to payday loans, vehicle title loans, or
similar loans during fiscal year 2017 or after until the Bureau
has submitted a report to Congress.
Section 640. Language is included prohibiting funds from
being used to implement, promulgate, finalize or enforce
Executive Order 13673 until a study is conducted by the
Comptroller General and reviewed by the Secretary of Labor.
Section 641. Language is included prohibiting funds to pay
for an abortion or the administrative expenses in connection
with a multi-State qualified health plan offered under a
contract under section 1334 of the Patient Protection and
Affordable Care Act which provides any benefits or coverage for
abortions, except for endangerment of the life of the mother,
rape or incest.
Title VII--General Provisions--Government-Wide
In addition, the bill provides the following provisions
under this title:
Section 701. Language is included requiring agencies to
administer a policy designed to ensure that all of its
workplaces are free from the illegal use of controlled
substances.
Section 702. Language is included establishing price
limitations on vehicles to be purchased by the Federal
Government with certain exceptions.
Section 703. Language is included allowing funds made
available to agencies for travel to also be used for quarters
allowances and cost-of-living allowances.
Section 704. Language is included prohibiting the
employment of noncitizens with certain exceptions.
Section 705. Language is included giving agencies the
authority to pay General Services Administration bills for
space renovation and other services.
Section 706. Language is included allowing agencies to
finance the costs of recycling and waste prevention programs
with proceeds from the sale of materials recovered through such
programs.
Section 707. Language is included providing that funds made
available to corporations and agencies subject to 31 U.S.C. 91
may pay rent and other service costs in the District of
Columbia.
Section 708. Language is included prohibiting interagency
financing of groups absent prior statutory approval.
Section 709. Language is included prohibiting the use of
funds for enforcing regulations disapproved in accordance with
the applicable law of the U.S.
Section 710. Language is included limiting the amount of
funds that can be used for redecoration of offices under
certain circumstances.
Section 711. Language is included allowing for interagency
funding of national security and emergency telecommunications
initiatives.
Section 712. Language is included requiring agencies to
certify that a Schedule C appointment was not created solely or
primarily to detail the employee to the White House.
Section 713. Language is included prohibiting the payment
of any employee who prohibits, threatens or prevents another
employee from communicating with Congress.
Section 714. Language is included prohibiting Federal
training not directly related to the performance of official
duties.
Section 715. Language is included prohibiting, other than
for normal and recognized executive-legislative relationships,
propaganda, publicity and lobbying by executive agency
personnel in support or defeat of legislative initiatives.
Section 716. Language is included prohibiting any Federal
agency from disclosing an employee's home address to any labor
organization, absent employee authorization or court order.
Section 717. Language is included prohibiting funds to be
used to provide non-public information such as mailing,
telephone, or electronic mailing lists to any person or
organization outside the government without the approval of the
Committees on Appropriations.
Section 718. Language is included prohibiting the use of
funds for propaganda and publicity purposes not authorized by
Congress.
Section 719. Language is included directing agency
employees to use official time in an honest effort to perform
official duties.
Section 720. Language is included allowing the use of funds
to finance an appropriate share of the Federal Accounting
Standards Advisory Board.
Section 721. Language is included allowing the transfer of
funds to the General Services Administration to finance an
appropriate share of various government-wide boards and
councils and for Federal Government Priority Goals under
certain conditions.
Section 722. Language is included permitting breast feeding
in a Federal building or on Federal property if the woman and
child are authorized to be there.
Section 723. Language is included permitting interagency
funding of the National Science and Technology Council and
provides for a report on the budget and resources of the
National Science and Technology Council.
Section 724. Language is included requiring documents
involving the distribution of Federal funds to indicate the
agency providing the funds and the amount provided.
Section 725. Language is included prohibiting the use of
funds to monitor personal access or use of Internet sites or to
collect, review, or obtain any personally identifiable
information relating to access to or use of an Internet site.
Section 726. Language is included requiring health plans
participating in the Federal Employees Health Benefits Program
to provide contraceptive coverage and provides exemptions to
certain religious plans.
Section 727. Language is included supporting strict
adherence to anti-doping activities.
