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114th Congress   }                                    {    Rept. 114-56
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                    {          Part 1

======================================================================



 
              BUREAU ADVISORY COMMISSION TRANSPARENCY ACT

                                _______
                                

 April 6, 2015.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1265]

      [Including cost estimate of the Congressional Budget Office]

                    [Including exchange of letters]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1265) to apply the requirements of the Federal 
Advisory Committee Act to the Bureau of Consumer Financial 
Protection, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                          Purpose and Summary

    H.R. 1265, the ``Bureau Advisory Commission Transparency 
Act'' would amend Section 1013 of the Dodd-Frank Act Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act) 
(P.L. 111-203) to apply the provisions of the Federal Advisory 
Committee Act of 1972 to the Bureau of Consumer Financial 
Protection (CFPB).

                  Background and Need for Legislation

    Advisory committees have played an important role in 
shaping programs and policies of the federal government. Today, 
more than 60,000 members, on an average of 1,000 advisory 
committees, currently advise the President and the Executive 
Branch on a diverse set of issues.\1\ The Federal Advisory 
Committee Act (FACA) (P.L. 92-463) was enacted in 1972 to 
control the growth and operation of the ``numerous committees, 
boards, commissions, councils, and similar groups which have 
been established to advise officers and agencies in the 
executive branch of the Federal Government.''\2\ Through 
enactment of FACA, Congress sought to assure that advisory 
committees ``provide advice that is relevant, objective, and 
open to the public; act promptly to complete their work; and 
comply with reasonable cost controls and record keeping 
requirements.''\3\ FACA requires that agencies provide advance 
notice of advisory group meetings, and that such meetings be 
open to the public. FACA applies to every federal agency, with 
the exception of the Central Intelligence Agency, the Office of 
the Director of National Intelligence, and the Federal Reserve 
System.\4\
---------------------------------------------------------------------------
    \1\http://www.gsa.gov/portal/content/101010.
    \2\5 U.S.C. App. 1, Sec. 2(a).
    \3\http://www.gsa.gov/portal/content/101010.
    \4\5 U.S.C. Appendix Sec. 4.
---------------------------------------------------------------------------
    The CFPB created four advisory committees to provide it 
with input from consumers, activists, industry, and academics--
the Consumer Advisory Board, the Community Bank Advisory 
Council, the Credit Union Advisory Council, and the Academic 
Research Council. However, because the Dodd-Frank Act created 
the CFPB as an independent executive agency within the Federal 
Reserve System, the CFPB has argued that it is exempt from 
FACA, and, prior to May 2014, conducted many of its advisory 
committee meetings behind closed doors.
    In May 2014, the CFPB announced in a blog post that ``[t]o 
provide more transparency and to be responsive to the requests 
we've received, we're changing the format of our Board and 
Council meetings and opening these full meetings to the public. 
Starting with our June 18th meeting, the public may attend (or 
watch online) the full Consumer Advisory Board and Council 
meetings, the same way most other agencies allow under the 
Federal Advisory Committee Act.''\5\ However, the CFPB 
continues to hold large portions of its advisory committee 
meetings out of the public eye by labeling them 
``subcommittee'' rather than ``committee'' meetings, thus 
circumventing the intent of FACA's transparency and public 
notice and meeting requirements. To ensure greater transparency 
in CFPB operations, H.R. 1265 would require all CFPB advisory 
committees and subcommittees to abide by the requirements of 
FACA.
---------------------------------------------------------------------------
    \5\http://www.consumerfinance.gov/blog/our-board-and-council-
meetings-are-changing/.
---------------------------------------------------------------------------
    In September 2013, the Bipartisan Policy Center released a 
report suggesting the CFPB should increase transparency by 
improving its process for conducting public hearings and 
meetings:

          The CFPB can easily demonstrate its commitment to 
        transparency by emulating the transparency practices of 
        other federal agencies. For example, the CFPB could 
        improve the transparency of its advisory committee 
        meetings by following the model established by the 
        FDIC's Advisory Committee on Economic Inclusion 
        (``ComE-IN''). Unlike the CFPB's Consumer Advisory 
        Board, ComE-IN publishes notice of its meetings in the 
        Federal Register, makes all portions of its meetings 
        open to public observation, and broadcasts its meetings 
        on its website. In sum, by emulating best practices of 
        other agencies, the CFPB could facilitate robust public 
        participation in its regulatory efforts by both 
        consumer groups and regulated entities.\6\
---------------------------------------------------------------------------
    \6\http://bipartisanpolicy.org/library/consumer-financial-
protection-bureau/.

