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114th Congress    }                                 {    Rept. 114-865
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                 {           Part 1

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



 
 BUREAU OF CONSUMER FINANCIAL PROTECTION--INSPECTOR GENERAL REFORM ACT 
                                OF 2015

                                _______
                                

               December 12, 2016.--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. 957]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 957) to require Senate confirmation of Inspector 
General of the Bureau of Consumer Financial Protection, and for 
other purposes, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                          Purpose and Summary

    H.R. 957 creates a separate, independent inspector general 
for the Consumer Financial Protection Bureau (CFPB). The CFPB 
currently shares an inspector general with the Federal Reserve 
System. Under H.R. 957, the Inspector General for the CFPB is 
nominated by the President and confirmed by the Senate. The 
President must nominate a CFPB Inspector General within 60 days 
after enactment of the bill. Until the nominee is confirmed, 
the Federal Reserve System Inspector General continues to serve 
as CFPB Inspector General. Each fiscal year, two percent of the 
CFPB's funding requests from the Federal Reserve System are to 
be dedicated to the Office of the Inspector General.

                  Background and Need for Legislation

    The Inspector General Act of 1978, as amended, statutorily 
established the Federal Inspectors General (IGs) as independent 
and objective units within most agencies whose duties are to 
combat waste, fraud, and abuse in the programs and operations 
of their respective agencies. Each IG is responsible for 
conducting audits and investigations relating to the programs 
and operations of its agency. Additionally, IGs provide 
leadership and coordination and recommend policies for 
activities designed to promote economy, efficiency, and 
effectiveness, and prevent and detect fraud and abuse, in 
agency programs and operations.
    Section 1081 of the Dodd-Frank Act designates the Inspector 
General of the Board of Governors of the Federal Reserve System 
as the IG for the CFPB. Within this framework, the IG conducts 
audits, investigations, and other reviews of the Board's and 
the CFPB's program functions.
    The IG currently oversees two agencies with very different 
missions that employ more staff than other comparable agencies. 
This has caused delays in the expected start and completion 
dates of CFPB-related projects. Enhanced transparency and 
accountability are the hallmarks of good government, and a 
dedicated IG would protect taxpayers and give the public 
greater confidence in the CFPB's policies, research, and rules.
    The Bipartisan Policy Center released a report in September 
2013 entitled ``The Consumer Financial Protection Bureau: 
Measuring the Progress of a New Agency.'' Among its findings, 
the bipartisan task force made the following recommendation:

          The Bureau should have all of the other trademarks of 
        accountability that independent bank regulators share. 
        The Dodd-Frank Act contains semi-annual reporting 
        requirements to Congress, which the Task Force fully 
        supports. An independent Bureau should have a 
        correspondingly independent inspector general with full 
        investigative and reporting powers. For example, the 
        Bureau currently shares the Federal Reserve Board's 
        inspector general, who lacks some of the authority of 
        other inspectors general. Therefore, the Task Force 
        recommends that a separate office of inspector general 
        be established for the CFPB.

    In a letter of support for H.R. 957 dated September 29, 
2015, the U.S. Chamber of Commerce wrote:

          Currently, the CFPB and the Federal Reserve share a 
        single IG which makes little sense given the size, 
        scope, and complexity of each agency's jurisdiction. An 
        office tasked with rooting out waste, fraud, and abuse 
        should not have its attention divided in this way, thus 
        necessitating the establishment of a standalone CFPB 
        IG.

                                Hearings

    The Committee on Financial Services held no hearings on 
H.R. 957 in the 114th Congress.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
September 30, 2015, and ordered H.R. 957 to be reported 
favorably to the House without amendment by a recorded vote of 
56 yeas to 3 nays (recorded vote no. FC-61), 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 recorded vote was on 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 3 nays 
(Record vote no. FC-61), a quorum being present.


                      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. 957 
will increase agency accountability and transparency by 
providing for an independent inspector general to oversee the 
CFPB.