Section 728. Language is included allowing funds for
official travel to be used by departments and agencies, if
consistent with OMB Circular A-126, to participate in the
fractional aircraft ownership pilot program.
Section 729. Language is included prohibiting funds for
implementation of Office of Personnel Management regulations
limiting detailees to the Legislative Branch, and implementing
limitations on the Coast Guard Congressional Fellowship
Program.
Section 730. Language is included restricting the use of
funds for Federal law enforcement training facilities.
Section 731. Language is included prohibiting Executive
Branch agencies from creating prepackaged news stories that are
broadcast or distributed in the United States unless the story
includes a clear notification within the text or audio of that
news story that the prepackaged news story was prepared or
funded by that executive branch agency.
Section 732. Language is included prohibiting use of funds
in contravention of section 552a of title 5, United States Code
(the Privacy Act) and regulations implementing that section.
Section 733. Language is included prohibiting funds from
being used for any Federal Government contract with any foreign
incorporated entity which is treated as an inverted domestic
corporation.
Section 734. Language is included requiring agencies to pay
a fee to the Office of Personnel Management for processing
retirement of employees who separate under Voluntary Early
Retirement Authority or who receive Voluntary Separation
Incentive payments.
Section 735. Language is included prohibiting funds to
require any entity submitting an offer for a Federal contract
or participating in an acquisition to disclose political
contributions.
Section 736. Language is included prohibiting funds for the
painting of a portrait of an employee of the Federal Government
including the President, the Vice President, a Member of
Congress, the head of an executive branch agency, or the head
of an office of the legislative branch.
Section 737. Language is included limiting the pay
increases of certain prevailing rate employees.
Section 738. Language is included eliminating automatic
statutory pay increases for the Vice President, political
appointees paid under the executive schedule, ambassadors who
are not career members of the Foreign Service, politically
appointed (non-career) Senior Executive Service employees, and
any other senior political appointee paid at or above level IV
of the executive schedule.
Section 739. Language is included requiring agencies to
submit reports to Inspectors General concerning expenditures
for agency conferences.
Section 740. Language is included prohibiting funds to be
used to increase, eliminate, or reduce funding for a program or
project unless such change is made pursuant to reprogramming or
transfer provisions.
Section 741. Language is included ensuring contractors are
not prevented from reporting waste, fraud, or abuse by signing
confidentiality agreements that would prohibit such disclosure.
Section 742. Language is included prohibiting the
expenditure of funds for the implementation of certain
nondisclosure agreements unless certain provisions are included
in the agreements.
Section 743. Language is included prohibiting funds to any
corporation with certain unpaid Federal tax liabilities unless
an agency has considered suspension or debarment of the
corporation and made a determination that further action is not
necessary to protect the interests of the Government.
Section 744. Language is included prohibiting funds to any
corporation that was convicted of a felony criminal violation
within the preceding 24 months unless an agency has considered
suspension or debarment of the corporation and made a
determination that further action is not necessary to protect
the interests of the Government.
Section 745. Language is included to modify the conditions
for implementing Executive Order 13690.
Section 746. Language is included concerning the non-
application of these general provisions to title IV and to
title VIII.
Title VIII--General Provisions--District of Columbia
In addition, the bill provides the following provisions
under this title:
Section 801. Language is included that appropriates funds
to refund overpayments of taxes collected and to pay
settlements and judgments against the District of Columbia
government.
Section 802. Language is included prohibiting the use of
Federal funds for publicity or propaganda purposes.
Section 803. Language is included establishing
reprogramming procedures for Federal and local funds.
Section 804. Language is included prohibiting the use of
Federal funds to provide salaries or other costs associated
with the offices of United States Senator or Representative.
Section 805. Language is included restricting the use of
official vehicles to official duties.
Section 806. Language is included prohibiting the use of
Federal funds for any petition drive or civil action which
seeks to require Congress to provide for voting representation
in Congress for the District of Columbia.
Section 807. Language is included prohibiting the use of
Federal funds for needle exchange programs.
Section 808. Language is included providing for a
``conscience clause'' on legislation that pertains to
contraceptive coverage by health insurance plans.
Section 809. Language is included prohibiting the use of
Federal funds to legalize or reduce penalties associated with
the possession, use, or distribution on any schedule I
substance under the Controlled Substance Act or any
tetrahydrocannabinols derivative.