    In a letter to the Committee dated March 24, 2015, the U.S. 
Chamber of Commerce stated its support for H.R. 1265, writing 
that ``[b]ecause FACA exempts the Federal Reserve and the CFPB 
technically is housed within the Federal Reserve, FACA does not 
apply to the CFPB. The CFPB has taken advantage of this 
loophole and, despite an announcement last year that its 
advisory board would be made public, continues to conduct 
portions of those meetings behind closed doors. There is 
nothing to distinguish the Bureau's advisory committees from 
those of the Federal Trade Commission, Securities and Exchange 
Commission, or any other federal regulator that does not deal 
with sensitive national security issues.''

                                Hearings

    The Committee on Financial Services held no hearings on 
H.R. 1265 in the 114th Congress. However, while the Committee 
did not hold a specific legislative hearing on this measure, it 
held a hearing entitled ``The Semi-Annual Report of the Bureau 
of Consumer Financial Protection'' on March 3, 2015, at which 
matters relating to this measure were discussed.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
March 25, 2015, and March 26, 2015, and ordered H.R. 1265 to be 
reported favorably to the House without amendment by a recorded 
vote of 56 yeas to 2 nays (Record vote no. FC-16), a quorum 
being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
sole vote in committee was a motion by Chairman Hensarling to 
report the bill favorably to the House without amendment. The 
motion was agreed to by a recorded vote of 56 yeas to 2 nays 
(Record vote no. FC-16), a quorum being present.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 1265 
will apply the provisions of the Federal Advisory Committee Act 
to the Consumer Financial Protection Bureau's advisory 
committees (and subcommittees thereof).

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 6, 2015.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1265, the Bureau 
Advisory Commission Transparency Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 1265--Bureau Advisory Commission Transparency Act

    H.R. 1265 would require all advisory committees established 
by the Bureau of Consumer Financial Protection (CFPB) to comply 
with the Federal Advisory Committee Act (FACA). Among other 
things, FACA sets out requirements for the qualifications of 
committee members, the timeliness and objectivity of advice 
provided to federal agencies, and the public availability of 
information about activities of advisory committees, including 
meeting notices, records, and minutes.
    Based on information from the CFPB, CBO estimates that 
enacting the bill would increase direct spending by less than 
$500,000 each year and about $1 million in total over the 2015-
2025 period. Therefore, pay-as-you-go procedures apply. The 
agency would incur additional costs to train staff, review 
committee activities annually, prepare reports, and to provide 
accommodation for public meetings. Enacting H.R. 1265 would not 
affect revenues. Implementing H.R. 1265 would not affect 
spending subject to appropriation because the CFPB is 
permanently authorized to spend amounts transferred from the 
Federal Reserve.
    H.R. 1265 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Susan Willie. 
The estimate was approved by Theresa Gullo, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 1265 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                    Duplication of Federal Programs

    Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), 
the Committee states that no provision of H.R. 1265 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.

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), 
the Committee states that H.R. 1265 does not require any 
directed rulemakings.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 1265 as the ``Bureau Advisory 
Commission Transparency Act.''

Section 2. Application of FACA

    This section amends section 1013 of the Dodd-Frank Act by 
applying FACA to each advisory committee of the CFPB, and to 
each subcommittee of such an advisory committee.

         Changes in Existing Law Made by the Bill, as Reported

  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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

CONSUMER FINANCIAL PROTECTION ACT OF 2010

           *       *       *       *       *       *       *



TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

           *       *       *       *       *       *       *


Subtitle A--Bureau of Consumer Financial Protection

           *       *       *       *       *       *       *


SEC. 1013. ADMINISTRATION.

  (a) Personnel.--
          (1) Appointment.--
                  (A) In general.--The Director 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 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 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 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.
                  (B) The Director 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 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 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 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 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 
                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 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 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 of the Bureau for 
        Fair Lending and Equal Opportunity, who--
                  (A) shall be appointed by the Director; and
                  (B) shall carry out such duties as the 
                Director may delegate to such Assistant 
                Director.
  (d) Office of Financial Education.--
          (1) Establishment.--The Director 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 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 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 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 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 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 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.--The Office of Financial 
        Protection for Older Americans (in this subsection 
        referred to as the ``Office'') shall be headed by an 
        assistant director.
          (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.

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