49–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–55 

BUREAU OF CONSUMER FINANCIAL PROTECTION 

ADVISORY BOARDS 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. 1195] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 1195) to amend the Consumer Financial Protection Act 

of 2010 to establish advisory boards, 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. 1195, the ‘‘Bureau of Consumer Financial Protection Advisory Boards Act,’’ would create a Small Business Advisory Board at 

the Bureau of Consumer Financial Protection (CFPB). The bill 

would also codify two other advisory committees created by the 

CFPB, the Credit Union Advisory Council and the Community 

Bank Advisory Council. Each board or council advises the CFPB regarding concerns of its established membership. The Director of the 

CFPB is required to appoint at least 15, but no more than 20, 

members to each board or council. 

BACKGROUND AND NEED FOR LEGISLATION

Section 1014 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111–203) establishes a Consumer Advisory Board to advise and consult with the CFPB in the exercise of 

its functions under the Federal consumer financial laws and to provide information on emerging practices in the consumer financial 

products or services industry. The CFPB has created three additional advisory committees: the Credit Union Advisory Council, the 


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Community Bank Advisory Council, and the Academic Research 

Council. 

In order to ensure that small business owners have the opportunity to provide input to the CFPB, Representatives Pittenger and 

Heck introduced H.R. 1195, the Bureau of Consumer Financial Protection Small Business Advisory Board Act. This bill amends section 1014 of the Dodd-Frank Act to create a small business advisory board to advise the CFPB regarding small business concerns. 

There must be no fewer than 15 and no more than 20 members. 

Eligible members include individuals representing small business 

concerns that extend credit and service loans; provide real estate 

settlement services; sell, provide or issue prepaid cards; provide 

check cashing, check collection or check guarantee services; or collect, analyze or provide consumer report information. 

Appearing before the Financial Services Committee, Patrick Miller, President and Chief Executive Officer, CBC Federal Credit 

Union, testified as follows: 

Shortly after the CFPB was established, the Bureau’s 

leadership announced the creation of a credit union advisory council (CUAC). This group, which CUNA strongly 

supports, advises the agency on the impact of the Bureau’s 

proposals on credit unions. CUAC shares information, 

analyses, recommendations and the unique perspective of 

not-for-profit financial institutions with the agency director 

and staff. However, since CUAC is not required by law, it 

could be abolished at any time. We believe CUAC is an important resource for the agency and also provides a forum 

for credit union officials to provide direct feedback to the 

agency on how proposals and final rules will affect credit 

unions’ operations. Representatives Robert Pittenger and 

Denny Heck have introduced H.R. 1195, the Bureau of 

Consumer Financial Protection Advisory Boards Act, 

which would codify the CFPB Credit Union Advisory 

Council as a legal requirement and require the CFPB to 

reimburse all CUAC members for their travel and lodging 

expenses incurred to attend meetings of the CUAC. We are 

strongly supportive of this legislation. 

In a letter to the Committee dated March 24, 2015, the Independent Community Bankers of America stated that ‘‘[t]he Small 

Business Advisory Board would help ensure that small businesses, 

which play a critical role in job creation, are accommodated in 

CFPB rulemakings. Codification of the Community Bank and Credit Union Advisory Councils would ensure the advisory councils 

enjoy equivalent status to the Small Business Advisory Council. 

The Community Bank Advisory Council is an invaluable forum for 

community bankers and CFPB officials to share information and 

perspectives on the practical impact of rulemakings.’’ 

HEARINGS

The Committee on Financial Services held no hearings on H.R. 

1195 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 on Consumer 


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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. 1195 to be 

reported favorably to the House without amendment by a recorded 

vote of 53 yeas to 5 nays (Record vote no. FC–15), 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 53 yeas to 5 nays (Record vote no. FC–15), 

a quorum being present. 


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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. 1195 will create 

the Small Business Advisory Board, thus providing small business 

owners who are affected by the Consumer Financial Protection Bureau’s regulatory and enforcement activities with the opportunity 

to advise the Bureau, and will codify two other advisory committees previously created by the Bureau’s director. 

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 3, 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. 1195, the Bureau of Consumer Financial Protection Advisory Boards 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. 