Language is also included prohibiting local and Federal
funds to legalize or reduce penalties associated with the
possession, use, or distribution of any schedule I substance
under the Controlled Substance Act or any tetrahydrocannabinols
derivative for recreational use.
Section 810. Language is included prohibiting the use of
funds for abortion except in the cases of rape or incest or if
necessary to save the life of the mother.
Section 811. Language is included requiring the Chief
Financial Officer (CFO) to submit a revised operating budget
for all agencies in the D.C. government, no later than 30
calendar days after the enactment of this Act that realigns
budgeted data with anticipated actual expenditures.
Section 812. Language is included requiring the CFO to
submit a revised operating budget for D.C. Public Schools, no
later than 30 calendar days after the enactment of this Act,
that realigns school budgets to actual school enrollment.
Section 813. Language is included allowing the transfer of
local funds and capital and enterprise funds.
Section 814. Language is included prohibiting the
obligation of Federal funds beyond the current fiscal year and
transfers of funds unless expressly provided herein.
Section 815. Language is included providing that not to
exceed 50 percent of unobligated balances from Federal
appropriations for salaries and expenses may remain available
for certain purposes.
Section 816. Language is included appropriating local funds
during fiscal year 2018 if there is an absence of a continuing
resolution or regular appropriation for the District of
Columbia. Funds are provided under the same authorities and
conditions and in the same manner and extent as provided for in
fiscal year 2017.
Section 817. Language is included to repeal the Local
Budget Autonomy Amendment Act of 2012.
Section 818. Language is included limiting references to
``this Act'' as referring to only this title and title IV.
Title IX--Scholarships for Opportunity and Results Act
Language is included to reauthorize the Scholarships for
Opportunity and Results Act through fiscal year 2021.
Title X--SEC Small Business Advocate Act
Language is included to establish the Office of the
Advocate for Small Business Capital Formation and Small
Business Capital Formation Advisory Committee.
Title XI--Financial Institution Bankruptcy Act
Language is included to amend the Bankruptcy Code for
financial institutions.
Title XII--Additional General Provision
Section 1201. Language is included establishing a Spending
Reduction Account.
Appropriations Not Authorized by Law
Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of
the House of Representatives, the following table lists the
appropriations in the accompanying bill which are not
authorized by law for the period concerned:
[Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
Appropriation
Last Year of Authorization in Last Year Appropriations
Authorization Level of in this bill
Authorization
----------------------------------------------------------------------------------------------------------------
Title I--Department of the Treasury
Departmental Offices........................ n/a n/a n/a 250,000
Office of Terrorism and Financial n/a n/a n/a 120,000
Intelligence...............................
Treasury Inspector General for Tax n/a n/a n/a 169,634
Administration.............................
Financial Crimes Enforcement Network........ 2013 100,419 111,788 116,000
Bureau of Fiscal Service.................... n/a n/a n/a 353,057
Community Development and Financial 1998 111,000 45,000 250,000
Institutions Fund..........................
Internal Revenue Service:
Taxpayer Services........................... n/a n/a n/a 2,156,554
Enforcement................................. n/a n/a n/a 4,760,000
Operations Support.......................... n/a n/a n/a 3,502,446
Business Systems Modernization.............. n/a n/a n/a 290,000
Title II--Executive Office of the President
Office of Management and Budget............. 2003 various 61,988 91,000
Office of National Drug Control Policy
Salaries and Expenses....................... 2010 n/a 29,575 19,274
High Intensity Drug Trafficking Areas....... 2011 280,000 238,522 253,000
Other Federal Drug Control Programs......... various various 105,550 111,871
Information Technology Oversight and Reform. n/a n/a n/a 25,000
Title IV--District of Columbia
Federal Payment for Resident Tuition Support 2012 such sums 30,000 20,000
Federal Payment for the Judicial Commissions n/a n/a n/a 585
Federal Payment for School Improvement...... 2016 60,000 45,000 45,000
Federal Payment for the DC National Guard... n/a n/a n/a 450
Federal Payment for Testing and Treatment of n/a n/a n/a 5,000
HIV/AIDS...................................