   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, February 10, 2016.
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. 957, the Bureau of 
Consumer Financial Protection--Inspector General Reform Act of 
2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Nathaniel 
Frentz.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 957--Bureau of Consumer Financial Protection--Inspector General 
        Reform Act of 2015

    Summary: H.R. 957 would direct the President to appoint an 
Inspector General for the Bureau of Consumer Financial 
Protection (CFPB) within 60 days of enactment, and would 
require the CFPB to set aside 2 percent of its annual funding 
to operate the office of the Inspector General. Under the Dodd-
Frank Wall Street Reform and Consumer Protection Act, which 
established the CFPB, the responsibilities of the Federal 
Reserve Office of Inspector General (OIG) were broadened to 
include the CFPB (that office is currently known as the OIG of 
the Federal Reserve Board of Governors and the CFPB). H.R. 957 
would authorize the Federal Reserve OIG to serve in that 
position until a new Inspector General for the CFPB is 
confirmed. At that time, the responsibilities of the Federal 
Reserve OIG would not include oversight of the CFPB.
    CBO estimates that enacting H.R. 957 would increase direct 
spending by $128 million over the 2016-2026 period. Further, 
enacting H.R. 957 would increase revenues by $61 million over 
the 2016-2026 period, reflecting lower costs for the Federal 
Reserve OIG. Taking those effects together, CBO estimates that 
enacting H.R. 957 would increase budget deficits by $67 million 
over the 2016-2026 period.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending and revenues. CBO 
estimates that implementing H.R. 957 would not affect 
discretionary costs.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits by more than 
$5 billion in any of the four consecutive 10-year periods 
beginning in 2027.
    H.R. 957 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 957 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2016    2017    2018    2019    2020    2021    2022    2023    2024    2025    2026   2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority................       3       9      12      12      12      13      13      13      14      15      15        61        131
Estimated Outlays.........................       2       8      11      12      12      13      13      13      14      15      15        58        128
 
                                                                   CHANGES IN REVENUES
 
            Estimated Revenues                   0       3       5       6       6       6       7       7       7       7       8        26         61
 
                                        NET INCREASE IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
 
Impact on Deficit.........................       2       5       6       6       6       7       6       6       7       8       7        32         67
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: The CFPB is permanently authorized to 
spend amounts transferred from the Federal Reserve System; 
because such spending is not subject to appropriation, CFPB 
expenditures are recorded in the budget as direct spending. 
Furthermore, the earnings of the Board of Governors of the 
Federal Reserve System are remitted to the Treasury and 
recorded in the budget as revenues; thus, any change to the 
costs of the Federal Reserve System are recorded in the budget 
as changes in revenues.
    When the Dodd-Frank Wall Street Reform and Consumer 
Protection Act established the CFPB, the responsibilities of 
the Federal Reserve OIG were broadened to include the CFPB. 
H.R. 957 would direct the President to appoint an Inspector 
General for the CFPB and, upon confirmation, the Federal 
Reserve OIG would no longer be responsible for oversight of the 
CFPB.
    H.R. 957 would not change the overall amount of oversight 
responsibilities, but would transfer them from one agency to 
another. CBO estimates that transfer would have a net cost of 
$67 million over the 2016-2026 period, for two reasons. First, 
establishing a separate Inspector General's office for the CFPB 
would increase overall expenses for certain executive, 
administrative, and information technology functions, relative 
to the currently combined OIG. Second, CBO expects that the 
Federal Reserve OIG would shift a portion of the resources 
currently being used to fulfill its duties related to the CFPB 
to performing additional work related to operations of the 
Federal Reserve System.

Direct spending

    H.R. 957 would limit the CFPB's spending for the Inspector 
General's office to two percent of the agency's annual funding. 
Based on information from the CFPB, CBO expects that level of 
funding would be sufficient to operate the office of the 
Inspector General. However, we expect that the funding 
limitation would reduce the volume of CFPB related audits and 
investigations undertaken by the CFPB Inspector General 
relative to the current workload of the currently combined OIG. 
CBO estimates that enacting H.R. 957 would increase the 
agency's annual costs by about $12 million, on average, to 
support the Inspector General's activities, increasing direct 
spending by $128 million over the 2016-2026 period.