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H.R. 1195—Bureau of Consumer Financial Protection Advisory 

Boards Act 

Summary: H.R. 1195 would amend current law to establish three 

groups to provide advice to the Bureau of Consumer Financial Protection (CFPB). The boards would provide information to the CFPB 

about the practices of small businesses, credit unions, and community banks that offer financial products to consumers. 

CBO estimates that implementing H.R. 1195 would increase direct spending by $9 million over the 2015–2025 period; therefore, 

pay-as-you-go procedures apply. CBO estimates that enacting the 

bill would not affect revenues. Implementing H.R. 1195 would not 

affect discretionary spending because the CFPB is permanently authorized to spend amounts transferred from the Federal Reserve 

System. 

H.R. 1195 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. 1195 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 2016– 

2020 

2016– 

2025 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .. 1 1 1 1 1 1 1 1 1 1 4 9 

Estimated Outlays ................. 1 1 1 1 1 1 1 1 1 1 4 9 

Note: Components may not sum to totals because of rounding. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

1195 will be enacted near the end of fiscal year 2015 and that 

spending will follow historical patterns for similar activities. 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. 

H.R. 1195 would amend current law to establish three groups to 

provide advice to the CFPB: 

• The Small Business Advisory Board would provide information on the practices of small businesses that offer financial 

products and services; 

• The Credit Union Advisory Council would provide advice 

to the agency on financial products or services that affect credit unions; and 

• The Community Bank Advisory Council would provide advice on financial products or services that affect community 

banks. 

Based on information from the CFPB, CBO estimates that the 

agency would spend about $200,000 annually for each new advisory 

group for compensation, travel, and support of board meetings. In 

addition, CBO expects the CFPB would add two staff positions to 

provide ongoing administrative support for the boards at an annual 

cost of about $250,000. In total, CBO estimates that enacting H.R. 


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1195 would increase direct spending by about $850,000 each year 

or about $9 million over the 2016–2025 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 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. 1195, AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON FINANCIAL SERVICES ON MARCH 26, 2015

By fiscal year, in millions of dollars— 

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015– 

2020 

2015– 

2025 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-YouGo Impact ............. 0 1 1 1 1 1 1 1 1 1 1 4 9 

Note: Components may not sum to totals because of rounding. 

Intergovernmental and private-sector impact: H.R. 1195 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: Susan Willie; Impact on 

State, Local, and Tribal Governments: Melissa Merrell; Impact on 

the Private Sector: Paige Piper/Bach. 

Estimate 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

The Committee estimates that three advisory committees within 

the meaning of section 5(b) of the Federal Advisory Committee Act 

would be created by this legislation and that the advisory committees established herein comply with the requirements set forth in 

such section 5(b). 

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. 1195 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 


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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. 1195 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. 1195 does not require any directed 

rulemakings. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 1195 as the ‘‘Bureau of Consumer Financial Protection Advisory Boards Act.’’ 

Section 2. Establishment of advisory boards within the Bureau of 

Consumer Financial Protection 

This section amends the Consumer Financial Protection Act of 

2010 (12 U.S.C. 5494) to insert a new section requiring the Director 

of the CFPB to establish a Small Business Advisory Board to advise and consult with the Bureau in the exercise of the CFPB’s 

functions under the Federal consumer financial laws and to provide 

information on emerging small business practices, including regional trends and concerns. 

This section also requires the Director of the CFPB to establish 

a Credit Union Advisory Council and a Community Bank Advisory 

Council to advise and consult with the CFPB on consumer financial 

products or services that impact credit unions and community 

banks. 

For each of the Small Business Advisory Board, the Credit Union 

Advisory Council, and the Community Bank Advisory Council, the 

Director is required to appoint no fewer than 15 and no more than 

20 members. In appointing members to the Small Business Advisory Board, the Director is encouraged to ensure the participation 

of minority- and women-owned small business concerns and their 

interests, without regard to party affiliation. In appointing members to the Credit Union Advisory Council and Community Bank 

Advisory Council, the Director is encouraged to ensure the participation of credit unions and community banks predominantly serving traditionally underserved communities and populations and 

their interests, without regard to political affiliation. The board and 

two councils must each meet at least twice each year, and members 

who are not full-time employees of the United States are permitted 

compensation and travel expenses for attending meetings. 