Title V--Independent Agencies
Administrative Conference of the United 2011 3,200 2,750 3,100
States.....................................
Consumer Safety Product Commission.......... 2014 136,409 118,000 121,300
Election Assistance Commission.............. 2005 n/a 13,888 4,900
Federal Communications Commission........... 1991 such sums 115,794 314,844
Federal Election Commission................. 1981 9,400 9,662 80,540
Federal Trade Commission.................... 1998 111,000 106,500 317,000
General Services Administration:
Government-wide Policy...................... n/a n/a n/a 58,000
Operating Expenses.......................... n/a n/a n/a 47,966
Federal Citizen Services Fund............... n/a n/a n/a 55,894
Merit Systems Protection Board.............. 2007 such sums 29,110 47,131
National Historical Public Records 2009 10,000 11,250 6,000
Commission.................................
Office of Government Ethics................. 2007 such sums 11,148 16,090
Office of Special Counsel................... 2007 such sums 15,524 25,735
Securities and Exchange Commission.......... 2015 2,250,000 1,500,000 1,555,000
----------------------------------------------------------------------------------------------------------------
Comparison With the Budget Resolution
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a)(1)(A) of the
Congressional Budget Act of 1974, the following table compares
the levels of new budget authority provided in the bill with
the appropriate allocation under section 302(b) of the Budget
Act.
SUBCOMMITTEE ON FINANCIAL SERVICES AND GENERAL GOVERNMENT
[In Millions of Dollars]
----------------------------------------------------------------------------------------------------------------
302b allocation This bill
---------------------------------------------------
Budget Budget
Authority Outlays Authority Outlays*
----------------------------------------------------------------------------------------------------------------
Discretionary............................................... 21,735 23,012 21,735 23,012
Mandatory................................................... 21,937 21,930 21,937 21,930
----------------------------------------------------------------------------------------------------------------
*Includes outlays from prior year budget authority.
Five-Year Outlay Projections
Pursuant to clause 3(c)(2) of rule XIII and section
308(a)(1)(B) of the Congressional Budget Act of 1974, the
following table contains five-year projections of outlays
associated with the budget authority provided in the
accompanying bill, as provided to the Committee by the
Congressional Budget Office.
[In Millions of Dollars]
Outlays
2017.................................................. *39,229
2018.................................................. 3,082
2019.................................................. -170
2020.................................................. -572
2021 and future years................................. -4,935
*Excludes outlays from prior-year budget authority.
Financial Assistance to State and Local Governments
Pursuant to clause 3(c)(2) of rule XIII and section
308(a)(1)(C) of the Congressional Budget Act of 1974, the
Congressional Budget Office has provided the following
estimates of new budget authority and outlays provided by the
accompanying bill for financial assistance to State and local
governments.
[In Millions of Dollars]
------------------------------------------------------------------------
Budget Authority Outlays
------------------------------------------------------------------------
Financial assistance to State and 696 *474
local governments for 2017.......
------------------------------------------------------------------------
*Excludes outlays from prior-year budget authority.
Program Duplication
No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Directed Rule Making
The bill does not direct any rule making.
Comparative Statement of New Budget (Obligational) Authority
The following table provides a detailed summary, for each
Department and agency, comparing the amounts recommended in the
bill with amounts enacted for fiscal year 2016 and budget
estimates presented for fiscal year 2017.
DISSENTING VIEWS
We thank Chairman Crenshaw and his staff for their work in
sharing information and keeping a professional process in
place. Despite clear policy differences, both sides engaged in
respectful debate on difficult issues.
The fiscal year (FY) 2017 bill approved by the committee
provides net budget authority of $21.735 billion, a cut of $1.5
billion (6%) below the FY 2016 level and $2.7 billion (11%)
below the Administration's request. This grossly inadequate
allocation creates unworkable shortcomings that will hurt
programs that protect families, investors, and consumers, while
rewarding tax cheats--not honest, hardworking Americans--by
failing to provide sufficient funding to enforce tax law and
assist taxpayers.
This is the eighth appropriations bill to be considered by
the full committee. Yet the majority continues their refusal to
provide the public with a full slate of allocations for all of
the appropriations bills. Democrats on the committee have long
warned that releasing piecemeal allocations was a method to
underfund appropriations bills that would be considered later
in the process as was borne out in the Financial Services and
General Government bill's allocation.