Revenues

    When the CFPB was established, the Federal Reserve OIG 
became the Inspector General for both entities and experienced 
a significant increase in staff. The amount and rate by which 
the currently combined OIG would reduce its staff in response 
to the end of those responsibilities is uncertain because the 
staff currently are not separated into those who work solely on 
Federal Reserve issues and those who work solely on CFPB 
issues. Based in part on information provided by the current 
OIG and on historical staffing patterns that are publicly 
available, CBO expects that in response to the bill, the staff 
of the Federal Reserve OIG would be smaller than the currently 
combined OIG is today, but also that a portion of the resources 
currently being used to fulfill duties related to the CFPB 
would be shifted to performing additional work related to the 
Federal Reserve System. Overall, CBO estimates that enacting 
H.R. 957 would increase remittances from the Federal Reserve to 
the Treasury and therefore federal revenues by $61 million over 
the 2016-2026 period.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues and outlays that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

       CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 957, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON SEPTEMBER 30, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2016    2017    2018    2019    2020    2021    2022    2023    2024    2025    2026   2016-2021  2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact............       2       5       6       6       6       7       6       6       7       8       7        32         67
Memorandum:
    Changes in Outlays                           2       8      11      12      12      13      13      13      14      15      15        58        128
    Changes in Revenues                          0       3       5       6       6       6       7       7       7       7       8        26         61
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2027.
    Intergovernmental and private-sector impact: H.R. 957 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal Costs: Kim Cawley; Federal 
Revenue: Nathaniel Frentz; Impact on State, Local, and Tribal 
Governments: Melissa Merrell; Impact on the Private Sector: 
Logan Smith.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis; David Weiner, Assistant Director 
for Tax 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. 957 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. 957 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. 957 contains no directed 
rulemaking.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section cites H.R. 957 as ``Bureau of Consumer 
Financial Protection--Inspector General Reform Act of 2015'', 
or the ``CFPB-IG Act of 2015''.

Section 2. Appointment of Inspector General

    This section amends the Inspector General Act of 1978 (5 
U.S.C. App.) by removing the CFPB from the jurisdiction of the 
Inspector General for the Board of Governors of the Federal 
Reserve System.

Section 3. Requirements for the Inspector General for the Bureau of 
        Consumer Financial Protection

    This section establishes an independent, stand-alone IG for 
the CFPB that is funded by two percent of the CFPB's funds. The 
IG is required to appear, upon invitation, 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. Within 60 days after the date of the enactment of 
this Act, the President is required to appoint an Inspector 
General for the CFPB.

Sec. 4. Effective date

    The amendments made by this Act shall take effect 60 days 
after the date of the enactment of this Act.

Sec. 5. Transition period

    This section requires the Inspector General of the Board of 
Governors of the Federal Reserve System and the Bureau of 
Consumer Financial Protection to serve in that position until 
the confirmation of an Inspector General for the Bureau of 
Consumer Financial Protection. At that time, the Inspector 
General of the Board of Governors of the Federal Reserve System 
and the Bureau of Consumer Financial Protection shall become 
the Inspector General of the Board of Governors of the Federal 
Reserve System.

         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 (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                     INSPECTOR GENERAL ACT OF 1978




           *       *       *       *       *       *       *
   requirements for federal entities and designated federal entities