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, 


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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): 

DODD-FRANK WALL STREET REFORM AND CONSUMER 

PROTECTION ACT 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Dodd-Frank 

Wall Street Reform and Consumer Protection Act’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is as 

follows: 

* * * * * * * 

TITLE X—BUREAU OF CONSUMER FINANCIAL PROTECTION 

* * * * * * * 

Subtitle A—Bureau of Consumer Financial Protection 

* * * * * * * 

Sec. 1014A. Advisory Boards. 

* * * * * * * 

TITLE X—BUREAU OF CONSUMER 

FINANCIAL PROTECTION 

SEC. 1001. SHORT TITLE. 

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

Act of 2010’’. 

* * * * * * * 

Subtitle A—Bureau of Consumer Financial 

Protection 

* * * * * * * 

SEC. 1014A. ADVISORY BOARDS. 

(a) SMALL BUSINESS ADVISORY BOARD.— 

(1) ESTABLISHMENT.—The Director shall establish a Small 

Business Advisory Board— 

(A) to advise and consult with the Bureau in the exercise 

of the Bureau’s functions under the Federal consumer financial laws applicable to eligible financial products or 

services; and 

(B) to provide information on emerging practices of small 

business concerns that provide eligible financial products 

or services, including regional trends, concerns, and other 

relevant information. 

(2) MEMBERSHIP.— 

(A) NUMBER.—The Director shall appoint no fewer than 

15 and no more than 20 members to the Small Business 

Advisory Board. 


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(B) QUALIFICATION.—Members appointed pursuant to 

subparagraph (A) shall be representatives of small business 

concerns that— 

(i) provide eligible financial products or services; 

(ii) are service providers to covered persons; and 

(iii) use consumer financial products or services in financing the business activities of such concern. 

(C) ADDITIONAL CONSIDERATIONS.—In appointing members pursuant to subparagraph (A), the Director is encouraged to ensure the participation of minority- and womenowned small business concerns and their interests, without 

regard to party affiliation. 

(3) MEETINGS.—The Small Business Advisory Board— 

(A) shall meet from time to time at the call of the Director; and 

(B) shall meet at least twice each year. 

(b) CREDIT UNION ADVISORY COUNCIL.— 

(1) ESTABLISHMENT.—The Director shall establish a Credit 

Union Advisory Council to advise and consult with the Bureau 

on consumer financial products or services that impact credit 

unions. 

(2) MEMBERSHIP.—The Director shall appoint no fewer than 

15 and no more than 20 members to the Credit Union Advisory 

Council. In appointing such members, the Director is encouraged to ensure the participation of credit unions predominantly 

serving traditionally underserved communities and populations 

and their interests, without regard to party affiliation. 

(3) MEETINGS.—The Credit Union Advisory Council— 

(A) shall meet from time to time at the call of the Director; and 

(B) shall meet at least twice each year. 

(c) COMMUNITY BANK ADVISORY COUNCIL.— 

(1) ESTABLISHMENT.—The Director shall establish a Community Bank Advisory Council to advise and consult with the Bureau on consumer financial products or services that impact 

community banks. 

(2) MEMBERSHIP.—The Director shall appoint no fewer than 

15 and no more than 20 members to the Community Bank Advisory Council. In appointing such members, the Director is encouraged to ensure the participation of community banks predominantly serving traditionally underserved communities and 

populations and their interests, without regard to party affiliation. 

(3) MEETINGS.—The Community Bank Advisory Council— 

(A) shall meet from time to time at the call of the Director; and 

(B) shall meet at least twice each year. 

(d) COMPENSATION AND TRAVEL EXPENSES.—Members of the 

Small Business Advisory Board, the Credit Union Advisory Council, 

or the Community Bank Advisory Council who are not full-time employees of the United States shall— 

(1) be entitled to receive compensation at a rate fixed by the 

Director while attending meetings of the Small Business Advisory Board, the Credit Union Advisory Council, or the Community Bank Advisory Council, including travel time; and 


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(2) be allowed travel expenses, including transportation and 

subsistence, while away from their homes or regular places of 

business. 

(e) DEFINITIONS.—In this section— 

(1) the term ‘‘eligible financial product or service’’ means a financial product or service that is offered or provided for use by 

consumers primarily for personal, family, or household purposes as described in clause (i), (iii), (v), (vi), or (ix) of section 

1002(15)(A); and 

(2) the term ‘‘small business concern’’ has the meaning given 

such term in section 3 of the Small Business Act (15 U.S.C. 

632). 

* * * * * * * 

Æ 


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