Beyond the funding shortcomings, the bill is again used as
a vehicle for the most extreme policy priorities of the
Republican majority. It contains the riders that Republicans
tried to attach to the bill last year and then doubles down on
that failed strategy with new partisan efforts. It would
undermine key elements of the Affordable Care Act (ACA) and
Dodd-Frank financial reform, diminish women's access to legal
health services, meddle in the District of Columbia's internal
affairs, undermine the President's Cuba policy, roll back the
work of the Consumer Financial Protection Bureau, and prevent
fair treatment of internet content to benefit the interests of
a few large corporations.
WALL STREET REFORM
Without crucial resources for the Securities and Exchange
Commission (SEC) to police financial markets, this bill invites
mischief by bad actors that could again hurt American
investors. A cut of $226 million below the President's request
leads to less enforcement and hinders the ongoing
implementation of the Dodd-Frank Wall Street Reform and
Consumer Protection Act. Dodd-Frank is the law of the land and
was enacted to deter truly outrageous behavior in our financial
sector. Without proper SEC enforcement, we cannot expect to
prevent the exact malfeasance Dodd-Frank set out to stop.
Because the SEC is deficit-neutral, as a fee-funded agency,
full funding at the President's request would not cost a dime
in taxpayer dollars, but would make significant strides in
greater enforcement and promulgation of Dodd-Frank required
rules as well as vast improvements to the agency's information
technology infrastructure. Ranking Member Lowey offered an
amendment during Committee consideration to fully fund the SEC,
but it was rejected by the majority.
TAXPAYER SERVICES
The Internal Revenue Service (IRS) is cut by $236 million
below the 2016 level and an astounding $1.281 billion below the
level requested by the President. The IRS's funding has been
artificially low due to the sequester, the budget deal made to
end the government shutdown, and the draconian cuts of previous
years. While not as extreme as last year's House bill, this
bill maintains the wrong trajectory, bringing the IRS below the
FY 2008 level and, in real terms, less than the 1996 budget--20
years ago when there were 35 million fewer individual taxpayers
and a far less complicated tax code.
Currently the IRS operates with 15,000 fewer FTEs than in
2010, which includes more than 5,000 fewer revenue agents,
revenue officers and criminal investigators, thereby ensuring
that tax cheats will not be pursued as vigorously. The IRS
estimates these staffing and resource shortfalls will result in
the government losing $11 billion more in enforcement
collections each year than the IRS could have collected if FY
2010 staffing levels had been maintained. Although this bill,
like the FY 16 Omnibus, allocates a $290 million increase to
improve taxpayer services, identity theft, and cybersecurity,
it negates that good by cutting the base funding by hundreds of
millions of dollars. Additionally, inflationary cost increases
would further reduce funding availability. As many as 27
million taxpayers would be unable to reach the IRS for
assistance, which is simply unacceptable.
Taxpayer questions will go unanswered, tax cheats will go
unchecked, revenue will go uncollected, and the deficit will
increase due to these cuts. It simply does not make economic or
budgetary sense.
NATIONAL SECURITY
The President requested funding for the Department of
Homeland Security (DHS) and the Federal Bureau of
Investigations (FBI) headquarters. This bill provides nothing
for DHS and only 26 percent of the request for the FBI. These
two agencies protect the Homeland from foreign and domestic
threats and must have every tool at their disposal to keep our
communities safe. DHS is a relatively young federal agency,
created in 2002, and continues to need congressional oversight
and assistance to fully integrate in order to confront both
man-made and natural threats. The St. Elizabeth's headquarters
is essential to unifying the various agencies that are now
under the DHS umbrella but continue to be spread across
different locations in the region. FBI has been in its current
headquarters since 1974, which can only accommodate half of the
agency's staff and is in deplorable condition. Both agencies
have made compelling cases that consolidation into new
headquarters is essential to their missions. This bill's
inadequate allocation puts those missions at risk.