  Sec. 8G. (a) Notwithstanding section 12 of this Act, as used 
in this section--
          (1) the term ``Federal entity'' means any Government 
        corporation (within the meaning of section 103(1) of 
        title 5, United States Code), any Government controlled 
        corporation (within the meaning of section 103(2) of 
        such title), or any other entity in the Executive 
        branch of the Government, or any independent regulatory 
        agency, but does not include--
                  (A) an establishment (as defined under 
                section 12(2) of this Act) or part of an 
                establishment;
                  (B) a designated Federal entity (as defined 
                under paragraph (2) of this subsection) or part 
                of a designated Federal entity;
                  (C) the Executive Office of the President;
                  (D) the Central Intelligence Agency;
                  (E) the General Accounting Office; or
                  (F) any entity in the judicial or legislative 
                branches of the Government, including the 
                Administrative Office of the United States 
                Courts and the Architect of the Capitol and any 
                activities under the direction of the Architect 
                of the Capitol;
          (2) the term ``designated Federal entity'' means 
        Amtrak, the Appalachian Regional Commission, the Board 
        of Governors of the Federal Reserve System [and the 
        Bureau of Consumer Financial Protection], the Board for 
        International Broadcasting, the Commodity Futures 
        Trading Commission, the Consumer Product Safety 
        Commission, the Corporation for Public Broadcasting, 
        the Defense Intelligence Agency, the Equal Employment 
        Opportunity Commission, the Farm Credit Administration, 
        the Federal Communications Commission, the Federal 
        Deposit Insurance Corporation, the Federal Election 
        Commission, the Election Assistance Commission, the 
        Federal Housing Finance Board, the Federal Labor 
        Relations Authority, the Federal Maritime Commission, 
        the Federal Trade Commission, the Legal Services 
        Corporation, the National Archives and Records 
        Administration, the National Credit Union 
        Administration, the National Endowment for the Arts, 
        the National Endowment for the Humanities, the National 
        Geospatial-Intelligence Agency, the National Labor 
        Relations Board, the National Science Foundation, the 
        Panama Canal Commission, the Peace Corps, the Pension 
        Benefit Guaranty Corporation, the Securities and 
        Exchange Commission, the Smithsonian Institution, the 
        United States International Trade Commission, the 
        Postal Regulatory Commission, and the United States 
        Postal Service;
          (3) the term ``head of the Federal entity'' means any 
        person or persons designated by statute as the head of 
        a Federal entity, and if no such designation exists, 
        the chief policymaking officer or board of a Federal 
        entity as identified in the list published pursuant to 
        subsection (h)(1) of this section;
          (4) the term ``head of the designated Federal 
        entity'' means the board or commission of the 
        designated Federal entity, or in the event the 
        designated Federal entity does not have a board or 
        commission, any person or persons designated by statute 
        as the head of a designated Federal entity and if no 
        such designation exists, the chief policymaking officer 
        or board of a designated Federal entity as identified 
        in the list published pursuant to subsection (h)(1) of 
        this section, except that--
                  (A) with respect to the National Science 
                Foundation, such term means the National 
                Science Board;
                  (B) with respect to the United States Postal 
                Service, such term means the Governors (within 
                the meaning of section 102(3) of title 39, 
                United States Code);
                  (C) with respect to the Federal Labor 
                Relations Authority, such term means the 
                members of the Authority (described under 
                section 7104 of title 5, United States Code);
                  (D) with respect to the National Archives and 
                Records Administration, such term means the 
                Archivist of the United States;
                  (E) with respect to the National Credit Union 
                Administration, such term means the National 
                Credit Union Administration Board (described 
                under section 102 of the Federal Credit Union 
                Act (12 U.S.C. 1752a);
                  (F) with respect to the National Endowment of 
                the Arts, such term means the National Council 
                on the Arts;
                  (G) with respect to the National Endowment 
                for the Humanities, such term means the 
                National Council on the Humanities; and
                  (H) with respect to the Peace Corps, such 
                term means the Director of the Peace Corps;
          (5) the term ``Office of Inspector General'' means an 
        Office of Inspector General of a designated Federal 
        entity; and
          (6) the term ``Inspector General'' means an Inspector 
        General of a designated Federal entity.
  (b) No later than 180 days after the date of the enactment of 
this section, there shall be established and maintained in each 
designated Federal entity an Office of Inspector General. The 
head of the designated Federal entity shall transfer to such 
office the offices, units, or other components, and the 
functions, powers, or duties thereof, that such head determines 
are properly related to the functions of the Office of 
Inspector General and would, if so transferred, further the 
purposes of this section. There shall not be transferred to 
such office any program operating responsibilities.
  (c) Except as provided under subsection (f) of this section, 
the Inspector General shall be appointed by the head of the 
designated Federal entity in accordance with the applicable 
laws and regulations governing appointments within the 
designated Federal entity. Each Inspector General shall be 
appointed without regard to political affiliation and solely on 
the basis of integrity and demonstrated ability in accounting, 
auditing, financial analysis, law, management analysis, public 
administration, or investigations. [For purposes of 
implementing this section, the Chairman of the Board of 
Governors of the Federal Reserve System shall appoint the 
Inspector General of the Board of Governors of the Federal 
Reserve System and the Bureau of Consumer Financial Protection. 
The Inspector General of the Board of Governors of the Federal 
Reserve System and the Bureau of Consumer Financial Protection 
shall have all of the authorities and responsibilities provided 
by this Act with respect to the Bureau of Consumer Financial 
Protection, as if the Bureau were part of the Board of 
Governors of the Federal Reserve System.]
  (d)(1) Each Inspector General shall report to and be under 
the general supervision of the head of the designated Federal 
entity, but shall not report to, or be subject to supervision 
by, any other officer or employee of such designated Federal 
entity. Except as provided in paragraph (2), the head of the 
designated Federal entity shall not prevent or prohibit the 
Inspector General from initiating, carrying out, or completing 
any audit or investigation, or from issuing any subpena during 
the course of any audit or investigation.
  (2)(A) The Secretary of Defense, in consultation with the 
Director of National Intelligence, may prohibit the inspector 
general of an element of the intelligence community specified 
in subparagraph (D) from initiating, carrying out, or 
completing any audit or investigation if the Secretary 
determines that the prohibition is necessary to protect vital 
national security interests of the United States.
  (B) If the Secretary exercises the authority under 
subparagraph (A), the Secretary shall submit to the committees 
of Congress specified in subparagraph (E) an appropriately 
classified statement of the reasons for the exercise of such 
authority not later than 7 days after the exercise of such 
authority.
  (C) At the same time the Secretary submits under subparagraph 
(B) a statement on the exercise of the authority in 
subparagraph (A) to the committees of Congress specified in 
subparagraph (E), the Secretary shall notify the inspector 
general of such element of the submittal of such statement and, 
to the extent consistent with the protection of intelligence 
sources and methods, provide such inspector general with a copy 
of such statement. Such inspector general may submit to such 
committees of Congress any comments on a notice or statement 
received by the inspector general under this subparagraph that 
the inspector general considers appropriate.
  (D) The elements of the intelligence community specified in 
this subparagraph are as follows:
          (i) The Defense Intelligence Agency.
          (ii) The National Geospatial-Intelligence Agency.
          (iii) The National Reconnaissance Office.
          (iv) The National Security Agency.
  (E) The committees of Congress specified in this subparagraph 
are--
          (i) the Committee on Armed Services and the Select 
        Committee on Intelligence of the Senate; and
          (ii) the Committee on Armed Services and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.
  (e)(1) In the case of a designated Federal entity for which a 
board or commission is the head of the designated Federal 
entity, a removal under this subsection may only be made upon 
the written concurrence of a \2/3\ majority of the board or 
commission.''.
  (2) If an Inspector General is removed from office or is 
transferred to another position or location within a designated 
Federal entity, the head of the designated Federal entity shall 
communicate in writing the reasons for any such removal or 
transfer to both Houses of Congress, not later than 30 days 
before the removal or transfer. Nothing in this subsection 
shall prohibit a personnel action otherwise authorized by law, 
other than transfer or removal.
  (f)(1) For purposes of carrying out subsection (c) with 
respect to the United States Postal Service, the appointment 
provisions of section 202(e) of title 39, United States Code, 
shall be applied.
  (2) In carrying out the duties and responsibilities specified 
in this Act, the Inspector General of the United States Postal 
Service (hereinafter in this subsection referred to as the 
``Inspector General'') shall have oversight responsibility for 
all activities of the Postal Inspection Service, including any 
internal investigation performed by the Postal Inspection 
Service. The Chief Postal Inspector shall promptly report the 
significant activities being carried out by the Postal 
Inspection Service to such Inspector General.
  (3)(A)(i) Notwithstanding subsection (d), the Inspector 
General shall be under the authority, direction, and control of 
the Governors with respect to audits or investigations, or the 
issuance of subpoenas, which require access to sensitive 
information concerning--
          (I) ongoing civil or criminal investigations or 
        proceedings;
          (II) undercover operations;
          (III) the identity of confidential sources, including 
        protected witnesses;
          (IV) intelligence or counterintelligence matters; or
          (V) other matters the disclosure of which would 
        constitute a serious threat to national security.
  (ii) With respect to the information described under clause 
(i), the Governors may prohibit the Inspector General from 
carrying out or completing any audit or investigation, or from 
issuing any subpoena, after such Inspector General has decided 
to initiate, carry out, or complete such audit or investigation 
or to issue such subpoena, if the Governors determine that such 
prohibition is necessary to prevent the disclosure of any 
information described under clause (i) or to prevent the 
significant impairment to the national interests of the United 
States.