WOMEN'S RIGHTS
This bill has become the central target for the majority's
efforts to remove women's reproductive health choices in the
District of Columbia (DC) and across the country. Restrictions
in the bill attack the ACA, which is providing millions more
Americans with access to affordable health care as well as the
provision of the full range of reproductive services coverage
for all health benefits programs provided under the Act. ACA is
the law of the land, upheld by the Supreme Court, and should
not be under attack year after year in this bill. In addition,
restrictions on DC using its own tax revenue to provide access
to legal services for low-income women are outrageous.
DISTRICT OF COLUMBIA
In addition to the language that restricts DC from using
its local funds for abortion services, this bill is the very
epitome of congressional overreach with repeal of DC's law to
manage its own budget and prohibitions on DC's ability to act
on marijuana legalization and needle exchanges. The Republican
majority's inability to pass legislation to impose these
extreme beliefs on their own constituents has results in their
abuse of power provided by the Constitution to disenfranchise
DC voters who have supported many of these policies in
referenda.
Specifically with regard to Budget Autonomy, Congress did
not exercise its ultimate authority to veto DC's Budget
Autonomy Act when that Act was sent to Congress for a review
period, which expired in January 2014. The lack of
congressional action is one of the many reasons DC Superior
Court Judge Brian F. Holeman upheld DC's Budget Autonomy Act.
Ironically, the same Republican majority that wants DC's
budget under their control has failed to pass a Federal budget
this year and has not met the October 1st deadline for even one
appropriations bill since they assumed the House majority. It
seems to us that DC is a much better candidate to manage its
own affairs than this Congress.
CONCLUSION
Democrats attempted to address many inadequacies through
the amendment process in Committee. Ranking Member Lowey
offered an amendment to remove thirty partisan riders,
including those affecting the SEC, CFPB and other agencies, the
District of Columbia, diplomatic relations with Cuba, the FCC's
order on open internet, and federal employee health benefits.
The majority strongly rejected these efforts. Instead, more
controversial riders were added during Committee mark-up
including those prohibiting the CFPB from issuing a final rule
on payday lending until the Bureau issues a report, prohibiting
funds for the IRS to audit churches that are 501(c)(3)s unless
that audit is approved by the Commissioner and certain
notifications are made to Congress, removing Dodd Frank
consumer protections for those purchasing manufactured housing,
allowing federal contractors who have violated labor laws to
continue to receive contracts, and banning funds for abortion
in multi-state health plans under the ACA. The majority once
again rejected an amendment to provide the full $1.9 billion
requested by the Administration to protect Americans from the
Zika virus.
A rare bright spot in the mark-up was an amendment offered
by Representative Marcy Kaptur (D-OH) requiring the United
States Postal Service to maintain and comply with July 2012
service standards for First Class Mail and periodicals. It
passed with bipartisan support. The amendment requires the
Postal Service to restore the service standards that were in
place before it degraded mail delivery standards by virtually
eliminating overnight delivery of First-Class mail on January
5th of last year. Our constituents deserve a Postal Service
that works, and delayed mail harms businesses, rural America,
and our economy.
One other positive was the amendment offered by
Representative Debbie Wasserman Schultz, (D-FL) funding the
Virginia Graeme Baker Pool and Spa Safety grants at $1.3
million. These grants provide assistance to local governments
for education, training, and enforcement of pool safety
requirements, and serve as a powerful incentive for
municipalities to have their own pool safety laws on the books.
More than 300 children succumb to fatal drownings each year,
and more than 5,000 children are treated in our nation's
emergency departments for non-fatal drownings from various
causes. This program has made great progress in its first round
of grants, and additional funding could help continue to reduce
deaths and injuries.
We appreciate the Chairman's efforts to adequately fund the
Small Business Administration, the Community Development
Financial Institutions Fund, the Federal Judiciary, and anti-
terrorism programs at the Department of Treasury. However, this
dismal bill remains marred by unacceptably low funding levels
and even more controversial riders than usual. The functions
carried out by agencies in this bill are vital to taxpayers,
consumers, businesses, and the economy as a whole.
Shortchanging these functions does nothing to help our economic
growth, create jobs, or reduce the deficit; in fact, this bill
makes our markets less secure, reduces spending on
infrastructure, and increases the deficit. In its current form,
we cannot support the bill.
Nita M. Lowey.
Jose E. Serrano.