  (iii) If the Governors exercise any power under clause (i) or 
(ii), the Governors shall notify the Inspector General in 
writing stating the reasons for such exercise. Within 30 days 
after receipt of any such notice, the Inspector General shall 
transmit a copy of such notice to the Committee on Governmental 
Affairs of the Senate and the Committee on Government Reform 
and Oversight of the House of Representatives, and to other 
appropriate committees or subcommittees of the Congress.
  (B) In carrying out the duties and responsibilities specified 
in this Act, the Inspector General--
          (i) may initiate, conduct and supervise such audits 
        and investigations in the United States Postal Service 
        as the Inspector General considers appropriate; and
          (ii) shall give particular regard to the activities 
        of the Postal Inspection Service with a view toward 
        avoiding duplication and insuring effective 
        coordination and cooperation.
  (C) Any report required to be transmitted by the Governors to 
the appropriate committees or subcommittees of the Congress 
under section 5(d) shall also be transmitted, within the seven-
day period specified under such section, to the Committee on 
Governmental Affairs of the Senate and the Committee on 
Government Reform and Oversight of the House of 
Representatives.
  (4) Nothing in this Act shall restrict, eliminate, or 
otherwise adversely affect any of the rights, privileges, or 
benefits of either employees of the United States Postal 
Service, or labor organizations representing employees of the 
United States Postal Service, under chapter 12 of title 39, 
United States Code, the National Labor Relations Act, any 
handbook or manual affecting employee labor relations with the 
United States Postal Service, or any collective bargaining 
agreement.
  (5) As used in this subsection, the term ``Governors'' has 
the meaning given such term by section 102(3) of title 39, 
United States Code.
          (6) There are authorized to be appropriated, out of 
        the Postal Service Fund, such sums as may be necessary 
        for the Office of Inspector General of the United 
        States Postal Service.
  (g)(1) Sections 4, 5, 6 (other than subsections (a)(7) and 
(a)(8) thereof), and 7 of this Act shall apply to each 
Inspector General and Office of Inspector General of a 
designated Federal entity and such sections shall be applied to 
each designated Federal entity and head of the designated 
Federal entity (as defined under subsection (a)) by 
substituting--
          (A) ``designated Federal entity'' for 
        ``establishment''; and
          (B) ``head of the designated Federal entity'' for 
        ``head of the establishment''.
  (2) In addition to the other authorities specified in this 
Act, an Inspector General is authorized to select, appoint, and 
employ such officers and employees as may be necessary for 
carrying out the functions, powers, and duties of the Office of 
Inspector General and to obtain the temporary or intermittent 
services of experts or consultants or an organization thereof, 
subject to the applicable laws and regulations that govern such 
selections, appointments, and employment, and the obtaining of 
such services, within the designated Federal entity.
  (3) Notwithstanding the last sentence of subsection (d) of 
this section, the provisions of subsection (a) of section 8C 
(other than the provisions of subparagraphs (A), (B), (C), and 
(E) of subsection (a)(1)) shall apply to the Inspector General 
of the Board of Governors of the Federal Reserve System [and 
the Bureau of Consumer Financial Protection] and the Chairman 
of the Board of Governors of the Federal Reserve System in the 
same manner as such provisions apply to the Inspector General 
of the Department of the Treasury and the Secretary of the 
Treasury, respectively.
          (4) Each Inspector General shall--
  (A) in accordance with applicable laws and regulations 
governing appointments within the designated Federal entity, 
appoint a Counsel to the Inspector General who shall report to 
the Inspector General;
  (B) obtain the services of a counsel appointed by and 
directly reporting to another Inspector General on a 
reimbursable basis; or
  (C) obtain the services of appropriate staff of the Council 
of the Inspectors General on Integrity and Efficiency on a 
reimbursable basis.
  (h)(1) No later than April 30, 1989, and annually thereafter, 
the Director of the Office of Management and Budget, after 
consultation with the Comptroller General of the United States, 
shall publish in the Federal Register a list of the Federal 
entities and designated Federal entities and if the designated 
Federal entity is not a board or commission, include the head 
of each such entity (as defined under subsection (a) of this 
section).
  (2) Beginning on October 31, 1989, and on October 31 of each 
succeeding calendar year, the head of each Federal entity (as 
defined under subsection (a) of this section) shall prepare and 
transmit to the Director of the Office of Management and Budget 
and to each House of the Congress a report which--
          (A) states whether there has been established in the 
        Federal entity an office that meets the requirements of 
        this section;
          (B) specifies the actions taken by the Federal entity 
        otherwise to ensure that audits are conducted of its 
        programs and operations in accordance with the 
        standards for audit of governmental organizations, 
        programs, activities, and functions issued by the 
        Comptroller General of the United States, and includes 
        a list of each audit report completed by a Federal or 
        non-Federal auditor during the reporting period and a 
        summary of any particularly significant findings; and
          (C) summarizes any matters relating to the personnel, 
        programs, and operations of the Federal entity referred 
        to prosecutive authorities, including a summary 
        description of any preliminary investigation conducted 
        by or at the request of the Federal entity concerning 
        these matters, and the prosecutions and convictions 
        which have resulted.

           *       *       *       *       *       *       *


                              definitions

  Sec. 12. As used in this Act--
          (1) the term ``head of the establishment'' means the 
        Secretary of Agriculture, Commerce, Defense, Education, 
        Energy, Health and Human Services, Housing and Urban 
        Development, the Interior, Labor, State, 
        Transportation, Homeland Security, or the Treasury; the 
        Attorney General; the Administrator of the Agency for 
        International Development, Environmental Protection, 
        General Services, National Aeronautics and Space, or 
        Small Business, or Veterans' Affairs; the Director of 
        the Federal Emergency Management Agency, or the Office 
        of Personnel Management; the Chairman of the Nuclear 
        Regulatory Commission or the Railroad Retirement Board; 
        the Chairperson of the Thrift Depositor Protection 
        Oversight Board; the Chief Executive Officer of the 
        Corporation for National and Community Service; the 
        Administrator of the Community Development Financial 
        Institutions Fund; the chief executive officer of the 
        Resolution Trust Corporation; the Chairperson of the 
        Federal Deposit Insurance Corporation; the Commissioner 
        of Social Security, Social Security Administration; the 
        Director of the Federal Housing Finance Agency; the 
        Board of Directors of the Tennessee Valley Authority; 
        the President of the Export-Import Bank; the Director 
        of the Bureau of Consumer Financial Protection; the 
        Federal Cochairpersons of the Commissions established 
        under section 15301 of title 40, United States Code; 
        the Director of the National Security Agency;or the 
        Director of the National Reconnaissance Office; as the 
        case may be;
          (2) the term ``establishment'' means the Department 
        of Agriculture, Commerce, Defense, Education, Energy, 
        Health and Human Services, Housing and Urban 
        Development, the Interior, Justice, Labor, State, 
        Transportation, Homeland Security, or the Treasury; the 
        Agency for International Development, the Community 
        Development Financial Institutions Fund, the 
        Environmental Protection Agency, the Federal Emergency 
        Management Agency, the General Services Administration, 
        the National Aeronautics and Space Administration, the 
        Nuclear Regulatory Commission, the Office of Personnel 
        Management, the Railroad Retirement Board, the 
        Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, the Small Business 
        Administration, the Corporation for National and 
        Community Service, or the Veterans' Administration, the 
        Social Security Administration, the Federal Housing 
        Finance Agency, the Tennessee Valley Authority, the 
        Export-Import Bank, the Bureau of Consumer Financial 
        Protection, the Commissions established under section 
        15301 of title 40, United States Code, the National 
        Security Agency,or the National Reconnaissance Office, 
        as the case may be;
          (3) the term ``Inspector General'' means the 
        Inspector General of an establishment;
          (4) the term ``Office'' means the Office of Inspector 
        General of an establishment; and
          (5) the term ``Federal agency'' means an agency as 
        defined in section 552(f) of title 5 (including an 
        establishment as defined in paragraph (2)), United 
        States Code, but shall not be construed to include the 
        General Accounting Office.

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                              ----------                              


       DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT




           *       *       *       *       *       *       *
 TITLE IX--INVESTOR PROTECTIONS AND IMPROVEMENTS TO THE REGULATION OF 
SECURITIES

           *       *       *       *       *       *       *


   Subtitle I--Public Company Accounting Oversight Board, Portfolio 
Margining, and Other Matters

           *       *       *       *       *       *       *


SEC. 989E. ADDITIONAL OVERSIGHT OF FINANCIAL REGULATORY SYSTEM.

  (a) Council of Inspectors General on Financial Oversight.--
          (1) Establishment and membership.--There is 
        established a Council of Inspectors General on 
        Financial Oversight (in this section referred to as the 
        ``Council of Inspectors General'') chaired by the 
        Inspector General of the Department of the Treasury and 
        composed of the inspectors general of the following:
                  (A) The Board of Governors of the Federal 
                Reserve System.
                  (B) The Commodity Futures Trading Commission.
                  (C) The Department of Housing and Urban 
                Development.
                  (D) The Department of the Treasury.
                  (E) The Federal Deposit Insurance 
                Corporation.
                  (F) The Federal Housing Finance Agency.
                  (G) The National Credit Union Administration.
                  (H) The Securities and Exchange Commission.
                  (I) The Troubled Asset Relief Program (until 
                the termination of the authority of the Special 
                Inspector General for such program under 
                section 121(k) of the Emergency Economic 
                Stabilization Act of 2008 (12 U.S.C. 5231(k))).
                  (J) The Bureau of Consumer Financial 
                Protection.
          (2) Duties.--
                  (A) Meetings.--The Council of Inspectors 
                General shall meet not less than once each 
                quarter, or more frequently if the chair 
                considers it appropriate, to facilitate the 
                sharing of information among inspectors general 
                and to discuss the ongoing work of each 
                inspector general who is a member of the 
                Council of Inspectors General, with a focus on 
                concerns that may apply to the broader 
                financial sector and ways to improve financial 
                oversight.
                  (B) Annual report.--Each year the Council of 
                Inspectors General shall submit to the Council 
                and to Congress a report including--
                          (i) for each inspector general who is 
                        a member of the Council of Inspectors 
                        General, a section within the exclusive 
                        editorial control of such inspector 
                        general that highlights the concerns 
                        and recommendations of such inspector 
                        general in such inspector general's 
                        ongoing and completed work, with a 
                        focus on issues that may apply to the 
                        broader financial sector; and
                          (ii) a summary of the general 
                        observations of the Council of 
                        Inspectors General based on the views 
                        expressed by each inspector general as 
                        required by clause (i), with a focus on 
                        measures that should be taken to 
                        improve financial oversight.
          (3) Working groups to evaluate council.--
                  (A) Convening a working group.--The Council 
                of Inspectors General may, by majority vote, 
                convene a Council of Inspectors General Working 
                Group to evaluate the effectiveness and 
                internal operations of the Council.
                  (B) Personnel and resources.--The inspectors 
                general who are members of the Council of 
                Inspectors General may detail staff and 
                resources to a Council of Inspectors General 
                Working Group established under this paragraph 
                to enable it to carry out its duties.
                  (C) Reports.--A Council of Inspectors General 
                Working Group established under this paragraph 
                shall submit regular reports to the Council and 
                to Congress on its evaluations pursuant to this 
                paragraph.
  (b) Response to Report by Council.--The Council shall respond 
to the concerns raised in the report of the Council of 
Inspectors General under subsection (a)(2)(B) for such year.

           *       *       *       *       *       *       *


TITLE X--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], Deputy Director, and 
Inspector General.--
          (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.
          (6) Inspector general.--There is established the 
        position of the Inspector General.
  (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], 
Deputy Director, or Inspector General 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], Deputy Director, or Inspector General.
  (e) 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. 1016. APPEARANCES BEFORE AND REPORTS TO CONGRESS.

  (a) Appearances Before Congress.--The Director of the Bureau 
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.
  (d) Additional Requirement for Inspector General.--On a 
separate occasion from that described in subsection (a), the 
Inspector General of the Bureau shall appear, upon invitation, 
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) and the reports required under 
section 5 of the Inspector General Act of 1978 (5 U.S.C. App.).

           *       *       *       *       *       *       *


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) Funding for office of inspector 
                general.--Each fiscal year, the Bureau shall 
                dedicate 2 percent of the funds transferred 
                pursuant to paragraph (1) to the Office of the 
                Inspector General.
                  [(C)] (D) 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.

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